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Down Payments
You usually arrange down payments with the customer 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 receiveables

When posting an incoming payment for a down payment, the down payment is assigned to the down payment request
The amount paid as 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 Agreements in the Sales Order
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 the following billing rules
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

The special condition type AZWR is used for down payment items in sales documents, rather than the usual condition type PR00
Condition category E and calculation rule B (fixed amount) are assigned to condition type AZWR
When condition type AZWR is determined, all the other condition types are set to inactive

Down Payment Request
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 request

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 transaction 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

Incoming Payment for Down Payment
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 pushbutton 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

Partial Invoices
For partial and final invoices, the down payments made are transferred to the billing documents as down payments for clearing

When you print the invoice, the down payment amount due for clearing is displayed and can be deducted from the receivables
In other words, clearing is carried out automatically during invoice printing

Partial Invoice – Proportional Settlement
During partial invoicing, you can change the amount of the down payment to be cleared
You can do this by changing the amount for condition type AZWR on the pricing screen for the item

In this case, the maximum amount for clearing is the amount received as down payments minus the down payments already cleared

During final invoicing, all pending down payments are taken into account

Create Standard Order
Create Standard Order: Overview > Goto > Item > Billing Plan
Create Billing Document
Create Billing Document > Enter
F-29 Accounting > Financial Accounting > Accounts Receivable > Document Entry > Down Payment > Down Payment
Post Customer Down Payment: Header Data > Requests
Post Customer Down Payment: Choose Requests > Create Down Payments
Change Standard Order > Item > Billing Plan > Block
Create Billing Document

Condition type AZWR is used specially for down payment processing
If you only want to carry out partial settlement, you can select the down payment item to be settled in the billing document, branch to the pricing screen, and change the value of condition type AZWR

Change Standard Order > Environment > Display Document Flow