A/P Invoice - Payment on account

Question

Hi All
Initially without raising an A/P Invoice to a Vendor ( there was no single A/P invoice generated against this vendor),  we raised Outgoing Payments say 10,000 as Payment On Account to this Vendor.  At a later stage we raised an A/P Invoice for 2000.  Now if I open outgoing payment window for this Vendor I can see two transactions one with payment on account with 1000 and another A/P Invoice.  Now I want to close this A/P Invoice without making any payments from the payment means window. Because I  have already made some payment in advance as payment on account,  ... from this amount (10,000) the A/P Invoice amount (2,000) should be deducted / adjusted and the A/P invoice should be closed. 
Please let me know whether this is possible.
Thanks
SV Reddy

Answer 1

Use this very tricky way:
- Activate Over/Under payment in the Document Setting > Per Documents > Outgoing Payment. Lets say, USD 1.
- Set the g/l in the G/L Account Determination for Over/Under Payment in Purchase tab to let say, Other Expenses.
- Go to the Outgoing Payment, choose the invoice. Tick option for "Payment On Account" then change the amount to "-2000"
=> Total Amount Due = 0
- Chose payment means, cash. Choose the same account as in the Over/Under Payment => Other Expenses. Value = 0.01
- Post the payment.
SAP will produce an outstanding journal entry that will close the A/P Invoice, reduce the open outgoing payment and zero finance impact journal entry (Dr/Cr to Other Expense 0.01) as you describe.
Cheers,
Dody