2 Replies Latest reply on Aug 5, 2011 9:57 AM by Vinod

    Advance freight payment during recipt

    872630
      Hi !

      I have a very urgent problem in Purchasing. I need to pay the part of the freight to the transporter as advance or full amount of the freight for a recipt of material. Later on when the transporter will send the final bill i wll make the rest of the payment after adjusting the advance earlier paid.

      Let me describe the scenario better with an example:

      Truck A shifted material of 10 ton to my plant and frieght for the shipment would be around 1000. But i paid 500 as advance to the transporter.
      Truck B shifted material of 20 ton to my plant and frieght for the shipment would be around 2000. But i paid 500 as advance to the transporter.

      Then i received the material into my inventory (Total 30 Ton in two recipts).

      Later on Transporter raised a bill of 3000 to me. I paid rest 2000 after adjusting the earlier advance paid (Rs 1000) to the transporter.

      How i can make this transaction in Purchasing.


      Regards
        • 1. Re: Advance freight payment during recipt
          Vinod
          Hi,

          I have noticed similar situation in a mfg company, let me give a brief idea on the same to see if it helps:
          1.) They try to detach the freight piece from the actual PO.
          2.) They raise new POs for the freight alone, using PDOI programs.
          3.) These are kicked off by the receipt/partial receipt, a custom conc program looks at the original PO (against which the goods is received), it copies the supplier etc.. on to a new PO.
          4.) Amount is derived carefully everytime. Status of the PO can be calculated/controlled.
          5.) Appropriate line types are used for Freight.

          In your scenario, this might result in 2 invoices for one PO.
          For 1000 => you do a 500 in invoice-1 then 500 in invoice-2 both against the new PO (original PO is safely approved and closed/finally closed)

          You might need to look at the feasibility at greater depths.
          All the best !!

          Thanks
          Vinod
          • 2. Re: Advance freight payment during recipt
            Vinod
            Other option is to use Complex Work Procurement.. (Plus some customizations)