Advance payment Scenario

Hi All,
can anybody please explain me the advance payment scenario and configuration in sap-sd?
How this is integrated with finance?
Rewrad Points for helpful answer.
Regards
Ashis

Hi ashish patnaik
make the following 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)
Now in your case enter 50% of the value . and then enter the balance value in the next dates
when you
Regards
Srinath
Edited by: sri nath on May 13, 2008 9:26 PM

Similar Messages

Payment terms for advance payment scenario

Dear All
payment terms have to create like we have to pay as 50% advance against order & balance 50% against on proforma invoice.
Can any one tell me is it possible to define payment terms like this or only option is downpayment configuration.
Thanks & Regards.
Lakshmi

Hello,
In SD there can be 2 ways by which you can handle this.
A. Billing Plan
Maintain 2 milestones at the sales order.
1. one milestone with Terms of payment Z002-50% advance against order
2. other milestone with another terms of payment Z003- 50% against on proforma invoice
B. relevant terms of payment
In OBB8 maintain 3 payment terms, say
- Z001 50% advance against order & balance 50% against on proforma invoice (in payment terms section - tick Installment payment).
- Z002-50% advance against order
- Z003- 50% against on proforma invoice
Then in OBB9,
Z001___1___50.000___Z002
Z001___2___50.000___Z003
With this when you post billing doc you accounts, then you will find 2 line items(50 % Value each) in Customer account.
i hope this can assist you.
Thanks & Regards
JP

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 in PO should not Exceed 25%

Hi Gurus,
Can any body give your inputs on the following scenario :
We have advance payment scenario for all the vendors and the advance payment is 25 % on the Po net value.
If the po value = 1000 RS then the sys should allow only 250 RS (i.e 25%)as advance payment against that PO and not more than that.if the advance payment exceeds 25% then sys shuld not allow to process.
Kindly provide your inouts on this scenario.
Regards,
Sri.....

Hi All,
Thanks for your kind feed back,
-Is there any possibility to restrict the Advacne payment not more than 25 % ?
- If no I have to go for an ABAP development then what are User Exits are used to build in this scenario.
- As some folks are adviced me to go for Payment terms, how this payment terms will restrict the 25 % Amount in the advance payment ?
Kindly give me your feed back..
Regards,
Sri..........

Payment in Advance Typical Scenario

Hello All,
I have business scenario I would like to take this opportunity to share with you and please give me some suggestions how I can achieve this.
For my client, if any customer want to place an order the customer has to make some advance payment. So once the customer is paid let say 10% of the value of the sales order, it is a legal obligation that he should be given an invoice immediately but the delivery will not take place at that time.
So that is the first requirement and also the document flow has to be updated with the status of the invoice and an accounting document has to be created for the amount paid by the customer.
After this when customer receives the delivery let say after a week from the date of placed order, delivery has to be created and normal invoice has to be created.
But when we creating this invoice we have to refer to the initial amount made by the customer and that has to be deducted and for the rest of the amount it has to create invoice.
And appropriate accounting document has to be created here.
So once customer makes the payment he has to be given clearing document.
And the main issue is here in ever stage DOCUMENT FLOW has to be updated.
If you make this simple the moment he places order an invoice has to be created and accounting document has to be crated and cleared.
Once the delivery is made, invoice has to be created and accounting documents also. And once it is cleared by the customer appropriately the document flow has to be updated.
Means there will be 2 invoices and two accounting documents and one sales order and one delivery.
SO PLEASE SUGGEST ME THE BEST APPROCH WE CAN DO FOR THIS.
And also here the credit check is involved.
Thanks in Advance.
Regards,
Rani

Hi Rani,
you can use milestone billing for you scenario. Suppose the customer is making a downpayment of 10%, ceate a condition type for down payment in your priciing procedure for the same and you can use billing type FAZ for invoicing this downpayment. In you milestomne you can maintain this billing type for invoicing the downpayments.
Thanks

Down Payment (Advance Payment) and Retension money Scenario

Dear Friends,
Pls guide me in the following scenario.
The scenario is that one very large construction co using SAP. And its sub contract within its different plant in the same co code when he got any new projects. Now the co using down payment or say advance payment and retention money condition. In the billing document every time I want 10% advance to be settled & 5% retenssion amount to be minus. This will be mapped through a GL for with special indicator A. But where will I maintain the details like % deducted every month? Is there any condition record for this FSZW Condition type( down payment) or this is defined by FI?
Regards
Atul

Hi,
Both are used in the sales A/R module.
If you received a down payment from customer but it is not to any available AR invoice, you could use the ARDPR and the other is vice versa.
The important things is that the down payment request can be paid directly using payment means available in the document tool bar. It is used before A/R reserve invoice job performed.
I suggest you to read help files for more details.
Rgds,
JM

Advance Payment without milestone billing scenario

Dear all friends
In my scenario i want to get advance payment with the reference of my sales order but problem is that i m using standard scenario without billing plan. please suggest me how can i get advance from customer with the reference of my sales order
Regards
Shambhu

Hi,
Create a sales order in VA01.
Goto F-37 create down payment request (Optional).
Enter document date and type DZ,customer number (sales order customer) .Enter amount, due on and
Enter sales order number in sales document field and item number and save.
Now goto F-29 -Post customer down payment.( you can create this document with down payment request and without down payment request also)
Enter document date, customer number,special G/L indicator A and bank account number.
If you are creating this document with refernce to request then click on Requests field.
Otherwise click on new item. Enter sales document number and item and save.
Note : OKEP t.code, Maintain G/L account in customer down payment column.
Regards,
Chandra

Advance payment and down payment with two diffierent tax code

HI expert!!!
i have one scenario that advance payment and down payment with different tax code.
in this time, advance payement post to vendor with po number, we do not know how to use tax code V1(deductable tax) or VF(Non-deductable tax), so we post advance payement amount by tax code V1(deductable) even though the amount included both. but we must know how amount is defined deductable tax or non-deductable tax when invoice.
when we want to post down payment with VF , we could not post it because advance payement posted with V1 tax code.
this is main problem with my scenario.
and as i know, can i post two advance payement to same vendor and same po item?, i can't do it with my system.
only one advacne payment is possible with one vendor and one po item. or amount of advance payment is all cleared by down payment, then i can post another advance payment to same vendor. is it standard process with po?
thank you in advance!!

hi,
As per my knowledge their is no difference between advance payment and downpayment.
and tax code is used for taxes purpose not for the payment terms.
taxcode is created in ftxp.and related percentages are maintained in fv11.
ex:-
if i want excise duty - 10% on basic value
education cesse 2% on excise duty
sec.education cesses 1% on excise duty
then fitst i have to create 3 condition types and that 3 condition types are used in my taxprocedure and that taxprocedure is assigned to country code..
after that i am created one taxcode in ftxp like v1= exciseduty10%educatiocess2%sec.edu.cesses1% with this description.
and given the values for that conditions in fv11.
and used that v1 taxcode in your p.o in invoice tab.
and payment terms are came from vendor not from taxcode.
Thanking you.

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 Invoice through MM

Dear all,
Please help me on this scenario: my client makes an advance payment for a PO and receievs an invoice for that. This invoice has VAT and it is shown at the VAT report. After a while the vendor sends the materials and a final invoice with the difference of the invoice minus the advance payment. The problem is that my client wants to post the invoice with the difference so as to have the correct VAT on the report, but in MM we have to post the hole ammount so as not to have differences with the PO. Please give me a solution how to treat the advance payment invoice.

Hi
In this scenario You have to Post the Advance as Downpayment to vendor with Advance amount and tax what ever incurred thrugh FI transcation and there you will find a PO field where you can enter PO refernce and book that Advance amount given to vendor.The system will update this in the PO .You can see this in status Tab of the *PO header Data * and also in th ePO history line item will be updated.
For the Second half means
Now you recieve the Invoice from the vendor for the Amount which does not include advance you can post the Invoice by manually change the value.
Regards

Advance Payment to Vendor

HI Gurus,
My client is giving advance payment to Vendors.These are the two scenarios
i) 10 to 75% advance payment for domestic Vendor
ii) 50 to 100% advance payment to Import Vendor.
My question is how I'll map these in SAP???
Give me the process flow for this
Pranaya
*******Points will be rewarded**********

Hi,
Advance payment to Vendors can be paid and you have to do few customisation.
In F-47 and F-48 t.code , advance payments to vendors paid WRT to PO.
Follow the following steps:
1.Check the Vendor reconciliation A/C,
2.Go to FS00, and check Filed Status Group,
3.Go to OBC4, check the Filed Status Group, what u have mentioned for the Vendor reconciliation account.
4. Go To material management segment and put optional entry for the field of Purchase Order and save.
5.Now come to F-48, enter the date, vendor, assign the sp.G/L transaction(A),bank sub account, amount,
then enter, it will take to next screen
Here you enter amount & your purcahse order number with reference to your are going to make the payment. Now simulate and save.
Regards,
Biju K

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

TDS on Sales Invoice and TDS on Advance Payment

Hi All
Can any one explain the below WHT scenario.
"If we get advance payment from customer and after some time (15days) we have posted an sales invoice against him. Now on which amount we have to deduct TDS. (At the time of Advance from Customer we have deducted TDS).
Again we have to deduct TDS on Sales Invoice or not?
Thanks
Chandra

Hi Chandra,
First of all, TDS means Tax Deduction at Source and so it does not apply to receipts from customers. It applies only in case where we pay to our vendors. While we receive the payment from our customers, its the customer who deducts the TDS and not we. We only book the total Invoice that we book as revenue and take the TDS certificate at the end of the year from the customer and submit it to the IT dept. By submitting the TDS certificates, we need not pay tax to the extent of TDS certificates.
So its only when we make advance payment to our vendors/sub-contractors or while booking the invoice of our vendors (whichever is earlier) that we have to deduct TDS.
Hope you understand this. Kindly revert if u need further information.
Regards,
CA. Karthik Narayan N S
SAP-FICO Consultant

100% advance payment during sales order creation

Dear Experts,
One of our international client is having one requirement for collecting the 100% advance payment from customer during sales order creation itself. Our customer is in Germany.
For high risk customers they want to collect the advance payment for 100%. And if this 100% advance payment was not paid by customer then, sales order should not be processed.
And during regular sales invoice creation the same down payment also needs to be displayed in the invoice as advance payment.
Is it possible to setup this process using milestone billing.?? .or some other process is available to setup this process.
Thanks for your cooperation.
Warm Regards,
Velmurugan

Hi
Try with this with Credit management.Put High Risk with Error message.
When ever you will Create Sales Order it will Block due to Credit Chech.For this scenario Enter the Parking Vale at F-66.
Then make a entry for Customer-CR to BANK-DR.
This may solve ur requirement.
Regards
JS

Automatic clearing of Customer Advance Payment

I want to perform the following scenario
Scenario: At the time of entering advance payment there should be a reference field e.g. contract number etc. And this reference field should also appear while entering invoice in the system. This reference field will be used to clear the advance payment with the respective invoice automatically.
i am doing following steps to perform the above scenario
Posting Advance Payment through t.code f-29
then entering the invoice through t.code. fb70
then clearing both the transactions through f.13
is this a right procedure which i am following or is there any better solution for the above scenario

You should use below for customer advance process:-
- Posting Advance Payment through t.code f-29
- then entering the invoice through t.code. fb70
- then clearing both the transactions through F-39
Regards,
SDNer

Advance payment Scenario

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