Down Payments
Use
Down payments made for investment measures represent acquisition postings. They are usually identified by a separate cost element.
Features
You have to post the following transactions in conjunction with a down payment:
Posting of the down payment
Posting the closing invoice belonging to the down payment
Clearing the down payment with its closing invoice
Account Assignment
The FI component provides the transactions necessary for account assignment of down payments to an order or project.
Along with direct account assignment to orders or projects, it is also possible to have account assignment of down payments to purchase orders. These purchase orders are then assignable to the order or project.
System Settings
You need to make the settings and create the master data outlined below. Once you make these entries in Controlling (CO), it is possible to update down payments that have account assignment to orders or projects.
Set up a cost element for updating down payments without reference to a purchase order. The cost element type has to be 1 (primary cost element) (
Accounting
Controlling
Cost Element
Master Data
). It is necessary to post the down payments as primary cost elements, in order to provide for their temporary display as costs in management accounting for the project or order. As a result of periodic settlement to the asset under construction at the close of the period, down payments then represent an increase to assets. The down payments are then posted to the correct reconciliation accounts in Asset Accounting.
Caution
Since primary cost elements cannot be balance sheet accounts, direct account assignment to the special general ledger accounts of Accounts Payable, or the reconciliation accounts of Asset Accounting is not possible. These accounts are posted only when you carry out periodic settlement of the investment measure to its accompanying asset under construction.
Assign the cost element to the correct controlling area (Customizing:
Controlling
General Controlling
Production Start-Up Preparation
Follow-Up Posting
Post Follow-Up to Down Payments
Default Cost Elements for Down Payment Update
.
Enter the number range for the transaction KAZO (Customizing:
Controlling
General Controlling
Organization
Maintain Number Ranges for Controlling Documents
).
You have to make the following settings in Customizing in the FI-AA component, in order to post down payments to assets:
Specify the reconciliation account for capitalized down payments, and the accompanying offsetting account for Asset Accounting. Make these entries in the account determination in Customizing for
Asset Accounting
. Choose Transactions
Acquisitions.
The accounts that are posted are the general ledger accounts for acquisition down payment and the offsetting account for down payments.
For the asset classes affected, allow posting with the transaction type group for down payments (Customizing for
Asset Accounting
:
Transactions
Acquisitions
).
Full Settlement
At the time of full line item settlement, make sure that the down payment and clearing of the down payment are settled together using the same settlement rule. Using this procedure guarantees that the down payment and the clearing of the down payment also balance to zero on the settlement receivers.
Graphic: Full Settlement of Down Payments
Caution
If you are using foreign currencies in Asset Accounting, you have to post the down payment and the clearing of the down payment with the same translation date (value date). In this way, you ensure that changes in currency valuation have no effect on the balancing of down payments and the clearing of down payments.
Down payments cannot be transferred from a network to a WBS element. If you want to make account assignment of down payments to an investment measure, then always assign them directly to the WBS element. You can then settle the down payment from the WBS element to the accompanying asset under construction.
Procedure