Vendor downpayment process mapping with EHP4 enhanced functionality
Prerequisites setupscarried out1. Activated Business Function Set “LOG_MMFI_P2P”2. Created the following missing G/L accounts - G/L account for Down payment requests (vendors): with some critical settings being Type/Description Balance sheet account, Account Group: GL Receivables& Fin Assets Control Data Tax category “-B Input Tax Managed Gross” Recon account for account type K Vendors Open item management: Not checked Line item display: Checked Create/Bank/Interest Field status group G001General (with text, assignment) - G/L account for Input Tax Clearing with some critical settings being: Type/Description Balance sheet account Account Group: Liabilities & Equity Control Data Tax category * Recon account for account type “None” Open item management: Not checked Line item display: Checked Create/Bank/Interest Field status group G011 Clearing accounts (with settlement per.) - Configuration transaction <OBYR> settings For account type K and Special G/L indicator F & A, against the relevant controlling area, set Recon account = “Vendor reconciliation account”, Special G/L Account = “Down payment requests (vendors)”
- Configuration transaction <OBXB> settings Set G/L account created for Input Tax Clearing on Down payments against Transaction Key VVA
Scenario briefPO for amount AUD 1000, I/p tax on item 10% GSTDownpayment of AUD 100 (inclusive of I/p tax GST of 10%)Process Steps1. Purchase Order created with Voluntary Downpayments set at Line item level
2. Report transaction ME2DP for creation of PO – Downpayments
Simulate and Post Down paymentPostings generated are:Itm PK BusA Acct no. Description Tx Amount in AUD001 50 100140 Bank-Dom (out pay) 100.00-002 29A 10482 AIRWELL PUMPS P1 100.00003 40 118020 GST Input Tax Credit P1 9.09004 50 202080 Input Tax Clearing P1 9.09-5. Report transaction ME2DP for creation of PO – DownpaymentsNow you will Notice that the Line item is updated with a Green Traffic light and PO History is updated
In selection screen select Special G/L Transactions, Enter relevant Posting date and other selection parameters as necessary7. Perform Goods Receipt – <MIGO> against the PO
8. Check PO History <ME23N> against PO Line Item
9. Perform Invoice Receipt <MIRO> against the Purchase OrderWhile creating the IR with reference to the Purchase Order, the system would give a popup “Downpayments existagainst the Purchase Order”. Payment program settles down-payments automatically with payments to be madeIf you want to allocate a down-payment to a specific invoice, you must make a transfer posting for down-paymentmanually.
You can clear Down payment in MIRO itself (screenshot below). In case you do that, the next step <F-54> forClearing Down payments will not be required to be performed.
Once Downpayment details have been entered, you will not that the Downpayment Clearing tab at the top rightcorner of the screen turns greenClick on Simulate to simulate the postings and Post the Invoice Doc
Financial Postings as proposed above are:Down payment request a/c Cr 100.00 – Vendor Account Dr 100.00+GST Input Tax Credit Cr 9.09 – Input Tax Clearing Dr 9.09+Vendor A/c Cr 1100- GR/IR A/c Dr 1000+ Input Tax Credit a/c Dr 100+Postings pertaining to Downpayment clearing (posted in accounting document pertaining todown payment) are
Itm PK BusA Acct no. Description Tax code Amount in AUD 001 39A 10482 AIRWELL PUMPS P1 100.00- 002 26 10482 AIRWELL PUMPS P1 100.00 003 50 118020 GST Input Tax Credit P1 9.09- 004 40 202080 Input Tax Clearing P1 9.09 Postings pertaining to General Invoice (posted in accounting document pertaining to Invoice) are Itm PK BusA Acct no. Description Tx Amount in AUD 001 31 10482 AIRWELL PUMPS P1 1,100.00- 002 86 200010 GR/IR Account P1 1,000.00 003 40 118020 GST Input Tax Credit P1 100.00 On executing the postings the Financial document will get generated and PO history will also be updated with the same (can be checked in ME23N)10. Clear Vendor Downpayments < F-54> - If Not already done in step above