The SAP down payment process is used to manage advance payments received from customers for sales orders before the actual delivery of goods or services. These advances are treated as liabilities until the final invoice is created and the down payment is cleared.
Here's a breakdown of the process:
1. Down Payment Request:
- This is the initial step where a request for a down payment is created in SAP. It doesn't trigger any accounting entries but serves as a notification to the customer and internally.
- The request specifies the amount of the down payment and the due date.
- This can be created using transaction code F-37.
2. Customer Down Payment:
- This step involves posting the actual payment received from the customer. This creates an accounting entry debiting the bank account and crediting a down payment liability account.
- Transaction code F-29 or F-22 can be used for posting customer down payments.
- It's essential to link the down payment to the specific sales order for reconciliation purposes.
3. Sales Order and Delivery:
- The standard sales order processing steps are followed.
- Delivery of goods or services is performed as per the sales order.
4. Final Invoice Creation:
- A final invoice is created for the remaining amount after considering the down payment.
5. Down Payment Clearing:
- In the final invoice, the down payment is applied to reduce the total amount due from the customer. This involves clearing the down payment liability account against the customer receivable account.
- This is usually done during the invoice posting (transaction code VF01 or VF04). The system automatically proposes the down payments for clearing.
Key Considerations:
- Special GL Indicator: Down payments are posted using a special GL indicator that distinguishes them from regular customer invoices. This allows for proper tracking and reporting.
- Account Determination: The down payment liability account needs to be configured correctly in SAP.
- VAT/Tax Handling: Tax implications related to down payments need to be considered based on local regulations.
- Reporting: SAP provides reports to track outstanding down payments and their status.
Example:
Let's say you receive a sales order for $10,000 and request a $2,000 down payment.
- Down Payment Request: A request for $2,000 is created.
- Customer Down Payment: You receive $2,000 from the customer and post it in SAP. (Dr: Bank, Cr: Down Payment Liability).
- Delivery: Goods are delivered to the customer.
- Final Invoice: An invoice for $10,000 is created.
- Down Payment Clearing: When posting the invoice, the $2,000 down payment is applied, leaving a balance of $8,000 due from the customer. (Dr: Down Payment Liability, Cr: Customer Receivable).
