3 Replies Latest reply on Aug 1, 2006 6:29 PM by Archive

    Down Payment

      I was curious on how people handle down payments?  I am trying to come up with a way of creating a down payment invoice without affecting the qty to deliver and the revenue (since dp is a liability.)  Does anyone have a way of doing down payments without having to do a bunch of journal entries or tweaking final invoices to reflect the quantity delivered? 

      Thank you,
      Courtney

        • 1. Down Payment
          Brian Hanratty

          In our business we require a down payment (deposit) on almost all sales. We handle as a payment to the custmer account not based on invoice. While this reduces your asset account (A/R) it's simple enough to export  your A/R file out to excel and sort out the debit and credit accounts to get a pretty clear picture of the liability to customers for those deposits. For balance sheet presentation you can reclass the amount with one G/L entry and have a complete trial balance of the reclassification. When customer is billed for the material the deposit can be linked to the invoice and the customer can be billed the balance with all the details on the invoice. (gross amount, deposit and balance due) Works for us, hope this helps!

          Brian Hanratty

          • 2. Down Payment
            Kathleen Johnson

            We set up an item in inventory - deposit - with a corresponding GL account.
            Then we add a line item (negative) on the sales order so it is not missed when invoicing.

            The 2006 year end upgrade module is suppose to include deposit invoicing for the US. It is already available in Europe - write up is in help

            • 3. Down Payment

              It maybe to late but SAP has good solution using Special ledger postings and the downpayment functionity
              As you can congure the DP to hit AR/Customerr and the balance sheet as a liability.
              Is is not easy but once its up and working it a major inprovement.

              Thank You
              John J Nepsa
              SAP Manager
              Wishard Heath Services
              Office - 317.630.2470
              Cell - 317.402.7665
                   Pager - 317.310.5370