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Author's profile photo Alex Zheng

How to understand the FI postings made in SD down payment scenario?

In the SD down payment process, you may feel a little bit confused about the way that down payment being made through SD to FI, and the handling of received down payment amount in the subsequent customer billing documents. Also you may want to know how does the received down payment get cleared in FI through SD down payment settlement (clearing) item, how does the system handle the amount to be paid in the subsequent billing document considering the down payment amount to be cleared, etc.

Here I’d like to show you a concrete example for the SD down payment process based on milestone billing plan, which might help you to find out the answers for the queries you have.



This is a standard item level milestone billing plan with down payment being involved. 1st billing plan item is a down payment billing plan item with billing rule 4:

Here’s the complete document flow after I completed the test for this sales order item:


Create SD down payment request -> FI down payment request

Normally, the SD down payment process starts with the 1st billing creation by reference to the down payment billing plan item. In standard, the system uses billing type FAZ to generate SD down payment request:

In the item conditions tab, you can see the down payment condition type AZWR which contributes in the net value of this SD down payment request:

After release the above SD down payment request into FI, a FI accounting document gets created, so-called FI down payment request. While it looks a bit different from the accounting document generated from normal billing, with special G/L indicator ‘F’ being set in the accounting line item:

Note the line gets posted into G/L account 196000 for customer 1000, although a different reconciliation account 140000 being set for customer 1000 in customer master:

XD03 -> Company code data -> Account Management tab

What does this accounting line mean? Where’s account 196000 coming from?

Taking a look at the accounting configuration for special G/L could help you find the answer.

T-code: FBKP, choose “Special G/L”:

Double click on the line for Acct Type ‘D’, SGL Ind. ‘F’:

You can see the special G/L account 196000 gets determined from here:

Click on “Properties”, you’ll be able to see the meaning of special G/L indicator ‘F’:

Therefore, this FI down payment request is only a noted item, which ensures the posting is statistical in FI. It’s being posted into a different account 196000 other than reconciliation account 140000, which makes it’s possible to differentiate down payment request from other receivables.


Incoming payment of down payment

Next step is to post an incoming payment for the down payment. This is done with T-code: F-29 in standard. The down payment is assigned to the down payment request through this posting, and the received down payment amount is also assigned to the corresponding sales order item.

Down payment gets assigned to the FI down payment request 1400000005:

Sales document (BSEG-VBEL2) & Sales document item (BSEG-POSN2) get filled in the customer line in down payment posting done by F-29 (accounting document 1400000006):

The accounting line to customer account has special G/L indicator ‘A’.

Based on setting from FBKP, it means the down payment posting, and it gets posted into a special G/L account 170000:

After the incoming payment posting of down payment, you’ll find the FI down payment request gets status ‘Cleared’ from SD document flow:


Down payment settlement/clearing

After the incoming payment of down payment is done in FI, in the next milestone billing creation (e.g. create billing reference to the 2nd billing plan item) or final invoice creation, besides normal billing item 10, system would automatically propose an additional item 20 in the billing as “Down payment settlement” item.

The maximum amount for clearing is the amount received as a down payment, minus down payments that were already cleared. The amount to be cleared can be changed manually on condition level (standard: condition AZWR).

In this specific case, I’ve adjusted condition value of AZWR manually from 30 EUR to 10 EUR, which makes this down payment settlement item to be a proportional settlement.

Check the subsequent accounting document, try to understand what’s happening in FI with this down payment settlement posting:

  • For the open items on the customer account 1000, this means: Two posting lines are created; one in debit with the special G/L indicator ‘A’, and one in credit without a special G/L indicator.
  • For the general ledger, this means: A reduction is made on the special G/L account 170000 for down payments received and at the same time, a credit posting of the corresponding receivables account (reconciliation account) 140000 is carried out; that is, the total of the receivables is reduced:

Special G/L account 170000 with special G/L indicator A

Down payment to be settled 11,90 EUR Down payment made 35,70 EUR


Receivable account (Reconciliation account) 140000

Partial invoice value 142.80 EUR

Down payment to be settled 11,90 EUR

To simplify the explanation, let’s take tax amount out.

From FI point of view, in this accounting document:

  • For special G/L account 170000:
    Down payment received gets partially cleared by the down payment settlement item: 10 EUR of the received down payment (30 EUR) gets cleared.
  • For receivable account 140000:
    Total receivables of customer 1000 = 120 EUR (net value from the normal billing item 10) – 10 EUR(down payment clearing value without tax) = 110 EUR.
  • For revenue account:
    It posts revenue with billing amount 120 EUR (see above accounting line item 2 from the accounting document 1400000007).

From SD billing’s business perspective:

  • Amount to be paid by customer for this billing is not the billing value, but billing value – down payment clearing value.
  • While this billing document contains the value as it shows in the system (billing net value), which is going to be transferred into FI as revenue.

You may doubt now how could the end customer know that they only need to pay 110 EUR for an invoice with 120 EUR(without considering tax amount), although the net value shows as 120 EUR for this billing document in the system. How does this reflect in SD?

To find out the answer, you may check the billing output result. The down payment amount due for clearing gets displayed and can be deducted from the receivables when the billing document is being printed. In other words, you’ll be able to see the correct amount to be paid by customer in the invoice printing:

After this 2nd billing, you can continue with the next billing creation and post to FI accounting similarly. During final invoice, all uncleared down payments will be taken into account.


Besides the above explanation about the SD down payment posting and clearing, as additional info, I’d also like to add several important SAP consulting notes regarding SD down payment processing. These notes explain the necessary customizing settings and provide very useful information / hints for the down payment processing analysis from both SD & FI side:

213526 – Customizing of down payment processing SD/FI
213567 – Analysis of the down payments in SD 
213852 – Analysis of down payment processing with FI

Hope this could help you understand better about what’s happening with the down payment posting and down payment clearing in both SD & FI side in the SD down payment scenario.


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      Author's profile photo Amitesh Anand
      Amitesh Anand

      Very nicely explained document.

      Keep it up.


      Best Regards,



      Author's profile photo Alex Zheng
      Alex Zheng
      Blog Post Author

      Hi Amitesh,


      Thanks very much for your feedback!


      Best regards,



      Author's profile photo Jayant Rathod
      Jayant Rathod

      Hi Alex,


      Thanks for sharing useful document.



      Jayant 🙂

      Author's profile photo Alex Zheng
      Alex Zheng
      Blog Post Author


      Hi Jayant,


      Thank you for your comment!


      Best regards,


      Author's profile photo Siva Prasad V
      Siva Prasad V


      Thankyou for sharing the Document

      Author's profile photo Alex Zheng
      Alex Zheng
      Blog Post Author

      Hi Shiva,

      Thanks for your feedback.

      Best regards,


      Author's profile photo Former Member
      Former Member

      Hi Alex,

      This is really really helpful explanation to understand SD-FI Integration.





      Author's profile photo Greg Gokey
      Greg Gokey

      Alex -

      Excellent instructions on the flow from both the SD and FI perspective.  It will help our users understand in a better way than I have been explaining.

      If I may, I need some advice on an issue we've come across with refunding a down payment on a contract.  I come from the FI side of the house w/ just enough SD knowledge to cause confusion

      Author's profile photo Munir Shanavas
      Munir Shanavas

      Hi Alex,


      Can we have the similar functionality without using Billing plan ?

      Because our client would do the bill based on the assessed work performed (projects) at the end of month. Hence it cannot be pre determined how much is going to be billed.




      Author's profile photo Former Member
      Former Member

      Hi Alex,

      It was very nice explanation. I have a question. Can I have the downpayment request hitting the accounting at Header level (with one Customer line - by summing all Billing items)? If so, can you help with required steps to be done. We are facing issues when the Billing items with Taxes are more than 999. SAP doesn't support summarizing of taxes for Downpayment request as well.


      Thanks in advance.


      Author's profile photo Mamoon Rasheed
      Mamoon Rasheed

      Alex, I appreciate your effort. I have a question, you have shown the final invoice at Sales Order level. is it possible to have downpayment with sales order reference and final invoice with delivery reference.


      if yes what setting do you suggest.




      Author's profile photo Magdhum Shaik
      Magdhum Shaik

      Hi Alex,

      May i know how the line item 20 - down payment settlement line is populated by system in an Invoice ( F2).

      which configuration  or routine is driving that functionality to populate in an Invoice ?

      Please help to update.


      Thanks & Regards,

      Magdhum Shaik

      Author's profile photo Sumant Kekatpure
      Sumant Kekatpure

      Change the copy control settings between F2 => OR as below and try. It should pick the AZWR condition with value.





      Author's profile photo Mike Mcilroy
      Mike Mcilroy

      Great explanation and so clear

      We are looking to use this method as a way to manage deferred revenue when customers pay up front before they receive the goods

      this is an very elegant way of doing it without SAP RAR


      Author's profile photo Aymen abdennour Addoui
      Aymen abdennour Addoui

      Hello Alex ,

      Thanks you very much for this expalantion .very usful

      I need your help on the issue below , i did all the necessery customizing related to down payment but during the closing invoice the system copy the down payment amount in AZWR " item détails and put it as statistical " didn't update the net value " Zero " because of that check box,why the system is doing this and for which reason ??

      would you please help me to fix this issue if you face it before or any one from the blog will be appreciated

      Screen shot that highlight the issue :

      Also how the system determine Accounting document for Down payment settelement line item in closing invoice ??


      Thanks in advance

      Author's profile photo Javier López
      Javier López

      Good morning Aymen.

      I have the same problem.

      Please, did you find a solution?

      Thanks in advance

      Author's profile photo Samarth Gupta
      Samarth Gupta

      How do we ensure that the tax amount & code shown in the noted item is coming from SD ?

      We changed the special recon. account for the customer to have setting + B -> which is bringing the gross amount ( including tax ) on the noted item but does not bring the tax amount and tax code from the SD tax conditions.

      Author's profile photo Usha V
      Usha V

      Hi Alex,

      I understand that the FI clearings are included in the document issued from SD but please advise how document 140000006  i.e down payment received is cleared technically. This will be cleared with what document number?

      If SAP standard functionally is including to clear everything from SD perspective it should also clear the document open in FI



      Author's profile photo Niranjan Y
      Niranjan Y


      Hi Alex, Thanks for your Blog. I've got an issue with regards to the Profit center determination in Billing type FAZ. Sales order has got Profit centers, however, those are not shown in Billing. Can you pls share your inputs. Thank you/Niranjan

      Author's profile photo Jeevan Nilankar
      Jeevan Nilankar

      My requirement is also similar some sort. I am looking forward to hear some another technique to implement this.

      100% Advance invoice should go to deferred & once final billing is posted it should go to main G/L

      My client wants an Advance invoice for the billing plan and for Non Billing plan scenario should go to the deferred account and after the goods or service completion, it should go to the main G/L account.

      They want accounting entries should be posted as below mentioned:
      Dr AR
      Cr Deferred Revenue
      Cr VAT
      Upon delivery or service completion
      Dr Deferred Revenue
      Cr Revenue account

      Billing plan relevant Item categories they want TACO, TAMO, TANO, ZTFB, ZTXO, ZPIN, and ZPTR advance invoice should first post to deferred and at the time of final billing, it should automatically post to the main G/L account.
      and for non-billing plans relevant for item categories TAN, TAC, TAM, ZNID, ZNTD, TAX, TAW-advance invoice should first post to deferred and at the time of final billing, it should automatically post to the main G/L account.

      My client wants the advance invoice to go as a ‘noted item’ so that it should not be part of the customer’s normal SOA against the services already delivered and don’t hit the AR control account. Only Tax to be picked to VAT account.

      Can you please guide me on how we can Map the Deferred G/L and Main G/L entries in SAP so that correct accounting entries will be shown?

      Thank you in advance

      Author's profile photo Generic Kagool
      Generic Kagool

      Did you got any solution for this? We have similar requirement.