Down Payment

Process Flow

The following units describe the individual steps in the down payment processing process.

The following different steps in down payment processing are looked at:

Down Payment Agreements in the Sales Order

Down Payment Request

Payments made

Milestone billing with down payment clearing

Final billing with down payment clearing

Down Payment Processing Procedure

Settings for the billing plan – To activate the billing plan function, maintain the materials, for which

you wish to process down payments, with item category group 0005 (milestone billing). This gives the

item type TAO via item type determination. The item type TAO calls up the billing plan function.

You need to implement the following activities in the billing plan for down payments:

Maintain deadline category – This determines the billing rule (percentage or value down payment) for

the down payment request. The system assigns billing type FAZ (payment request) defined in the

standard system with billing category P. (For the billing type FAZ there is the cancellation billing

document type FAS in the standard system).

Maintain the deadline proposal – Use the down payments that are due for the proposed deadlines.

Maintaining a Pricing Procedure with the Condition Type AZWR:

In the standard system the condition type AZWR is delivered for the down payment value already

provided but which has not yet been calculated. You must include this condition type in the relevant

pricing procedure before output tax.

Enter condition 2 (item with pricing) and the calculation formula 48 (down payment clearing value

must not be bigger than the item value) for the condition type AZWR.

Before the condition AZWR you can create a subtotal with the base value calculation formula 2 (net

value). If the condition AZWR is changed manually, you can get information on the original system

proposal from the subtotal.

Maintain the printing indicator – The pricing procedure can not be marked as a transaction-specific

pricing procedure (field Spec.proc.) The condition type AZWR has the calculation type B (fixed amount)

and the condition category E (down payment request / clearing).

Maintaining the Billing Document – In the standard system there is the billing type FAZ (down payment

request) and the billing type FAS for canceling . The down payment is controlled using the billing

category P of the billing type. A billing type becomes a down payment request when the billing

category P is assigned. You have to maintain blocking reason 02 (complete confirmation missing) for

the billing documents and assign it to billing type FAZ.

Copying control – Copying requirement 20 must be entered in copying control at item level for the

down payment request. In the standard system the order type TA for copying control is set up

according to the billing type FAZ for the item category TAO.

Copying requirement 23 must be entered in copying control at item level for down payment clearing.

In the standard system the order type TA for copying control is set up according to the billing type F2

for the item category TAO.

Financial Accounting settings – A prerequisite for down payment processing is that the account is

assigned to the underlying sales document. To do this, change the field status settings in Customizing

as follows:

Set reconciliation accounts (transaction OBXR) – For the `received down payments’ and `down

payment requests’ from the G/L accounts you have selected, you should assign the field status

definition G031.

Maintain accounting configuration (transaction OBXB) – For the down payments (posting key ANZ in

the standard system) and the output tax clearing (posting key MVA in the standard system), you must

maintain the posting key.

You must also carry out a G/L account number assignment for the tax account.

Maintain the posting key (transaction OB41) – For posting key 19, set the sales order as an optional

field !!!

Maintain the field status definition (transaction OB14) – For field status variant 0001, field status group

G031, set the sales order as an optional field !!!

Assign the company code to the field status variants (transaction OBC5)

Down Payment

1. What is "down payment"?

Down payment is the Received/Paid amount before actual handing over the Goods .

2. The main contents of the down payment:

(1) Down payment is processed when the commodity buying and selling is promised, and the amount received/Paid

before the commodity is handed over.

(2) The down payment happens in a debt or Credit side before the commodity is handed over .

(3) After the commodity is handed over, the down payment happened in debt/Credit could be deducted with accounts

receivable/Payable.

3. In SAP "special G/L indicator" is used for handling the down payment posting.

What is special G/L indicator? -> For distinguishing the down payment and accounts receivable of the same customer,

The "special G/L indicator" is used. In SAP standard , Special G/L indicator : "A" is used for for Down payment.

Customizing->Transaction: FBKP->special G/L button

->example: selecting "Acct Type" : " D " and "SGL Ind." : "A"

->Maintain reconciliation account and special G/L account (the reconciliation account will be replaced by

special G/L account when "A" is used for posting down payment line items) , by pressing properties

button ->"Special G/L transaction types" could be set.

Check the special G/L account:

Check the transaction types:

4. Standard scenarios for customer down payment in SAP R/3 system for down payment processing:

(1) Down Payment Request (T-cd:F-37) with special G/L indicator : "A" -> it is only a note, a line item.

(2) Create down paymet n in F-29 with special G/L indicator : "A" in Transaction:F-29.

Within this step, the down payment could be cleared.

(3) Create account reveivable in Transaction:FB70( customer open line items is posted).

(4) Clear the down payment created in step(2)withinv customer open item created in step(3) in Transaction:F-39.

Normally the partial amount in customer Open items is cleared with down payment ( down payment amount <=

amount in customer open item).

(5) Clearing the account receivable in F-28(clearing the left part amount in customer open line items).

For example:

(1)For down payment request, no transaction is happened, so no really document with debit/credit lines generated.

(2) Create down payment : Bank ￥10,000 / down payment ￥10,000

(3) Create customer open line item : Account Reveivable ￥15,000 / Revenue ￥15,000

(4) Clear down payment : Down payment ￥10,000 / Receivcable ￥10,000

(5) Clear the customer open line item : Bank ￥5,000 / Receivable ￥5,000