on 07-03-2011 1:26 PM
HI,
As per the standard process, on PR or PO system updates commitments in project. Once I pay a down payment to vendor, my commitment in project is not getting reduced. Let me know what setting needs to be done to reduce the commitment from project.
I cannot activate cash management as Fund management is activated.
Best Regards,
Ajay Gupte
Hi Ajay,
I dont think it can be controlled due to the reasons mentioned earlier. However, the Vendor Statement of account can be a control point as it will keep on showing the down payment made until it is cleared against the purchase (MIRO) booked. Ideally, the system will control the purchases/expense booking to the extent of quantities available in the PO. Payments are to be controlled through statement of account. Moreover, the down payments made forms an MIS depicting as receivables.
Regards
Hari
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Hi,
The commitments and expense is directly linked/proportionate to expense that you intend to book (through PR/PO) or already booked (MIGO/FB60 etc).
Since down payment is an advance payment and rather a Balance Sheet item (Cash or Bank balance converting to Advances). So there is no expense recognised yet. Hence the down payment wouldn't be impacting the commitment.
Hope its clear.
Regards
Hari
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Hi Hari,
Thanks for your reply. When I raise a PO for USD 50,000, amount gets updated as commitment in project, but the movent I pay a DP againt the same PO, the commitment should get reduced as I am liable to pay only remaining amount to vendor.
Let me know is there any way that I can reduce the commitment on issue of DP.
Regards,
Ajay
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