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Advance and Retention

Former Member
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Hi Friends,

I had a scenario here. I had a sale order for 100,000 with payment terms as 20% advance after sale order and 10% retention after 1 year. There will be 2 invoices each of 50000. Adv and Ret should be deducted equally in both invoices. As the Inv is 50% of SO, Adv and Ret also should be 50%.

Inv 1)50000 - 10000 (50% of adv paid) - 5000 (50% of agreed reten) = 35000 to be paid as of now

Inv 2) same as above = 35000 to be paid as of now.

Out of 100000 Customer has paid 20000 adv and paid 70000 towards the bills = 90000 (which FI will clear off). But where is the track for me for the balance 10000 for which the customer is due to me? There should be some track to FI for this 10000 as open item.

Kindly suggest some alternative for this.

Thanks in advance.

Kumar

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Answers (1)

Answers (1)

Former Member
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Hi

*But where is the track for me for the balance 10000 for which the customer is due to me? There should be some track to FI for this 10000 as open item.*

The moment you raise a Two Invoice for the value 50,000 each, same will be updated in receivable statement. That means, till you post the payment worth 50,000 + 50,000, it will be appearing in the outstanding statement.

FIrstly u adjust the advance payment against the receivables (above billing doc). In the outstanding statement FBL5N, it will show a new AB document with the outstanding payment (receivable amount = total inv - advance adjusted).

You can maintain the description in the text column.

Till the last penny you adjust against the receivables, it will be appearing in the FBL5N statement.

thank you

Former Member
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Thank you Anirudh,

Lets talk with values indetail. I am talking about only first invoice values. Here there are two possibilities of raising invoice:

1st possibility

1) Proo 50000

2) ZADV -1000

3) ZRET -5000

Net Amt 35000

Finally only one accounting document for 35000

Here billing document will be as per my requirement which is 35000 (which customer will pay now). And for adv I donu2019t need a/c doc. BUT FOR RET WHAT TO DO?

2nd Possibility

1) PROO 50000

Net Amt 50000

I will split the accounting documents with the payment terms as 20% + 10% + 70% (total 3 A/C docs). First one (10000) will be cleared against adv paid. Second one will be in open (5000)(so that we can have track of ret amt), third one (35000) will be cleared as soon as the current invoice is raised. BUT CUSTOMER WILL NOT ACCEPT THIS BILLING DOCUMENT AS HE IS PAYING ONLY 35000 AS OF NOW (NOT 50000)

In first possibility I am able to raise the invoice for 35000 for which the customer will pay now, but the problem is about the ret. System will not show the ret outstanding anywhere.

In second possibility I am able to get the outstanding for retention as separate a/c doc and will be in open, which I need. But I am raising the billing for 50000, where the customer needs only for 35000, because he will pay only 35000 as of now.

I hope I am clear now. Please guide me with some solution for this. If still you are not clear give me your phone number, I will explain you. Kindly give me some solution for this.

Thanks in advance Kumar

Former Member
0 Kudos

Hello,

In this case if customer would like to have only invoice worth 35000, you raise for the same.

For retention, which he would be paying after sometime, you can raise one SD Debit memo & adjust it whenever he makes the payment.

This way, you can keep a track of it & since it will be appearing in his outstanding statement.

thank you