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Former Member

Partial payment

HI Gurus,

The scenario is like this

My client Import material.For duty purpose he is not taking all the goods.Instead the goods are keeping in third party warehouse and when needs he is taking the goods partly and paid the import duty to customs.

The full amount of the goods will be paid after 90 days due to credit limit given by the consignor.

What is the process flow for this.And what are the accounting entries for partial payment of duty

******Points will be rewarded******



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2 Answers

  • Best Answer
    Posted on Apr 11, 2008 at 08:02 AM


    Partial payment can be done in T.Code: F-53,

    Use F-53 & Enter

    {Document date, Posting date, Co.Code, Currency}

    {Account(as out going payment G/L), Put partial amount you want pay in amount field} in Bank Data

    {Account field enter your Vendor name } in Open Item selection

    Now click Process Open Item at the top(leftside)

    Next Screen

    Select Partial Payment tab

    And Now deactivate all the line items and only activate the line item(WRT you want pay) and click the partial amount tab and see that amount entered and assigned are same in the bottom.

    Again now go to menu, click document-> Simulate, you will have accounting entries and save.


    Biju K

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    • Former Member

      Hi Bijay,

      Thanks for your valuable suggestion.I understood the partial payment process.

      What about the invoice??The invoice is coming along with goods.But we are not supposed post the invoice.

      We draw the material as per our requirements and pay the customs duty.No payment is paid to the Vendor or consignor.

      How the reconciliation will be maid????

      Can you look at this?????????



  • author's profile photo Former Member
    Former Member
    Posted on Apr 11, 2008 at 08:18 AM

    Hello Pranaya,

    As i understand that the client wants to receive the goods multiple times (i.e. partially from the total order quantity from the Import vendor).

    But, let me know the import vendor is sending whole (total) quantity at a time or not. Because, if the import vendor is sending total quantity (i.e. for the ordered PO) to your client means, the third party warehouse or your client should pay the import duty (i.e.CVD) to the customs department (then customs officer issues BOE, bill of entry for the import goods) before receiving the goods at plant. The reason is once the goods reaches to the Inland the goods will pass through CUSTOMES Depart and the receiver must pay the import duty to the customs for the goods and customs officer issues a certificate and that certificate (i.e.BOE) GR is done.

    In SAP R/3 Import procurement process flow is in below:

    1. You create a purchase order for the goods that you want and sent it to the vendor.

    For each material that you will have to pay CVD on when it comes through customs, you enter the CVD as a pricing condition.

    2. The vendor ships the goods to you.

    When the goods arrive in India, they go through customs. The customs officers issue a bill of entry for the goods, which is in effect an invoice for the CVD on the goods. Once they have inspected the goods, they send them on to you.

    3. The goods arrive at your plant, together with the bill of entry. In order to record the bill of entry in the system:

    a. The excise clerk enters an invoice for the bill of entry

    In Accounts Payable (FI-AP), the system creates a new vendor item for the CVD at the customs office. The item is offset to the CVD clearing account.

    b. He then captures an excise invoice for the bill of entry

    4. The warehouseman posts the goods receipt.

    5. The excise supervisor posts the excise invoice.

    6. The excise clerk enters the vendor invoice for the materials, following the standard procedure.


    I think the mediator (i.e. goods supplier) who receives the goods directly from the import vendor and forwarding to your client; they must have to pay the import duty for the total ordered quantity to customs depart).

    And the full amount of goods will be paid after 90days is the terms between your client and import vendor. And there is no relation between that and customs department.

    Hope this will clarify you,

    Reward, if it helps,



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    • Former Member

      Hello Er Srinivas K,

      As per current process the import goods coming as per PO.But in India they are not taking the full goods due to so many duties like CVD, E cess, H Cess, Customs educational cess, Customs higher educational cess and additional import duty.If they take the goods at a time they have to pay so much money.To check the cash flow of money they kept in bonded ware house.

      Bonded warehouse is nothing but a Customs approved warehouse.Where a consignee can keep its materials for 90 days without interest but only gives a nominal rent.

      Whenever a consignee needs he can claim the goods by sending a BOE to Customs and paying the necessary duties as valid for the material.

      The Invoice will come along with the goods.But payment is as per material withdrawal from bonded warehouse.

      My question is how to maintain these entries in system.Partial payment refer to the same PO number.



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