Down payment clarity

[Former Member]

Dear All,

I am using Down payment request for my MTO scenario.

I have done configuration with help of best practice. But I don't have clarity on the transactions.

Whate I know I will explain please correct me if I am wrong.

Creat order with billing plan. In order use condition type AZWR. Give price 100000 for AZWR. In billing plan brake up is 25% (25000) down payment (advance Billing doc.FAZ) 75% settlement (Billing doc.F2).

With reference to this order create billing doc for down payment (doc.FAZ), then after material delivered create final settlement billing doc (F2).

Reward will be assured.

Regards,

Srikanthraj

[bcrao]

Hi,

In down payment scenerio, client will request for downpayment(in your case 25%) to the customer.Billing doc type faz

As per agreement between client and customer customer will pay downpayment to start the work, say in your case manufacturing.

That means before start of the work client will receive money in advance, this amount will be adjusted either partly or fully, if manufacturing involves diff stages

If Manufacturing involves ex. moulding, assembling , testing etc

For each state client will have an agreement how much customer has to pay

say

moulding --40%

assemling--20%

testing and settlement-20%

of total agreed cost of component

Based on agreement again we will adjust the down payment amount in each stage.Say you can adjust total downpayment 25% received in moulding stage it self or part., this can be done by going condition tab in billing

regards

chidambaram

[Former Member]

Dear chidambaram

Thank you for repply. The process what i menstionned is correct? And in order is it necessary to maintain two conditon type? i.e. for down payment AZWR and Material price PR00.

Regards,

Srikanthraj

[bcrao]

yes, both you have to maintain