Outlining the Procedure for Down Payments of the Asset under Construction

Objective

After completing this lesson, you will be able to manage down payments for an Asset under Construction in the ordering process

Down Payment Process

Kevin's phone rings. It's his manager, sharing some bad news.

The down payment procedure for their big projects isn't working as it should be. It seems their suppliers for the Velodrome project are asking for more and more down payments.

Now, Kevin's been given the task of checking the down payment process for project still under construction. That's going to be a hefty task.

Without wasting time, Kevin calls Monica from the Materials Management team for a meeting. They need to figure this out.

Summary

Manage Down Payments: Store down payment data in the purchase order header or item level.
Monitor Down Payments: Use the app to check defined down payments and create requests.
Down Payment Posting: Enter requests with special G/L indicator F; post payments with indicator A.
Goods Receipt: Post goods receipt after down payment; specify purchase order number.
Invoice and Payment: Enter invoice using purchase order number; clear remaining amount by payment.

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