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Down Payment Request, Payment and Clearing in the Final Invoice

The customer pays 20% up front: a down payment request is billed from the order's billing plan (a noted item, not revenue), the payment is posted as a down payment received, and the final invoice deducts it and clears it.

Educational content. SAP behaviour varies by configuration and release. Spotted something off? Report it.

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SAP DOCUMENTSVisualization of Down Payment Request, Payment and Clearing in the Final Invoice. All information shown in the scene is also available in the caption and the panels next to it.
Demo data

01Order with a down payment agreement

Order 10000310 for ₹2,00,000; the billing plan contains a 20% down payment date.

Business scenario

Demo Retail orders 100 EA of FG-2000 for ₹2,00,000 and agrees to pay 20% (₹40,000) before production of the shipment is scheduled.

All companies, numbers and documents are fictional demo data.

Step-by-step flow

  1. 01

    Order with a down payment agreement open in twin

    Order 10000310 for ₹2,00,000; the billing plan contains a 20% down payment date.

    That date makes the down payment request due for billing.

  2. 02

    Bill the down payment request (FAZ) open in twin

    Down payment request for ₹40,000 sent to the customer. It is a noted item: no revenue, no receivable yet.

    Revenue must not be recognised for goods not yet delivered; the request only reminds and tracks.

  3. 03

    Customer pays the down payment open in twin

    ₹40,000 received and posted as a down payment — a liability to the customer until the goods ship.

    Until delivery, the money belongs to the customer in accounting terms.

  4. 04

    Deliver the goods open in twin

    100 EA ship; goods issue posts cost of goods sold.

    Delivery makes the final invoice due.

  5. 05

    Final invoice open in twin

    The full order value is ₹2,00,000. What does the final invoice ask the customer to pay?

    The down payment condition (e.g. AZWB, typical) copies the received amount into the invoice.

  6. 06

    Customer billed twice open in twin

    Invoicing the full ₹2,00,000 ignores the ₹40,000 already paid; the down payment stays open as a liability.

    The customer disputes the invoice and FI has an open liability that should have been cleared.

  7. 07

    Final invoice clears the down payment open in twin

    Revenue ₹2,00,000; the down payment ₹40,000 is cleared; ₹1,60,000 remains to be paid.

    Customer account: ₹1,60,000 open; down payment account: zero.

  8. 08

    Down payment settled open in twin

    Order → down payment request → payment → delivery → final invoice with clearing.

    This keeps revenue recognition tied to delivery while securing cash early.

SAP documents

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Stock impact

StepPlant / SLocStock typeMvTChange
Deliver the goods1000 / 0001Unrestricted use601−100 EA

Accounting impact

Down payment received

Typical

Customer pays the down payment

  • Dr Bank₹40,000
  • Cr Customer down payments received (special G/L A)₹40,000

The customer line uses a special G/L indicator, so it posts to a down-payments-received reconciliation account (a liability), not to normal receivables.

Goods issue

Typical

Deliver the goods

  • Dr Cost of goods sold (GBB/VAX)₹1,20,000
  • Cr Inventory — finished goods (BSX)₹1,20,000

Standard COGS posting.

Final invoice

Typical

Final invoice clears the down payment

  • Dr Customer receivable₹2,00,000
  • Cr Revenue — domestic sales (ERL)₹2,00,000

Full revenue and receivable.

Down payment clearing

Configuration dependent

Final invoice clears the down payment

  • Dr Customer down payments received (special G/L A)₹40,000
  • Cr Customer receivable₹40,000

The down payment received is transferred against the receivable, leaving the net amount open. Whether this happens in billing or in a separate FI clearing step (F-39) is configuration dependent.

Typical conceptual flow. Actual G/L accounts and posting behaviour depend on material valuation, automatic account determination and system configuration.

Movement type

  • 601GI for deliveryReversal: 602

Secures part of the payment before delivery while keeping revenue recognition tied to the actual sale.

Transactions & Fiori apps

  • VA01 — Sales Order with Billing Plan
  • VF01 — Down Payment Request / Final Invoice
  • F-29 — Post Customer Down Payment
  • F-39 — Clear Customer Down Payment
  • Create Billing Documents

Differences by SAP version

Billing plans, FAZ and AZWB as described.

Configuration

  • Billing plan type and billing rule for down payments

    Configuration dependent

    Defines dates, percentages and the down payment rule.

  • Special G/L accounts

    Configuration dependent

    Down payment received and request accounts per reconciliation account.

Prerequisites

  • Item category with a billing plan for down payments
  • Billing type FAZ and down payment condition (AZWB, typical)
  • Special G/L indicators A (down payment) and F (request) configured

Master data

Customer
Reconciliation account and special G/L setup.

Organizational structure

  • Company code 1000
  • Sales area 1000/10/00

Tables

TableDescription
FPLA / FPLTBilling plan and billing plan dates
VBRKFAZ and F2 billing documents

Integration

  • FISpecial G/L postings for requests and down payments; clearing at final invoice.

Common errors

  • “Down payment not deducted in the final invoice”

    Likely causes: Payment not posted against the request; Down payment condition missing in pricing

    Where to look: Customer special G/L items · Pricing procedure

Troubleshooting

Something went wrong? Work through these checks in order. They are diagnostic questions, not configuration instructions — confirm changes with your system owner.

  1. CHECK 1

    Clearing

    • Is the payment posted against the request?
    • Is the down payment condition in the final invoice?

Interview questions

  • How are down payments handled in SD?

    A billing plan date triggers a down payment request (FAZ), posted as a noted item. The customer's payment is posted as a down payment received with a special G/L indicator (a liability). The final invoice recognises full revenue and the down payment condition deducts the paid amount, which is cleared against the receivable.

Quiz

Q1 · Identify the accounting impact

What does a down payment request (FAZ) post?

References

  • SAP SE — SAP Help Portal: Down Payment Processing in SD (source)
  • SAP SE — SAP Help Portal: Billing Plans (source)

Explanations are original. They summarize standard behaviour; always validate against your system's release and configuration.

Version history

VersionChange
1.0.0Initial version.