Overview

Within the process, the company needs to review and find out:

• Transfer of title and compliance procedures
• Terms of sales
• Means of transportation
• Timing of payments and invoice issue

The process of physical movement of the asset to the buyer is initiated by a certain event specified in the terms of sales.

If the title to the asset can be transferred to the buyer under certain conditions, such as registration with state authorities, the buyer will take possession of the asset when they receive confirmation or a certificate from the authorities.

Invoicing often takes place when the asset title rights are transferred to the buyer.

Transfer assets to buyers (deferred title transfer) flowchart

Paths

How to review asset terms of sales

1. Open the Terms of sale, relevant to the scenario.

2. Review the terms and conditions.

3. Click the Sales terms and conditions tab.

4. Make sure the Allow shipment with deferred transfer of title of goods option is enabled.

5. Open the Contract, relevant to the scenario.

6. Review the terms and conditions.

7. Click the AR/AP settings tab.

8. Click the Payment... hyperlink and open the Contract schedule.

9. Review the schedule of payments and invoicing.

10. Pay attention to the invoicing date.

11. Pay attention to the down payment (all payments before the invoicing date).

12. Pay attention to installments (in case of multi-stage payment of the compensation amount).

13. Read the relevant notes for each line to understand the sequence of events.

Paths

How to check receipt of prepayments

1. Go to Sales, click Sales reports, and then open the Customer AR/AP open items report under Customer AR/AP open items.

2. Open Settings, enable the Advanced mode, and click the Structure tab.

3. Select the AR/AP object check box, add the Planned repayment date element, and run the report.

4. Review the payment schedule by the Contract.

5. Review the Cash received column.

6. Check whether the cash (down payment or whole compensation) has been received according to the schedule.

Paths

How to remind buyers about prepayments

1. Go to Quick menu and then click Business Interactions under Mail, tasks.

2. Create a new Interaction.

3. Use any communication tool (phone, email, or mail) to remind the buyer about the down payment.

4. Record the communication in the interaction.

How to deliver assets to buyers

Send an asset to the buyer.

Paths

How to initiate purchasing of transportation services

1. Go to Quick menu and then click Duties under Mail, tasks.

2. Create a Duty for an employee responsible for purchasing transportation services.

3. Provide all the necessary information about terms of delivery.

Paths

How to confirm delivery of assets to buyers

1. Go to Assets management and then click Customer invoice — Services and Assets under Fixed assets.

2. Create a new Customer invoice — Services and Assets document.

3. Click the Main tab.

4. Choose the Fixed assets sale with deferred title transfer transaction.

5. Set the Handed over status.

6. Leave the Transfer of right field empty.

7. Select the Sale based on check box and choose a Prepare for sale of fixed assets document. 

8. Select a Customer, a Counterparty, and a Company.

9. Select Terms of sale.

10. The system will automatically:

• Identify whether a contract must be specified.
• Fill the document Currency.
• Fill the Payment rules.

11. Click the Revenue (income) tab.

12. Add a new line and enter information on the revenue.

13. Specify Quantity, a Unit, and a Price.

14. Specify an Income item and an Income dimension.

15. Click the Fixed assets tab.

16. Add a new line and select an asset sold.

17. Specify an Expense item and an Expense dimension to recognize the cost of the asset sold.