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Process documentationA/P Down Payment Invoices: Canada & USA Locate this document in the navigation structure

 

Your vendors may require you to pay a down payment when placing an order. The process below describes how to create simultaneously a purchase order, an outgoing payment for the paid down payment, and an A/P down payment invoice.

Prerequisites

  • The payment advances account is specified in one of the following locations:

    • On the General subtab of the Purchasing tab in   Administration   Setup   Financials   G/L Account Determination  

    • On the Accounting subtab of the General tab of the relevant vendor in   Business Partners   Business Partner Master Data  

  • The user has Full Authorization for A/P down payment invoices in   Administration   System Initialization   Authorizations   General Authorizations  .

Process

  1. From the SAP Business One Main Menu, choose   Purchasing – A/P   Purchase Order  . The Purchase Order window appears.

  2. Fill in the purchase order. Before you add it to the data base, choose Payment Means (Payment Means) from the toolbar. The Payment Means window appears.

  3. Specify the amount paid as down payment and the payment means used, and choose the OK button.

  4. Return to the Purchase Order window and add the purchase order.

Result

The process described above produces the following documents:

  • Purchase order

  • A/P down payment invoice for the amount paid, linked to the purchase order

  • Outgoing payment for the amount paid, linked to the A/P down payment invoice

  • The Remarks field in the newly added purchase order displays the following text: Linked to Down Payment No. XXX

In addition:

  • The purchase order is not closed, even if the down payment amount was the full amount of the purchase order. It can be copied later into a goods receipt PO or an A/P invoice, as any other purchase order.

  • The A/P down payment invoice created has no impact on inventory (neither on quantities nor on inventory accounting values).

  • The A/P down payment invoice does not include tax, and the complete amount of tax related to the purchase order is to be paid only after the A/P invoice is created.

  • Although the creation of an incoming payment directly from within a sales order is an available functionality, sales orders are not visible in the Incoming Payments table.

  • You can create more than one A/P down payment invoice for a given purchase order by displaying the purchase order, choosing Payment Means (Payment Means) from the toolbar, and repeating step 3.