Down Payments Made Following Down Payment Request in sap

Down Payments Made Following Down Payment Request

In this process, you create a purchase order in Materials Management; this order is then delivered on receipt of a down payment. After you have posted the goods receipt, enter the invoice in invoice verification in Materials Management. Clearing between goods delivered and goods invoiced is carried out automatically.

Since you have already made a down payment, you then have to clear the down payment with the invoice amount. Then you make the final payment.

To simplify matters, assume that the down payment request is entered today, just a short time after the purchase order. The down payment occurs on the same day. The invoice is entered with a date ten days from today’s date, and is paid immediately.

For more information about this process, see .

Process Flow

You can find the data for this process under

Entering Purchase Orders

Entering Down Payment Requests

Displaying Vendor Accounts

Posting Down Payments

Displaying Purchase Orders

Displaying Vendor Accounts

Processing the Goods Receipt for the Purchase Order

Posting Incoming Invoices in Materials Management

Clearing/Reversing Down Payments

Displaying Vendor Accounts

Displaying Purchase Orders

Posting Final Payments

Displaying Vendor Accounts

sap fico Additional Process Information

Since down payments are very seldom used in the United States, this process is illustrated for a European environment using European data.

The basic concept: Your vendor sends you a letter/message requesting that you pay a specific down payment amount, and specifying the date by which this amount is to be paid. You post the down payment request in your system and pay the down payment amount at the specified time. For you, this represents an outgoing payment. When you post the invoice, you clear the down payment with the invoice and thus reduce your payables. You can carry out the entire process in Accounts Receivable where the same functions are available.

Data Used During This Process in fico

Fields	Data	Description
Company code	1000	IDES AG Frankfurt
Currency	EUR	Local currency
Document date	Today’s date	Today’s date
Posting date	Today’s date	Today’s date
Bank account	113100	Deutsche Bank, domestic
G/L account	415000	Costs due to external procurement
Vendor	1006	Blacks AG
Plant	1000	Hamburg
Purchasing organization	1000	IDES Germany
Purchasing group	001	Dietl, B.
Material	V10	Cylinder head

Entering Down Payment Requests in fico

Use

You receive a down payment request from vendor Blacks AG (vendor 1006) with a reference to the purchase order number and purchasing date from the purchasing group. Since this request constitutes a special G/L transaction, you have to post it immediately in Financial Accounting.

Procedure

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Document Entry ® Down Payment ® Request
Transaction Code	F-47

2. Enter the following data:

Field	Data
Document date	Today’s date
Company code	1000
Posting date	Today’s date
Currency/rate	EUR
Reference	Any number as a reference
Doc.header text	Down payment request
Account (Vendor)	1006
Trg.sp.G/L ind.	A (target special G/L indicator: Down payment on current assets)

3. Choose .
4. Enter the following data:

Field	Data
Amount	11,600.00
Tax amount	1,600.00
Tax code	VN
Calculate tax	Do not select
Bus.area	1000
Due on	Today’s date
Purch.doc. (1st field)	Your PO number
Purch.doc. (2nd field)	10 (= item number from the purchase order)
Text	Cylinder heads V10

5. Choose .

Confirm any system messages with .

6. Make a note of the document number.
7. Choose .
8. In the Exit Editing dialog box, choose Yes.

Displaying Vendor Accounts in fico

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Account ® Display/Change Line Items
Transaction Code	FBL1N

2. Enter the following data:

Field	Data
Vendor account	1006
Open items	Select
Noted items	Select

3. Choose .
4. Enter today's date.
5. Choose .

The document that you have just posted appears.

6. Double-click on the document to display it.
7. Choose .

The system generates a document that does not affect accounting. In other words, you can display line items, but the amount is not updated in transaction figures.

It is actually a noted item. The only item the document contains is the down payment request from vendor 1006. The reconciliation account is account 196300 (vendor down payment requests).

8. Choose until the overview tree appears.

Posting Down Payments in fico

Use

In this process, we carry out the down payment manually. We could also use a payment program here. The payment proposal list would contain the down payment if we entered the vendor in the payment parameters.

Procedure

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Document Entry ® Down Payment ® Down Payment
Transaction Code	F-48

2. Enter the following data:

Field	Data
Document date	Today’s date
Company code	1000
Posting date	Today’s date
Reference	Your reference number from the first process
Doc.header text	Down payment
Account (Vendor)	1006
Special G/L ind.	A (down payment on current assets)
Account (bank)	113101
Amount	11,600.00
Value date	Today’s date

3. Choose Requests.

The existing down payment requests for vendor 1006 appear.

4. Select the appropriate request and then choose Create down payments
5. If any warning messages appear, choose .

An overview of the document to be posted appears.

6. Choose .
7. Make a note of the document number.
8. Choose .
9. In the Exit Editing dialog box, choose Yes.

Displaying Vendor Accounts in fico

Use

A down payment made on a purchase order for goods has to be activated. You will notice that in posting a down payment, the system makes a posting automatically to the assets side of the balance sheet.

Procedure

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Account ® Display/Change Line Items
Transaction Code	FBL1N

2. Enter the following data:

Field	Data
Vendor account	1006
All items	Select
Special G/L transactions	Select

3. Choose .

The documents for the down payment request and the down payment appear. The down payment request is identified as a cleared item.

4. Double-click on the down payment document to display it.

The vendor item appears. Reconciliation account 159000 is in the G/L field (other down payments made on current asset).

In this case, the vendor reconciliation account is not payables account 160000 (as entered in the vendor master record), but account 159000, which is assigned to the assets side of the balance sheet (in current assets).

5. Choose .

Your posting should be as follows:

· Credit: Account 113101 (bank account)

· Debit: Account 1006 (vendor/reconciliation account 159000)

· Credit: Account 154000 (input tax)

· Debit: Account 159010 (clearing account for input tax)

You clear these postings in a later transaction, after the goods have arrived at the warehouse and you have posted the vendor invoice.

6. Choose until the overview tree appears.

Processing the Goods Receipt for the Purchase Order in fico

Use

We assume that the goods were delivered today. You now have to post the goods receipt in Materials Management.

Procedure

1. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Inventory Management ® Goods Movement ® Goods Receipt ® For Purchase Order ® PO Number Known
Transaction Code	MIGO

2. Enter the following data:

Field	Data
HeadText	Goods receipt
Transaction type	Purchase order (defaulted)
Purchase order	PO number from the first process
Document date	Today’s date
Posting date	Today’s date

3. Choose .

The items for the purchase order entered appear. In this example, there is only one item for the purchase order number. If the quantity delivered does not match the quantity ordered, the value in the Quantity field has to be adjusted accordingly (purchase order amount from the previous step).

4. Select Item OK.
5. Choose Post.
6. Make a note of the document number.
7. Choose .
8. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Inventory Management ® Material Document ® Display
Transaction Code	MB03, FB03

9. The system should default your document number. If not, then insert the number here. Enter the current fiscal year.
10. Choose .

The system shows the Display Material Document ... Overview screen.

11. Choose Accounting docs....
12. Choose Accounting document.

Your posting should be as follows:

· Debit: Account 300000 (Inventory: Raw materials)

· Credit: Account 191100 (Goods Recvd/Invoice Recvd)

The posting to account 191100 is only cleared after the invoice has been posted.

13. Select and until the overview tree appears.

Posting Incoming Invoices in Materials Management in fico

Use

To simplify matters, we assume that the invoice arrived today as well. You now have to post it in the system.

Procedure

1. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Logistics Invoice Verification ® Document Entry ® Enter Invoice
Transaction Code	MIRO

2. Enter the following data:

Field	Data
Invoice date	Today’s date
Posting date	Today’s date
Company code	IDES AG (defaulted)
Reference	Reference from the first process
Amount	116,000.00
Calculate tax	Do not select
Tax amount (1st item)	16,000.00
Tax ind. (1st item)	VN
Purchase order number	PO number from first transaction

3. Choose .

The system defaults purchase order data automatically.

4. Select the purchase order item and then choose Simulate.

The system tells you that there are down payments on current assets for this purchase order.

5. Choose .

The Simulation Document in EUR (Document currency) screen appears; you can see the document items.

6. Choose Back.
7. Choose .
8. Make a note of the document number.
9. Choose .
10. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Logistics Invoice Verification ® Further Processing ® Display Invoice Document
Transaction Code	MIR4

11. The system should default your invoice document number. Enter the current fiscal year.
12. Choose Display doc.
13. Choose Follow-on documents.
14. In the dialog box, choose Accounting document.

Your posting should be as follows:

· Credit: Account 1006 (vendor/reconciliation account 160000)

· Debit: Account 191100 (Goods Recvd/Invoice Recvd)

· Debit: Account 154000 (input tax)

15. Select and until the overview tree appears.

At the end of the period, you will have to analyze account 191100 with a program and clear items belonging together (goods receipt/invoice receipt).

A more detailed description is given at the end of the process, in Materials Management, and in Closing in Accounts Receivable and Accounts Payable.

Clearing/Reversing Down Payments in fico

Use

You can also clear the down payment with the invoice amount in Financial Accounting or Materials Management. You have to perform this process in order to clear a posting of a down payment on current assets, or to reduce a payable by the amount of the down payment.

Procedure

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Document Entry ® Down Payment ® Clearing
Transaction Code	F-54

2. Enter the following data:

Field	Data
Document date	Today’s date
Posting date	Today’s date
Reference	Reference from the first process
Doc.header text	Down payment clearing
Account	1006
Text	Clearing down payment/invoice amount
Invoice	Empty

3. Choose Process down pmnts.

One item is selected; this is the down payment you entered earlier.

4. Select the down payment item and choose .



If the system asks you to correct the item selected, proceed as follows:

Double-click on the colored item.

Enter a descriptive text in the designated field. This will allow you to reconstruct this transaction at a later time.

Post the document.

5. Bypass any warning message by selecting .
6. Make a note of the document number.
7. Choose .
8. In the Exit Editing dialog box, choose Yes.

Displaying Vendor Accounts in fico

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Account ® Display/Change Line Items
Transaction Code	FBL1N

2. Enter the following data:

Field	Data
Vendor account	1006
All items	Select
Special G/L transactions	Select
Normal Items	Select

3. Choose .
4. Select Reference and choose .
5. Enter the following data:

Field	Data
Reference	Reference from the first process

6. Choose .

All accounting documents pertaining to vendor 1006 generated during this process are displayed.

At the top of the list are the vendor open items: The invoice and down payment made. Both items are selected as open items during payment. This reduces the invoice amount by the amount of the down payment.

The down payment document and the clearing document are to be found under Cleared items.

7. Double-click on the Clearing document.

On the Display Document: Line Item 001 screen, you have an overview of the first line items.

8. Choose .

Your posting should be as follows:

· Credit: Account 1006 (vendor/reconciliation account 159000 - down payment on current assets)

· Debit: Account 1006 (vendor/reconciliation account 160000 - domestic payables)

· Credit: Account 154000 (input tax)

· Debit: Account 159010 (clearing account for input tax from down payments made on current assets)

By clearing the down payment, the down payment made is now transfer posted from account 159000 (assets side of the balance sheet) to account 160000 (liabilities). As a consequence, the total payables amount from the vendor invoice is reduced by the amount of the down payment.

The tax amount is calculated on the total amount of the invoice. This explains why the posting for the tax amount calculated on the amount of the down payment is cleared.

9. Choose until the overview tree appears.

Displaying Purchase Orders in fico

1. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Purchasing ® Purchase Order ® Display
Transaction Code	ME23N

2. Enter the purchase order number if necessary, then choose .
3. If the item detail area does not appear, choose Item detail.
4. Choose the Purchase Order History tab.

The list shows the down payments made and the document number used to enter the invoice in Materials Management.

5. To view the accounting document, select the document number.

You can see line items for the invoice document again.

6. Choose until the overview tree appears.

Posting Final Payments in fico

Use

In this transaction, you pay your vendor the amount that is still outstanding. Although you perform this transaction manually, you can also make the payment automatically using the payment program.

Procedure

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Document Entry ® Outgoing Payment ® Post
Transaction Code	F-53

2. Enter the following data:

Field	Data
Document date	Today’s date +10 days
Posting date	Today’s date +10 days
Reference	Reference from the first process
Doc.header text	Final payment
Account (bank)	113100
Amount	100,920.00
Value date	Today’s date +10 days
Text	Final payment invoice no. and reference number from first transaction
Account (Vendor)	1006
Automatic search	Select



The above amount is made up of the amounts outlined below:

Invoice amount	116,000.00
Less cash discount	- 3,480.00
Less down payment:	-11,600.00

3. Choose Process open items.
4. Bypass any warning messages with .
5. A list of open items appears.

Assuming that no items have been activated, choose the invoice that you want to pay by double-clicking the corresponding amount in the EUR Gross column.

The amount entered and the amount assigned should be equal. Also, the amount in the field Not assigned should be zero.

6. Choose .
7. Make a note of the document number.
8. Choose .
9. In the Exit Editing dialog box, choose Yes.

Displaying Vendor Accounts in fico

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Payable ® Account ® Display/Change Line Items
Transaction Code	FBL1N

2. Enter the following data:

Field	Data
Vendor account	1006
All items	Select
Normal Items	Select
Special G/L transactions	Select

3. Choose .
4. Select Reference and choose .
5. Enter the following data:

Field	Data
Reference	Reference from the first process



You should only define this selection condition if you have been making the same entry in the Reference field for each document since beginning this process.

6. Choose .

All accounting documents pertaining to vendor 1006 generated during this process are displayed.

7. Double-click on the payment document.

This is the one with document type KZ.

The payment document has open status, as the item will be considered as cleared 10 days later.

8. Choose , to display the document items.

Your posting should be as follows:

· Credit: Account 113101 (Deutsche Bank, domestic)

· Credit: Account 276000 (cash discount received)

· Debit: Account 1006 (vendor/reconciliation account 160000)

· Credit: Account 1006 (vendor/reconciliation account 160000)

· Credit: Account 154000 (input tax)

The amount paid is equal to the invoice amount minus down payment made, minus 3% cash discount, since you made your payment within ten days of receiving the invoice.

9. Choose until the overview tree appears.