Down Payments in #SAP

 Down Payments in #SAP

By Cristian Bøhnsdalen

 

What are #DownPayments in #SAP?

According to chatgptfree.ai #artificialintelligence:

“In SAP, downpayments refer to advance payments made to vendors or customers before the delivery of goods or services. Downpayments are typically used to secure a commitment from the other party and ensure timely delivery or performance of the agreed-upon goods or services.

In the context of Accounts Payable (AP) and Accounts Receivable (AR) processes in SAP, downpayments can be recorded and managed using the Down Payment Request (DPR) and Down Payment Clearing (DPC) functionalities.

When a downpayment is made to a vendor, a Down Payment Request (DPR) is created in SAP to record the advance payment. The DPR specifies the vendor, amount, payment terms, and other relevant details. Once the goods or services are delivered, the downpayment can be cleared against the subsequent invoice using the Down Payment Clearing (DPC) functionality.

Similarly, when a downpayment is received from a customer, a Down Payment Request (DPR) is created to record the advance payment. The DPR specifies the customer, amount, payment terms, and other relevant details. The downpayment can then be cleared against the subsequent invoice or delivery of goods or services.

Properly managing downpayments in SAP helps to track and reconcile advance payments, maintain accurate financial records, and ensure transparency in financial transactions with vendors and customers.”

F-47 – Down Payment Request

The Down Payment Request is a note item, so it will not impact the vendor´s balance. In order to execute, go to F-47 and in header data enter: document date, posting date, document type (KA), company code, currency. Then on Vendor enter the vendor number and the Special G/L Indicator “A”, Downpayment Requests (this could vary according to your customing).

In the next screen after pressing enter, fill out the amount, tax code and due date. Then post.

In FB03, check out the document you have posted. Note that it is only one line against the vendor account, there is no counterpart.

In FBL1N, tick on the Noted Items checkbox.

Only then will you visualize the downpayment request, which does not have a direct impact on the vendor´s balance. It is a statistical item and only displayed by ticking “noted items”, and will be excluded from the list if not ticked.

F-48 – Post Vendor Down Payment

Upon the posted noted item, we will enter a real downpayment. In F-48 in the header section, complete document date, posting date, document type (KZ), company code and currency.

In the vendor section, enter the vendor number. And in the bank section, enter the paying bank and amount.

In the following screen after pressing enter, fill out the amount, tax code and value date. Then post.

A real downpayment is generated. Check that bank account is credited and vendor is debited, generating now a real balance.

In FBL1N, check the box “Special G/L transactions”.

We can see now that vendor balance is updated, the 10.000 are now displayed as an open line item.

The vendor has now gotten the downpayment, which means less balance to pay. Now the vendor sends an invoice for part of the amount.

In FB60, complete the data as usual. In header: vendor number, invoice date, posting date, amount, reference. In the line item: G/L account and amount.

 

In FB03, we can display the invoice, nothing new here.

F-54 clear down payment

This transaction will be used to settle the invoice against the downpayment. In header, enter document date, posting date, document type (KA), company code and currency. In vendor, enter vendor number. In relevant invoice, enter the invoice that will be settled.

In the following screen after pressing enter, we can see the invoice amount that is available to settle. In this case we will proceed with a partial settlement (7.000).

Check out the document in FB03, the downpayment is extinguished and a new document with the same number is generated. This is not a special G/L item but a normal one.

Finally, in FBL1N we can see that the final balance to pay is 3.000.