Partial or Residual - Business Reasons

When a Customer is making a payment for an invoice who will decide whether it has to be a Partial or Residual payment approach? Whether the decision is made by the customer or by the Business?
Also, when the customer makes a payment the favorable approach for customer is to go for the Residual approach, as the Principal invoice amount has been knocked off in this approach that will guide for a low interest rate, otherwise if it's going to be a partial payment until the document is cleared off the Interest rate will be climbing - Please explain the business reasons behind selecting a partial or residual approach?

It should be decided by the business - Finance. In our experience, most of the Finance prefer to do Partial payment approach because aside from technically, the invoice is not yet fully paid and residual payment will clear the original invoice and create a new open item for the remaining balance which affects the Aging report.
In their analysis they still want to see how much is the original invoice amount.
As to interest, since the due date of the partial payment and the original invoice is the same, still the computation if you add is based on the remaining balance of the customer.

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Partial and residual payments (Incoming) through F-28

Hi
I am trying to understand how partial and residual payments works.
1) I have an invoice of $100 for customer. I am getting a payment of $30 from customer.
When i am clearing this using partial payments tab in F-28, it is creating a new document of $30 open item for the customer and leaving $100 open item again (not clearing) for the same customer.
My question is it becomes $130 open for the same customers though he paid $30, why is that?
2) How does residual payments works for the same example above?
Can anyone explain clearly please?
Thanks in advance
Aleem

Hi Aleem,
Partial payment : A partial payment is a payment that is posted to an account without any open items being cleared. You assign this partial payment to an open item. When you post the partial payment, the system marks the document number of the original open item in the line item for the partial payment. The original open item and the partial payment remain open.
E.g. Invoice = $100
Partial payment =$ -(30)
Residual : . You clear the original open item, and the system posts a new open item. This new open item is for the same amount as the original open item minus the amount paid.
E.g : New invoice = $ 70
Regards
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Customer Clearing Process - Partial and Residual

Hi Gurus,
Appreciate if you can please help me in understanding customer clearing process in case of partial and residual payment. And how will it have impact on AR Aging.
If we post customer invoice for $1000 and there is a payment of $600. Now if we use residual payment option, system should show $400 line with aging according to original invoice. But i cant see that if i go to FBL5N.
Please tell me how it works,
Thanks

Hi,
During the partial payment the new document gets created.
You can do one thing go to table BSAD and in the invoice reference (REBZG) field enter the original document number and execute.
You will get the residual document number (AUGBL). Check whether you are getting this document number in agewise report.
Hope your issue has been resolved else revert.
Regards,
Tejas

Partial and residual

this his hari
what is the difference i will get when i posted in partial and residual for ageing.From which i will get
the correct ageing?

Hi,
Example :
Rs 100 :Invoice (Open Item)
Rs 80 :Paid(Open Item)
Rs 20 :Balance
In Partial Clearing you can see Rs 100 and Rs 80 are cleared line items and Rs 20 as balance
(it leaves the original invoice amount and creates new
line item for incoming amount)
In Residual Clearing you can see only Rs 20 as balance as it creates new line item and you canu2019t see the other cleared line items.
(it clears original invoice with incoming amount and create new line item for remaining outstanding amount. )
Use of residual clearing as it affects on aging reports.
Regards,
Nitin Aggarwal
Please assign points if helpful

Partial Vs Residual

Whether there are any guidelines to decide which approach to follow when we do a Payment - Partial /Residual. What are all the Pros and Cons of the above approaches

Hi
Suppose that an Invoice is Open Item1.
when you are making partial payment, system creates another open item2, invoice & Partial payment items will be under open items only.
when you are making Residual payments, systems koncks off that payment against the residula payment and the balance of the invoice which is to be paid only will be under open items. invoice and residual payment items will be under cleared items.
this is the difference between partial and residual payments.
Regards
Venkat

Lockbox -Residual item - Reason code - FLB2

Hi Gurus,
I would appreciate if you could help me on the following.
1. During lockbox processing (FLB2), will SAP create residual item for invoices with partial payments?
2. If yes, will SAP populate reason code as well?
3. Is there any configuration that need to be maintained for lockbox to create residual item and populate reason code?
Thank you,

Hi,
1. During lock processing, whether lock box post residual or partial payments is controlled in configuration. In transaction code OBAY, defaul is residual, or you can choose partial payment.
2. Lockbox will not populate reason code by default. In the BAI2 format, there is a field for reason code. Either you can work with the bank to populate that field. In our company we have a custom pre processing program that populate the field with a default reason code for all residual payments. During post processing, users change that to appropriate different reason codes depending on whether they going to write it off or keep it as a residual open itme on customer.
3. You can control the population of reason code using substitution rules. For example any payment difference that is less than $50, you can write a substitution rule populate a certain reason code during posting. There is no standard configuration to do this.
Hope this helps.

Duplicate invoice, partial payment, residual payment

Hi every body
I am facing some problems in AP
1. I post a invoice in AP
I see that there are two document number 190000006
Please tell me why?
2. I pay a invoice with amount of 200000 in two times
firstly, I post a partial payment with amount 100000 (document number 1500000032)
secondly, I post a residual payment with remaining amount 100000 (document number 1500000033)
The invoice is paid completely and clear automatically but the are two documents (1500000032, 1500000033) is not cleared
Please tell me the payment process? how to clear payment document?
Thank in advance
Minh

Hi
Pls check SAP standard program RPBNUM00 for document numbers assigned more than once,
if your are using payment posting is using FB05 / F-53 transaction and in which Transfer Posting with clearing radio button is selected.
Let me know for any clarifications required
Regards,
suresh

Partial or Residual Payment

Hello folks,
I would appreciate some assistance on the following question. POINTS AVAILABLE.
<b>What is the difference between the Partial Payment and Residual Payment tabs in F-28 or F-52?</b> When do I use one versus the other?
Let's say for example that a customer owe's my client $50. This customer decides to pay a partial amount of $20. How do I enter this in F-28? Do I go to the Residual pmt tab and enter $20? Will the system recalculate what the customer owe's the client (which will now be $30)?
Thanks in advance!

Hi,
In case of partial Payment, payment made will create another open item. It will not be settled with an existing open item. Document against which the payment is partially made will remain open and and the amount partially paid will also remaim open. E.G.
Vendor X1 - open Item of 2000/-
Amount partially paid: 1000/-
Both the documents that is of 2000/- and 1000/- will remain as open item in vendor's account.
However, in case of residual payment, open item against which amount is paid partially, will be cleared and an open item will be created with balance amount and will have reference to the original document that can ve viewed in document flow.
E.g.
Vendor X1 - open Item of 2000/-
Amount partially paid: 1000/ with residual payment option
document with 2000/- open item will be cleared with document of 1000/- (payment document) and will create another document with 1000/- which will be remain open with reference to original document that is of 2000/-.
Hope this helps.
Please assign points as a way to say thanks.
Regards,

Partial Completion of Business Rules

Hi All
Smart View version 11.1.2.1
Essbase version 11.1.2.1
We have a couple of Business Rules that when launched through Smart View, only partially seem to complete (not all out put as expected). We connect through Shared Connections, and have tried running these with the 'admin' user. They Launch fine and show as Completed in the Job Console.
If we then log into EAS (again, same user as above, admin) and run the rules directly from there, they run fine and give us expected output.
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I am not sure where to focus my attentions, would it be right to assume that this is a security issue, as running directly in Essbase bypasses this?
Not sure how much use the code will be, but will post if necessary.
Thanks in advance
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I would start by looking at the Essbase log to make sure nothing is failing. Also keep in mind that running a BR in a form is quite different than running it in EAS. In many cased the boundaries of the form may narrow the calculation scope. Every application and implementation is different so it is hard to say what exactly is happing.
I would also test running the rule form the form in the web client. If you get the same result at you did in SV then this will eliminate the SV client as a factor.

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Limiting or control for Residual payment with reason codes

Hi FI Gurus,
When we are received or making payment to customer or vendor, sometimes we need to clear the invoice by receiving or making payments with small differences through residual payment. Is there any control for limiting residual payment.
Lets have an example
invoice posted for 1000
customer dr 1000
sales       cr 1000
Partial payment recd 500
cash/bank dr 500
customer cr   500
final payment received 350 and balanace amount adjusted with residual payment by defining reason code like rounding off difference. So in this case accounting entry will be
customer cr 350
rounding off diff 150
cash/bank 500
being final payment agaisnt invoice
My question:   Is there any way to restrict the residual payment like 10% or 20% of total invoice i.e. 100 or 200 and not more than 20% ? other wise sometime user may adjust any amount may be 100000 through this way by putting the same reason code, which is not fair.
I checked SPRO setting but i did not get anyt setting relating to above case.
If any body know, please let me know? Thanks in advance
Regards,
Prakash

Hi Lawerance,
Thanks for reply.
But I am looking for amount adjusted through residual with reason code. I dont think there is any limitation or control in the SPRO standard setting. Tolerance is preventing user to post document for more than a specific amount. But my question is something different.
I want to control the user for adjusting amount from residual tab with selecting reason code. In other words user should not adjust more than some limit with residual payment by selecting reason codes. Thanks.
Regards,
Prakash

Error: Reason codes with automatic charge-off are not permitted here(F-28)

Hi All
I creted a reason code in obxl t-code and assigned a gl code in OBXL transaction code, But when I am trying to clear a payment with reason code in F-28, System is throwing the following error..Can some one tell me why i am getting this error?
Reason codes with automatic charge-off are not permitted here
Message no. F5605
Diagnosis
The reason code entered is designed to ensure that the payment difference amount is posted to an account specially set up for this purpose. Postings of this nature usually require additional specifications (e.g. tax code, business area). If the difference stems from a single open item, the necessary specifications can be taken from that item. In the case that led to this error message, however, the difference does not stem soley from one item, which means that this method cannot be used.
System Response
The reason code entered is not accepted.
Procedure
You can either select a different reason code, which would create a new open item for the customer or vendor OR write off the difference using the function Charge off diff.. This function either takes you into a pre-configured account assignment model or into the document overview. From here you can enter the required difference postings.

Hi Venkata,
It seems while entering the payment (partial payment / residual items) ... you are clearing multiple items with differences. (e.g. if the difference amount is $30, then may the difference consists of two invoices underpaid by $15 each). In this scenario, F-28 doesn't know which additional account assignment fields should be picked up ... hence the error.
First of all, to validate that this indeed is the case, try clearing a payment with the same reason code where difference can be attributed to a single invoice. If you still get an error, then there is some other problem.
Then, to take care of a the business scenario where the difference can indeed be due to multiple documents, select "charge off difference" option and create an entry to post the difference as necessary.
HTH,
Manish Patel
Sr. SAP Solutions Consultant

Manual discount in f-28 partial payment tab

Hi Guys,
How can I give a manual discount in F-28 in partial payment tab to a customer who is also making a partial payment?

Use Reason code functionality in partial payment/residual payment tab F-28
This key represents a reason for payment differences. The keys can be freely defined in the system.
SPRO-Financial Accounting (New)-Accounts Receivable and Accounts Payable-Business Transactions-Incoming Payments-Incoming Payments Global Settings-Overpayment/Underpayment
Here you can check all reason code config

Residual payment should not allow more than Vendor Invoice

Hi,
Eg: Vendor has booked invoice 5000 INR, when user make payment through F-53 or F-58 through "Residual" payment user can pay more than invoice 5002 INR and below accounting entry is posting.
Bank Cr 5002 INR
To Vendor Dr 5000 INR (Invoice amount)
To Vendor Dr 02 INR Excess than invoice
Business requirement is system should not allow pay more than invoice amount. How to control suggestion would be appreciated.
I have done below settings for your understanding here system configuration.
1. OBA3: Under "Permitted Payment difference" zero for Gain , Loss , Amount, Percent & Adjust Discount By However "Permitted Payment Differences for Automatic write-Off(Function code AD)" zero.
2. OBA4: Cash discount per line item: Zero and Under "Permitted Payment difference" Revenues, Expense, Percent & Cash discount put Zero.
Regards,
Babu.

Hi Prashant,
I have restricted many fields to use through screen variant now user can not pay more than Invoice amount except through Residual payment process.
Client side management strongly says that they want to use Partial and Residual payment process options but user should not allow pay more than invoice amount.
If any solution please guide me.
Regards,
Babu.

Partial or Residual - Business Reasons

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