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Applying open credit

Can some one please answer the question below

From time to time our builders send us checks for work that we have not yet completed or even started. When this happens they have to post the check (Or payment to that billing point) as on open credit. Subsequently we complete the work or partially complete the work and can bill it (Or again partially bill it). A/R person tells me that this is a very difficult process and that once she applies a portion of the check she looses visibility of the original document numbers.

I would want to think that applying a credit should not be that cumbersome and would like for you to explain to me the process Thanks

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    author's profile photo Former Member
    Former Member
    Posted on Oct 17, 2006 at 09:07 AM

    If you use milestone billing plan and create a contract (VA41), you would have complete visibility.

    But your AR people are correct. When you "Partial Pay" the documents change, but you have got the document relationship browser in FBL5N to see the linkages.

    Here is some more info on milestone billing:

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    • so is my above process correct. to use f-29 when the builder pays and we havent billed him yet and then apply that in f-32 when we bill him and then use f-28 when he pays the remaining amount? when he pays the remaining amount should it be partial pay or residual pay or just normal?

  • Posted on Oct 16, 2006 at 05:07 PM

    can some one confirm if my understanding is correct


    Down payment 3000

    Final Invoice 10,000


    Invoice to Customer for Down payment: F-37. This is a noted item and there is only one line item in the document. i configure a billing plan in the sales order

    Noted item 3000

    When i receive the check from the customer F-29 and can clear the open down payment request.

    Dr. Bank 3000

    Cr. Customer (special gl indicator A) 3000

    When i finally bill the customer for full invoice,

    Dr. Customer 10000

    Cr Revenue 10000

    Clear Down payment:

    F-32, clears the 3000 against 10000 and makes the open item 7000.

    Final payment form customer 7000

    Dr. Bank 7000

    Cr. Customer 7000

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