Advance Payment Handling

[Former Member]

Hi,

How do we handle advance payment in SAP? In my scenario customer wants to create a payment term called 30% advance and balance payment immediate after delivery. In standard SAP sales order does not get blocked automatically depending on the payment terms. However my requirement is to block the sales order if payment terms is having advance requiremnet and once the payment is received sales order should be released for delivery.

Secondly if the customer pays advance how do we track the payment against sales order? I mean we cannot create invoice unless delivery has been done so in case of advance how do we track the payment history?

Girish

[Former Member]

Hi

With reference to your first query, you can create a payment term and in that payment term itself you can include payment block if this payment term is selected.

With reference to your second query, Advance payment received can be tracked by FI, through special GL indicator and they have incorporate the Sales Order against which advance is received. But it cannot trigger automatically in SD for release of invoice.

Regards,

Lakshmanan Krishnan

[Former Member]

Hi Krishnan,

In payment terms there is a paymnet block and no sales order block. My requirement is to block the sales order depending on the payment terms. Is there as way to block sales order?

Regarding the second point if the advance payment is collected through FI for that sales order then how is the link established while doing the final billing. I mean while genearting final invoice system will copy the full price from sales order. How would sales order know what is the advance payment done and what is remaining amount to be billed.

Thanks

Girish

[Former Member]

Hi

Payment terms is common for both Customer and Vendor and hence you could not see Sales order block in the payment terms. It has to be done manually at the time of creation of the sales order only. You can create a reason for blocking of sales order and assign that at the time of creation of sales orders.

With regard to second point, Advance payment is handled through FI, which has no link to Sales order. Standard functionality is creation of billing document for the full amount only.

Regards,

Lakshmanan Krishnan