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Author's profile photo Ana Moreira

Partial and Residual Payments in S/4HANA Cloud

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Partial and Residual Payments in S/4HANA Cloud

I have been asked about partial payments in S/4HANA Cloud lately. So lets take the opportunity to explore not only this process but also residual payments.

First lets first understand the difference.

A partial payment happens when we post a payment on account and no clearing occurs. This means both invoice and payment will remain as open items till we cleared them.

On the other hand, a residual payment will clear the original document and a new item will be created.

Partial Payment Process

Lets take as example that we issue a customer invoice with the amount of 100.

We later receive the amount of 60 and we know this is related to the open item with value 100.
In the Fiori app Post Incoming Payment you select the item to be cleared and in the column “Allocated amount” you put the amount 60


In the report Manage Customer Line Items you can see that both items are open and linked through the field “Invoice Reference

Keeping with the same example, later on we receive a second payment of 40. So we repeat the steps described above.

And checking the open items of this customer we see 3 open items related to the same invoice.


It’s now time for the clearing. For this purpose use the Fiori Clear Incoming Payments.

Other settings

Because the payments are linked to the original invoice is possible to have the system selecting automatically the open items related to the same invoice. This way you can clear the items directly in the app Post Incoming Payment.

For this go to the Fiori Edit Options for Journal Entries and select the field “Use Invoice Reference”


This way, you can skip the step “Clear Incoming Payments”


Residual Payments Process (residual clearing)

Lets take the same example of the 100 customer invoice we issue.

We receive a payment of 95 and decide to give the customer a discount of 5 and clear the invoice.

In the Fiori Post Incoming Payment we need to change the layout of Items to be cleared and make sure the columns Residual Amount and Reason Code


Configuration for Residual Clearing

To configure the reason codes you can use SSCUI 500017 – task ID 100069 Payment Difference Reason

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      Author's profile photo Sandeep Kumar
      Sandeep Kumar

      Very useful, thanks for sharing.

      Author's profile photo Nadja Medeiros
      Nadja Medeiros

      Good one Ana! Thanks!

      Author's profile photo Cassiano Lins
      Cassiano Lins

      Thanks Ana, great job!

      Author's profile photo Ana Goncalves
      Ana Goncalves

      Great blog 🙂 Thank you for sharing Ana Moreira!

      Author's profile photo Satyanarayana Sighakolli
      Satyanarayana Sighakolli

      Ana Moreira

      Good one. Thanks for sharing.

      Author's profile photo Mohamed Cassim
      Mohamed Cassim

      Ana Moreira Thanks for the knowledge 🙂 - Under "Residual Payments Process (residual clearing)" is there a reason code for Withholding Tax (with automatic posting)?

      PS: I do not see task ID100069 in my system - is it available to S4HC customers?

      Author's profile photo Hima Paluri
      Hima Paluri

      Great blog, useful..

      Author's profile photo Shabarinath Gupta Vallala
      Shabarinath Gupta Vallala

      Hi Ana moreira,

      You have shown partial payments correctly through Fiori app. But you did not to do residual payment. In case of residual payment we don't settle the amount to the discount account using reason code generally, a new invoice document gets generated for the residual amount and which is displayed as a new open item in the customer line items.


      Shabarinath Gupta.V

      Author's profile photo Subhadeep Das
      Subhadeep Das


      For residual clearing, is there a way to setup a default reason code so that user doesn't have to select manually ? For minor payment differences, my user usually writes it off, however the problem they face is with the tolerance limit. While the limit works at an aggregate level, my user wants to write off at invoice item level.

      Best regds