Down Payment rocessing

[former_member661593]

Hi,

I need help on detailed processing of down payments in following scenarios.,

Down payment in case of normal billing & where it gets adjusted in equal % in subsequent billing.Like customer pays a down payment of Rs 100 & it gets adjusted in the subsequent 10 bills by Rs 10 each.

Down Payment in case of Milestone Billing.here it is not adjusted in subsequent billing.I's apart of total bill bill amount.

Please revert to me immediately with step by step processing. .

Regards

suman

[Former Member]

Hi Suman,

pl go through the following downpayment.

Settlement Downpayment with Installment payment Term

Scenario :- Problem with Down payment settlement using installment payment term.

1. When we create Sales order, (sales item value = 100) use payment term :

0009 (Installment Payment term, 30%, 40%, 30%). In the Billing Plan, I specify 2 records, 1st record is

Downpayment request 30% of Order value, billing type is FAZ . the 2nd record is Final invoice 100%, billing

type is F2.

2. Create Billing type Down payment request , it will document as Noted item in the accounting document.

3. Receive Downpayment from customer via FI screen , at this stage the asccounting document is created as following

Dr. Cash/Bank 30

Cr. Advance from customer 30

4. When I create Billing document for the sales item, the down payment value will be proposed for settlement at Billing

Creation, I then accept the default value of down payment clearing. The accounting document is as below

Dr. AR 30 (*split AR by installment payment term)

AR 40

AR 30

Cr. Sales 100

Dr. Advance from customer 30

Cr. AR 9 (DP. 30% * 30)

Cr AR 12 (DP. 30% * 40)

Cr AR 9 (DP. 30% * 30)

It seems SAP settlement Down payment by Installment Payment term. I was wondering that is there are alternative or an option to setup the Down payment settlement independent of Installment term. I meant, I don't want to have the last 3 Credit item as above, I want only 1 line item of credit, the accounting should be

Dr. AR 30 (*split AR by installment payment term)

AR 40

AR 30

Cr. Sales 100

Dr. Advance from customer 30

Cr. AR 30 (Not separate by Installment payment term)

Solutions : Suggesstions on how I could proceed?

Your problem with Down payment settlement is common. Many users object to the down payment or security lodgement mechanism. In our case we often park and apply the advance manually to final invoice.

However, following the above case we sometimes use this with our PS orders:

1. Create Sales order, (sales item value = 100) with billing plan with three steps 30% down payment,30% std billiing on

order completion and 70% on delivery. A little different to your original Billing Plan, but 1st record is Downpayment

request 30% of Order value, billing type is FAZ . the 2nd & 3rd records are std F2 invoices 30% ,70%.

2. Create Billing type Down payment request , it will document as Noted item in the accounting document.

3. Receive Downpayment from customer via FI screen , at this stage the accounting document is created as following :-

Dr. Cash/Bank 30

Cr. Security deposit payment 30 ( In many countries this may be subject to TAX laws)

4. Create the First Billing documents , the down payment value will be proposed for settlement at Billing Creation, then

accept the default value of down payment clearing as these equal each other. The accounting document is as below

Dr. AR 30

Cr. Sales 30

Dr. Advance from customer 30

Cr. AR 30

5. Create the Second Billing document ( down payment value has expired and will not be proposed) The accounting

document is as below is then standard for the last installement.

Dr. AR 60

Cr. Sales 60

This alternative provides a cleaner option with the Downpayment.

Reagrds

natraj