DOWN PAYMENTS

Business scenario in brief : The client requirement is that they should have the functionality in

PO itself as to whether a vendor requires a Down payment instead of doing a transaction F-47

manually.

Solution Implemented : SAP has come out with a feature Down payment functionality in

Enhancement pack. And it is implemented to the client. Steps in brief are shown as below.

A) Configuration Changes :

1) Define Alternative Reconciliation account :

IMG > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Business

Transactions > Down Payment Made > Define Alternative Reconciliation Account for Down

Payments.

2) Change message control :

To inactivate message KI 281 for online postings, which prevents down payment clearing postings generated by transaction MIRO for account type ‘K’ PO lines. The message is triggered when a cost center posting is attempted for a balance sheet account.

3) Default cost element for Down payment :

Since commitment management is active in controlling, Down payment needs to be carried to the project as costs. IMG > Project systems > Costs> Actual costs and Forecast > Update Down payment >

Define default cost elements for down payments.

B) Development objects: Nil

C) Business Process:

1) ME23N: Down payment at Header/Item Level: After implementing the enhancement

pack the PO screen will be shown as below . We need to enter the parameters like how

much is Down payment %. The down payment at header screen is as shown below.

The Down payment for item level is as shown below.

2) ME2DP: Create Down payment request: This transaction shows the list of outstanding

down payment request to be created based on the PO created as shown below.

Click on the Create Down payment button to create a Down payment to get the below screen

Hit Enter to get other screen as shown below.

Here you can change the amount proposed by the PO amount or retain the same amount came from PO

calculation. Remove the tax indicator and hit enter , It will push to the F-47 screen with all details filled

in from PO and rest all process is regular like create Down payment request using F-47, Make a payment

through F110/F-58.

3) Clear Down payment request: MIRO : SAP has a feature of adjusting the Down payment

outstanding while creating an invoice in MIRO screen as shown below.

After entering all the Invoice details click on the Down payment clearing button to get other

screen as shown below.

In the above screen enter the amount of down payment you want to setoff against this invoice

and system will automatically setoff that amount post the remaining invoice as outstanding.

The Finance documents are as shown below.

RETENTION

Business scenario in brief : The client requirement is that they should have the

functionality in PO itself so that Invoice will automatically set the retention money a side

at the time of MIRO.

Solution Implemented : SAP has come out with a feature Retention functionality in

Enhancement pack. And it is implemented to the client.

A) Configuration Changes :

1) Maintain number assignment for accounting documents. :

Assign retention postings resulting from transaction code MIRO (logistics invoice verification) to

standard delivered document type ‘RT’.

IMG > Materials Management > Logistics Invoice Verification > Incoming Invoice > Number

Assignment > Maintain Number Assignments for Accounting Documents

2) Define posting key for Incoming Invoices/Credit Memo. :

IMG > Financial Accounting (New) > Accounts Payable and Accounts Receivable > Business

Transactions > Incoming Invoices/Credit Memos > Incoming Invoices/Credit Memos – Enjoy >

Define Posting Key for Incoming Invoices/Credit Memos

Assign standard posting keys 29, 39 to special G/L transactions for incoming invoices. This is required for the retainage special posting.

3) Define Control parameters for Retention :

The following settings will be made for all company codes:

IMG > Materials Management > Logistics Invoice Verification > Incoming Invoice > Retention >

Define Control Parameters for Retention

Default special GL indicator H for retention transactions.

Set due date as a required field for retention transactions.

4) Define Tax Handling for Retention :

IMG > Materials Management > Logistics Invoice Verification > Incoming Invoice > Retention >

Define Tax Handling for Retention

5) Define Substitution for Retention :

Purpose: To define a substitution rule in case of MIRO transaction, all the retention amounts should be posted under block indicator ‘H’

IMG > Financial Accounting(New) > Financial Accounting Global Settings(New) > Tools > Validations/Substitution > Substitution in Accounting documents

B) Development objects: Nil

C) Business Process:

1) Create a PO :

Retention can be entered at the Header level or at item level in a PO as shown below.

2) Invoice receipt : While doing MIRO system will to enter the Retention due date, then

accordingly the system will post two accounting entries for an invoice, the first invoice

will be full amount and the second invoice will be debiting the vendor and credit vendor

special gl account to the extent of retention with block status ‘H’ so that it will not be

due for payment.