Pay before delivery

[Mattiosco]

Hi List,

We would like the ability to raise, reprice and print an invoice (or at least produce a Pro Forma invoice or similar) for an order that has not been despatched.

We already have a process in place where a customer pays for product on an SP order type and then collects some time (ususally months) later on an SX order with a zero price. The SP is priced and invoiced and the SX is used to transact through inventory.

While this process works, having to manage two orders is not entirely efficient.

Has anyone had any experience getting customers to pay on an invoice for goods that have not yet been shipped?

A typical scenario that we want to handle is an order is entered, put through advanced pricing (we have some 400 adjustments over a number of order detail and customer price groups), then the invoice sent to the customer for payment. Once paid, the customer is free to schedule collection of the order.

Credit limits are something we are considering but providing credit/terms will not always be possible from a commerical point of view. We have also looked at putting an order on credit hold until payment is received but this still leaves us without an invoice out of JDE.

Any comments or experiences would be appreciated.

Matt

 

[carongui]

Hi,
For ProForma orders, we use a specific order type (SF) with specific order activity rules: SF is set to 520-525 status while normal orders to 520-540. SF is therefore not considered by despatch process. We print a ProForma Invoice for this SF (you may even create an intermediate status for that). Once the payment is received, we release the SF order with Speed Status Update to 540. A "prepaid invoice" is printed when goods are finally dispatched.
Hope it helps,

 

[Mattiosco]

Thanks for your reply. To try and understand the whole process, do you put the SF through a Ship Confirm to deduct the inventory when the goods are despatched?

So the process would look like;

-----

Raise SF

Reprice and print Pro Forma (is Pro Forma a standard JDE document?)

Receive payment and move to 540

Ship goods

Invoice and Sales Update (Print "PrePaid" invoice)

----

How do Accounts Receivable allocate the pre-payment to the final pre-paid invoice? Have you ever received partial payment upfront, and had a "remainder due" on the final invoice?

And apologies if I've got your process wrong. Thanks again for your help.

Matt

 

[carongui]

Searching again on this issue, I found out this post and saw that you posted another reply! apologizes but I have never received notification although my account is set up so.
Even though it may not be relevant any longer, the process you described is ours. Also, we do Ship confirm to relieve Inventory when the goods are despatched.

I am searching again on this topic because, as you mentioned in your reply, our Finance department receives Payment with no Invoice to match (since SF order is not processed yet through Ship confirm and Sales Update). They can do that only couple of days afterwards once order is despatched. Also, they sometimes receive money but do not know what it is for and have to take much time to research the order, thus delaying the info release to Logistics department that payment is received and that they can despatch.

Do you experience same issue? Have you found a way to improve this process between Finance and Logistics?

I had a look at Prepayment function in E1 but cannot see where system would release SF order and create A/R without running Sales Update (and therefore relieve Inventory!).

Once again: apologizes.