SAP Business One Quickhit

1. Using Down Payment Request
Available in SAP Business One, version for SAP HANA
and SAP Business One
Businesses require down payments from customers to ensure that the customers are
committed and will follow through with the orders they place.
In SAP Business One, you can map this business practice by issuing an A/R down payment
request or A/R down payment invoice to your customer, or by creating an A/P down payment
request or A/P down payment invoice, if one of your vendors requires you to make a down
payment before shipping the goods you ordered.
After you receive payment from your customer or make the payment to your vendor, you can
deduct the down payment amount from the final invoice.
Down Payment Request Process
A customer ordered some goods from your company. Since you are not sure about the
customer's commitment, you request a payment advance from the customer by issuing a
down payment request. You also use this document as a basis for other key steps in the sales
process.
Prerequisites
✓ You have defined a down payment interim account and a down payment clearing
account on the Accounting tab in the business partner master data.
✓ If you intend to use the down payment request only for sales or only for purchasing,
define this on the relevant tab.
Process
1. Create an A/R or A/P down payment request for the relevant business partner.
If you do this by drawing a base document, verify that you have defined the required
down payment percentage.
Note: No posting is made at this stage.
2. Once the actual payment for the down payment request is made, create the proper
payment document based on the down payment request.

2. A down payment request can be paid in full or in parts. You can also use the payment
wizard to pay the down payment request.
After you create the payment document, a journal entry is recorded in the down
payment accounts.
• If the down payment request was paid fully, the down payment request is
closed.
• If it was only paid partially, it remains open for another payment.
You can edit a down payment document that was only partially paid, provided that no
rounding amount was specified on the document.
If only part of the down payment request was paid and you do not expect further
payments on it, you can close the request by choosing Data > Close . This closes the
down payment request document and you are not able to record payment of the
outstanding amount in the future for the closed down payment request.
3. Create a regular invoice. You can copy the data from the base document drawn into
the down payment request, for example a sales order, since it was not closed as a
result of the drawing into the down payment request.
To link the down payment request to the invoice, choose Browse (Browse), select the
relevant document, and specify the net or gross amount to be copied into the regular
invoice.
It is possible to specify a higher amount in the down payment request than in the
invoice. This means that the total amount of the invoice will then be negative.
Note: You can link a down payment request to an invoice only when you create the
invoice. You cannot do this at a later stage, for example, when recording the payment
in the Banking module or during internal reconciliation.
After you add the invoice, SAP Business One creates the regular postings.
4. If there is still an outstanding balance due on the regular invoice after linking the down
payment request to the invoice, you can create a payment.
The table of the payment documents displays the invoice. Select the required
document and continue to process the payment.

3. Down Payment Invoice Process
Companies have a business need to issue and receive invoices that include tax (or VAT) for
down payments made or received. These invoices are then cleared with partial or final
invoices. Companies record a down payment received in SAP Business One by creating a
payment not based on an invoice. However, due to legal requirements in certain countries,
the recording of a down payment requires an invoice or a billing document.
The process below explains how to create down payment invoices and how to clear them.
Prerequisites
✓ Define a clearing account on the Sales and Purchase tabs in the G/L Account
Determination window in Administration > Setup > Financials.
If you intend to use the down payment invoice only for sales or only for purchases,
define the clearing account on the proper tab.
✓ Optionally, for each business partner, you can define a special down payment clearing
account on the General tab in the Accounting window in Business Partners > Business
Partner Master Data.
Process
1. Create an A/R or A/P down payment invoice for a relevant business partner.
If you create the down payment invoice by drawing a base document, ensure that you
have defined the required down payment percentage.
The down payment invoice:
✓ Creates an accounting posting
✓ Does not affect inventory values or perpetual inventory
✓ Does not change the status of the base document that was drawn into
it
2. Once the actual payment for the down payment invoice is made, create the proper
payment document, based on the down payment invoice. A down payment invoice
can be paid partially.
After you create the payment document, a journal entry is recorded in the
corresponding control account.
Note:

4. • If you cancel the payment created for the down payment by choosing Data >
Cancel from within the incoming/outgoing payment, the paid down payment
is reopened and cannot be drawn when you create an invoice.
However, if, for example, the down payment was paid by check and you
cancelled the check from within the check register, then the down payment
remains closed and can be drawn when you create an invoice.
• If you copy a down payment invoice to a credit memo, the Items per Unit and
Unit of Measure fields cannot be edited.
3. Create a regular invoice. Before you add it, click Browse (Browse) to open the Down
Payments to Draw window. Draw the required down payments from this window and
specify the net or gross amount to be copied into the regular invoice.
The total amount of the drawn down payments is taken from the Total Down Payment
field in the invoice. This amount is deducted from the original total amount of the
invoice.
You can also pay the down payment invoices and the regular invoices in the same payment
document. The down payment documents are labeled as document type DT in the payment
document.
Result
✓ The invoice total is updated by subtracting the down payment total from the original
invoice total.
✓ A down payment invoice that is drawn to an invoice is closed and cannot be drawn
again to another invoice.