Down payment

[Former Member]

Hi all,

please tell me how to configure Down payment scenario in SD.

[Former Member · Accepted solution]

Thank you so much both of you for your quick response. Please send me the process step wise if possible.

Thanks again.

[Former Member · Accepted solution]

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.

[Former Member · Accepted solution]

Rajan Thanks again. I will test ur steps later. Thanks a lot.

[Former Member]

Hi Zamira,

Here are steps to config down payment in sap

Maintain Item category---TAO

Billing type- FAZ

Maintain special GL indicator for account posting.

F-29 for downpayment posting.

F-38 for downpayment clearing

(a) Use billing plan, propose billing type FAZ on the downpayment plan line (Do note that your item category should have a setting I in the relevance for billing)

(b) For the line item requiring downpayment, prepare the invoice manually (FAZ)

(c) Process incoming payment using F-29, do not forget the indicator A when procesing downpayment

(d) Once the normal billing is done, another line item will be seen in the normal billing. Work on the condition tab for that line item and check condition type AZWR to indicate how much of the downpayment you wish to offset from the normal bill amount.

(e) Incoming payment processing for the normal billing should show the offset amount representing the deduction of the downpayment amount from the accounts receivable (F-28).

Reward points pls.

Regards,

Govind.

[Former Member]

Hi Friend,

The following Customizing settings have to be made for down payment processing:

Settings for the billing plan - To activate the billing plan function, maintain the materials, for which you wish to process down payments, with item category group 0005 (milestone billing). This gives the item type TAO via item type determination. The item type TAO calls up the billing plan function.

You need to implement the following activities in the billing plan for down payments:

Maintain deadline category - This determines the billing rule (percentage or value down payment) for the down payment request. The system assigns billing type FAZ (payment request) defined in the standard system with billing category P. (For the billing type FAZ there is the cancellation billing document type FAS in the standard system).

Maintain the deadline proposal - Use the down payments that are due for the proposed deadlines.

Maintaining a Pricing Procedure with the Condition Type AZWR:

In the standard system the condition type AZWR is delivered for the down payment value already provided but which has not yet been calculated. You must include this condition type in the relevant pricing procedure before output tax.

Enter condition 2 (item with pricing) and the calculation formula 48 (down payment clearing value must not be bigger than the item value) for the condition type AZWR.

Before the condition AZWR you can create a subtotal with the base value calculation formula 2 (net value). If the condition AZWR is changed manually, you can get information on the original system proposal from the subtotal.

Maintain the printing indicator - The pricing procedure can not be marked as a transaction-specific pricing procedure (field Spec.proc.) The condition type AZWR has the calculation type B (fixed amount) and the condition category E (down payment request / clearing).

Maintaining the Billing Document - In the standard system there is the billing type FAZ (down payment request) and the billing type FAS for canceling . The down payment is controlled using the billing category P of the billing type. A billing type becomes a down payment request when the billing category P is assigned. You have to maintain blocking reason 02 (complete confirmation missing) for the billing documents and assign it to billing type FAZ.

Copying control - Copying requirement 20 must be entered in copying control at item level for the down payment request. In the standard system the order type TA for copying control is set up according to the billing type FAZ for the item category TAO.

Copying requirement 23 must be entered in copying control at item level for down payment clearing. In the standard system the order type TA for copying control is set up according to the billing type F2 for the item category TAO.

Financial Accounting settings - A prerequisite for down payment processing is that the account is assigned to the underlying sales document. To do this, change the field status settings in Customizing as follows:

Set reconciliation accounts (transaction OBXR) - For the `received down payments' and `down payment requests' from

the G/L accounts you have selected, you should assign the field status definition G031.

Maintain accounting configuration (transaction OBXB) - For the down payments (posting key ANZ in the standard system) and the output tax clearing (posting key MVA in the standard system), you must maintain the posting key.

You must also carry out a G/L account number assignment for the tax account.

Maintain the posting key (transaction OB41) - For posting key 19, set the sales order as an optional field !!!

Maintain the field status definition (transaction OB14) - For field status variant 0001, field status group G031, set the sales order as an optional field !!!

Assign the company code to the field status variants (transaction OBC5)

Thats all.

[Former Member]

The following Customizing settings have to be made for down payment processing:

Settings for the billing plan - To activate the billing plan function, maintain the materials, for which you wish to process down payments, with item category group 0005 (milestone billing). This gives the item type TAO via item type determination. The item type TAO calls up the billing plan function.

You need to implement the following activities in the billing plan for down payments:

Maintain deadline category - This determines the billing rule (percentage or value down payment) for the down payment request. The system assigns billing type FAZ (payment request) defined in the standard system with billing category P. (For the billing type FAZ there is the cancellation billing document type FAS in the standard system).

Maintain the deadline proposal - Use the down payments that are due for the proposed deadlines.

Maintaining a Pricing Procedure with the Condition Type AZWR:

In the standard system the condition type AZWR is delivered for the down payment value already provided but which has not yet been calculated. You must include this condition type in the relevant pricing procedure before output tax.

Enter condition 2 (item with pricing) and the calculation formula 48 (down payment clearing value must not be bigger than the item value) for the condition type AZWR.

Before the condition AZWR you can create a subtotal with the base value calculation formula 2 (net value). If the condition AZWR is changed manually, you can get information on the original system proposal from the subtotal.

Maintain the printing indicator - The pricing procedure can not be marked as a transaction-specific pricing procedure (field Spec.proc.) The condition type AZWR has the calculation type B (fixed amount) and the condition category E (down payment request / clearing).

Maintaining the Billing Document - In the standard system there is the billing type FAZ (down payment request) and the billing type FAS for canceling . The down payment is controlled using the billing category P of the billing type. A billing type becomes a down payment request when the billing category P is assigned. You have to maintain blocking reason 02 (complete confirmation missing) for the billing documents and assign it to billing type FAZ.

Copying control - Copying requirement 20 must be entered in copying control at item level for the down payment request. In the standard system the order type TA for copying control is set up according to the billing type FAZ for the item category TAO.

Copying requirement 23 must be entered in copying control at item level for down payment clearing. In the standard system the order type TA for copying control is set up according to the billing type F2 for the item category TAO.

Financial Accounting settings - A prerequisite for down payment processing is that the account is assigned to the underlying sales document. To do this, change the field status settings in Customizing as follows:

Set reconciliation accounts (transaction OBXR) - For the `received down payments' and `down payment requests' from

the G/L accounts you have selected, you should assign the field status definition G031.

Maintain accounting configuration (transaction OBXB) - For the down payments (posting key ANZ in the standard system) and the output tax clearing (posting key MVA in the standard system), you must maintain the posting key.

You must also carry out a G/L account number assignment for the tax account.

Maintain the posting key (transaction OB41) - For posting key 19, set the sales order as an optional field !!!

Maintain the field status definition (transaction OB14) - For field status variant 0001, field status group G031, set the

sales order as an optional field !!!

Assign the company code to the field status variants (transaction OBC5)

Reward if useful.