Project Payment Schedule

Dear All,

I have a scenario like the project payments are divided as 45 % at the time of agreement, 30 % during the execution and 25 % after completion. Can anybody give me a example for setting up this scenario for projects and how it works after invoicing.

Appreciating your reply.

Thanks,

Sayeed

Hi Syed,

Which type of project are you using? You can create lines on the on-account invoices with the date and post it as required and you also have option of payment schedule if the customer invoice is posted.

Pranav…

Thanks Pranav for reply.

I am using Time and Material Project and requirement is invoicing will have service items.

Is it possible to add items to on account invoice ?

if sales order is used for invoicing then how to maintain percentage based completion on payment schedule i.e. the user will enter the percentage of work completed and then invoicing will be carried out.

which one is good to use whether on account invoice or sales order invoice.

Hi Syed,

In T&M project, we invoice customer as per actual. There is no configuration for payment schedule by default as there is no milestone based billing.

We even dnt use sales order to invoice customer, rather we use invoice proposal. You can use payment schedule. You can even invoke payment schedule after the customer is invoiced.

Pranav…

I agree with you Pranav.

I have tested T & M project by sales order invoicing through invoice proposal with payment schedule. But payment schedule provides days or months as interval for payments. But how can i achieve by percentage basis irrespective of days or months like if 20 % work is finished then i want 20 % payment to be received by customer. Any ideas from you will really help me.

Thanks,

Sayeed

See in that case i will suggest you to use transaction re-organization feature. Select the customer and go to it’s open transaction. Select the invoice and click on transaction reorganization. There you can break an invoice into parts based on percentage or amount and you can also enter due date there.

We had a similar requirement in one of project and we were lanning to customize the feature such that on the event of project stage change, the transaction reorganizing was automated. The percentages were defined on the project. But our was FP project, so not sure how it will work in your case.

Pranav…

Thanks Pranav for giving me a idea of Transaction reorganization. I will check that for our requirement.

Once again thanks for your valuable support.

Hello Syed,

If you are using AX 2012 project management add-in feature, you can setup a progress billing rule that will issue an invoice to the customer everytime the completion percentage is updated on the contract.

  • go to Contract > Billing rule and create a new rule of type progress, then specify the total value of the contract.

  • once you need to invoice go to the contract again, click maintain > Manage contract status > Update percentage. specify the percentage of completion.

  • to issue the invoice from the contract, go to Maintain > Invoice processing. then select the transaction to invoice. click Invoice proposal to start the invoice approval workflow.

  • once the invoice is approved you can post the invoice and send it to the customer.

NOTE: you have to also create a project budget for the project before you invoice.

I hope my suggestion is compatible with your business procedure.

Regards,

Rola