1. 0 Vendor Down Payment- ALBA

1.0 Vendor Down Payment– User Manual

Vendor Down Payment (1.0)

User Manual

1.0 Vendor Down Payment: User Manual

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Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the

ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.


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Contents

1 Purpose ................................................................................................................................... 5

1.1 Process Flow .................................................................................................................... 5

2 Prerequisites............................................................................................................................ 5

3 Process Overview Table ......................................................................................................... 5

4 Process Steps ......................................................................................................................... 6

4.1 Create a Purchase Order with Down Payment ................................................................ 6

4.2 Release Purchase Orders .............................................................................................. 14

Use can choose the different type of selection conditions as needed ...................................... 17

4.4 Post Down Payment ....................................................................................................... 20


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Down Payment

User can choose to enter the Down Payment (DP) amount or more than 30 % along with the due date for the payment. Once the PO is released, the PO can be further processed for the payment of DP w.r.t PO using a separate report, which shows the DP against PO. The FI user can choose to change the due date or amount, then further process the payment from the same report itself.

Advantage

This functionality eliminates the manual adv. payment request or F-47/F-48transactions in SAP, which are in isolation to PO.

This functionality eliminates the manual entries for Retention amount and helps tracking the retention money vendor wise using a separate Special G/L indicator ‘H’.


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Purchase Order Creation with Down Payment

1 Purpose This scenario explains the following:

Purchase order creation activities during Down Payment procurement process.

Process steps of a purchase order approval, by line item.

Office Equipments can be entered in a purchase order in the following two ways:

With material number representing the Office Equipments

Without material number but rather a short text description as the main identifiable characteristic.

The purchase order is released before being printed and issued to a vendor.

1.1 Process Flow Convert Request for Quotation to Purchase Order, to procure materials from finalized

vendor.

2 Prerequisites

3 Process Overview Table Process step External

process reference

Business condition

Business role

Transaction code

Expected results

Create Purchase Order

– – Purchasing Administrator

ME21N Purchase order for Consumable entered in the system.

Down Payment Monitoring

– This activity is performed if Need to Monitor Down payment

FI Administrator ME2DP Down Payment is Monitored

Create Down Payment

- - FI Administrator ME2DP Down Payment is made


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4 Process Steps

4.1 Create a Purchase Order with Down Payment

Use The purpose of this activity is to formally communicate to the vendor through a purchase order to supply a specific quantity of Office Equipments, along with Down Payment & other technical and quality specifications.

A purchase order can be created in the following three ways:

With reference to Quotation

With reference to Purchase requisition

Without reference to any Preceding document

Procedure 1. Access the transaction choosing one of the following navigation options:

SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Materials Management Purchasing Purchase

Order Create Vendor/Supplying Plant Known

Transaction code ME21N

2. On the Create Purchase Order screen,


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3. Purchase order screen and displaying the following entries:

Field name Description User action and values Comment

Vendor Liebherr India Pvt.Ltd

700015 Vendor Number

4. If you create the purchase order with reference to a Request for Quotation or purchase requisition, system copies the data from Request for Quotation or purchase requisition into purchase order. Alternately, if you create a purchase order without reference to a purchase requisition, enter the following data along with the vendor code.


Header data

Order Type ZDOM – Domestic PO Identifier allowing differentiation between the different kinds of purchase order in the SAP system.

Purchasing Org.

Enter the Purchasing Orgnaziation: ABLD

A purchasing organization procures materials and services, negotiates Conditions of purchase with vendors, and is responsible for such transactions.

Purch. Group ALBA-NM-TE Enter the Purchasing Group - P11

Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities

Company Code

Enter Company code – ABLD

The company code is an organizational unit within financial accounting.

Delivery Invoice

Payment Terms

Payable immediately Due net

ZA33 Payment Terms

Custom Data

Site Address HO Mumbai ALBA PL01 Site Address

Invoice Address

HO Mumbai ALBA PL01 Invoice Address

Ship Instr. BY ROAD S001 Ship Instr.

Contact Person

Pradip Ghosh 11 Contact Person

Delivery Terms

EX-WORKS D001 Delivery Terms


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Item Overview

Plant Enter Corporate office Plant Code: PL03

Plant in which ALBA procure materials

Material Group

Office Equipments Material Group- 2000 A material group comprises several materials or services having the same attributes.


Item Details –

Quantity 10 PO Quantity ordered by the buyer, to be supplied by the vendor

Unit EA Specifies the unit of measure in which the material is ordered

Gross Price Enter price - 100

Item Details – Invoice

Invoice – Tax Code SH Select the relevant Tax code


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5. You can Observer Here a new tab page Payment Processing is added Choose Payment Processing tab at Header Level, Also Select Invoice tab at Item Level Here You can also find additional field is added in invoice tab of page of line item screen.

Down payment can be mentioned at Header level or at item level as needed.

Note:

As of now header level Down payment is not fully supported, hence I am illustrating Item level Down payment (DP) processing.


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There are 2 types of down payment categories:

a) Mandatory Down Payment – As per negotiation, down payment is must for this transaction

b) Voluntary Down Payment – Company is willing to pay down payment without any request from vendor

Select Option Mandatory Down Payment. (Note: this has no impact / control on any other transaction; it’s only a classification of the down payment for the reporting)

6. Here I select Mandatory Down payment in DP Category and Press Enter , Error comes showing Down Payment must be at least 40 and no more than 100% means system doesn’t allow more than 100% DP


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Put Down Payment 100% or also Down payment amount can be given as shown below but give DP % at least more than 30% of amount and press Enter now error for Down payment (DP) Due Date.

Specify Down Payment( DP) Due Date as shown Below


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Check & Save Changes.

Save


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Result: Domestic PO: 4500000611 Created with Down Payment (DP).


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4.2 Release Purchase Orders Purchase Order must be approved by the responsible Purchase Manager , Operational Manager depending on its value

Release levels are as follows:

- MP – Purchase Mgr (HO)

- OM – Operation Manager

Use All the purchase orders that have to released are listed and approved as required

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Material Management Purchasing Purchase

Order Release Collective Release

Transaction code ME28 or ME29N

2. On the Release (Approve) Purchasing Documents screen, in Release Code, Select a release code MP.


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3. Repeat step 2 for release code OM.

Save Released.

Result The Purchase Order is released.


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4.3 Down - Payment Monitoring for PO

Use Once the purchase order has been updated with the down payment request, you can use this report to monitor the down payment status of the purchase orders. The purchase order status displayed on the listed shows you whether down payments have already been made in part or in full.

Prerequisites Down payment data in purchase orders for equipment should exist.

Procedure


Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Materials Management Purchasing Purchase Order

Reporting Down-Payment Monitoring for PO

Transaction code ME2DP

2. On the Down Payment Based on Purchase Order screen, make the following entries:

Field User Action and Values Comments

Purchase order Input Data

Pur. Order <PO number> Will be copied from the previous screen for which you choose to create down payment

PO item <PO item number> Proposed by the system.

Transfer tax on sales/ purchases code from PO

X

Execution

Down Pmnt X Select either you want to post a down payment request or down payment


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Use can choose the different type of selection conditions as needed

Execute. (F8)

System displays the list of PO which contains the Down payment request in PO header or item level.

Indicates DP is not yet processed

indicates DP is processed and payment made Select the required PO for processing further

Click on crate DP button, system will bring below screen


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Note: - User can select either Down payment request or Down payment as per business requirement.

Press Enter after selected option.

This option allows the post DP including the the Taxes as mentioned in the PO This is post DP

request option as noted item. F-47

This is Post down payment option- F-48


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Selaect Line and Renter OK button for proceed Down payment


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4.4 Post Down Payment

Use To post the down payment to Vendor

Procedure


Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Accounting Financial Accounting Accounts Payable

Document Entry Down Payment Down Payment

Transaction code F-48

2. On the Post Vendor Down Payment: Header Data screen, make the following entries:


Document Date <document date> 09.09.2015

Type KZ Vendor payment

Company Code 9999

Posting Date <posting date> for example the first of next month.

Reference <reference number>

Account <Vendor>

Special G/L Ind A Down payment, current assets

Account <bank account> for example 900601

Amount down payment <amount> for example 400

Profit centre

Text

Assignment Chq number

Value Date 09.09.2015


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Enter


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Enter

Post


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Result FI Document will get posted