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Author's profile photo Lip Wang

Sales Order Down Payment Process Integrating with FI-AR


Down payment, a type of payment to improve your liquidity situation

In a make-to-order process, down payment is an effective way to secure a close relationship between supplier and buyer. Buyer may be required to pay an amount in advance before the goods are delivered.

This blog mainly talks about down payment process in sales order which enabled by billing plan.

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.

Step 1. Configuration & Customizing on Billing Plan

In S/4 HANA, you can enable the down payment process for the billing plan type provided by choosing the checkbox.

In order to ensure that the down payment is received before delivery, you can set an automatic delivery block for the billing plan related to down payment.

Configuration expert firstly select value-based  down payment request (Date Category = 04) or

percentage-based  down payment request (Date Category = 03).


Billing Plan Type = 90; Date Category = 03/04


Delivery block code setting


Step 2. Create a sales order with down payment related billing plan

When internal sales representative creates a sales order, the item category of material should be billing-related. In such case, the billing plan tab can be shown on item detail.


Item category should be billing related


Add down payment related billing plan for item

Usually, a final invoice billing plan appear together with down payment.

Now turn to Schedule Line tab, the delivery block has been automatically setDelivery%20block%20has%20been%20automatically%20set

Additionally, on Status tab, a field named “Down Payment Status” on item has been displayed. On item level, the status is determined by the billing plan status for particularly item. On header level, there is also a status “Down Payment Status” which is determined by all the item statuses. There are four statuses assigned for down payment status, “Not Paid”, “Partially Paid(Missing Payment)”, “Partially Paid(Missing Amount)”, “Fully Paid”.

I summarized the status change condition as below:

  1. “Not Paid”———>”Partially Paid (Missing Payment)”. There are several billing plan items assigned to one item (On 6/21 customer needs to pay $10; On 6/28 customer needs to pay $20). If the customer only pays the bill of $10 on 6/21, the status will change to “Partially Paid (Missing Payment)”.
  2. “Not Paid”———>”Partially Paid (Missing Amount)”. There is one billing plan item assigned to one item (On 6/21 customer needs to pay $10). If customer only pays the bill of $5 on 6/21, the status will change to “Partially Paid (Missing amount)”.
  3. Only all billing plan items are fully paid, the status will change to “Fully Paid”.

Step 3. Create billing document based on down payment request

In order to proceed to billing procedure, internal sale representative needs to remove the billing block of down payment on sales order.

Remove billing block

Then billing clerk can create billing document.

Once billing clerk has created billing document for sales order, internal sales representative can see the document flow on sales order.

Step 4. Post the down payment from customer

From step 3, the billing clerk has created the billing document of receivable down payment, then customer can make the payment. Once received the customer’s payment in the FI-AR system, the accountant can post the down payment.

On app “Post Incoming Payment”, find the down payment request and post.Post%20incoming%20payment

Post incoming payment


Step 5. Check logs on sales order.

Once accountant has confirmed and posted the payment, the delivery block on schedule line will be removed automatically. Also, the system has recorded the behaviors and messages on sales order for information transparency.

Click “Log” button on sales order to see the detail information

Check “Down Payment Status”.

So far, the standard process of down payment integrating with FI-AR has been completed. You can now proceed to create outbound delivery and create the final invoice.

Additional Note.

There are in fact many ways to enable down payments in sales activities, this blog focuses on the billing plan as a voucher for down payments. This method can be integrated directly with the sales order, making the billing plan more transparent and visible to the customer and the supplier.

If you have any thoughts or comment, please comment me directly under this blog. Also Please check community tag(Link) for other knowledges about S/4HANA Cloud for Sales. You can also post and answer questions here.

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      Author's profile photo Kapuganti Chaitanya
      Kapuganti Chaitanya

      Thanks for sharing

      Author's profile photo Mayank Choudhary
      Mayank Choudhary

      Thanks for detailed process demonstration.

      Question: Can you confirm if this feature is available for On-Premise or only valid for Cloud? In case it's available for On-Premise, then from which version it's supported? I am trying on 2021 and it's not working.

      Author's profile photo Lip Wang
      Lip Wang
      Blog Post Author

      Hi Mayank,


      The feature is available for Cloud edition. Also this feature has been down ported to OP2022. So OP2021 do not support this feature.



      Author's profile photo Hasan Bayram
      Hasan Bayram

      Hello Lip,

      Thank you for the valuable information. I have a question:

      In our project, we need to take 100 percent of the payment before delivery and invoice it.  As I experienced in the system, I can do it with the downpayment process and invoice it before delivery. Is there any way to do this without this workaround? Is it okey to use this process for taking all the payments directly?

      Thank you.

      Author's profile photo Wouter Van den Branden
      Wouter Van den Branden

      Hi Lip,

      Can this down payment flow be combined with sales BOMs? As the billing plan is triggered by changing the item category to CBAO, the functionality of the sales BOM is lost by changing the item category.

      Any suggestions on how to combine down payments with sales BOMs?

      Thanks in advance


      Author's profile photo Lip Wang
      Lip Wang
      Blog Post Author

      Hi Wouter,

      yes, sales BOM material is supported in billing plan downpayment process. For standard BOM material, the item category is CBTQ and CBTP. Of course the prerequisite is that you have configured BOM material in your system.

      Best regards,




      Author's profile photo Wouter Van den Branden
      Wouter Van den Branden

      Thanks for the quick reply Lip. Any idea if this is/will soon be available for the new sales BOM types CPFH and DISH?

      Kind regards


      Author's profile photo Lip Wang
      Lip Wang
      Blog Post Author

      Hi Wouter,

      I can safely tell you that the two BOM materials of LUMF and ERLA are supported, whether in the Cloud Edition or OP. But CPFH and DISH are new introduced BOM material which I also don't have a source of information.

      Kind Regards,


      Author's profile photo Eric Li
      Eric Li

      Hello Lip,


      Very nice blog! i try to refer the process to run down payment process.

      after i release the Downpayment request to accounting, i didn't see the tax amount in FI document items. Could you please share some guide on this ?


      Thank you in advance.


      Author's profile photo Stela Gencheva
      Stela Gencheva

      Hello Lip,

      Thank you for this information it is quite interesting for my project.

      I wanted to check with is there anything specific that you need to do in order to activate this integration between the DPR and Fi-AR.  I have done all customizing for the milestone billing as mentioned above but the filed downpayment status is missing both on header and item level.

      Thank you!

      Author's profile photo Suman Chanda
      Suman Chanda

      Hello Lip,

      I am working on OP2022 and have set up down payment processing as explained in the post.

      The "Down payment Status" field is appearing both at the header and item level and is initially set as "Not Paid". But, even after the down payment request has been cleared, the status is not getting updated in the sales order. Is there some setting which is required to enable this ?

      Thank you!