Advanced Billing with partial line shipments

Kinetic ERP
1

Hello,

We have certain projects with custom billing terms, for example:

  • 25% due upon engineering design approval
  • 75% due upon each shipment

We have used advanced billing to handle this in the past as follows:

  • 25% for engineering: we process an advanced billing invoice where we allocated 25% to each sales order line
  • 75% due upon shipping: when a line is shipped, the full amount is reduced by the advanced bill amount on that line, resulting in the desired net 75% being billed.

The problem we have discovered is when we ship less than the full line. For example, if the order line has 100 units and we ship 4 as an initial prototype, the system applies as much advanced bill amount as possible to the shipment invoice which results in a $0.00 invoice.

Our goal would be for the system to apply only a prorated portion of that advance bill amount based on the percent of the order being shipped (ex. 4 / 100 = 4% of the advance bill amount should be applied).

Question: Has anyone run into a similar scenario and if so, have you found an effective way to handle this?

Please let me know if any further clarification is needed. I appreciate all thoughts and suggestions.

1 Like
2

We ran into this in our testing via Project Milestone Billings. These create Advance Invoices as well and Shipment Invoices would always apply the full advance amount.

We tried breaking OrderLines into release quantities and carefully AdvanceBilling to the LineRel and shipping to the LineRel but it does the same regardless of release. Meaning total unapplied Adv amount for the line gets applied rather than unapplied amount for the line release.

We ended up having to do to one OrderLine per ship qty to get the Shipment Invoice to apply the correct Less Adv Billed amount.

It seems you can manually change the Less Adv Amount in the resulting Shipment Invoice. If we revisit this, we might try a BPM after Erp.BO.ARInvoiceSvc/GetShipments to alter applied amount by release on the resulting invoices.

It’s always been like this AFAIK, so there should be a long standing idea for this to respect release qty, but I havn’t looked.