1 Reply Latest reply on Feb 19, 2014 1:50 PM by PranitSaha

    Pay items with rate

    user3584824

      Hi,
      We have recently implemented Services Procurement and we are exploring the functionality with the different pay items.

       

      We have a question about how the periodisation and accruals will be for Service PO's where Pay Items are Rate based. Line type is fixed prices services.

       

      A typical scenario can be that we have a monthly invoice where pay item is rate. The agreement with customer can typical be for 3 years (or more).

      We are looking into having this as 2-way matching (on rate based pay items only), because this is repetitive services on long term contract for IT systems. Hence we do not see the matching give any extra control by doing the receipt. We trust the supplier and are trying to reduce effort to do WC's on these.

       

      In this scenario we have some questions:

      1. Will the set-up of the PO with 2 or 3 way matching result in differences when it comes to cost distributed across periods (in this scenario 3 years, monthly payments = 36 payments)?

      2. Does anyone know if it's possible to accrue for previous period without receipt (and 2-way matching)?

       

      Thanks and regards,

       

      Willy