I need your help with one requirement in complex Payment. We are having the below modules in our Project.
iProcurement, Inventory, Purchasing, Service Procurement, Project Costing, AP, FA, GL, AR and CE.
We are going to have all Capex Items as Expense Items. These items will be entered with a Project and Task combination in requisition and after receipt, the costs will be capitalized directly from Projects and sent to FA. AP Invoices will be matched to receipts and payments will be made.
Customer wants all item wise details in FA. Hence the requisition creator will enter the requisition with Item wise details and associate Project details and hence it will flow down to FA on capitalization.
For Capex items, the contract payment terms are generally like below:
Advance - 20%
Delivery of Items - 30%
Inspection - 20%
Letter of Performance - 20%
Warranty - 10%
How can we link the contract payment terms with the requirement that we have to enter the item wise breakup in requisition? i.e even after receiving all the items, only 30% of the amount (for Delivery) has to be paid.
The users are not ready to accept the solution of entering the details as pay items for each item line as this will be a voluminous work.
Currently they are entering 6 different lines in PO as per the payment terms and creating Invoice matching against the PO.
But this does not satisfy the key requirement of having all the item wise breakup available in Fixed Assets.