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


Businesses require down payments from customers to ensure that the customers are committed to the orders they place. In addition, this business practice increases the cash flow. The process below describes how to create a sales order, an incoming payment for the received down payment, and an A/R down payment invoice at the same time.


  • You have specified a payment advances account on the Sales, General tab in the G/L Account Determination window, or on the Accounting, General tab of the business partner master data of the relevant customer.

  • You have selected Full Authorization for the user in the A/R Down Payment Invoice field (  Administration   System Initialization   Authorizations   General Authorizations)  .


  1. From the SAP Business One Main Menu, choose   Sales — A/R   Sales Order  . The Sales Order window appears.

  2. Specify the required information in the sales order. Before adding it to the database, 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. In the Sales Order window, choose the Add button to add the sales order.


The following documents are created:

  • Sales order

  • A/R down payment invoice for the amount paid, linked to the sales order

  • Incoming payment for the amount paid, linked to the A/R down payment invoice

When you display the newly added sales order, the Remarks field contains the following text: Linked to Down Payment No. XXX

In addition:

  • The sales order is not closed, even if the down payment amount was the full amount of the sales order. You can later copy it into a delivery or A/R invoice, as any other sales order.

  • The A/R down payment invoice created has no impact on inventory, neither on quantities nor on inventory accounting values.

  • The A/R down payment invoice does not include tax or freight; the full tax amount pertaining to the sales order is paid only after the A/R 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/R down payment invoice for a given sales order, as follows:

    1. Display the sales order.

    2. From the toolbar, choose Payment Means (Payment Means).

    3. Repeat steps 3 and 4.