Improve Your Company’s Revenues with SAP’s Customer Down Payment Process

  • by Gaetano Altavilla, Senior SAP Practice Manager
  • January 6, 2012
Learn about the down payment process using the sales and distribution (SD) module, including details about the main customizing settings to be done in the system from a sales and financial point of view. See solutions already implemented in production environments for SD and Financial Accounting (FI) in SAP ERP Central Component (SAP ECC) 6.0. These processes also apply to previous versions.
Key Concept
Using milestone billing, you distribute the total amount to be billed over multiple billing dates in the billing plan. As each milestone is successfully reached, the customer is billed either a percentage of the entire product cost or simply a pre-defined amount. During sales order processing, the system determines from the item category whether a billing plan is required and, if so, which type of plan to use. The type of billing plan that is determined at this point is set up in Customizing and cannot be changed in the sales document.

Companies normally deal with down payment processes when selling complex equipment or services. Using a down payment process with a billing plan based on milestones for those sales can improve cash flow and relationships with customers. It allows you to monitor processes such as sales order history using standard SAP reports and transactions. A functional expert takes care of customizing prerequisites to run this process in the sales and distribution (SD) and Financial Accounting (FI) modules. Then the logistics and financials departments can set up the down payment process in SAP ERP Central Component (SAP ECC) 6.0.

Business Activities 

Figure 1 is an overview of the main activities relevant to the down payment process:

  • Enter the sales order with down payment details (i.e., price condition and billing plan)
  • Create and print the down payment request in the SD module
  • Post the FI down payment request in FI with reference to the SD down payment request
  • Enter the customer’s billing in the SD module with evidence of the down payment plan
  • Post the incoming down payments in FI
  • Settle the down payments in FI


Figure 1
Main activities involved in the down payment process

Gaetano Altavilla

Dr. Gaetano Altavilla is a senior SAP practice manager. His focus is on pre-sales, delivery of SAP application solutions for large international corporations, and SAP knowledge management in Europe, the Middle East, and Africa (EMEA).

In his 18 years of SAP application experience working for many multinational companies, such as Procter & Gamble and Hewlett-Packard, he has covered a wide range of ERP logistic areas, focusing on the MM, WM, SD, LES, PP, PP-PI, PLM (QM, PM, PS) modules, as welll as CRM (TFM), SRM (EBP), SCM (SAP APO), and MES (ME) components.

Dr. Altavilla holds a degree with first-class honors in mathematics from the University of Naples and is certified in many SAP modules: SAP Logistics Bootcamp, SAP MM, SD, LE (SHP/WM/LE), PP, PLM (PM, QM, PS), SRM, CRM, SCM (APO), SCM (TM), FI, CO, and Solution Manager. He also has experience in ABAP/4 and application link enabling (ALE) and IDocs. He has participated in numerous industry conferences, such as the SAP Skills Conference in Walldorf at SAP SE.

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Comments

11/27/2013 12:38:55 PM
Susana Martinez

Hi
Please, which item category is the item 11 of the billing F2, to check if it is relevant for copy control customizing
Thank

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