Advance Payment Scenario

[Former Member]

Hi all SAP experts,

I have a payment term as under:

50% at the time of order confirmation

40% at the time of delivery

10% after installation & testing.

This means that there are 2 payments thaat need to be received from the customer before the actual invoice is created.

1. How do we map this scenario in SAP?

2. Do I have to create 3 advance payment requests with reference to the sales order?

3. At the time of actual invoice creation how do we settle the advance payments received earlier against the main invoice. To complete the sales cycle i need to create an invoice for the delivery created.

Please guide me how to solve this issue.

Regards,

Niyaz.

[former_member183879 · Accepted solution]

Hi,

This is little difficult to explain here though the functionality very much exist in SAP through Downpayments

As per the payment terms, during the transaction/after the transaction a payment has to be executed by the FI team separately. When they do the payment in FI, it will be posted to some special Reconciliation account. So the payments for those sales orders will be registered.

When the invoice is created, the entire amount is posted in AR account. and the final payment(say the last 10% of amount) will be again posted in the special reconciliation account. Once this is done, the payments will be posted against the AR account based on the postings made in the special reconciliation account.

If you ask the FI consultant about this process, he will tell you how to configure this exactly.

You can also search for the configuration on Downpayments functionality to enable the same.