Customers Down payments in SAP

Customers Down payments in SAP

Accounts Receivable down payment means advance received from the customer.
These advances are received from customer for

•    Product Sale ( Local & Exports)
•    Project sale
•    Scrap Sale
•    Service Sale

During down payment customer will deduct withholding tax (TDS). withholding tax (TDS) is required to be tracked separately.

Downpayment is a Special G/L transactions and Special G/L transactions are special transactions in Accounts Receivables that are displayed separately in the General Ledger & Sub Ledger. This is necessary for External Reporting Purpose.

An Organization can receive downpayment in following scenarios

•    Down Payment received from Project Customer
•    Down Payment received from Service Customer
•    Down Payment received from Product Customer
•    Down Payment Received from Scrap Customer
•    Down Payment received from Employee Customer
•    Down Payment received from Export Customer

Down Payment Request (F-37)

When entering a down payment request in F-37, commercial will enter target special G/L indicator as ‘A’ in a Customer Block. The system records this request as ‘Noted Item’ which is a single line item entry and therefore this request is not included for accounting purpose. The withholding tax code (TDS) will be mentioned in the Down Payment Request (only) if the down payment is subjected to TDS (To be explored).

Post Customer Down Payments (F-29)

Finance will verify the Down Payment request details along with Physical Cheque (Cheque Covering Memo) .Commercial to provide the Customer code & Down Payment Request Number to Accounts .In case of any difference , Finance can modify the Down Payment Request  & Post the document.
Down Payment can also post directly in Finance without any Request.

Accounting Entries :

Cheque Deposited But Not Cleared         Dr.
To Advance Received –Customers                  Cr

T Code to be used

Creation of Down Payment Request    :    F-37
Posting Down Payment            :    F-29
Knocking off Down Payment with Invoice     :    (F-32)
Modify text mentioned in down payment    :    FB02
Reversal of Down Payment Request    :    FB08
Down Payment Clearing            :    F-39
Reversal  of Down Payment        :    FBRA
Customer Line Item display        :    FBL5N

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