Advance Payments in Sales Order

[former_member524427]

Hi,

Say, Customer Terms of Payment --> 50% Advance ; 30% Dely; 20% Receipt.

The customer can issue Letter of Credit Also.

Scenario:

Customer PO value / Sales order value : USD 5000/-

Advance to be paid : USD 2500 (50%)

There may be a scenario where the customer shall pay the Advance - USD 1500 by cash & remaining USD 1000 by Letter of Credit.

But, when i create a Sales order for this PO, the Order value shall be USD 5000/- whereas the Letter of Credit shall only be for USD 1000. The system blocks the Sales Order for Financial Document value. This block should not happen as this will cause delay the delivery for no fault from the customer.

Can anyone let me know the SAP standard process for handling Advance payment from Customers.

[former_member217082 · Accepted solution]

Hi narain

Your requirement can be fulfilled through down payment configurations

Make the following down payment configurations :

item category group - 0005

item category - TAO

for this TAO item category a billing plan 01 (milestone billing plan -01) will be assigned and its billing relevance should be I which is order related billing .

billing doc type - FAZ

cancellation billing doc type - FAS

maintain a condition type AZWR which is down payment settlement , it has requirement as 2 and calc type as 48 acct key as ERL

Now when you enter a material in line item 10 and go to item data , you can see the billing plan tab.

now go to billing plan tab and enter the start date and enter the dates on which billing has to be done and then in billing request enter 0009 which is for down payment.once u press enter automatically it all the dates get blocked and billing request by default you get as 1 , that you change it to 4 or 5 . 4 is for down payment at value basis and 5 is for down payment at percentage basis. and beside that there will be a billing type .assign billing doc type as FAZ. to all dates

check the copying requirements are there at VTFA as 20 and for item category TAO copying requirements 23 is maintained or not

now do the cycle OR - LF - FAZ (billing doc type)

Regards

Srinath

[Lakshmipathi]

Dear Narain

For advance payment, as already suggested, you can go with down payment process. But for Letter of Credit, the sale order value should not exceed the L/C value which means, you have to split the order accordingly.

thanks

G. Lakshmipathi

[Former Member]

Hi,

there is no standard process for advance payments available in SAP.

Pls check the process downpayment may this one can help you.

You can find a lot of postings in the SD forums about this. Pls check this.

Regards

William