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Former Member

Advance and Retention

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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1 Answer

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    Former Member
    Feb 13, 2010 at 05:30 PM

    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

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    • Former Member Former Member

      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