Settle A/R Invoice by less payment

[Former Member]

Dear Friends,

What should be the best way to manage, if a SAP B1 client's customers frequently settle their A/R Invoices by less payments?

[Former Member · Accepted solution]

Hi!

In Payment Window, if u do less or over payment than Bill Amount, the remaining will go as Payment on Account.

To avoid this Payment on Account during Over/Under Payment, we have a option as

Administration > System initialization > Document Settings > Per Document > Incoming Payment

you will find a Text Box as Under/Overpayment Amt Allowed, Fill min/max payment diff amount,

ex : Bill 1100, Payment 1000

Fill Under/Overpayment Amt Allowed as 100. so, whenever you make a under payment, the remainig amount automatically post to Overpayment A/R Account or Underpayment A/R Account mapped in

Admin > setup >Financials > G/L Acc Determin > Sales > General >Underpayment A/R Account

[K_Pauquet · Accepted solution]

Hi,

when using over/underpayment, it is important to know that no tax adjustment takes place, which might cause problems in some localisations. Please see SAP Note 1089652 on that subject.

If the functionality cannot be employed, then giving a discount at the payment stage might be the best option.Alternatively, open AR invoices for a particular customer can be identified at set intervals, at the end of every month for example, & then an adjusting journal entry to a write-off account may be created within the internal reconciliation function.

All the best,

Kerstin

[Former Member · Accepted solution]

Dear Karstin,

I tried (by Discount on payment stage) as per the note 1089652, but my SAP B1 2007B PL7 could not rectify the tax amount. Can u please explain is there any issue with the PL?

[Former Member · Accepted solution]

Hi...........

This generally happens. So this is very much legal. Generally clents provide debit or credit note to their Business Partners later they reconciled invoice with that perticular BP. So there is no wrong. But suppose if you are raising AR invoice of 1100 and your customer is paying you only 1000 so the difference amount i.e. 100/- is your loss you have to show it through debit note by reconciling AR Invoice.

Hope this will help you

Regards,

[K_Pauquet · Accepted solution]

Hi Nattoram,

this is exactly the point that the note makes, there is NO tax correction when using over/underpayment. You need to check with an accountant in your country whether the use of this feature would be allowed. If it is not, then you need to either work with the discount at the payment stage (you need to check the tax adjustment in your localisation) or with a journal adjustment where then tax adjustment is done manually by the accountant.

All the best,

Kerstin

[Former Member · Accepted solution]

Dear Kerstin Pauquet,

Though I got a overall solution after these discussion, yet I would like to reply you that, I have follows the "Solution" in the note "1089652". I said my SAP B1 2007B PL7 does not behave as per the output of the solution provided. Have you tried the solution and check the output in your system? Please reply If you did.

[K_Pauquet · Accepted solution]

Hi Narottam,

the workaround desccribed in the note is marked as being relevant for 2005 A SP01 & appears to work in 2007A as well.

What localisation in the B cluster are you using?

All the best,

Kerstin

[Former Member · Accepted solution]

Dear Kerstin Pauquet,

I am using India Localization in SAP B1 2007B PL7.

[K_Pauquet · Accepted solution]

Hi Narottam,

indeed, I can confirm that it doesn't work in the B-cluster. I have updated the long text in the note to that effect in addition to the validity info.

I tested a few different scenarios & set-ups, but was unsuccessful in achieving an automatic tax adjustment. I would be very much interested in a solution, until then, you will probably have to make the tax adjustment manually.

All the best,

Kerstin

[former_member187989]

You can receipt ar invoice for partial payment,later reconcile customer,take balance amount to app. g/l acct.

[michael_boucher2]

Hi,

What do you mean "by less payments"?

Michael

[Former Member]

Dear Michael Boucher,

Let's say a A/R Invoice total is 1100.00, and now at time of payment customer is paying 1000.00 as full settlement of the said invoice. And this is what I mean by less payment. Also please mention that, is this can be a legal practice?