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Payment terms & Down payments

Former Member
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Hi all SAP experts,

In my company the requirement is as follows:

1. When the order confirmation is done (sales order created), 50% of the order value is to be billed to the customer as first down payment.

2. After the delivery of the items is done, 40% of the order value is to be billed to the customer.

3. After the installation & commissioning is done, the remaining 10% of the value is to be billed to the customer.

Requirements:

1. How do I map this scenario in standard SAP?

2. Can I use the payment terms to control the part payments to be received.

3. My client wants to know at any stage, the amount received from the customer for the sales order & the remaining amount to be received from the customer.

Please help me to map this scenario.

With best regards,

Niyaz.

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Answers (1)

Answers (1)

Former Member
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hello, niyaz.

i was able to test your requirements on 11 oct 2008. here were my findings:

1. your requirement for 50%, 40% and 10% payments can be satisfied by using BILLING PLAN and using MILESTONE BILLING, which you must activate on sales doc header and item levels. you can specify that the first payment is a down-payment (which is not included in the 100% collectible, and you must settle the downpayment... more on this later).

the 40% after delivery is also confirmed in the sales order (billing by default will be order related as SAP standard). the 10% will follow the same logic.

2. you can use different payment terms for each of the payments (50%, 40% and 10%). but these will be at header level, as the payment terms at item level are not modifiable (unless someone can find out how). i tried deactivating 'business item' at VOV7 but you cannot do this if you are using billing plans.

3. your client's remaining requirements can be tracked by the document flow at header level, and by using the reports in FI and Credit Management.

hope these helped you.

regards.

Edited by: jonathan yap on Oct 11, 2008 12:51 PM