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Advance Payment to Vendor without PO

Posted: Fri Feb 28, 2020 6:24 am
by GreenGreen
Dear Experts,

My company use the Logistic IV approach to do business with vendors.
PO-GR-IR, 3 ways matching for payment.
However, due to special arrangement for some Outline Agreements with vendors, a portion of purchase amount for the newly created Outline Agreement need to pre-paid to the vendors even before any PO creation. The advance payment should then be deducted from the later-on-created POs.

Regarding this, may I know whether possible to do so in FI? If yes, how can I perform such Accounting document and how to deduct the amount later on in F110?

Thanks and regards,

Green Green

Re: Advance Payment to Vendor without PO

Posted: Mon Mar 02, 2020 6:22 am
by darkduck
There's a SAP standard functionality of Down Payments, which use Special GL Indicators of that particular type. Please read help.
Once PO is created and invoice is posted, you can partially clear invoice and outgoing down payment against each other to reduce the amount of invoice settlement.

Re: Advance Payment to Vendor without PO

Posted: Wed May 06, 2020 10:04 pm
by GreenGreen
Dear darkduck,

Thanks for your reply.
Is it the standard function that the vendor down payment only for PO but not on Outline Agreement?

The business scenario is: we create Outline Agreement, and pay portion amount for this vendor outline agreement.
System needs to record down the pre-paid goes to vendor's which contract.

After subsequent contract PO created, execute F110 and system to check whether vendor down payment for that outline agreement exists or not, and deduct the payment amount for that pre-paid amount. If vendor pre-paid amount exists but not for that PO's outline agreement, then the deduction will not be done.

Is it possible to do so?

Thanks & regards,

Green Green

Re: Advance Payment to Vendor without PO

Posted: Thu May 07, 2020 3:55 am
by darkduck
Outline Agreements cannot be linked with Down Payments.
DPs can either be standalone or made with PO reference.
If you need a non-standard behavior, this should be a development.