Down Payment Processing

This document describes the account postings generated in the process to handle contract level
down payments as part of the Quote-to-Cash SAP project.

Solution Description

Down Payment Request and Receipt

F-37: Down Payment Request (1400000207)
DR (09F) Customer $480 (statistical posting) Clearing doc: 1400000208

F-28: Down Payment Receipt (1400000208)

CR (19A) Customer $480 Clearing doc: 1600000027
DR (40) Cash $480

First Invoice
VF01: Create Billing Document
No financial documents created. If down payment receipts exist on the payer account,
during the document save process an information message is issued to the user
prompting them to use transaction ZADP.

ZADP: Update Billing Document with ZPAD condition

Transaction ZADP automatically executes VF02 to update the billing document header condition,
release the billing document to accounting, and F-39 to clear the down payment.

VF02: Billing Release to Accounting (1800000090)

DR (01) Customer $2,000 Clearing doc: 1400000209
CR (50) Revenue $2,000

NOTE: at this time the billing person knows that $200 of down payment is going to be
used as part of the settlement of this invoice. Invoice to customer should state gross
value is $2,000 with a down payment of $200, leaving a net payable of $1,800.
The billing document header condition ZPAD is added

F-39: Clear Down Payment (use $200 of the $500) (1600000026)

DR (09A) Customer $200 Clearing doc: 1600000027
CR (16) Customer $200 Clearing doc: 1400000209

F-28: Process Incoming Customer Payment (1400000209)

CR (15) Customer $1,800 Clearing doc: 1400000209
DR (40) Cash $1,800

NOTE: at this time the down payment (1400000208) is not cleared on SAP.

June 10, 2003 Page 1 of 2

Second Invoice
VF01: Create Billing Document
No financial documents created. If down payment receipts exist on the payer account,
during the document save process an information message is issued to the user
prompting them to use transaction ZADP.

ZADP: Update Billing Document with ZPAD condition

Transaction ZADP automatically executes VF02 to update the billing document header condition,
release the billing document to accounting, and F-39 to clear the down payment.

VF02: Billing Release to Accounting (1800000091)

DR (01) Customer $4,000 Clearing doc: 1400000210
CR (50) Revenue $4,000

NOTE: at this time the billing person knows that $300 of down payment is going to be
used as part of the settlement of this invoice. Invoice to customer should state gross
value is $4,000 with a down payment of $300, leaving a net payable of $3,700.

F-39: Clear Down Payment (use remaining $280 of the $480) (1600000027)
DR (09A) Customer $300 Clearing doc: 1600000027
CR (16) Customer $300 Clearing doc: 1400000210

NOTE: now that all of the down payment has been consumed the system
automatically flags the down payment line items as cleared and the down payment
no longer appears in the list of available line items during cash application.

F-28: Process Incoming Customer Payment (1400000210)

CR (15) Customer $3,700 Clearing doc: 1400000210
DR (40) Cash $3,700

June 10, 2003 Page 2 of 2