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.

Prerequisites:

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

Fig 1: Document Numbering Format for DPR

Process Flow

Create a Sales Order with the combination of your customer details, sales unit, products, and pricing details> Save> Release Order

Fig 2: Sales Order Basic View

Now you need to ‘View All’ in that Sales Order> Below you will find Delivery Block option> Choose Down Payment Required> Save & Close

Fig 3: Delivery Block Rule for DPR

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

Fig 4: Create Down Payment

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

Fig 5: Create DPR

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

Fig 6: Invoice the Down Payment Request

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

Fig 7: 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

Fig 8: Incoming check details

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

Fig 9: Set the check deposit 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

Fig 10: Bank Statement

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

Fig 11: Outbound goods to the customer

Once the goods are outbounded, we can release the customer invoice for that sales order

Customer Invoicing> Invoice requests> Search> Invoice> Release

Fig 12: Customer Invoice

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

Fig 13: Balance of Customer Account

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.

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:

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/2ce7a03a722d1014a5d9a6de95f9f1e4.html?locale=en-US

Kindly have a look at my blogpost that I had written on the topic ‘Third Party Field Service & Repair using existing Purchase Order’:

https://blogs.sap.com/2022/09/16/third-party-field-service-repair-using-existing-purchase-order/

I had written another blogpost on ‘Rebate Management’ topic too. Link given below:

https://blogs.sap.com/2022/09/06/rebate-management-process/

You can also find similar blogposts on different topics on SAP Business ByDesign in SAP Community. Link mentioned below:

https://community.sap.com/search/?by=updated&ct=all&q=SAP%20Business%20ByDesign