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Progressive Billing

weilanveron_liu
Explorer
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Hi,

Can anyone advise on how to do progressive billing in SAP B1?

I have a sales order and i will be billing on a milestone basis, example 30%-upon action 1, 20%-upon action 2 and 50%-upon action 3.

This is not downpayment but will be more on billing based on the progess of a project.

Thank you.

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Answers (4)

Answers (4)

Former Member
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If you want to do some form of Progressive Billing you can also use the payment terms in the AR Invoice and create some form of Installment setup where you manually set it to be say 30%, 20% and 50% (else SAP B1 will set it all to divide the 100% against the number of installments, IE: 3 installments of 33.33%).

This will only work if:

A. You AR Invoice out the total sum of the invoice and it shows up in your Banking --> Incoming Payments

B. Your billing is set on a quantifiable sum / you know how much to bill out in advance.

Is there any reason you dont want to go with the idea of having 3 item rows in the Sales Order for the 3 progressive bills?

former_member1190345
Active Contributor
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Hi Veron,

AS per my suggestion there are 2 ways to handle this,

1. As such there is no possibility of doing Milestone billing in SBO but what youcan definitely do is to set up alerts when the Milestone is approaching or when the particular date is approaching the syten can prompt you by throwing up an alert stating that youa need to bill it now.

2. But I believe the more correct, easier and less tedious approcah would be to create a A/R DPM Invoice when say 30 % of the project is completed you can create an Invoice for 30% of the total value and then again when the second pahse is over create the next 20% of the bill and when the last phase is done you cvan create the Actual A/R invoice and reconcile it with the A/R DPM's created earlier so that the syten calculates the exact remaining amount for billing.

Ofcourse the second option is viable when you know right before the start of the project that the total value of the project is going to be say X. In case if the value of the bill is to be decided after the the first phase of the project is completed the you can follow the first option.

Hope this helps.

Nagesh

weilanveron_liu
Explorer
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Hi Nagesh Murthy,

Thanks for the reply but for suggestion (1), user does not know the exact date to invoice when entering Sales Order.

As for suggestion (2), i have thought of that too but there are 2 issues with this:

a) when creating and final invoice and wants to link Downpayment invoices, the Downpayment invoices need to be paid already. But for my case, the Downpayment invoices can still be unpaid when creating the final invoice.

b) i think there is nowhere in Sales Order whereby user can know how many % has been invoiced.

Thanks.

Former Member
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Hi,

The only way is Down payment. The account implications of down payment is like A/R invoice.

You need to do Ist two stages progress billing thru' down payment and final stage thru' A/R Invoice and linked with two stages of down payment bills.

Hope this will help you,

Regards,

Venkatesan G.

lorna_real
Active Participant
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Hi Veron,

Good to see you here! How are you? How's Singapore?

Anyway, with regard to your question, is the stages of action definite? Say, first billing is 30%, second is 20% and last is 50%? If this is the case, you may consider creating a sales order with three line items (non-stock items) for 30%, 20%, 50%.

You may want to put a Line Text in the Item/Sales Order to describe the stage you are in. Once the action is completed, you can proceed to Deliver and Invoice that line item.

The above may not be the best idea, but I've seen some consulting companies using the above workaround.

Hope this helps.

Regards,

Lorna Real

weilanveron_liu
Explorer
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Hi Lorna,

Nice to see you here too. Singapore is fine. How are you and where are you now?

Thanks for the suggestion but the solution does not work because user does not like the idea of splitting the qty into decimals like this. There may also be cases whereby they could enter a non-inventory code with 4 qty (maybe for 4 sets of services). And user will want a report to show the item code, qty/amount and not-invoiced qty/amount.

Thanks.