ACCOUNT RECEIVABLE DOWN PAYMENT PROCESSING AND RECONCILLIATION

PREPARED FOR
Galaxy Backbone Limited

PREPARED BY
Axel Enterprise Systems

Date
01/11/2013

............................................................................................................................................................................................................................................................................12 .. 5 Post AR Down Payment Invoice with Incoming Payment.......... 9 Procedure............................................................................................................................................................................................................................................................................... 8 Post AR Invoice................................................................................................................................................... 3 Process Overview Table .................................................Contents Purpose ................... 10 Incoming Payment ................................ 5 Procedure................................................................ 3 Business Conditions .................................................................................................................. 11 Procedure....................................................................................... 5 AR Down Payment Accounting Entries ....... 11 Incoming Payment Accounting Entries ............................................................................................................................................................................................................................................................................................................................................................................ 9 Invoice Posting Accounting Entries... 4 Process Steps .....................................................................................................................................................................................

discounts and approval steps have been omitted from this scenario Business Scenario A sale has been made to a customer. • The Down Payment invoice is generated and the incoming payment is posted in one step • Upon fulfillment of the order. an invoice is sent to the customer with a net due amount of 6.000 naira.Purpose The purpose of this document is to give a detailed step-by-step guide for entering and post processing down payments and subsequent AR invoices without sales orders in the SAP Business One system.000 naira (10. He makes a down payment of 4. For simplicity and clarity. Business Conditions The business process described in this document is part of bigger chain of integrated business processes or scenarios. The customer is required to make a down payment on the order.000.000 naira) • The customer pays the balance due of 6. • • • Trade debtors account is the control account for the Customer Sub-ledger These accounts are stated AS-IS in the system configuration and accounts determination as at the day of document release The customer account used has been chosen to represent a typical transaction. It shows the corresponding ledger entries at each step and clearly shows the reconciliation of down payments with AR invoices in the customer accounts and other related ledgers. you must have completed any preliminary steps before you start any activities in this scenario.Internet connectivity Petty Cash ASO (sample customer) .000 naira. No settings have been made in the customer data to override system default account determinations. The scenario modeled in the document are as follows • The customer places an order worth 10. Description Trade Debtors Payments Received in Advance Revenue. The down payment is applied to the final invoice and the customer pays only the net due amount (full invoice amount less down payment) on the invoice due date. An incoming payment is posted and his account is cleared Accounts Overview Account Number 102010100 202040000 401010000 102030100 CL10006 Notes. taxes. As a result.000 naira less Total Down Payment of 4.

the employee creates the down payment invoice. The customer pays the down payment and the incoming payment is posted in SAP The order is fulfilled and the customer is sent an invoice with the down payment applied The customer pays the amount due from the AR invoice Expected Results AR down payment invoice is created The incoming payment from the down payment is posted. An AR invoice is generated with due amount of Full invoice amount less down payment Incoming payment received and customer account cleared .Process Overview Table Process Step Enter AR Down Payment Invoice with incoming payment Post incoming Payment Post AR Invoice Post incoming invoice Business Condition Customer pays the required down payment.

Access the transaction using he following navigation path Main Menu →Modules →Sales –A/R →A/R Down Payment Invoice . the AR down payment invoice is posted.Process Steps Post AR Down Payment Invoice In this activity. Procedure 1. The incoming payment is posted in the same step.

000 to post the down payment invoice. C D Payment Received in Adv. Click D 4.000 1a Trade Debtors 1a 1a D 4. The Accounting entries are shown below.2. Enter the Down payment percent as shown 3. Enter Customer details. item details and price. C 4.000 Customer C 1a Down Payment Invoice .

Enter the customer details and select the down payment invoice .Post Incoming Payment Procedure 1. Access the transaction using the following navigation path Main Menu →Banking →Incoming Payment →Incoming Payments 2.

Click 5. Click to confirm the amount to post the incoming payment AR Down Payment Accounting Entries Trade Debtors Payment Received in Adv.000 C 4000 1b D C 4.3. 1a D 4.000 Cash C 1a 1b Down Payment Invoice Incoming Payment(Down Payment) *items in GREEN are cleared .000 Customer C 4.000 1b 1b D 4.000 1a 1a D 4. Click on the payment means button amount to choose payment method and enter payment 4.

Post AR Invoice In this activity. Procedure 1. The system automatically calculates the balance due (Full invoice amount less Total down payment) . Select the browse button to select appropriate down payment related to the invoice. Navigate to the A/R invoice transaction using the following navigation path Main Menu→ Modules→ Sales. Enter the Customer Details. Item Details and Price. the invoice is posted in FULL and the down payment is applied to this amount to generate the net due amount.A/R→A/R Invoice 2. 3.

000 6.000 Customer C 4.000 D 2 Payment Received in Adv.000 1b 1b D 4.000 2 1a 1b 2 Down Payment Invoice Incoming Payment(Down Payment) AR Invoice (Full amount with Down payment applied) *items in GREEN are cleared . C 4.000 Cash C Revenue D C 10.000 1a 2 D 4. The accounting entries for this transaction are shown below. Invoice Posting Accounting Entries Trade Debtors D C 1a 4.000 4. Click to post the invoice.000 1a 4.000 1b 2 6.4.

click .Incoming Payment In this activity. Navigate to the Incoming payments transaction using the following path Main Menu →Modules→ Banking→ Incoming Payments→ Incoming Payments 2. This posting clears the customer account and recognizes the inflow into the bank/cash account Procedure 1. Click on the payment means button amount. choose the means of payment and enter the payment . an incoming payment for the balance due is posted. Enter the Customer code and select the appropriate invoice 3.

000 Customer C 4.000 4.000 6.000 1b 6.000 2 1a 1b 2 3 Down Payment Invoice Incoming Payment(Down Payment) AR Invoice (Full amount with Down payment applied) Incoming Payment (Total Invoice less Down Payment) *items in GREEN are cleared . Note that this posting clears the balance due amount in the customer account.000 6.4.000 1b 2 6. The accounting entries are shown below. The Accounting entries are shown below Incoming Payment Accounting Entries Trade Debtors D C 1a 4.000 6.000 3 1b 3 D 4.000 Cash C Revenue D C 10.000 3 D 2 Payment Received in Adv. Click to post the transaction. C 4.000 1a 4.000 1a 2 D 4.

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