Generally you clear down payments directly if you have issued or received the closing invoice.

Alternatively, you can transfer the down payment made manually. In this case, you clear the down payment via a credit posting of the same amount. This reduces your payables to a vendor. Consequently, the amount is no longer displayed on the balance sheet as a down payment made. You can transfer received down payments after you have made out the closing invoice.

Unlike clearing, several postings are required when transferring a down payment. As a first step, you have to clear the down payment and post a payment to the open item account. You then either clear the transferred amount manually or have the payment program clear it when settling the payment or maintaining the account.

You must transfer down payments in the following cases:

• You want to carry out your year-end closing. You have received the final invoice for a down payment and can no longer clear it with the payment program since the next payment run is not to be made until after you prepare the balance sheet. In this case, you transfer the down payment with invoice reference.

• You want to assign a down payment to a specific invoice, with which it is to be cleared. The system notes the invoice number in the line item that is created when transferring the down payment and adopts the terms of payment from the invoice. The payment program guarantees that the transferred amount is not subtracted until you pay the corresponding invoice.

• You want to clear a down payment partially. That is, a down payment is cleared with several invoices, which are paid at different times. You must transfer the down payment amount to be cleared manually. If you have the payment program clear down payments directly, there must be a payment block in the down payment item so that the entire amount is not cleared.

• You know that the service was carried out, but do not receive the closing invoice before the balance sheet key date.