Advance payment Condition in PO

Question

Dear all,
Could any body say,is there any provision to mention Advance payment condition in Purchase Order.Please advise at the earliest possible.For suitable answer points would be assigned.
Regards,
NSB

Answer 1

Hello NSB,
The invoicing plan is a facility that allows you to schedule desired invoicing dates for planned procurements independently of the receipt of the relevant goods or performance of the relevant services. It lists the dates on which you wish to create and then pay the invoices in question.
You do not wait each time for the vendor to submit an invoice for goods supplied or services performed, but can have invoices created automatically by the system on the basis of the data available in the purchase order and then release them for payment to the vendor.
Integration: When you save the invoicing plan, data is passed on to purchase order commitments, and to Cash Management and Forecast.
Prerequisites: To be able to work with invoicing plans:
You must maintain certain settings in Customizing for Purchasing under Purchase Order à Invoicing Plan, such as the following:
Invoicing plan type
Date categories
Date descriptions
Date proposals
The PO item must have account assignment
You must use Logistics Invoice Verification
If you wish to use automatic settlement for periodic invoicing plans, automatic invoice creation must be agreed with your vendor. Eval. receipt sett. delivery must be selected in the vendor master record.
SAP recommends working with the order type FO (framework order).
An extended validity period and a "reason for cancellation" are defined in the header of this type of purchase order. The specified validity period is adopted for the invoicing plan.
If you work with standard purchase orders, you must maintain the date determination rules accordingly in Customizing, since there is no predefined validity period that can be adopted in the invoicing plan.
Features: The following two types of invoicing plan are available:
Periodic invoicing plan
Partial invoicing plan
Periodic Invoicing Plan
The periodic invoicing plan can be used for regularly recurring procurement transactions (e.g. rental, leasing, or subscriptions).
It facilitates the largely automatic creation and payment of invoices within the framework of the invoice verification process. The periodic invoicing plan uses evaluated receipt settlement (ERS) program functionality.
In the case of the periodic invoicing plan, the total value of the PO item is invoiced on each due date.
Example-  A monthly sum of $600 is charged for a leased car (represented by an item of a PO). This sum is invoiced and paid on the last day but one of each month.
In Customizing for Purchasing, you can define whether the dates are to be maintained manually or whether the system is to suggest invoicing dates according to the specified rules.
Partial Invoicing Plan: The partial invoicing plan can be used for the invoicing of high-cost material or projects involving the procurement of external services that are to be subject to stage payments (such as plant construction projects, or the invoicing of individual stages of a building project following completion in each case).You can also flag due dates in a partial invoicing plan as dates for advance payments.
The amounts corresponding to these dates are then not taken into account in the sum total of the invoice items because advance payments are set off against later invoices. In the case of the partial invoicing plan, the total value of the PO item is broken down and spread over the individual dates of the invoicing plan.
A purchase order item relates to building project no. 1 with a total value of $900,000. 33.3% ($300,000) of the total value is due to be invoiced and paid on completion of the first phase of construction, a further 33.3% ($300,000) on completion of the second phase, and the rest ($300,000) following completion and acceptance of the 3rd and final phase.
In the partial invoicing plan, you wish to maintain the invoicing dates agreed with the vendor yourself. Therefore there is no system support in the form of date proposals.
However, if you wish to have due dates suggested by the system as an entry aid, you can reference an existing plan when creating a new invoicing plan. Date proposals can then be adopted from the former.
Hope this helps. pelase assign points...
Rgds
manish