Vendor downpayment process mapping with EHP4 enhanced functionality

Prerequisites setups carried out

1. 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/DescriptionBalance sheet account, Account Group: GL Receivables & Fin Assets

Control DataTax category “-B Input Tax Managed Gross”Recon account for account type K VendorsOpen item management: Not checkedLine item display: Checked

Create/Bank/InterestField status group G001 General (with text, assignment)

- G/L account for Input Tax Clearing with some critical settings being:

Type/DescriptionBalance sheet accountAccount Group: Liabilities & Equity

Control DataTax category *Recon account for account type “None”Open item management: Not checkedLine item display: Checked

Create/Bank/InterestField 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 brief

PO for amount AUD 1000, I/p tax on item 10% GST Downpayment of AUD 100 (inclusive of I/p tax GST of 10%)

Process Steps

1. Purchase Order created with Voluntary Downpayments set at Line item level

2. Report transaction ME2DP for creation of PO – Downpayments

3. F-47 Downpayment Request Created

Postings generated as below

Itm PK BusA Acct no. Description Tx Amount in AUD001 39F 10482 AIRWELL PUMPS P1 100.00-

4. F-48 Post Down Payments

Simulate and Post Down payment

Postings 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 – Downpayments

Now you will Notice that the Line item is updated with a Green Traffic light and PO History is updated

6. Check transaction FBL1N Vendor Line Items

In selection screen select Special G/L Transactions, Enter relevant Posting date and other selection parameters as necessary

7. Perform Goods Receipt – <MIGO> against the PO

8. Check PO History <ME23N> against PO Line Item

9. Perform Invoice Receipt <MIRO> against the Purchase Order

While creating the IR with reference to the Purchase Order, the system would give a popup “Downpayments exist against the Purchase Order”. Payment program settles down-payments automatically with payments to be made

If you want to allocate a down-payment to a specific invoice, you must make a transfer posting for down-payment manually.

You can clear Down payment in MIRO itself (screenshot below). In case you do that, the next step <F-54> for Clearing 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 right corner of the screen turns green

Click 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 Down payment clearing (posted in accounting document pertaining to down payment) are

Itm PK BusA Acct no. Description Tax code Amount in AUD001 39A 10482 AIRWELL PUMPS P1 100.00-002 26 10482 AIRWELL PUMPS P1 100.00003 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 AUD001 31 10482 AIRWELL PUMPS P1 1,100.00-002 86 200010 GR/IR Account P1 1,000.00003 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