Pay in advance setup

[Former Member]

Dear All,

Here's the Issue: The customer pays in advance for all orders. Therefore this would need to show on the invoices. We need the order to be processed and deliveries dropped therefore stating open account would enable this to happen. However if this appears on the invoice the customer may assume that they have an open account rather than payment in advance.

is there a way to set up a sold-to customer so that they are "pay in advance"?

All thoughts and ideas are greatly appreciated.

Thank you for your help

[former_member182378 · Accepted solution]

Albert,

In my opinion there are several points to this query -

1. Does customer want to see in the billing document that FULL payment is already done?

As Joao said you could use field Terms of payment or Text or if one billing type can be used (with description as Advanced FULL payment).

1b. Does customer want to see in a print out of a billing document that FULL payment is already done?

This would be extracting the value (ZTERM) or something else and populating in the output.

Or having "Paid in FULL" as a default setting in the form, so that this is printed in the printout / output. (with the relevant logic).

2. G/L accounts posting -

Look at Cash sale process.

Here the posting is done to cash settlement account and not customer revenue account.

3. Process

You can go for Sales order > Billing (accounting document)

and clearing.

All this together.

The delivery of goods can happen later (creation of delivery document, in SAP).

Note: I assume that the quantity in the sales order is delivered to the customer.

[Former Member · Accepted solution]

Thanks, TW

This will probably do it.

I will keep everybody updated on this topic.

[former_member184065 · Accepted solution]

Dear,

The customer pays in FULL for the orders and wish to see it reflected on the invoice that he receives.

There is  just ONE full payment, not a down payment.

Down Payment is nothing but advance payment method .When you raise a Sales Order then you will be got Billing block because of you didnt get yet payment form your customer ,In this case ,The FI ( Finance people ) will post ( posting T.Code F-29 )some amount whatever customer paid to finance  then we will successfully create a Sales Order without billing block .After creation of sales order then we will create a billing .Once we created billing then FI people will be clear this amount thru F-39 .This is the way .

                     Now ,coming to the pointed by you,is get the Printout of Finance people and attach it in billing level or else we need to develop some logic as that transaction ( F-29 ) needs to print in Billing output form ( amount only paid by relevant customer ) .So,this is the way and I had these ideas in my mind .

T.W,

I am asking you ,how will we show that customer amount paid to us or not thru SD ( because Finance people posting amount to that customer and we dont ,how much he paid to finance people or not right ).

Note : Quietly ,I dont like your explanation .

Thanks,

Naren

[former_member182378 · Accepted solution]

Narendra,

You and Suman have suggested the Downpayment functionality. But this scenario is not per-se a downpayment scenario! The full payment is done in advance.

A downpayment is initially paid by the customer, in advance, a part payment. And then some more payments / installements are done, at a later stage.

Furthermore, downpayment can be used with billing plan. No billing plan is needed for this scenario, as full payment is done, in one payment.

If we want to discuss to which G/L accounts the payment should be done? And how this payment should be transferred from one G/L account to another?

Then this should be made clear by the OP.

Also, I think there questions should be posted in the FI forum.

You are correct when you say that the bill is created in SD and the payments are done in FI. And it would be difficult to know how much payment is already done when looking in to SD.

But in this scenario, always the entire amount is paid in advance by the customer, for (probably) a sales document type or....etc.

So by default in SD we can know that the payment is done in full, in advance.

[former_member184065 · Accepted solution]

Dear,

Jao and T.W

Set the payment terms to payment in advance and add the terms to the invoice layout.

I am asking you two people ,If we create Payment Term with 100% payment with Zero days the system will block the Sales Order until we clear that Payment from FI point of view .

How system knows, this Amount is Advance 100 % amount from Customer in Sales Order ?

Because of ,we are not mentioning / specifying  the amount in Payment Term .In this case , we will get so many troubles .

Now ,coming to the Down Payment ,is we know how much we have got money from customer because of your sales is having 1000 rs then customer needs to be paid that amount then we will process that Sales Order .

Thanks,

Naren

[Former Member]

Thank you all for giving your ideas.

The problem however stays. I should have probably worded it differently.

The customer pays in FULL for the orders and wish to see it reflected on the invoice that he receives.

There is  just ONE full payment, not a down payment.

My personal belief is that the Cusstomer should have their own system to show that the order was fully paid and match it with our Invoice, but it is not my call 😞

[joao_sousa2]

Set the payment terms to payment in advance and add the terms to the invoice layout.

If necessary add recipt to a field of the order and to the invoice layout.

[joao_sousa2]

Hello,

I believe the problem is not related to SAP, since you can easy receive downpayments in FI and settle these against customer. The problem is the process itself since you are afraid that the customer will interpret the information incorretly.

This shouldn't be a TI issue, it's up to customer service to explain that you issue an invoice regardless of downpayments (as it is a legal requirement), and since you should be sending him an open items report regularly he will have a clear picture of the open amount.

SAP solves a lot of problems, but this is a customer service issue which can only be solved through clear communication with the customers.

[suman_sardar2]

Hi Albert,

Please have a look into the below link which may help you to map the scenario in SAP.

Processing Down Payments

Customer Down Payment Process

Thanks,

Suman$

[former_member184065]

Dear,

Down Payment Method is very well fit for this requirement .That topic was answered so many times here .Please search for that configuration in Google .

If you have any doubts please let me know .

Thanks,

Naren