Advance Payment

[Former Member]

Hi All,

I have a scenario.How to create invoice for advance payment?

My scenario is like this:

Order is for 100 computers.The computers will be delivered partially.It will be delivered in folowing way:

1st delivery 40qts

2nd delivery 35 qts

3rd delivery 25qts.

For each delivery one invoice is created for advance payment.Means client want to create invoices for advance payment for each partial delivery (e.g. 10% advance for each paritial delivery) respectively.

How to do this.

Reward points for helpful answer.

Regards

Ashis

[Former Member]

hi ashis,

Try using billing plan, milestone billing particularly.

Also, use billing doc type FAZ for downpayments.

regards,

siddharth.

[Former Member]

Hi,

This function facilitates the payment and recovery of advance payment for up to six months.

Prerequisites

Before running this function, you need to answer the following:

Is the advance payment going to be a regular payment or an off-cycle payment?

Will there be recovery of this advance payment?

Is it going to be a 'fixed rule' type of advance payment?

The use of the Eligibility for Advance Payment feature (LFSTV).

Is it going to be a 'non-fixed rule' type of advance payment?

Deactivation of the Eligibility for Advance Payment feature (LFSTV).

If you require the advance payment to be paid on an individual basis (per employee), maintain their eligibility for advance via the General Eligibility infotype (0374).

Features

To decide the relevant wage type for advance payment, the amount to be paid and who is eligible for the advance, the Eligibility for Advance Payment feature (LFSTV) is used.

Information such as ethnic group and religion is available from the same feature.

You can opt for manual input if you decide not to use the feature LFSTV.

You can make use of the General Eligibility infotype (0374) to decide which employee is eligible for the advance payment.

Advance payment deduction is also available in this function.

You can craete a batch input for advance payments, together with their recoveries.

A log of advance payments and any errors will be displayed as HR_DISPLAY_BASIC_LIST.

for its config. please refer the foll link:

http://help.sap.com/erp2005_ehp_03/helpdata/EN/2a/3f5e07538411d1898a0000e8322d00/frameset.htm

regards,

Siddharth.

[Former Member]

Hi Sidhharth,

Thanks for your reply.

But I am asking about customer's advance payment not the employees advance payment.

Kindly suggest me if you have any solution.

Regards

Ashis

[Former Member]

You can use billing based on order and can have multiple schedule lines in sales order for the delivery. Also if required you can adjust amount during invoice creation.

The other option is milestone billing but may not be suitable for your case as you need to create deliveries and for that you will need sales order.

[former_member183879]

Hi,

This functionality is also called as Downpayments in SD.

While a sales order is created in SD, a corresponding transaction in FI should also be initiated to post the payment to a special purpose GL account meant for Special transactions to record the advance payment for the sales order.

When the order is invoiced, and the rest of the amount is paid.

1. The differential amount is directly posted in GL accounts as revenue

2. The entry in Special purpose GL account is reversed and that amount is also posted as revenue in the relevant GL account.

If you talk to the FI guys on recording the advance payment, they should be able to help you on this.