Down Payment Chain 

Definition

Groups all the accounting documents which belong to one contract.

Debit-side down payment chains include invoice and payment transactions with a customer, for example, the ordering party of a construction project.

Credit-side down payment chains include invoice and payment transactions with a vendor, for example a subcontractor.

Use

Using down payment chains, you can monitor receivables and payables and get information on past and future payment transactions.

·        The documents listed in a debit-side down payment chain document the receivables owed by a customer and the corresponding incoming payments. 

·        The documents listed in a credit-side down payment chain document the payables owed to a vendor and the corresponding outgoing payments.

Structure

Debit- and credit-side down payment chains have the same basic structure. However, the posting data is different. The chain type determines whether the down payment chain is debit- or credit-side.

Chain types are defined in Customizing for Debit-Side and Credit-Side Down Payment Chains. When you create a down payment chain, you must firstly assign it a chain type. For more information, see Maintaining Down Payment Chains.

A down payment chain can include several transactions. For example, a down payment chain can consist of an advance payment, several partial invoices and the final invoice.

A transaction meanwhile, consists of several accounting documents. The transaction category determines which documents can be included.

For example, a transaction can consist of an advance payment request and the corresponding down payment. In this case, the transaction category Advance Payment is assigned.

The next transaction could include the final invoice, the retention amounts and payment of the final invoice. In this case, the transaction category Final Invoice is assigned.

When you reverse an invoice or down payment request, the reversal document is also included in the transaction.

If the assignment of an invoice for a payment or down payment request is canceled, this is also updated in the transaction.