SAP Down Payment (Customer - and Vendor)

SAP FICO [FINANCE]
(Down Payment)
(Advance Payment from Customer )
(Advance Payment to Vendor)
BY Prafull Suryawanshi
(SAP FICO , MM Consultant)
Prafull Suryawanshi
Prafullpsuryawanshi22@gmail.com
Down Payment
1. Advance Payment From Customer
• Advance payment is a type of payment made ahead of its normal schedule such as
paying for a good or service before you actually receive it. Advance payments are
sometimes required by sellers as protection against nonpayment, or to cover the
seller’s out-of-pocket costs for supplying the service or product.
• The SAP customer down payment process is required when advances are received
from customers to fulfill sales orders before the actual sale has occurred. These
customer advances are a liability for the organization which will be cleared by future
sales.
• You can make full or partial payments in advance to organization for an entire order
or for specific line items on the order and later adjust the payment against the
invoices for the order. When an advance payment is fully approved, the payment
document for the advance payment is processed in the SAP System.
• The down payment process in SAP FICO helps maintain accurate accounting
records, prevents revenue leakage, and ensures that both customers and businesses
have clear visibility of the financial commitment. It’s a crucial aspect of financial
management, enabling businesses to streamline their operations and maintain
transparency in their financial dealings.
Prafull Suryawanshi
1. Create G/L Account for Customer Downpayment. (T – Code – FS00)
Advance receipt from customers need to be shown as liabilities on the balance sheet. In
order to support this requirement down payments received are posted as special general
(G/L) transactions. An alternative reconciliation account is required to post such
transactions. When a down payment is received from customer the system updates the
alternative reconciliation account.
This account represents the alternative reconciliation account that will be selected when a
down payment is processed.
Enter the number range of liability group.
Prafull Suryawanshi
Save it.
Prafull Suryawanshi
2.Define Reconciliation Account for Customer Down Payment – (T Code
– OBXR)
To accessible the recording of the down payment as a special general ledger transaction, a
link must be created standard reconciliation account and the alternative reconciliation
account.
Path : SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >
Business Transactions > Down Payment Received > Define Reconciliation account for
Customer down payments.
Execute.
Click on Sp.G/L Indicator ‘A’ as a down payment.
Prafull Suryawanshi
When you select Account type then enter Chart of account.
Enter here Reconciliation account & Special G/L Account & save it.
Prafull Suryawanshi
3.Down Payment From Customer : ( T Code – F-29 )
In this process seller received specific amount from customer as a advance or down
payment. Post Advance Receipt as a account receivable down payment.
Path : SAP Menu > Accounting > Financial Accounting > Accounts Receivable >
Document Entry > Down Payment > Down Payment.
In this following Screen enter the mandatory details of Posting Data, Account of Customer ,
Bank A/c , Amount, Text, most required field is Special G/L Ind there is enter ‘A’ Code.
Prafull Suryawanshi
Take Bank details & amount and click on Enter.
Save the document.
When you save the document create a document number.
Then you can Check the customer line item report by using transaction code FBL5N.
In this transaction code you can see the customer Credit amount with down payment
document number.
Prafull Suryawanshi
4.Invoice For Sale : ( T Code – FB70 )
In this process we can post the invoice for same customer was received advance
amount of previous step.
Go with FB70 Transaction Code.
Select first our company code in invoice document. Then enter select customer Invoicing
Data, Enter sales amount and enter text.
When you filled data and enter there are showing you can received amount from customer
previously.
In this screen showing amount of received advance.
Prafull Suryawanshi
Enter footer side Sales G/L Account as a credit and enter amount of sales & save it / post
it.
When you save or post generate automatic document number of invoice.
5.Down Payment Clearing : ( T Code – F-39 )
We can transfer advance receipt amount alternative reconciliation account to standard G/L
Account. Actual working transfer the down payment amount special G/L Account to
standard G/L Account.
Path : SAP Menu > Accounting > Financial Accounting > Accounts Receivable >
Document Entry > Down payment > Clearing.
Prafull Suryawanshi
Execute Clearing option.
Select Customer A/c & invoice reference & enter.
Select Available amount and clear the down payment we received from customer & save it.
Prafull Suryawanshi
6.Post Incoming Payments : ( T Code – F-28 )
Go with Transaction code F-28.
The last step we can received remaining amount of invoice from customer.
Enter here customer account & select bank account & enter remaining amount.
Enter amount & clear remaining payment & Post.
Prafull Suryawanshi
2.Advance Payment to Vendor
Down payments are sometimes also referred to as advance payments. In vendor advance
payment received goods or service before we pay to vendor of specific amount .
1.Create G/L Account for Vendor Down Payment : ( T Code – FS00 )

A vendor down payment needs to be recorded as an asset on the balance sheet. In order to
support this requirement down payments are posted as special general ledger (G/L)
transactions. An alternative reconciliation account is required to post such transactions.
When a down payment is posted to the vendor account, the system updates the alternative
reconciliation account instead AP trade reconciliation account.
Go with FS00.
Click on Create option and take a group of asset. Following steps are required for G/L
account.
Prafull Suryawanshi
Save it.
Prafull Suryawanshi
2.Define Reconciliation Account for Vendor Down Payment : ( T Code –
OBYR )
Facilitate the recording of the down payment as special G/L transaction, this assign must
be created between the standard reconciliation account and alternative reconciliation
account.
Go with transaction code OBYR.
Path : SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >
Business Transaction > Down Payment Made > Define Alternative Reconciliation Account
for Down Payments.
Execute.
Prafull Suryawanshi
Select Special G/L Indicator is “A” for Down Payments. When you click on Special G/L
Indicator “A” then enter there Chart of Account.
Enter Chart of Account & enter continue.
Enter Standard Reconciliation Account & Created alternative Reconciliation Account &
save it.
Prafull Suryawanshi
3.Down Payment to Vendor : ( T Code : F-48 )
If the payment is ready to be made pay to vendor. Then you can enter the down payment to
vendor.
Path : SAP Menu > Accounting > Financial Accounting > Accounts Payable > Document
Entry > Down Payment > Down Payment.
Execute F-48 Down Payment.
Filled the Information about vendor , Special g/l ind, Bank Account required details.
Prafull Suryawanshi
Save it.
Prafull Suryawanshi
4.Display/Check Vendor Account Balance : ( T Code : FBL1N )
Path : SAP Menu > Accounting > Financial Accounting > Accounts Payable > Account >
Display / Change Line Items.
Here we can check advance balance of vendor account. Enter the vendor account , Select
line item status, Mark type for normal item, Special G/L transaction & Execute.
Prafull Suryawanshi
When you execute this you can see vendor balance.
Here you can see Supplier details , an Document no reference wise see the balances of
vendor.
Prafull Suryawanshi
5.Vendor Invoice Posting : ( T Code – FB60 )
Post the Purchase invoice we pay advance amount to the vendor. The Accounting
document effect is show the below, Stock / Inventory A/c is debit, Vendor Account is
credit.
Go with Transaction code FB60.
Enter the details.
Enter Vendor , enter invoice value , select G/L Purchasing Account & Click enter.
When you click enter system shows the advance paid balance on screen.
Click on continue & Post the Document.
Prafull Suryawanshi
6.Clearing Down Payment : ( T Code : F-54)
This process for transfer the value alternative reconciliation account to standard
reconciliation account. It means transfer advance payment amount Special G/L to normal
G/L.
Path : SAP Menu > Accounting > Financial Accounting > Accounts Payable > Document
Entry > Down Payment > Clearing (F-54)
Click on F-54 Clearing option.
Prafull Suryawanshi
Fill the mandatory data and click on process down payment.
In down payment process window showing all transaction document are showing you can
select your transaction number and transfer amount.
Enter & save the document.
Prafull Suryawanshi
7.Outgoing Payment to Vendor : ( T Code – F-53 )
Finally we need to clear vendor payment against the invoice. In the previous step we
transferred advance amount to the vendor account. In this process we pay remaining
amount of invoice.
Go with Transaction Code F-53.
Enter the Posing Data of document , enter Company code , account number , remaining
amount of invoice click enter.
Here see the remaining payment window of vendor. In this screen need to be not assigned
value is NIL 0 this is necessary. After that save the document.
Prafull Suryawanshi

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SAP FICO [FINANCE]

1. Advance Payment From Customer

Save the document.

When you save the document create a document number.

In this screen showing amount of received advance.

When you save or post generate automatic document number of invoice.

5.Down Payment Clearing : ( T Code – F-39 )

Select Customer A/c & invoice reference & enter.

Go with Transaction code F-28.

Enter amount & clear remaining payment & Post.

1.Create G/L Account for Vendor Down Payment : ( T Code – FS00 )

Enter Chart of Account & enter continue.

Execute F-48 Down Payment.

Click on F-54 Clearing option.

Enter & save the document.

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