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Author's profile photo Navdeep Kanwar

SD Condition Based Down Payments


Often in business, especially in a make-to-order environment, customers may be required to pay some amount in advance before delivery of goods.

Normally, down payment agreements are made for producing and delivering goods to customers in the capital goods, or plant engineering and construction industries.

Down payments are payments made before completion of the product, with no interest. They represent short or medium term outside capital procurement and therefore improve the company’s liquidity situation.

This process is used to create requests for down payment, record the receipt of the down payment, create a final invoice after the deduction of the down payment received and a receipt of the final amount due on the invoice.

The integrated process allows for a proper document flow to be maintained between the sales and financial transactions.

Down payments form part of the agreement with the customer and are saved in the sales order.

The value of the agreed down payment can either be created as an amount or percentage value of the item.


Key Process Flow:

  • Sales Order Entry – The down payment agreement is stored in the document condition AZWA in the sales document. Supported sales documents are quotations, orders, and debit memo requests.
  • Post Down Payment – The incoming payment is posted in the FI system (transaction f-29). Here it is important that the accounting item is assigned to the sales and distribution document number.
  • Delivery Processing – Depending on the process, the system creates a delivery
  • Post Goods Issue
  • Billing – Down payment clearing is carried out in the billing document. The system does not generate a down payment clearing line. Instead, it sets a down payment value that is to be cleared in the document condition AZWB. Order-related or delivery-related billing can be carried out.
  • Down payment clearing



It must be ensured that the business function SD_01 under

ENTERPRISE_BUSINESS_FUNCTIONS is activated via T-code: SFW5. It’s the technical prerequisite for the condition-based down payment function.



Getting Started

Customizing – Sales & Distribution

Enhancing Pricing Procedure with Condition Type: AZWA, AZWB, AZDI

These condition types are supplied in the standard system:

AZWA for debit down payments. AZWA has the calculation type B (fixed amount). It is configured as a group condition and can be entered for the header or item.

AZWB for billing. AZWB has the calculation type G (formula) and the condition category e (down payment demand/settlement).

AZDI for rounding differentials balance. AZDI has the calculation type B (fixed amount), the condition class A (surcharges or discounts), condition type L (generally new when copying) and this condition cannot be edited manually. It is an item condition.


Enhancing Pricing Procedure with Condition Type: AZWA, AZWB, AZDI

Condition Type: AZWA

Condition Type: AZWB

Condition Type: AZDI

Use of Condition Type AZWR:

The condition type AZWR is used for down payment values that have already been provided, but which have not yet been cleared. This condition type must be included in the relevant pricing procedure before output tax with condition 2 (item with pricing) and the calculation formula 48 (down payment clearing value must not be bigger than the item value).

Before applying condition AZWR, create a subtotal with the base value calculation formula 2 (net value). If condition AZWR is changed manually, you can retrieve information about the original system proposal from the subtotal.

Maintain the printing indicator.

Condition type AZWR has calculation type B (fixed amount) and condition category E (down payment request / clearing).

Condition Type: AZWR

Customizing – Financial Accounting:

  • Configure Reconciliation Account (OBXR) – Assign the field status area G031 for the G/L accounts Down Payments Received and Down Payments Requested chosen.
  • Set Accounting Configuration (OBXB) – Configure the posting key for the down payments (ANZ) and the output tax billing (MVA).
  • Configure posting Key (OB41) – Sales Order must be set as optional entry for the posting key 19.
  • Set field status area (OB14) – You must set Sales Order as optional entry for field status variant 0001, field status group G031.
  • Assign field status variants to company code (OBC5)

Business Process:

  • Sales Order Entry

  • Post Down Payment

  • Delivery Processing and PGI

  • Billing



Down Payment Clearing – During Final Billing, the accounting document to settles the down-payment amount per the value in condition type AZWB. In the customer line item report via transaction code FBL5N select the Cleared items radial button and the Normal items tickbox. Execute the report and you can see that the customer invoice you created and the normalized transfer posting you made are now cleared. At this point the SAP customer down payment process is complete!


References and Further Reading:

1788841Consulting note for condition-based down payments

2714746 – Down payment clearing and delivered quantity

213526 – Customizing of down payment processing SD/FI

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      Author's profile photo Karan Bhambra
      Karan Bhambra

      Very Informative..Keep sharing..

      Author's profile photo Sukhbir Singh Chhina
      Sukhbir Singh Chhina

      Very explanative , thanks for the help....

      Author's profile photo Andrea Sánchez Balanzá
      Andrea Sánchez Balanzá


      Can be used Down Payments with price condicition for partial deliveries?



      Author's profile photo Navdeep Kanwar
      Navdeep Kanwar
      Blog Post Author

      Yes, it will fetch the partial amount in the invoice accordingly.

      Author's profile photo Pavel Jaros
      Pavel Jaros


      thanks for this blog. I didn't know SAP has an alternative solution for "billing plan related down-payment" process, great.

      But I am little bit confused (reading attached notes) if this solution is only available for ECC 6.0 (EhP2), how to understand this? Does it mean the later system versions cannot used this solution? Actually I am working on S/4HANA OP 1909 and my question is if this can be applied for this system version as well or not?

      Thanks a lot for your feedback.

      Best regards, Pavel

      Author's profile photo Yiin Tham
      Yiin Tham

      Hi Pavel Jaros - I have the same question about the availability of condition based down payment in1909 too.  Have you or Navdeep Kanwar found any further information?

      Author's profile photo Pavel Jaros
      Pavel Jaros

      Hi Yiin Tham

      Haven´t found any details, still working with "old-school" version of down-payment (i.e. billing plan related process and order-related billing).

      Anyway, what you can see in S/4HANA standard delivery, there are specific condition types available which are concerned to this "new" solution, i.e. condition-based down-payment. So from this perspective it should be used in S/4HANA as well, but haven´t time to test if works or not.

      Best regards, Pavel

      Author's profile photo Yiin Tham
      Yiin Tham

      Pavel Jaros Thanks for responding and letting me know.  I'll keep you updated too if I find anything else!

      Author's profile photo Yiin Tham
      Yiin Tham

      Pavel Jaros - Quick update:  I was able to set this up in 1909 and it works (basic AZWA, AZWB at line item level). From what I understand, this is the option we need to use for delivery-based down payment processing, even in S4HANA.  The Best Practice (BKJ) document only covers Billing Plan but it doesn't cover this scenario.

      Author's profile photo Hanon OTC
      Hanon OTC

      Hi Yin ,

      We have migrated to S4 Hana and I could not find the Condition types AZWA & AZWB in standard condition types. Is there any thing we need to do to get those in V/06.

      Appreciate your  response on this.

      Author's profile photo Yiin Tham
      Yiin Tham

      Hanon OTC -  No, there wasn't anything else I needed to do in the system, the condition types were pre-delivered.  Have you checked the pre-requisite in the blogpost, to ensure that SD_01 business function is activated in SFW5?  It appeared in the S/4H_ALWAYS_ON_FUNCTIONS folder for me, and is activated.



      Author's profile photo Peter Danilovic
      Peter Danilovic

      Very useful blog, thanks for that.

      Question; anyway to make this work with a SD downpayment request (that creates a noted item in FI)?

      Thanks in advance.


      Author's profile photo Jana Leune
      Jana Leune

      Hi, am facing the same issue. Any ideas how to realize that (e.g. FAZ without billing plan)?

      Author's profile photo Peter Danilovic
      Peter Danilovic

      Hi Jana

      Unfortunately not. We did a workaround in VMS (as this was used anyway) from where we interfaced to F-37. So only through FI and outside of SD. Not ideal but working.


      Author's profile photo SIVASANKARAN SUNDARESAN

      Very useful link.

      Thanks a lot Navdeep Kanwar.

      Regards Siva