Using Milestones/Stage Payments—Exercises

IMPORTANT
If you are a student, it is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Basic Data Setup

Purchased Inventory Part

Purpose: The purpose of this exercise is to create the purchase part by entering it as an inventory part. The purchase part is automatically created when entering the inventory part.

Windows:
Inventory Part

  1. Enter an inventory part with the part number XX-58-100, replacing XX with your initials, and the description Racing Wheels.
  2. Enter yourself as planner.
  3. Use PCS as the unit of measure.
  4. Use 100 USD as the estimated material cost.
  5. It is advisable to enter default locations (arrival, quality assurance, and picking location) for the inventory part.

General exercise for Purchased Inventory Part

Supplier

Purpose: The purpose of this exercise is to enter the supplier of the part that has the identified requirement.

Windows:
Supplier

  1. Enter the British tire supplier XX-170, replacing XX with your initials. In the Name field, enter Dunlop.
  2. In the General tab, use English as the default language.
  3. In the Address/Purchase Address Info tab, use CIF (Cost Insurance Freight) as delivery term and 30 (Road Transport) as the ship via code.
  4. In the Invoice/General tab, use USD as currency.
  5. In the Purchase/General tab, enter yourself as buyer. Use USD as currency.

General exercise for Supplier

Supplier for Purchase Part

Purpose: The purpose of this exercise is to connect your purchase part to a supplier.

Windows:
Supplier for Purchase Part

  1. Enter a new combination of purchase part XX-58-100 and supplier XX-170. The price should be 100 USD.
  2. Set the default Purchase Payment Type for this combination of supplier and purchase part to Staged.

Note that after the milestone/stage payment has been created there is the possibility to enter a default PO Milestone Template ID. But for this exercise we should leave this field empty.

General exercise for Supplier for Purchase Part

Milestone/Stage Payment Template

Purpose: The purpose of this lesson is to create a milestone/stage payment template. The milestone/stage payment template is used for connecting milestones/stage payments to a purchase order line. Note that in this exercise it is the combined use of milestone and stage payments that is exemplified.

Windows:
Procurement Basic Data/Milestone/Stage Payments Templates

  1. Enter your User ID as a Template ID. Use Purchase Payment Type set to Staged.
  2. Create Milestone IDs 1 and 2 for this template. Make sure that the total Stage Payment (%) entered for the lines make up for 100%.
  3. Mark one of the lines as being the last stage payment by selecting that line, right-click and then  LV-Grammatical correction made click Last Stage Payment.
  4. Save the milestone/stage payment template (F12).

General exercise for Setting Up Milestone/Stage Payments

Required Data

Entering a Purchase Order

Purpose: The purpose of this exercise is to show you the how to enter a purchase order as required for connecting milestone/stage payments.

Windows:
Purchase Order

  1. Create a purchase order with the supplier XX-170. Enter the purchase order header and a corresponding receipt date. Save (F12).
  2. Enter two purchase order lines with the inventory registered purchase part XX-58-100. Make sure that the Purchase Payment Type is set to Staged for these lines

General exercise for Entering Purchase Orders

Main Exercises

Purpose: The purpose of this lesson is to learn how to connect milestone/stage payments to purchase orders. You will also learn how to report approved stage payments in purchase orders.

Windows:
Purchase Order

Entering a New Milestone for a Purchase Order

  1. Select a purchase order line, right-click and point to Order Line Details and then click Milestone/Stage Payment. The Milestone/Stage Payment window appears.
  2. In the table, create a new line and enter a Milestone ID, e.g., A.
  3. Enter a description in the Description field, e.g., Partial Delivery Step 1.
  4. Enter a percentage value in the Progress field.
  5. Enter information on lead time and previous milestone in the appropriate fields. You also have the option to include notes for each line entered.
  6. Create two more lines with Milestone IDs B and C.
  7. Save (F12)
  8. Return to the purchase order and refresh. Make sure that the check box under the Milestone/Stage Payment Exists column is selected.

Entering a Milestone For Using a Milestone Template

  1. Select the second purchase order line, right-click and point to Order Line Details and then click Add Milestone/Stage Payment Template. The Add Milestone/Stage Payment Template window appears. (You could select several lines if the same template is to be added to those lines).
  2. In this window, choose your template named after your User ID. Note that it is only templates with the same purchase payment type as your purchase order line that is displayed. Click Select.
  3. Return to the purchase order and refresh. Make sure that the check box under the Milestone/Stage Payment Exists column is selected.

Note that you cannot  add a milestone/stage payment template to a purchase order line that already have some milestone/stage payment lines connected.

Reporting Completed Milestones

  1. From the purchase order line, right-click, point to Order Line Details and then click Milestone/Stage Payment
  2. The Milestone/Stage Payment  window appears. Select the one of the milestone/stage payment lines, right-click and then click Approve.
  3. Note that the Date Approved is set as today's date (system date) .

Before approving the last stage payment the purchase order line has to be closed and all other milestone/stage payments has to be approved.

Match Supplier Invoice Against Approved Stage Payment

Windows:
Manual Supplier Invoice

  1. Create a supplier invoice for the purchase order header used in examples above by entering the PO ref.
  2. Enter an invoice number and the amount to be matched for the first approved milestone/stage payment.
  3. Select the invoice line, right-click and then click Match PO Receipts per Line. The Post from Purchase Order window appears.
  4. In this window, check the match line for the stage payment that you want to match. Check that the Remaining field in the header of the window is reduced to 0. Click OK.
  5. Check that relevant postings are added to the Posting Information section of the Supplier Invoice Entry window. Save the invoice.

After the supplier invoice has been saved, check the windows for Milestone/Stage Payment for Purchase Orders Line and Invoice Purchase Order Stage Payments for relevant updates regarding invoice information.