Partial Service Entry

Question

Dear all,
I want advice on how to proceed with the business scenario that our company have. Currently we have a project, where we create PO for service. The PO structure is simple in which we have one service line only with quantity of 100 %, where the project should be completed in 10 months.
Every month we actually check the progress of service so we know that on what is the realization on month 1, 2, etc. However we have agreement that the vendor should only invoice us if the progress is 30% (1st invoice), 70% (2nd invoice) and 100% (3rd invoice).
The thing that make us confuse is how do we post the Service Entry?
1. Should we post monthly as per physical progress, so for example, on month 1 we post 5%, month 2 another 17,5%, etc.
OR
2. we wait until we agree in offline that we already reach 30%, and they can send invoice, and we post SE for 30%
Approach no 1 is good in terms that we can track the actual progress every month however
Approach no 2 is good if we want to link the SE and the invoice.
Which approach do u use in your companies?
Best regards,
John

Answer 1

Hello,
  when you create the Service Purchase Order, you can manage in the tab services as many lines as the "steps" for invoicing the service performance. For each line you can write as text for instance:
line 10 -  "30% of service performance", 30 Unit of Activity;
line 20 -  "70% of service completion", 40 Unit of Activity;
line 30 - "100% of service completion", 30 Unit of Activity;
evaluated with the unit of measure you prefer, with a value corresponding to the percentage of the total amount of the service.
Then you will be able to post the service entry sheet for each line of the service, that's to say, in the example, three different entry sheets.
Hope to be useful.
Best regards,
Andrea