Advance Payment Handling

Hi,
How do we handle advance payment in SAP? In my scenario customer wants to create a payment term called 30% advance and balance payment immediate after delivery. In standard SAP sales order does not get blocked automatically depending on the payment terms. However my requirement is to block the sales order if payment terms is having advance requiremnet and once the payment is received sales order should be released for delivery.
Secondly if the customer pays advance how do we track the payment against sales order? I mean we cannot create invoice unless delivery has been done so in case of advance how do we track the payment history?
Girish

Hi
Payment terms is common for both Customer and Vendor and hence you could not see Sales order block in the payment terms. It has to be done manually at the time of creation of the sales order only. You can create a reason for blocking of sales order and assign that at the time of creation of sales orders.
With regard to second point, Advance payment is handled through FI, which has no link to Sales order. Standard functionality is creation of billing document for the full amount only.
Regards,
Lakshmanan Krishnan

Similar Messages

How Prepayment or Advance Payments handle in Projects?

Hi Experts,
I hope some one can give me guidance on handling the advance payments (Prepayments) in projects by project customers. on R12.0.6.
Say I have agreement with customer A of amount 1,00,000 INR on project B. Customer has already paid 10,000/- INR at start of the project. In such scenario how can i generte invoice and revenue for amount 90,000/- INR ?
I have constraint to create the agreement of 100,000/- INR and utillised complete funding.
Please guide.
Thanks
:-)

Hi
When you link prepayment received in AR to an Agreement in PA, the funding is not affected. It is only a way to indicate that amount which was already received and will be applied to invoices over time.
Pre R12.1 ; you still can use the same method, just enable a DFF on the agreement to capture the fact that prepayment has been received.
Using such method the invoices themselves will show the full amount, the value of the deliverables. You might want to add a note / comment on the invoice to indicate to your customer that you already received part of the money as prepayment.
The alternate solution, using billing extensions, is taking a different approach. You could enable a DFF on the agreement to indicate the prepayment you are expecting to get, and the liquidation method from future invoices.
On that project enter a manual event of type "prepayment", with the amount of the prepayment claim. Generate a draft invoice with only that event and send to customer. Apply the prepayment amount you receive to that invoice in AR.
Billing extension will be called by GDI when generating invoices (not prepayment claims). The logic will calculate the reduction amount and create a negative event of type "prepayment reduction". The automatic event will be included in the invoice, reducing the total amount of the invoice to the net amount you need customer to pay.
With that approach the prepayment claim is considered an invoice, which you treat as standard invoices in AR. With that approach the fund is used by prepayment invoice and later by the net amount of further invoices.
Dina

Reg: Advance Payment

Hi experts,
How can I handle the advance payment of the customer and also for the vendor? i.e both the incoming and outgoing advance payment....
Regards,
Bala

Hi,
You can use Downpayment as Advance payment.. for more reff check out below link
http://help.sap.com/saphelp_sbo2005asp1/helpdata/en/69/c7aa38360ea14dba3a2d345c8b07af/frameset.htm

Advance payment aging

Hi All,
have you ever heard about advance payment aging ? I'm very confusing about it.
In this case, the scenario is as follows:
1. the advance payment is created after PO have made by purchasing user but no GRPO yet. The journal is
Dr advpay
Cr. bank
both are in the asset
2. PO confirm 30% as DP (down payment)
3. 10 days after DP1 must pay 50%
4. good arrived in the ship port and the remaining due is full paid then.
5. Creating advance payment aging
6.Set reminder for advance payment aging
How to accomplish / apply the above scenario in B1 standard ? what document or form must I use ? Pls give advice.
Steve

Steve,
There is not really anything as Advance Payment Aging. There is only the regular AR and AP aging which will show all transactions that hit the AR / AP control account.
Your scenario is more like a business rule that could be handles with a combination of approval procedures and transaction notification checks
Suda

Advance payment can not be used against credit limit and another sales ord

Hi,
I have advance payment scenario where customer want advance payment cannot be used against another sales order and against any credit limit.
Let me put one example.
Customer X is having credit limit of 1000 USD, if my client is received customized product order then he will take advance for this special order but customer X is already enjoying credit limit of 1000 USD. In this scenario my client wants advance payment received cannot use against any sales order and against any credit limit.
If I will post advance payment in F-29 then customer credit exposure will decrease against credit limit in FD32 which will affect normal sales order credit limit. Here customer does not want to utilize advance payment against credit limit of customer which is use for normal sales order.
Please suggest

Hi,
You can use the SAP standard documentary payment management functionality together with credit management for this purpose. You need to configure Documentary payments in SAP first. For that see below link;
[Documentary payments|http://www.learnsaptips.com/2011/09/how-to-handle-letter-of-credit-in-sap.html]
Then the advance payment has to be created as a financial document in SAP. This is just a SD only document and no impact to FI. During sales order creation you can assign this document number in to your sales document. It is possible to add it to sales order header as well as to individual line items.
If the attached financial document is sufficient to cover the value of the total sales order (If you attached to header) or value of the line item (If you attach it to a line item), system will NOT take that value for credit exposure calculation.
As far as I understood from your question, this is exactly what you're looking for.
Best regards,
Anupa

Advance payment & purchase order (Allowed Only 20% )

Hi all,
i have a purchase order number according this purchase order i have to pay the advance payment ( in Terms of payment 20 % Adv payment with in 30 days based on purchase order date)
ex: purchase order value 20,000, 20% adv payment 4000 rs.in f-48 vendor down payment vendor name, adv payment, bank name if user 5000 rs enter then after assigned purchase order the system automatically checks the amount value the system is not allows i need popup message generated

Hi,
If there is any adavance payment against vendor and when you do any transaction system will give information massage. then
you can handle through massage controlle as you required. (some technical changes required and ABAPer will help you in this regard)
Regards,
Venkat

Advance Payment againest sales order

Dear Expert,
The Scenario is like this,
If any customer pay some advance payment against one sales order.
through FI transaction we can do booking as advance payment by F-29 BUT,
how we can handle through sales transactions.????
and in sales flow where we can the that advance amount????

Based on your requirement,
> what setting required w.r.t. Billing plan ??
What kind of billing plan is relevant for your business process
-Milestone (01)
-Periodic (02)
> and which Item category we have to assign to OR
-TAO, for Milestone
- For Periodic (01) assign billing plan 02 in at sales doc type OR.
> and respective copy control for FAZ with item category .
Standard copying control is available for OR - FAZ in Copy Ctrl for Sales to Bill doc (use tcode: VTFA).
> and tell me please what are the transaction flow steps we have to follow in above scenario?
> 1)order---2)delivery---3) invoice (F2) and again from 4) OR --invoice (FAZ)
1) Sales order (va01)
2) Down-payment invoice with ref to sales order(vf01)
3) Delv with ref to Sales order (vl01n)
4) Final invoice with ref delv doc(vf01)
Thanks & Regards
JP

Using of cash journal for advance payment to vendor or from customer.

using of cash journal for advance payment to vendor or from customer.please give advice?

Hi,
Set up a new transaction for "Advance Payment to Vendor" in Cash Journal IMG. The menu path in IMG is Financial Acct --> Bank Accounting --> Business transction --> Cash Journal --> Create, Change, Delete Business Transactions. Transaction Code for this configuraiton activity is FBCJC2.
Enter Company Code, Business Transaction Type as "K" and Cash Journal Business Transaction as "Advance Payment to Vendor". This will work if you are paying to Vendor from Petty Cash.
Check Receipt from Customer is supported if you take it in Cash Journal and then later deposit to Bank. But check payment to Vendor should be handled trhough either automatic payment program or outgoing payment transaction.
Hope this helps,
Reagrds
CSM Reddy

How to configurel advance payment to vendor in cash journal

Hi,
This is thiyagarajan,
My client wants to pay the advance to vendors through cash journal
How to configure this one . its urgent please help me out..
if u have any document pls send to my mail id [email protected]
Regards
Thiyagarajan......
91-9916082477

Hi,
Set up a new transaction for "Advance Payment to Vendor" in Cash Journal IMG. The menu path in IMG is Financial Acct --> Bank Accounting --> Business transction --> Cash Journal --> Create, Change, Delete Business Transactions. Transaction Code for this configuraiton activity is FBCJC2.
Enter Company Code, Business Transaction Type as "K" and Cash Journal Business Transaction as "Advance Payment to Vendor". This will work if you are paying to Vendor from Petty Cash.
Check Receipt from Customer is supported if you take it in Cash Journal and then later deposit to Bank. But check payment to Vendor should be handled trhough either automatic payment program or outgoing payment transaction.
Pls reward points if you find this helpful.
Regards,
Chirag

Advance Payments in Sales Order

Hi,
Say, Customer Terms of Payment --> 50% Advance ; 30% Dely; 20% Receipt.
The customer can issue Letter of Credit Also.
Scenario:
Customer PO value / Sales order value : USD 5000/-
Advance to be paid : USD 2500 (50%)
There may be a scenario where the customer shall pay the Advance - USD 1500 by cash & remaining USD 1000 by Letter of Credit.
But, when i create a Sales order for this PO, the Order value shall be USD 5000/- whereas the Letter of Credit shall only be for USD 1000. The system blocks the Sales Order for Financial Document value. This block should not happen as this will cause delay the delivery for no fault from the customer.
Can anyone let me know the SAP standard process for handling Advance payment from Customers.

Hi narain
Your requirement can be fulfilled through down payment configurations
Make the following down payment configurations :
item category group - 0005
item category - TAO
for this TAO item category a billing plan 01 (milestone billing plan -01) will be assigned and its billing relevance should be I which is order related billing .
billing doc type - FAZ
cancellation billing doc type - FAS
maintain a condition type AZWR which is down payment settlement , it has requirement as 2 and calc type as 48 acct key as ERL
Now when you enter a material in line item 10 and go to item data , you can see the billing plan tab.
now go to billing plan tab and enter the start date and enter the dates on which billing has to be done and then in billing request enter 0009 which is for down payment.once u press enter automatically it all the dates get blocked and billing request by default you get as 1 , that you change it to 4 or 5 . 4 is for down payment at value basis and 5 is for down payment at percentage basis. and beside that there will be a billing type .assign billing doc type as FAZ. to all dates
check the copying requirements are there at VTFA as 20 and for item category TAO copying requirements 23 is maintained or not
now do the cycle OR - LF - FAZ (billing doc type)
Regards
Srinath

Applying Advance Payment(receipt) to Agreement

Hi Guys,
Well we have following requirement
At the start of project company request the advance payment from client. So this we doing the following
1) Send the AR Invoice to client for Advance Payment
2) Once the Advance received we create a AR receipt by entering amount received and the customer name (same as the one on the agreement)
3) Set up the receipt to be 'On Account.'
4) In project billing Appy the receipt to the agreement.
SO when we apply the receipt to agreement it applied the whole amount of the advance receipt amount & in the invoice whole advance amount is deducted but the client want to apply only the percenetage or the fixed amount of advance each time they generate the invoice.
Any ideas how to handle the situation?
Regards,

Hi
We have a solution for similar requirement in release 11i. Our solution is not using the advances link to the agreement (which is only available with R12.1). The feature Oracle released is not going to solve your requirement, anyhow.
We bill from Projects, using an event type called "Prepayment Claim". The invoice is released, and cash is applied to that invoice.
Later on, when billing for deliverables or work, we have a billing extension that automaticly create a negative event of "Prepayment Reduction". The code will calculate the amount to deduct based on the commercial terms, which we have on the project contract (OKE), or you may have on the agreement DFF.
So the invoice we generate has only the net amount that we ask customer to pay. The customized printout format of the invoice shows total invoiced and then amount of deduction and last raw of net total due.
Dina

Advance payment report required

Dear guru
generally in our plant for advance payment we have to intimate the account department for release the payment against advance or PI or any other terms.
i want the report which can show me that which supplier payment is pending (for advance only)
at present i m using FBL1N. i didnt get the required report from this
Regards
Devesh

Hi Devesh,
There is no standard report to address just your specific requirement. However as others suggested you need to rely on the line item reports with specific selection criteria which you might already be doing.
Else develop custom report to suit your specific requirements.
Thanks & Regards
Subhasish

Report for advance payment relevant purchase order

Dear Sapgurus,
Logistics people raise one purchase order and release procedure also from logistic teqm onlly after we need approval from finance head we had created one more release finance procedure how they will identify these are purchase order i have to pay advance payment is their any report can u please tell me.
Regards
Umi

Amit kulkarni,
For this requirement you have to do validation of the amount field for advance payment againest PO.
i thiought this is only way to get your requirement
May be this information is useful to you
Regards
Surya

Purchase order advance payment

Hi Friends,
Below is five requirement from my client regarding down payment and down payment request.
A) While posting down payment or down payment request Purchase order should require entry.
B) System should allowed to put purchase order for the same vendor against we posting advance payment or raising payment request.
C) If 100% advance has already paid against any purchase order, system should not allow to post any further advance against that purchase order.
D) If the 100% GRN has been done against any purchase order system should not allow to post any further advance against that purchaser order.
E) While paying advance system should consider the GRN or advance payment done against the purchase order, and system should allow the pay advance or raise the advance request less the value of advance or GRN value already done.
Your valuable input is highly appreciated.
Regards,
Ashu

Hi,
whatever Mr.Ajay has told correct 1 & 2
The 1 and 2 are possible using field status groups. You can make the PO mandatory
The rest are not possible in standard system.
but system will propose while posting down payment r down payment request amount more than PO value warning message has accrued but it will never stop for posting ok
one more solution is with the help of ABAPer we can able to stop - Use Substitution,
Mr. Ajay below mentioned Option for EHP4 is also available for in this ME2DP also never stop - more than PO value down payment r down payment request
Its a matter of discipline... however, explore the new feature of PO advance payment in EHP4, Tcode ME2DP. May be you get few answers there
Mahesh

Deduction of TDS while clearing Advance payment through F-53

Hi Gurus,
I deducted TDS on Advance payment of 10000 and then deducted TDS on Invoice of 50000 with base amount as 40000.
Now, when i am clearing this invoice and advance payment through F-53 to pay the remaining balance, system is again deducting TDS on Advance payment.
Please tell me how can i solve this issue.
Thank You

hii
here the steps u need to follow is
1. while making the down payment TDS is deducted
u make down payment through f-48.
2. post invoice through FB60. here when u r going to the withholding tax tab u need to delete the payment tax codes. if u do not delete than the tax will be deducted during the payment..
3. now go to F-54 and transfer the advance payment to normal by clearing special G/L
here when u clear the down payment the TDS deducted at he time of down payment will also be reversed.
4. now finally go to F-53 and make the outstanding payment to your vendor ..
so in this steps there wont be duplication of TDS pain.. u will be paying only once that is at the time of invoice.
Hope u got ur answer
assign points..
sejal singh

Advance Payment Handling

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