Configuration Of Advance Payment to Vendors In SAP (Down Payment to Vendors)

Advance Payment to Vendors
When Advance payment is made to a vendor it updates the General ledger. When purchase invoice for vendor is entered we receive a message INR xxxx down payment on current assets exists.

Configuration Settings for Advance Payment to Vendors

1. Creation of General Ledger - Advance to Vendors 

2. Link between Sundry Creditors and Advance to Vendors

End User Area

Scenario - 1
When advance and bill amount are same

1. Advance Payment Posting (When Bill and Advance amount are the same)

2. Purchase Invoice Posting 25000/-

3. Transfer of Advance 25000/- from Special GL to Normal by Clearing Special GL

4. Clearing of Normal Items 25000/-

Scenario - 2
When advance is more than bill amount

1. Advance Payment Posting (When Advance is more than Bill amount))

2. Purchase Invoice Posting 50000/-

3. Transfer of Advance 50000/- from Special GL to Normal by Clearing Special GL

4. Clearing of Normal Items 50000/-

Scenario - 3
When advance is less than bill amount

1. Advance Payment Posting (When Advance is less than Bill amount)

2. Purchase Invoice Posting 90000/-

3. Transfer of Advance 9000/- from Special GL to Normal by Clearing Special GL

4. Clearing of Normal Items and Balance