Start of Content Area

Background documentation Clearing a Down Payment Using the Payment Program  Locate the document in its SAP Library structure

After you post the closing invoice and override the payment block, you can have the payment program clear the down payment. The payment program clears the down payment and pays open items due reduced by the down payment. When the down payment is entered, the payment block in the down payment item is automatically set by the system.

You require collection authorization for the customer account to enable the payment program to debit the amount from their due minus the down payment amount.


Your customer has ordered a machine from you for $34,200. Two months before production begins, they are to make a down payment of a third of the value of the ordered goods ($11,400). The rest is paid on delivery. You receive a down payment for 11,400 USD. You send your customer the closing invoice once he has received the machine.

If you have already posted the down payment to the customer account and the special G/L account "Down payments received", you can clear the down payment as follows:

  1. Post the closing invoice for $34,200 to the customer account. From the Accounts receivable menu, choose Master records ® Create. The system posts to the reconciliation account for receivables from goods and services.
  2. Cancel the payment block in the down payment by changing the payment block. To do this, choose Document ® Change from the Accounts Receivable menu and then resetting. If you do not know the document number of the down payment, you can find it by displaying the line items for this customer.
  3. The payment program pays the closing invoice, subtracting the down payment already received. It receives an amount of $22,800 and clears the outstanding receivable and the down payment. The offsetting entry is made to the bank account or to a bank subaccount for bank collections.

This graphic is explained in the accompanying text