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Hello,

Some of our customers receive subsidies from organizations.

If the subsidy covers, for example, 20% of the order amount, we need to invoice 20% of the item's price to the funding organization. How can we manage this in IFS?

Is it necessary to create two orders for the same item—one with an 80% discount for the organization and another with a 20% discount for the customer?

If two orders are created, how can we communicate to the customer that the 20% discount is linked to a subsidy provided by the organization?

 

Thank’s for your help in advanced 

​@IFSRUNINNOVAL if I understood your scenario, from an IFS perspective you are dealing with 2  customers (meaning you expect money from 2 different places)

  • the real customer -  will pay 80%
  • the organization which provides the subsidies - will pay 20%

In such a case you would need 2 different Customer Orders with a 20% and 80% discount on the same part no. In order to link the 2 COs, you could think of creating some persistent custom field and have your users update the value manually.

I can’t think of any standard functionality that would cover this requirement.

Hi, 

I’m sorry but I don’t see a second customer order as a solution. With a second customer order (unless then matching sales parts with non-inventory sales parts) you would have double cost of goods sold, double values in sales history, double sales - granted with discounts.  The accounting - postings would probably create inappropriate entries.  Can it work? maybe but very difficult and history / statistics would not match reality.  

I see this more as an invoicing issue.   Not knowing the legal requirements for your country, maybe consider 2 instant invoices for the net invoice adjustment.  One II would be -20% for the credit to the original sales, the other would be +20 for the subsidy.  You would need details on the invoices to explain why the adjusting invoices, The accounting on the instant invoice can be anything that would be needed.    A custom report (if needed) could provide all the details you need. 

Other options exist for the invoicing- but in any event, I see this as an invoice need / process. Two customer orders (IMO) would cause greater difficulties. 

You are essentially reducing the AR for the original invoice customer and billing a different customer for the subsidy.  

In other markets - the subsidy could be 100% outside IFS, meaning the IFS customer would request a subsidy from another entity (government or other). The entity responsible for the subsidy would send funds to the IFS customer. That part is outside IFS. I’ve seen that before. 

 

Best regards, 

Thomas

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