SAP BLOG Down Payment Made in SAP Business ByDesign

I am writing this blog to explain the topic ‘Down Payment Made’ in SAP Business ByDesign.

Down Payment is nothing but advance payment. For some purchasing processes it is necessary to make down payments prior to the delivery of goods or the provision of services.

I hope you must have read my previous blog on ‘Down Payment Received in SAP Business ByDesign’..!!

Let us see the process flow of Down Payment Made in SAP Business ByDesign.

Process Flow:

Create a Purchase Order with the combination of your Supplier & Company details, add the Materials & Price details, Save & Order

Fig 1: Purchase Order​

Now we will post a down payment request against the purchase order.

Supplier Invoicing> New down payment request> View All> add the details like Supplier, Down payment request ID, external document ID.

In items tab, add the Purchase Order details and the amount of the down payment request alongwith the description of the DPR> Post

Fig 2: Down Payment Request​

If you check in Supplier Invoicing> Invoices and Credit Memos> You will find your down payment request will be in posted status

Now, we will proceed for the outgoing payment for the down payment request to the supplier

Payables> Supplier Accounts> Search for your supplier> View> Down payment request line item will get created> Pay manually by outgoing bank transfer

Fig 3: DPR line item in Payables​

Fill in the bank details that is required> Complete bank data> Post

Fig 4: Outgoing bank transfer for DPR​

After posting the document you need to set the document ‘In Transfer’

Now we can proceed for the bank statement

Liquidity management> New bank statement> Fill in all the mandatory details> Check the outgoing bank transfer line item> Make sure the difference is zero> Check> Post

Fig 5: Bank Statement​

Once the down payment is done, we will Inbound the goods to our warehouse.

Inbound logistics> Purchase orders> Search> Post goods receipt> Propose quantities and logistics unit> Save and Close

Fig 6: Inbound logistics​

Once the goods are inbounded, we can create the Supplier Invoice for the same.

Supplier Invoicing> Invoice Entry> Search> New Invoice> Post

Fig 7: Supplier Invoice​

Once the supplier invoice is posted, we can check in the Payables work center and clear the balance amount.

Payables> Supplier Accounts> Search> View

You can see the status of the line item is partially cleared. The details below will show the breakup of main invoice amount and the down payment made against the supplier.

You can pay the balance amount with outgoing bank transfer by selecting the line item.

Fig 8: Balance amount in payables​

Remaining process will remain same by making the payment to the supplier and posting the bank statement.

You can also see the document flow of how all the documents are interlinked with each other.

Fig 9: Document flow​

I have tried to explain the topic Down Payment Made 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.

You can refer to related document from Help Library. Link given below:

SAP Help Portal

Kindly have a look at my blogposts that I had written on various topics related to SAP Business ByDesign:

Down Payment Received in SAP Business ByDesign | SAP Blogs

Intercompany Field Service & Repair | SAP Blogs

Third-Party Field Service & Repair using existing Purchase Order | SAP Blogs

Rebate Management Process | SAP Blogs

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

Search the SAP Community

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