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Construction type payment terms

  • 1.  Construction type payment terms

    TOP CONTRIBUTOR
    Posted 21 days ago
    We are looking and provide select customer "Progress Pay Terms". By this I mean we want to provide a terms code or methodology to take a customer order and  Bill the invoice on Shipment FOB Factory for say $1,000  with say progress pay of 10% on Net 30 following shipment, 60% Net 60, and 30% Net 90. Sales and receivables would recorded at 100% but would have 3 different due dates. SO on 01/01/2020 the GL entry would be Debit AR $1,000 , Credit Sales $1,000. It would need to be carrying 3 different due dates 02/01/2020 $100, $600 due  on 03/01/2020 and $300 on 04/01/2020.

    We would prefer to do it with existing NAV2018 functionality but as invoices are posted as a single line and a single due date, I don't see how.

    The only other ways are with a 3rd party extension. Is anyone aware of  or using such an extension.

    The final option is a modification. Is anybody doing such a modifications?

    Thanks in advance to all for any advice..



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    Michael Carr
    VP , Finance
    Philadelphia Scientific LLC
    MONTGOMERYVLE PA
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Construction type payment terms

    SILVER CONTRIBUTOR
    Posted 20 days ago
    Michael,

    I think we may need more detail on the business reason here. In the case of construction it is more of a percent complete billing from the jobs module, not a single line with multiple due dates. Can you clarify what your actual customer should see? Is it a single invoice and you are just managing the collection uniquely in terms of representation of what they owe you? If that is the case I think the easy answer is to go ahead and update your aging reporting to handle the concept (ie if XXXX spread differently) and set the actual date in the system to the 90 days window.

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    Spencer Coulter
    Director, Business Applications

    RSM US LLP
    D: 515.281.9248 F: 515.471.5261
    E: Spencer.Coulter@rsmus.com
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Construction type payment terms

    TOP CONTRIBUTOR
    Posted 20 days ago
    Morning Michael,

    This is not the best solution, but if you want to stay with standard functionality you could employ Jobs and create progress billing there (percentage of completion) to generate the invoices you want. The concept of Progress Pay Terms, as you know, if not possible within the Payment Terms functionality. I can tell you I have had to customize his solution using Additional Payment Terms, within Payment Terms, to extend the multiple payment terms to a single Payment Terms code.

    Ping me if you want to chat more.
    Thanks and Stay Safe,
    Steve

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    Steven Chinsky
    Senior Functional NAV/BC Consultant
    Tigunia
    Mansfield MA
    NAVUG All-Star, Granite Award Recipient, DCMP
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    Academy - Online Interactive Learning from Experts


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