New Business Function in ECC 6 EHP 4 Streamlines Down Payment Process

  • by Anshul Jain, Manager at Ernst & Young LLP
  • June 11, 2012
SAP ERP Central Component (SAP ECC) 6.0 enhancement package 4 (SAP_APPL 604) includes a new business function, LOG_MMFI_P2P, to facilitate down payment creation and clearing. Learn how to leverage this new cross-application down payment functionality in your organization.
Key Concept
The vendor down payment functionality, available in SAP systems for a long time, has allowed companies to post down payments to vendors and track the down payments in a separate vendor down payment account. The functionality has provided a basic level of integration with the Logistics Invoice Verification process using warning messages to alert users of outstanding down payments to the vendor. The accounts payable group, however, had to either manually clear the vendor down payment or wait for the next automatic payment run for the vendor down payment to be cleared. The purchasing group had no way of controlling the amount of down payment allowed to a vendor against a purchase order. SAP ERP Central Component (SAP ECC) 6.0 enhancement package 4’s new enterprise business function, LOG_MMFI_P2P, resolves these pain points by facilitating cross-application sharing of the down payment process from procurement in logistics to down payment settlement in FI. It has several cross-application processes specific to down payment functionality that simplifies the down payment creation process, subsequent tracking, and the final settlement.

SAP’s new business function, LOG_MMFI_P2P, which is part of SAP ERP Central Component (ECC) 6.0 enhancement package 4, has several new time-saving features specific to down payments functionality. Some of its key features are:

  • The ability to enter down payment details in the purchase order (PO) at the header level and at the line item level
  • Down-Payment Monitoring for PO (RM06DPMONITOR) that displays POs with down payment data along with their due dates. From this report it is possible to jump to FI for the creation of the down payment.
  • The ability to clear a down payment directly in Logistics Invoice Verification (LIV)

The new vendor down payment process can be broken down into the following key steps:

  • Enter vendor down payment data in the purchase order
  • Monitor down payment data for purchase orders using the new report
  • Create a down payment directly from the down payment monitoring report
  • Clear LIV and down payments in a single transaction

Anshul Jain

Anshul Jain is a manager at Ernst & Young LLP. He holds various certifications in SAP ERP and has several years’ experience in SAP finance, consolidation, and supply chain management solutions.

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