Learn how to setup and use down payment invoices in SAP Business One. Presentation from our June 1011 LBSi Regional SAP Business One User Group

1. Long Business Systems, Inc. (LBSi)
LBSI is a technology services firm that understands technology is a tool
that enables you to grow profitably, outpace the competition, and
provide better service to your customers.
Cleveland – Columbus – Cincinnati – Pittsburgh

2. AR & AP Down Payments
Presented by: Vicki Smith
Agenda:
About Down Payment Invoices
Settings – G/L Account Determinations
How to Create Down Payment Invoices
How to Create Incoming or Outgoing Down Payments
How to Apply Down Payment Invoices to Regular Invoices
General Ledger Transactions

3. About Down Payment Invoices
Used when payments are required in advance from customers or
vendors
Way to create a payment not based on a regular invoice
Relevant for both sales and purchasing documents
Has own numbering series
Does not affect on hand balances or stock valuation

4. Settings – G/L Account Determinations
Go to: Main Menu > Administration > Setup > Financial > Financials >
GL Account Determination
Enter GL code on
Sales - Purchasing> General Tab

5. Numbering Series – Down Payments
Go to: Main Menu > Administration > System Initialization >
Document Numbering
Define numbering series for Down Payment Invoices

6. How to Create Down Payment Invoices
Go to: Main Menu > Sales A/R > AR Down Payment Invoice
Main Menu > Purchasing A/P > AP Down Payment Invoice
Use “Copy to” function to create from Sales or Purchase Order
Click on “copy to” and select AR or AP Down Payment
Enter the DPM % to calculate the down payment amount
Add any text or payment instructions and then click Add
Down Payment Invoices can be reviewed on Aging reports
Note: DPM % can be greater than 100% if freight or sales tax need
to be included

7. How to Create Incoming and Outgoing
Down Payments
Payments are handled in same way as regular invoices
Down Payment invoices are referenced with “DT” for origin code
Use Incoming Payments to record customer down payments
Use Outgoing Payments to issue vendor down payments

8. How to apply DT invoices to regular
Invoices
Follow normal process to ship and receive
Create AR and AP Invoice using “Copy to” or “Copy from”
Apply down payments by clicking on and Add
Down payment amount will be applied to regular invoice
Any balance will be shown in “Balance Due”
Note: Down Payment Invoices must be paid in full before they can be applied
(linked) to regular invoices

9. General Ledger Transactions
Standard Process - AR Down Payment Invoices
[A] [B] [C]
AR Down Payment Invoice Payment Received AR Invoice - Apply DT
DR CR DR CR DR CR
Acct. Rec. DT Account Cash Acct Rec. DT Account Revenue
Standard Process - AP Down Payment Invoices
[A] [B] [C]
AP Down Payment Invoice Payment Sent AP Invoice - Apply DT
DR CR DR CR DR CR
DT Account Acct Payable Acct. Payable Cash Expense/Inven DT Account

10. Long Business Systems, Inc. (LBSi)
Cleveland – Columbus – Cincinnati – Pittsburgh
Contact Information:
Vicki Smith
Senior Consultant
email: vicki@lbsi.com
Phone: 440-846-8500 ext 22
www.lbsi.com

11. Next Meetings:
o Tuesday, July 12, 2011
o 10 Ways to Improve Customer Service
o Tuesday, August 16, 2011
o SAP 8.81 New Feature

12. Thank you for taking time to participate in the SAP
Business One User Group Meeting.
Please take a few minutes to respond to our survey
and provide us with feedback and suggestions going
forward.
o We are always looking for new clients to work with. And we would like
to find more clients and partners like you – companies that are
engaged, smart, and focused on their future.
o Can you help us out by referring LBSi to someone who could benefit
from our services?

13. Long Business Systems, Inc. (LBSi)
Cleveland – Columbus – Cincinnati – Pittsburgh
Contact Information:
Vicki Smith
Senior Consultant
email: vicki@lbsi.com
Phone: 440-846-8500 ext 22
www.lbsi.com