For example in construction business , the builder receives payment at completion of different deliverables - Foundation , Flooring , Painting and etc...
Each of these deliverables is a milestone.
Each milestone can be further sub divided if required.
So you can create Complex PO with one service line - Construction and 3 pay items or 3 service lines and each line with one pay item.
Once the builder completes Foundation , he will create Work Confirmation for completing the Foundation and receive payment. ( This work confirmation is the receiving process)
If you thinking , On what basis this will generate a receipt i.e ( How system knows that receiving is completed unless until manually run some process or complete the receiving process)
Work confirmation can be generated to the extent of work completed and this is amount based. So this cycle will complete once the ordered amount is reached.
Once the builder completes Flooring, he will create Work Confirmation for Flooring and receive payment.
Like this after completing each stage in the project the supplier will confirm the completion and receive payments.
You can relate this Milestone based billing or Progressive billing.
Okay , Lets have a scenario popup with Complex PO:
When trying to retrieve the complex PO in the core applications receiving form (Nav > Receipt > Receipts) the error "APP-PO-14094: No records meet your search criteria" is encountered when searching on the Complex PO number.Take a note , complex PO's are not received via the core application forms.
Complex POs are transacted using the Buyers Work Center and are processed by Receiving Transaction Processor (which runs automatically).
The receiving forms are not used for Complex PO receipts.
When you create and approve the complex PO and then Create the Work Confirmation this step populates the complex po receipt data into the receiving interface (rcv_transactions_interface table) and then Buyers Work Center/ iSupplier calls the Receiving Transaction Processor (RVCTP) to process the receipt.
You need to check the Transaction Status Summary form (complex PO uses Immediate receiving mode) in the core application to see if the record has failed in the receiving interface (Nav > Receiving > Transaction Status Summary).
If the record is not there, then please check to see if it already has been received.
Work Confirmations can be created from iSupplier Portal, iProcurement, and the Professional Buyers Work Center in Purchasing (the most frequent place where this is done).