What is the right approach to do this???

mkpjsr

Hi all,

I want suggestion from you all about a scenario.. and it is..

We use Sales Order to create annual sales order for our customers. This Sales Order has a fixed rate for the whole year and the items are supplied throughout the whole year on the same rate.

Sometimes due to increase in rate of raw materials we are forced to increase the rate of the item that we supply to our customers and the same is requested to the customer. But it takes 1 or 2 months to approve the new rate, till the time we supply the item on the old rate but once new rate is approved then we charge the increased amount from the customer for those periods ( 1 to 2 months).

for example:

Suppose a Sales order of for item x is created and the rate is 10.
Suppose on 01-Jan-2011 rate is changed to 12 but not approved so still item x is supplied at 10.
On 15-Jan-2011 the new rate is approved, suppose between 01-Jan-2011 and 15-jan-2011 a total of 100 Quantity of item x is supplied.
so we want to calculate the the difference in rate (i.e 12-10=2) for those 100 (100x2=200) quantity. So that we can charge it to the customers.

If I archive the Sales Order before changing the rate then i can record the old rate, but how i should calculate the difference between old and new rate..

What approach i should follow to store both rates and then calculate the difference in rates for the supplied items, so that we can charge this amount to the customer..

can anybody guide me...

David_Singleton

I would leave the order open, and when the new price is agreed, use a Charge Item to increase the price.

mkpjsr

David Singleton wrote:

I would leave the order open, and when the new price is agreed, use a Charge Item to increase the price.

Hi,

thanx for the reply.
But i want to generate a file from within navision to have the following details:

Document No. : 0001
Item No : x
Qty :50
Old Rate :10
New Rate :12
Difference in Rate :2
Amount to be charged:100



Then what to do..

David_Singleton

Have you tried?

bbrown

David Singleton wrote:

I would leave the order open, and when the new price is agreed, use a Charge Item to increase the price.

Or just hold off invoicing till the final price is agreed?

David_Singleton

bbrown wrote:

David Singleton wrote:

I would leave the order open, and when the new price is agreed, use a Charge Item to increase the price.

Or just hold off invoicing till the final price is agreed?

That might have a significant effect on Cash flow though. I had a customer with the same scenario. Basically best was to get most of the money now an worry about the difference later. I was assuming a similar case here.

mkpjsr

bbrown wrote:

David Singleton wrote:

I would leave the order open, and when the new price is agreed, use a Charge Item to increase the price.

Or just hold off invoicing till the final price is agreed?

We cannot hold invoicing due to competition in the market. There are more than 100 suppliers to this customer and all of them follow the same rule. They charge it to customer by manually calculating the difference as supplementary invoice.

I just want to know it it possible to calculate the difference between rates if we archive the document, and then generate a file from navision having all these details.

David_Singleton

mkpjsr wrote:

I just want to know it it possible to calculate the difference between rates if we archive the document, and then generate a file from navision having all these details.

Why wouldn't it be? What have you tried and what errors are you getting?

mkpjsr

David Singleton wrote:

Why wouldn't it be? What have you tried and what errors are you getting?

Actually I have not tried it till now, i thought to ask u experts before applying this approach.
What i am thinking is to archive the Sales Order before changing the rate and then change the rate. Then I can loop through the Posted Invoices with matching order no in archive document to find the total no of quantity posted against that order no and rate and finally calculate the difference amount..

Am i on right direction....

jannestig

What about using a prepayment invoice instead,

If you consider the amount billable before cost adjustments as your prepayment then you can set the prepayment to 100 for the lines you require
then post a prepayment invoice while leaving the order still open/released for amendments later ?

ivankoletic

Agree, seems like scenario for prepayments (not a typical one, but could help)