Executing a Down Payment Clearing for an Asset under Construction

Objective

After completing this lesson, you will be able to perform the down payment clearing process for an AuC

Settlement After Asset Receipt

Kevin is still unsure about how the value of the down payment is balanced by the asset under construction. Due to this uncertainty, he decides to reach out to Steve for further clarification.

The figure shows the process flow for handling down payments in a project with asset acquisition. It starts with the creation of a purchase order with an account assignment category for a project (WBS element) and entering down payment information. The down payment is then posted. Once the asset is delivered, a goods receipt is entered. The vendor invoice is then entered and the down payment is cleared with the invoice. The process involves settlements in different phases from the WBS element to the AuC. For settlement after down payment, transaction type 180 is used for the acquisition with transaction type 116. Settlement after clearing of the down payment takes place with transaction type 181.

Key Takeaways

Results of the down payment process are always visible after settlement.
The down payment increases the net book value.
If the goods receipt is posted and settled for a valuated purchase order, the original cost value is defined according to the purchase order. However, the down payment still increases the net book value.
The net book value is not corrected until the invoice is posted and the down payment and settlement are cleared.

Execute the Goods Receipt and Analyze AuC

ExerciseStart Exercise

Create the Supplier Invoice, Pay the Invoice, and Analyze AuC

ExerciseStart Exercise

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