If net display is selected, the down payment is displayed net on the balance sheet.

If gross display is selected, you must carry over the down payment accounts with the corresponding tax clearing accounts to a balance sheet item. As a result, the down payments are also displayed net.

To display down payments on the balance sheet, there must be a separate clearing account for the tax on sales/purchases for every down payment type (special G/L indicator). Clearing accounts are generally managed with open item management. For tax clearing accounts, you should not choose this option. Since the accounts are posted to automatically only, you do not need to be able to make changes to the open items manually.

You manage down payment accounts separately for affiliated and non-affiliated companies, for general down payments and down payments on intangible assets. You post the down payments according to the gross procedure and want to display them as net on the balance sheet. To do this, you need four clearing accounts for input tax clearing, separated by down payment type and affiliated and non-affiliated companies.

Tax on sales/purchases is posted automatically. That is, the system determines the tax and clearing accounts when posting. You must define the numbers of the accounts in the system beforehand. The clearing accounts are to be distinguished in this case by the criteria down payment type (for example, special G/L indicator I, A) and affiliated and non-affiliated companies. You can specify a two-digit key, which groups this information together, when entering the numbers of the special G/L accounts. When entering the clearing accounts for the tax on sales/purchases, enter this key to make the differentiation.