You usually arrange down payments with the customer when dealing with plant engineering and construction or capital goods.
Down payments are already created in the sales order.
At the corresponding due date, you send a down payment request (billing document in Sales and Distribution) to the customer.
The down payment request in Sales and Distribution is automatically posted in Financial Accounting as a down payment request (posted as a noted item). The item has a special general ledger (G/L) indicator F, which ensures that posting is statistical. Posting is made to a different reconciliation account, which allows you to differentiate down payment requests from other receivables.
When posting an incoming payment for a down payment, the down payment is assigned to the down payment request. The amount paid as the down payment is also assigned to the sales order account. The item has a special G/L indicator A.
When processing partial or final invoices, the down payments made are transferred as down payments to be cleared. Within Financial Accounting, the down payments are deducted from the special reconciliation account and entered in the standard reconciliation account. The down payments for clearing then appear as open items for the customer and reduce the receivables total.
Down payment processing is carried out with the billing plan function.
You can store one or more down payment agreements as a date in a billing plan.
You can enter the value of the agreed down payment either as a fixed amount or as a percentage of the value of the item.
Control is carried out via Date Categories and billing rules, for example:
Billing rule 4 - Down payment for percentage milestone billing.
Billing rule 5 - Down payment for value-related milestone billing.
The down payment agreement can be assigned directly to an item, or it can be defined as valid for all items in the order.
As soon as the billing date (in the billing plan) for the down payment has been reached, the system creates a down payment invoice and sends it to the customer. You use billing type FAZ to create the down payment.
You can create this down payment request as follows:
Automatically via billing due list processing in a collective run.
Explicitly by specifying the order number via the application Create Billing Document.
Tax is determined and displayed automatically when the down payment request is created. The down payment request in Financial Accounting is created automatically from the down payment request in Sales and Distribution. You can view the down payment requests created in Sales and Distribution and Financial Accounting via the document flow in the sales order.
When a down payment request is settled, the special G/L indicator A displays the incoming payment in Financial Accounting as a down payment by posting. You can select an incoming payment from the open requests and choose the Create down payments button to assign it to a process.
In the open items of accounts receivable accounting, you can view the down payments using the special G/L indicator A.
The down payment request is correspondingly set to Cleared in the document flow of the sales order.
This is the process diagram for scope item BKJ, Sales Order Processing with Customer Down Payment.
The following are the main steps of the process:
The Create Sales Order step confirms the intention of the customer to order goods and initiates the process.
The Change Sales Order step removes the billing block for the down payment.
The Create Down Payment Request step debits the customer account for the down payment.
The Post a Down Payment step records the customer payment of the down payment amount.
The Create Delivery step initiates the shipping of the goods.
The Execute Picking step executes the picking of the goods from the warehouse and it's preparation for shipment.
The Post Good Issue step confirms the shipment of the goods.
The Change Sales Order step removes the billing block for the final invoice.
The Create Billing Document step sends the final invoice to the customer.
The table Main SAP Fiori Apps Used, provides a list of role(s) and app(s) for every process step.
Main Fiori apps used
|Process Steps||Role Name||Fiori App Name|
|Create Sales Order with Billing Plan||Internal Sales Representative||Manage Sales orders|
|Change Sales Order||Internal Sales Representative||Change Sales Orders|
|Create Down Payment Request||Billing Clerk||Create Billing Documents|
|Post a Down Payment||Accounts Receivable Accountant||Post Incoming Payments|
|Create Delivery||Shipping Specialist||Create Outbound Delivery|
|Execute Picking||Shipping Specialist||Manage Outbound Deliveries|
|Post Good Issue||Shipping Specialist||Manage Outbound Deliveries|
|Change Sales Order (Remove Billing Block)||Internal Sales Representative||Change Sales Orders|
|Create Billing Document||Billing Clerk||Create Billing Documents|