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Adjustment of Down payment in milestone billing

Former Member
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Query - A client has paid some amount as down payment to vendor. And the billing plan consists of milestone billing. The client wants to adjust fixed percentage of down payment in every invoice (depends upon the no. of milestones). Is it possible to make such settings in SAP system so that client does not have to calculate it on paper and pay to vendor?

Example- Suppose project is worth of 10,000,00. vendor has been paid 100,000 (not in SAP payment terms. It is a mutual agreement between client & vendor). Now in billing plan 5 milestones are included and each invoice will come up to 200,000. Now on bill verification, client wants to adjust this 100,000 in every invoice by deducting 20,000. In this way vendor will be paid only 180,000 instead of 200,000.

My question is that is it possible to make such kind of payment terms while making billing plans. Can we make such settings in SAP system.

Please clarify my doubt.

Edited by: Pallavi Choudhary on May 28, 2008 11:41 AM

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Answers (1)

Answers (1)

varshal_kachole3
Active Contributor
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Hi,

Tcode OVBJ,

In billing rule maintain 4 i.e Down payment in milestone billing on % basis.

Hope its useful.

Reward points if useful.

Thanks..

Former Member
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No this advance 100,000 have not been paid against this project. this has been paid thru some JVs or u can say not included in Purchase order payment terms. Then it is not possible to put in billing plan. It has been paid outside the syatem

Now my question is that is it possible to make a bill of value 180,000 and 20,000 automatically gets adjusted in every invoice. can i link this advance payment to my partial invoices in SAP system?

Edited by: Pallavi Choudhary on May 28, 2008 1:10 PM

Edited by: Pallavi Choudhary on May 28, 2008 1:22 PM

varshal_kachole3
Active Contributor
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Hi,

You have to create FAZ (Document type :DZ) to begin with if you have to proceed the way you have explained and later on while creating the F2 , this FAZ amount will get cleared based on your adjustment. (this way F2 will have the reference of the FAZ with the requests)

To create FAZ document with reference to project follow the procedure below:

Hi,

In your case you have five milestones 200K each without the Down payment milestone.: (This gives a total net value as 200K*5= 1000K=100%)

If you have had maintained the downpayment of 200K milestone then the total number of milestones will be Six instead of Five.

this way the total net invocing value will be (200K+1000K) i.e 120%. which after down payment clearing will become 100%

So to proceed with your question, please maintain 6 milestones instead of 5 milestone.

Unfortunaly in the present scenario you can not proceed with percentage but can only proceed with the manual adjustment.

hope its useful.

Reward points if useful.

Thanks..