Skip to Content
0
Former Member
Aug 18, 2010 at 09:50 AM

Progress Billing with Downpayment and Retention

5090 Views

Hi SAP Gurus,

I just wanted to check if you have encountered a scenario wherein the purchase is billed progressively and that downpayments and retention are recognized for the purchase. For example:

Total Contract Price: 9900000

1. Downpayment (30%) - 2,970,000.00

2. First Progress Billing for 45% Accomplishment - 2,673,000.00

Value of Accomplishment 4,455,000.00

Deductions

10% Retention 445,500.00

30% Downpayment 1,336,500.00

Subtotal 1,782,000.00

3. Second Progress Billing for 83% Accomplishment - 2,257,200.00

Value of Accomplishment 8,217,000.00

Deductions

10% Retention 821,700.00

30% Downpayment 2,465,100.00

1st Progress 2,673,000.00

Subtotal 5,959,800.00

And so on...

It is basically a scenario wherein the progress is based on the accomplishment and then the charges will be net of the downpayment and the retention. What I initially had in mind was to create the PO in 3 major segments, 1 PO item for the DP (30%), 1 PO item for the retention (10%) and the remaining 60% for the whole lot purchase.

Is there any other (better) way to go about this? I heard that there is a facility for downpayment and retention recognition via EHP4; however, I am not sure if it also accommodates mixing in progress billing.

Your responses will be most welcome.

Best regards,

DeLo