After an agreement has been made, it may be that the grantee is entitled to claim money back.
This could be because:
A grantee wants to claim back any additional expenses they have occurred
A grantee has met certain conditions in the agreement and is entitled to claim money back
Make the following Customizing settings under Customer Relationship Management:
Claims are submitted using web requests. These must reference a valid agreement ID.
The claims are checked for eligibility, either using automatic processes or manually. Availability checking, which verifies if there are funds assigned and available to pay the claim, can be executed against the agreement and any advances cleared. Claims are then approved, released and paid.
The following payment types are available to the grantor or grantee to process a claim:
Advance: A payment made in advance of actual work or costs incurred
Payment: Funds granted to a grantee for costs incurred. If a grantee submits proof of expenses incurred that offset an advance, this is called a clearing payment.
A grantor agreement has been set up for a low-income housing project. A builder wins the bid to construct the housing, but he requires funds to purchase materials and to pay workers. He therefore submits a claim to receive an advance payment.