Select language:

Function documentationPayment Plans

 

You can use this function to define payment plans (also known as invoicing plans) at functional line item level in SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS) purchase orders. Payment plans support complex procurement processes which extend over long periods of time and involve payment milestones instead of the traditional process, which involves goods receipts and invoice receipts and is based on supplier shipments. Using payment plans, you can better steer and track payments from purchase orders.

Integration

PPS uses the same payment plan functions as Materials Management (MM). You can now use payment plans on PPS purchase orders, and all invoice handling is done in SAP ERP. Payment plan functions in SAP ERP purchase orders and in Logistics Invoice Verification (LIV) have remained unchanged.

Prerequisites

In SAP SRM, you have activated the following business functions:

To use payment plans in PPS procurement documents, you must perform the Customizing activities in SAP ERP for Materials Management under   Purchasing  Purchase Order   Invoicing Plan  . Make sure that the following are customized:

  • Type of payment plan

  • List of possible date descriptions for a planned payment

  • Assignment of date descriptions to invoice types

  • List of possible reasons for blocking a planned payment

Features

Payment plan data is replicated from SAP SRM to SAP ERP and can be used for invoice verification. Billing documents can be automatically generated in SAP ERP based on the payment plans you specify, reducing manual error and eliminating unintentional delays in payments. This leads in turn to good relationships with your suppliers.

Payment plans cannot be used with the following:

  • Incremental funding

  • Order type line items

  • Pricing arrangement components

  • Retentions

  • Down payments

Partial Payment Plans

A partial payment plan is made up of a list of scheduled dates on which invoices related to an item are to be entered into the system and subsequently paid. The total value of the item is broken down into amounts or percentages and distributed over the individual dates of the payment plan. Partial payment plans are useful for invoicing high-cost material or for projects involving the procurement of external services that are to be paid in stages, for example, for large construction projects.

Example Example

A purchase order item refers to a construction project with a total value of USD 500,000. Half of the total value (USD 250,000) is due to be invoiced and paid upon completion of the first phase of construction, and the other half (USD 250,000) is due to be invoiced and paid following completion of the project.

End of the example.

The system checks that the sum of all partial payments does not exceed the price of the line item. Because you schedule the payment plan dates with your supplier, the system does not propose dates to you when you create a new partial payment plan. However, if you would like to have due dates suggested to you by the system as an entry aid, you can reference an existing payment plan and adapt it to your needs.

Periodic Payment Plans

Periodic payment plans support recurring payments like rent or lease payments, where one fixed amount, representing the total value of a line item, can be automatically invoiced and paid out for a specific period, for example, monthly or quarterly.

Example Example

A monthly sum of USD 500 is charged for a leased car. The transaction is invoiced and paid on the last day of every month.

End of the example.

You can define whether the dates are to be manually defined or whether you want the system to suggest dates according to specific rules.

More Information

For more information about payment plans in SAP ERP, see SAP Help Portal at   http://help.sap.com  SAP ERP Central Component  Logistics  Materials Management (MM)  Purchasing (MM-PUR)  Purchase Orders (MM-PUR-PO)  Invoicing Plan  .