Difference between down payment & advance payment

Hi frndzz..
I have lil' confusion on these two.
Advance payment is what you you pay to your vendor against the purchase order is raised. Later you clear this value against the invoice sent by your vendor. I see the same is applicable for downpayment also.
just want to know the clear difference between these two in business terminology.
thanks in advance,
chaitanya

Hi,
There is no difference between two, just usage of the terms is different. Down payment is nothing but the advance payment. SAP uses the word down payment. Both with the customer and vendor we pay/receive advances and later clear them against the invoice.
SAP takes a bit different procedure while clearing these items, called Special G/L items.
Hope this clears
Regards
Jyostna

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Down payment & Advance Payment T Code

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OAAdvancedTableBean extends OATableBean to provide declarative support for existing table features that previously required programmatic control.
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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?
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Atul

Hi,
Both are used in the sales A/R module.
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Handling of Down payments / advance payments retail POS interface

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Does anyone know if there´s a best practice to handle down payments with POS interface?
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Mariana

Hi Mariana,
Pl use the following link:
help.sap.com/bp_retailv1470/documentation/EN/Store%20Business%20Offline%20EPOS_EN_PRES_V147.ppt
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If a customer is making a down payment of Rs.1000/-
Cash a/c DR 1000/-
Customer or Site CR(Retail Stores if u dont maintain individual customers) 1000/-
When sales are closed say for example Rs.10000/-
Cash a/c DR Rs.9000/-
Customer or Site DR Rs.1000/-
Sales CR Rs.10000/-
In SAP u need to create a Special G/L with Indicator A and this special G/L will be assigned to your main a/c in Tcode OBXR.
F-29 Post Customer Down Payment ,F-32 Clear Customer ,F-39 Clear Customer Down Payment are the FICO transactions which will be used. Pl contact yr FICO
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I'm analyzing my customer's process related to the AUC.They use to perform downpayment on AUC, using the investment order.
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Hi,,
For asset down payment follow the steps given bellow.
1. create two gl accounts for down payment gl a/c & clearing gl a/c as balance sheet accounts.
2. U have assign this give down payment gl a/c & clearing a/c in AUC Asset class in T.Code AO90 in balance sheet accounts .
3.Allow asset classes for transcation group 15 in T.code OAYB for down payment .
4.make down payment request with asset number & purchase no from T.code F-47.
5. And make down payment with respect down payment request as normal in F-48
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Difference between FI Posting and Payment Posting

Hello Experts,
Can anyone please throw some light on the use of Program "H99_POST_PAYMENT" (Payment Posting Program - PC00_M99_PPM)?
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Program "H99_POST_PAYMENT
Purpose
All payments are posted automatically with this report.
Features
If you have performed posting to Accounting (FI/CO), all open liabilities from Payroll are placed on the relevant liabilities accounts accounts, as well as the payments to employees.
In the standard system, as the payment medium is created for the payments to employees from HR, the system does not mechanically generate the corresponding liabilities accounts. Neither the DME preliminary program (programs RPCDTAx0, or RPCDTCx0 and HxxCDTC0, or RPRDTAx0 ) or the program for creating the data medium (programs RFFO*) perform posting in the FI general ledger. Therefore, if the system in HR generates the payment mediums for payments to employees, you must also perform manual postings in parallel. These manual postings are usually performed with the payment summary. In most cases, there is only one posting containing only a few posting items, that is, one posting item for each bank clearing account and each company code involved.
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With the report H99_POST_PAYMENT, all payments are evaluated regardless of whether they have been paid or not. All wage types included in table BT and table T52POST_PAYMENT count as payments.
RPCIPE00
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Billing, advance payment?

Hi,
Please help me on this.
The advance payment in reference to the Sales order is maintained in Accounts receivables.The details of down payment(advance payment) is captured in SAP.The amount of advance payment is shown when account for customer is reconciled.The problem occurs when this invoice is again printed , after the final account reconciliation, as no advance payment amount is shown on the invoice though the balance figures are accurate.
With best regards,
Archer

Hi archer naz
Check the following Customizing settings for down payment processing:
Settings for the billing plan - To activate the billing plan function, maintain the materials, for which you wish to process down payments, with item category group 0005 (milestone billing). This gives the item type TAO via item type determination. The item type TAO calls up the billing plan function.
You need to implement the following activities in the billing plan for down payments:
Maintain deadline category - This determines the billing rule (percentage or value down payment) for the down payment request. The system assigns billing type FAZ (payment request) defined in the standard system with billing category P. (For the billing type FAZ there is the cancellation billing document type FAS in the standard system).
Maintain the deadline proposal - Use the down payments that are due for the proposed deadlines.
Maintaining a Pricing Procedure with the Condition Type AZWR:
In the standard system the condition type AZWR is delivered for the down payment value already provided but which has not yet been calculated. You must include this condition type in the relevant pricing procedure before output tax.
Enter condition 2 (item with pricing) and the calculation formula 48 (down payment clearing value must not be bigger than the item value) for the condition type AZWR.
Before the condition AZWR you can create a subtotal with the base value calculation formula 2 (net value). If the condition AZWR is changed manually, you can get information on the original system proposal from the subtotal.
Maintain the printing indicator - The pricing procedure can not be marked as a transaction-specific pricing procedure (field Spec.proc.) The condition type AZWR has the calculation type B (fixed amount) and the condition category E (down payment request / clearing).
Maintaining the Billing Document - In the standard system there is the billing type FAZ (down payment request) and the billing type FAS for canceling . The down payment is controlled using the billing category P of the billing type. A billing type becomes a down payment request when the billing category P is assigned. You have to maintain blocking reason 02 (complete confirmation missing) for the billing documents and assign it to billing type FAZ.
Copying control - Copying requirement 20 must be entered in copying control at item level for the down payment request. In the standard system the order type TA for copying control is set up according to the billing type FAZ for the item category TAO.
Copying requirement 23 must be entered in copying control at item level for down payment clearing. In the standard system the order type TA for copying control is set up according to the billing type F2 for the item category TAO.
Financial Accounting settings - A prerequisite for down payment processing is that the account is assigned to the underlying sales document. To do this, change the field status settings in Customizing as follows:
Set reconciliation accounts (t.code OBXR) - For the `received down payments' and `down payment requests' from
the G/L accounts you have selected, you should assign the field status definition G031.
Maintain accounting configuration (t.code OBXB) - For the down payments (posting key ANZ in the standard system) and the output tax clearing (posting key MVA in the standard system), you must maintain the posting key.
You must also carry out a G/L account number assignment for the tax account.
Maintain the posting key (transaction OB41) - For posting key 19, set the sales order as an optional field !!!
Maintain the field status definition (transaction OB14) - For field status variant 0001, field status group G031, set the
sales order as an optional field !!!
Assign the company code to the field status variants (transaction OBC5)
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Srinath

What is the difference between F110 and F111?

Hi,
Can anyone tell me what the difference between the two automatic payment transactions namely, F110 and F111 is?
F110 - Automatic Payment Transacion: Status
F111 - Automatic Payment Transaction for payment request.
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Shiyam,
Though both are for automatic payments, F110 will pay only open items from vendors and customers. F111 can also pay 'payement-requests' against GL items.
Generally for making payments towards any expense (say tax authorities) we will not create any vendors, but we can still create payment requests by debiting the tax expense account and have this request paid by automatic payment program (F111)
F111 is also used for making payment via payment requests for treasury activities where we cannot create vendors
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What is the difference between prepayment invoice & down payment

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The petroleum industry is usually divided into three major components: Upstream, midstream and downstream, though midstream operations are usually included in the downstream category.
Upstream - Upstearm oil sector is a term commonly used to refer to the searching for and the recovery and production of crude oil and natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector.
The upstream sector includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.
MiddleStream - The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids (LNGs, mainly ethane, propane and butane) and sulphur.
DownSTream - The downstream oil sector is a term commonly used to refer to the refining of crude oil, and the selling and distribution of natural gas and products derived from crude oil. Such products include liquified petroleum gas (LPG), gasoline or petrol, jet fuel, diesel oil, other fuel oils, asphalt and petroleum coke.
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Difference between A/p down payment request and invoice

hi,
can any tell me what is difference between A/P downpayment request and Invoice
Regards
Srinivas

Hi Friend,
I list some information here, which might help you better understand.
Down Payment Invoices
The Down Payment Invoice behaves like a regular Invoice. A Down Payment Invoice can be based on a Sales Quotation, a Sales/Purchase Order or a Delivery/Goods Receipt PO in the same way as a regular Invoice; however this will not close the base document.
A Down Payment Invoice can be cancelled by a Credit Memo; however this Credit Memo cannot be based on multiple Down Payment Invoices.
In addition, this Credit Memo will not affect the warehouse stock or the stock valuation.
Note that cash discounts are not available in the Down Payment Invoice.
The Down Payment Invoice will be displayed in the Tax Report as a regular Invoice (if Deferred Tax is not checked).
Down Payment Request
This method of Down Payments is suitable mainly for Germany where it is necessary to show the tax payable at the time of receipt of payment. A journal entry for the tax is created by the payment of a Down Payment Request. The payment will also be displayed in the Tax Report.
A Down Payment Request can be based on a base document the same way as a regular
Invoice; however it does not close this base document, i.e. the base document remains
open and can be copied to another target document if required.
Kind Regards,
Dani Zhao
SAP Business One Forums Team

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.

Down Payment Request F-47. ( Advance payment against PO )

Hi all,
I am creating down payment request T-code F-47 w.r.t. Purchase order number,
e.g. PO landed Value is INR 100.00, but system is allowing to create Down payment request of amount more than INR 100.00. Also after creating DPR w.r.t. Purchase order with PO landed price INR 100.00, you can create addition DPR w.r.t. same purchase order. This has resulted in giving double payment to vendor (T-code F-48).
Please let us know any system lock / control can be set up to avoid advane payment to vendor more than po value.

Check this link Advance payment in PO should not Exceed 25%

Difference between down payment & advance payment

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