Incoming Payment Settlement

[Former Member]

Dear Expert

I know it is possible to partially settle invoices by making incoming payment. However, we can not enter amount of 0 for incoming payment. Due to client's special requirements, I would like to know would it be possible to make a incoming payment of 0 to partially settle an invoice. I know it sounds weird, but this could solve some issues if this could be achieved.

Thanks for any help

Regards

Elton

[Former Member]

Thanks for all of your replies.

My client scenario is as below:

Client's business is project based and would invoice customers in a two approaches. These may include:

1) initial deposit of the whole project (30% or 40% of the total amount) + balanced A/R invoice upon completion of project.

2) initial deposit of the whole project (30% or 40% of the total amount) + invoice upon completion of project phase (30% or 40%) + balanced A/R invoice upon completion of project.

These are normal flows and can be fulfilled by issuing down payment invoices. System would allow issuing A/R invoice (balanced) in relation to down payment invoice only when the down payment invoice is settled by incoming payment. However, my client would have to issue the balanced invoice even if the down payment invoice is not paid since project may have completed before receiving payments for the initial deposit or completion of project phase.

It would not be good to issue down payment invoices for initial deposit + completion of project phase + completion of project and close them by a zero amount balanced A/R invoice since my client does not want to recognize sales when actually receive all payments but want to recognize sales after completion of phase or completion of project.

If a down payment invoice can be closed by a 0 amount incoming payment. System would allow to issue A/R invoice (balanced) in relation to down payment invoice and thus can fulfill my client's requirement.

Would it be possible to do so or would there be other alternatives to solve the scenario?

Regards

Elton

[Former Member]

You could create instalment based payment terms, then issue a standard invoice requiring two instalments. The due dates of these instalments can be set when creating the invoice & updated at any point as required

[Former Member]

Thanks for your reply

If I use Installments function in A/R Invoice, due dates are set. Will the system alert user will a due date is approaching? and is there would be only one invoice for all intallments?

One more thing is that, what will be the accounting entries if one installment is made?

Regards

Elton

[Former Member]

Hi Elton......

Installment might work for you but it will be calculated after invoicing only and not before. Installments will only suggest you how much amount is due to be received from customer. Off course you can get the alerts.

Regards,

Rahul

[Former Member]

Hi Elton,

Invoice installments recognize the revenue right away; there is no alert, you would know the amount is due by the aging report. If you need to send them an invoice for the installment, this is not possible. If used with DownPayment, this would work if you request the payment on a set date so if the project hasn't completed it's phase, the DP dates will be off.

What about the following:

1. Create AR DownPayment for deposit and phase(s)

2. If payment is not received when company wants to recognize the revenue, reverse the AR DP w/credit (that would close the downpayment)

3. Create the final invoice

Revenue is recognized with the (final) invoice and any o/s downpayment entries are cleared with the credit.

Heather

[Former Member]

Dear Elton,

We have the same situation. Here is why we need zero incoming payment process. When customer send us the payment they did not attached the invoice list(It happens from time to time). So we have to process the incoming payment on account. Later the payment invoice list comes we want to apply this payment on account to the invoice list. Now we are facing the Zero Incoming payment process. Unfortunately SAP B1 doesn't allow us to do so. So we use Internal Reconciliation to apply the payment on account. It works. But when you check certain invoice to see its payment information by clicking the Money button there is no Payment Check number....information.

There are some other systems which allow this process. SAP B1 may have some reason to not allow you do so.

Regards,

Ben

[Former Member]

But if you right click on the invoice & choose Reconciled Transactions, you will be able to see & drill to the documents from there. Does that help?

[Former Member]

Hi Elton,

SBO won't let you put in 0 in the 'Total Payment' field for that invoice (it will take 0.001, or whatever your decimal settings are) but once processed, the invoice with the "0" payment will not be included in the I/P transaction.

If you could expand on what they are trying to achieve, there may be another solution.

Heather

[Former Member]

Hi Elton,

I am afraid amount of 0 for incoming payment is not logical at all. Do you think there are no other options to solve any issues for reconciliation?

Thanks,

Gordon

[former_member206488]

Hi,

It is not possible to add incoming payments with 0 amount.

Thanks,

Neetu

[Former Member]

Hi Elton.......

Can you please elaborate why your client required this?

But its not possible as per as I know.....

Regards,

Rahul