Order Related Billing

[Former Member]

Hi,

We have delivery related billing +MTO scenario.Sometimes customer extends delivery date,but ready to pay amount against invoice.This extension scenario comes when material is availalable for a particular sales order.(Means Order is created under normal delivery related billing scenario)

Can we do Order related billing at that time by changing ITEM Category in sales order at that time.

Is there any effect on MRP or production planning or on costing.

Kindly Advice.

Regards

Amit

[Lakshmipathi · Accepted solution]

No it is not adviceable to raise commercial invoice when the materials are not physically moved and also considering the fact that system will give wrong inventory value.

In order to aviod this, better you generate order related proforma invoice, get the payment from customer and once PGI is done, commercial invoice can be generated.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hello Lakshmipathi ,

True,To avoid this inventory problem,we are capturing COGS and Finished Stock cost in order through condition types --particularly for order related billing item category.These condition types directly hit accounting Internal(COGS And Inventory Stock) G/L Accounts at the time of billing.Value of these G/L Account will be offset through JV when actual PGI takes place.

Please Guide if there is any missing loop in given solution.Also advice us on impact of changing item category on MRP.

Regards

Amit

[Former Member · Accepted solution]

Amit,

As per my thought, your process is also correct. You can do order related billing.

Schedule line category is based on your ITEM category and MRP type, so it will definetly have an impact on MRP.

Thanks,

Raja

[Former Member · Accepted solution]

Hello Raja,

Yes,schedule line is directly related to MRP,but my worry is if we use same schedule lines and when we change item category-

1. Will it Transfer new requirement to MRP.

2. if yes, how we will manage previous requirement as we have already produced material for that line item.

Kindly advice.

Regards

Amit

[former_member550050 · Accepted solution]

Hi

Changing the billing relevance in item category in SPRO as per scenario is not advisable eventhough it is possible

You can better follow the suggestions as adviced By Mr.Lakshmipathi

And for your second post

You are not changing the item category and you are changing only one control that is billing relevance in your existing item category and by doing that MRP is not going to get affected

Even if you change it (as adviced by Mr.Raja Singh ) it will have the same impact on MRP front as it was earlier

By changing the billing relevance in a item cat the transfer of requirements is notgoing to get affected as it is a separate control

Regards

Raja

[Former Member · Accepted solution]

Hey Amit,

As per my understanding Goods are already produced.... So no need of MRP Planning.

Check which schedule line is there for the combination ( New Item Cat + MRP type), if its no Plan or ND,or KP then go ahead and change the item category. or else you can directly change the schedule line.

Let me check also in the system. is your query be resolved let us know.

Thanks,

raja