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Former Member

Installment billing

Greetingz ERP Guruz !

G'day to all.

Can anyone explain Installment billing in detail with step by step configuration. along with customization steps.

My email is, atma_ram_1@yahoo.co.in

Regards,

Atma

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3 Answers

  • Best Answer
    author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 06:15 AM

    Dear Atma Ram,

    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 BillingCreation, 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 ccept 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 ocument 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.

    Hope this helps you.

    Do award points if you found them useful.

    Regards,

    Rakesh

    P.S. you can send me a mail at my mail id rakeshsinghchauhan@gmail.com for any specific details

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    Former Member
    Posted on Aug 21, 2007 at 09:54 AM

    hi

    mail sent reward if helps

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  • Posted on Aug 21, 2007 at 10:31 AM

    Hi..

    Could you please send me the same oc on perfectionyst@gmail.com

    Regds

    Manoj

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    • Former Member

      Hi Guyz

      I have sent the material to your respective mails too.

      & Howdy 'AK' , your stuff is pretty good on times, think you can send us some stuff here too 😊

      Cheers