Down/ Advance  Payment conversion to sales revenue

Hello Experts,
I need help for the given scenario
In contsruction industry when the flat is sold the amount which is received from the customer is not recognised as sales revenue unless the registration of the flat is completed.
My client is asking that till the time registration is completed whatever amount they will receive from the customer will be treated as advance/down payment. Once the registration is complete then it should be moved to sales revenue and from the date of the registartion whatever bill we will be doing should consider as revenue
Appreciate your inputs in this regard
Thanks
Narayan Bobde

Hi Narayan
Welcome to SCN Forum
If once after registration is completed then only if  the amount should move to sales revenue , then first of all you need to create the proforma invoice for those payments. After completing the registration then you have to create billing documents(Normal), so that the value will flow to sales revenue account.So maintain copy control in VTFF from Proforma Billing document type to standard Billing document type.So whenever it has to be released to accounting then wrf to proforma invoice , create the billing document and then release it to FI
Regards
Srinath

Similar Messages

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  • Advance payments in sales

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    Edited by: imam sk on Jan 17, 2012 4:43 AM

    Hi narain
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    Regards
    Srinath

  • Unwanted printing of advanced payment when printing a sales order or pick

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  • Customer Down payment clearing during sales order

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  • Advance payment against Sales order

    Dear SAP consultants,
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    Suitable answer willl be rewarded with good points.
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    Sandeep,
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    http://help.sap.com/bp_blv1600/V5600/BL_DE/html/index.htm
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    You can reward if this helps

  • 100% advance payment during sales order creation

    Dear Experts,
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    Hi
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    JS

  • Down Payment processing for Sales orders using Milestone Billing Plan

    Hi,
    The business scenario is as follows.
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    Can you please give the steps in detail to implement this functionality for above scenario?
    We are using SAP 4.7 version without Project Systems.
    Thanks in advance.
    Regards,
    Ragesh

    Hi Ragesh
    Check the links where you will get the entire down-payment configuration
    [https://forums.sdn.sap.com/post!replydownpayments ]
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    Srinath

  • 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

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  • 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.
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    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.
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    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

  • 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.
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    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.
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    and payment terms are came from vendor not from taxcode.
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  • 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.
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    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]
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    Best regards,
    Anupa

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