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Former Member

[Real Estate] Cutover Strategy for Open PO's with Retention and DP

Hi Experts,

I would like to consult with you how to migrate Open PO's with retention and DP? My client have subcontractors who build establishments for them. The subcontractors are the one responsible for all the materials/services needed for the construction, so basically my client only buys and pays the service of building. They use progress billing with downpayment and retention. During cutover we have the following scenarios. Kindly advise the best way to handle them?

A. In the legacy system, the PO price is $10,000. A downpayment of 20% = $2,000 has been made. How do we migrate the PO such that the downpayment made and pending downpayment clearing are considered?

B. In the legacy system, the PO price is $10,000.  A downpayment of 20% = $2,000 has been made. 1st billing for 30% work completion is done with 30% DP recoupment and a 5% retention which means a total of $2,250 has been paid. How do we migrate the PO such that the downpayment made, remaining amount to be cleared in the downpayment, and the retention are considered?

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1 Answer

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    Former Member
    Nov 03, 2015 at 07:36 AM

    Hi,

    In your cut over you need to only consider what you need to pay once you migrate from legacy to SAP.

    What ever you paid earlier we not be consider in SAP because it already posted in legacy account which you can close.

    Only the pending amount against the clearing amount you need to carry forward from legacy to SAP.

    Rgds,

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