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 Milestone Billing with Down Payment Clearing

Process Flow

The billing plan for the sales order contains billing-relevant deadlines. As soon as you take away the billing block, you can carry out billing.

In billing those payments already made by the customer should be cleared. This happens because those payments already made are taken into the billing document as items to be cleared. They are set as items, after the billing items to which they refer, in the billing document. When printing (Report RVADIN01 with form RVINVOICE01) the customer receives for the down payment items the text ‘payments made’ printed out. The down payment item value corresponds to those down payments made.

Note Note

 There is no billing: Billing amount - Down payment amount = the remaining amount to be paid. The customer merely receives the information concerning which amount he can transport during payment.

End of the note.

You can change the proposed down payment amount for clearing manually. The reason for this can be that part of the down payment should be proposed for further billing. Calculation formula 48 in the pricing procedure for the condition type AZWR merely checks that the amount cannot be increased.

The down payments assigned to a billing document for clearing cause the system to offset all the completed payments against receivables in Financial Accounting (FI).

The total amount of the final invoice is automatically posted in FI as a receivable, and the allotted down payments are cleared directly (down payment clearing).The transaction is finished with the incoming payment posting and the open items are cleared. Postings made to the relevant general ledger account in Financial Accounting reduce the down payments left to be cleared.

Example Example

Milestone Billing with Down Payment Clearing:

End of the example.

In the above example the system had originally proposed 40, 000 (item 11) and 20 000 (item 12). The down payment clearings were then manually reduced. The customer is then required to take the down payments (30 000 + 10 000) from the total amount (60 000 DEM). For the example there is 20 000 DEM left to pay. The remaining down payment amounts are then automatically proposed in the following final invoice (see example in the next unit).

Example Example

Postings in Financial Accounting:

End of the example.