E9.2 Supplier Minimum payments per month

[pb903369]

Hello JDE Gurus,
Per some of our contracts, we are supposed to pay minimum payments
to a supplier per month. If the minimum amount is reached when we cut
our regular POs to suppliers, we do not need to make any extra payments.
If the minimum is not reached, we have to make up the difference by sending the
supplier a payment for the difference(Minimum - Amount of POs cut to the supplier for that month).
We need to store the minimum amounts by supplier by month. Reports can be used to compare amounts
from POs cut to the Minimum amount and calculate the difference. There will be some manual process
to check what the difference amount is and make the payment

To make the above process work, I have explored a couple of options -
1)Blanket POs seems to be the easiest solution. Enter a Blanket PO and release as necessary against
a Job account created for this supplier.
2)Create a Job and enter the minimum amounts to an account in the job budget.Create POs
against this account when making up the difference

Any advice on if there is a better solution for this? Much appreciated in advance

E1 9.2
Tools Release 9.2.4.1

 

[ccornagg]

Hello JDE Gurus,
Per some of our contracts, we are supposed to pay minimum payments
to a supplier per month. If the minimum amount is reached when we cut
our regular POs to suppliers, we do not need to make any extra payments.
If the minimum is not reached, we have to make up the difference by sending the
supplier a payment for the difference(Minimum - Amount of POs cut to the supplier for that month).
We need to store the minimum amounts by supplier by month. Reports can be used to compare amounts
from POs cut to the Minimum amount and calculate the difference. There will be some manual process
to check what the difference amount is and make the payment

To make the above process work, I have explored a couple of options -
1)Blanket POs seems to be the easiest solution. Enter a Blanket PO and release as necessary against
a Job account created for this supplier.
2)Create a Job and enter the minimum amounts to an account in the job budget.Create POs
against this account when making up the difference

Any advice on if there is a better solution for this? Much appreciated in advance

E1 9.2
Tools Release 9.2.4.1

In order to give a correct answer to your question I think it would be important to clarify first how suppliers' invoicing is going to work.
It's not clear with me how you should handle a supplier's invoice exceeding your monthly treshold, for example: are you going to wait a credit note and pay a partial amount ?

In my opinion you don't need a "job" (if your are referring to module 51 "Job Cost" Business Unit).
It could be sufficient a specific AP account with subledger mandatory (see "Posting Edit Code") to be credited monthly as an offset of your cost account (accrual JE from standard P0911).

The same AP / transitory account will be the offset of any supplier's invoice so that a standard trial balance by subledger can be used to realize amounts to be adjusted.

Kind regards,

Carlo

 

[pb903369]

In order to give a correct answer to your question I think it would be important to clarify first how suppliers' invoicing is going to work.
It's not clear with me how you should handle a supplier's invoice exceeding your monthly treshold, for example: are you going to wait a credit note and pay a partial amount ?

In my opinion you don't need a "job" (if your are referring to module 51 "Job Cost" Business Unit).
It could be sufficient a specific AP account with subledger mandatory (see "Posting Edit Code") to be credited monthly as an offset of your cost account (accrual JE from standard P0911).

The same AP / transitory account will be the offset of any supplier's invoice so that a standard trial balance by subledger can be used to realize amounts to be adjusted.

Kind regards,

Carlo

Thanks Carlo for your response. Currently all payments to the Suppliers go through (POs and then) a three way match. Part of my problem is determining the best way to generate payments to the supplier when the threshold is not reached. For ex: Supplier is supposed to get 100k this month but only got 50k in POs. How to generate a payment(automatic or otherwise) for the supplier other than by creating a PO for the difference amount. Where is the best place to store that Threshold amount for the Supplier? Hope I answered your question

 

[ccornagg]

Technically speaking you have also the option to pay via "PP = Prepayment" document type which will represent your monthly threshold.
I don't know if you are confident with this standard feature you can test using P0411|ZJDE0009 "Prepayment Voucher Entry".

Essentially if you pay 100k through a PP document you will obtain an open negative F0411 line which is the "advanced payment" to be used to net your "real supplier's invoice" coming from 3 way match (for example PV document).

To be extremely honest with you present business scenario sounds a little bit strange for tax purposes since usually you need a real supplier's document to support a payment, but this is maybe a constraint linked to my local tax rules.

Kind regards,

Carlo

 

[rsvconsulting]

Number of solutions. One that comes to mind is Batch Budget Checking - R14115.