Down Payment Received in SAP Business ByDesign
I am writing this blog to explain the topic ‘Down Payment Received’ in SAP Business ByDesign.
Down Payment is nothing but advance payment. Down payment received is when the company receives an advance payment from its customers on an invoice before goods are produced or services provided.
I am also planning to write another blog on the topic ‘Down Payment Made’ in SAP Business ByDesign.
For now, let us see the prerequisites and the process flow of Down Payment Received in SAP Business ByDesign.
Maintain document numbering format for Down Payment Request.
Business Configuration> Implementation Projects> Open Activity List> Search for ‘Document Numbering Formats for Customer Invoicing’> Maintain the company, Document Type, Sales Document Type, Validity, Prefix Value and Separator> Save & Close
Create a Sales Order with the combination of your customer details, sales unit, products, and pricing details> Save> Release Order
Now you need to ‘View All’ in that Sales Order> Below you will find Delivery Block option> Choose Down Payment Required> Save & Close
Once you have set the delivery block rule, you will not be able to outbound the goods unless changed manually. You will get a warning message that ‘Document blocked for delivery’. The company usually does this to receive the down payment first and then deliver the products or services.
Now we will create a Down Payment Request with reference to the Sales Order
Note: ‘Create Down Payment’ option is not supported for India.
A new screen will pop up. Fill in the details like external reference, amount, country and net/gross indicator if required> Ok
After that a down payment request ID will be generated
Now we need to go to the Customer Invoicing work center and release the down payment request.
Customer Invoicing> Invoice Request> Search> Invoice> Release
Following is the journal entry for the down payment received.
Now once we raise the invoice for the down payment request, we will proceed for the payment to be received. The down payment request is displayed in the receivables balance as a statistical open item.
Receivables> Customer Accounts> Search for your customer account> View> Select the down payment line item> Pay manually By> Incoming Check
A new screen will pop up asking for banking details regarding the check> Fill in all the mandatory fields like check number, amount, and payer bank details> Post> Assign to Deposit> Save & Close
Now we need to set the check deposit ‘In transfer’
Payment Management> Check Deposits> Select the line item> Setting icon> Release and Set to In Transfer
Once the check is set to ‘In Transfer’, proceed for creating a bank statement
Liquidity Management> New bank statement> Fill in all the mandatory details> Select the incoming check line item> Make sure the difference amount is zero> Check> Post
After you post the bank statement, you need to remove the delivery block rule from the sales order manually and save the document.
Then you can outbound the goods from your site to the customer.
Outbound logistics> Delivery proposals> Post Goods Issue (For 1 step shipping) or Create Warehouse Request (For 2 step shipping)> Propose Quantities> Propose Logistics Unit> Release
Once the goods are outbounded, we can release the customer invoice for that sales order
Customer Invoicing> Invoice requests> Search> Invoice> Release
After you have issued the final invoice, the received down payment is assigned automatically to the matching invoice. A transfer posting is made from the Down Payments Received account to the Receivables account.
Receivables> Customer Accounts> Search> The amount to be received will be shown as a balance amount i.e. the whole customer invoice amount (1600) minus down payment value (600) = 1000
After this you can repeat the earlier steps and proceed for the steps of payment to be received by the customer through incoming check and bank statement.
You can also have a look at the document flow as to how all the documents are interlinked to each other.
I have tried to explain the topic Down Payment Received in SAP Business ByDesign in simple terms and processes so that you can refer it to avoid errors in the system.
I hope this blogpost would be helpful for you if you are trying this process in the ByDesign system.
Would be happy to read some feedback and comments from your side on this blogpost in the comment section. Follow me as I will be posting few more blogs on topics related to SAP Business ByDesign.
Stay tuned for my next blogpost on the related topic to this as well..!!
You can refer to related document from Help Library. Link given below:
Kindly have a look at my blogpost that I had written on the topic ‘Third Party Field Service & Repair using existing Purchase Order’:
I had written another blogpost on ‘Rebate Management’ topic too. Link given below:
You can also find similar blogposts on different topics on SAP Business ByDesign in SAP Community. Link mentioned below:
Thanks for this blog post.
A useful feature would be to be able to remove automatically the delivery block when payment is actually received by the bank (therefore when Down Payment is cleared in SAP).
Any way of achieving this?
Thank you for your comment.
There is no such feature in which you can automatically remove the delivery block when the payment is actually received by the bank. One option is manually removing it and saving the document. Another option is in the main screen itself there is an option to set or remove the delivery block.
Attaching the screenshot of the same for your reference.
I hope that answers your question.
Thanks and Regards
Automating seems obvious to me in terms of smooth order processing.
Doesn't it bother you (or other customers) that it remains manual?
Ya that's true. But we cannot go beyond system limitations, I guess..!!
Hope so this feature is available in near future..