Down Payment Process in SAP

Hi Friends,

Down Payment Process is used in domains like Construction, Real Estate, and Manufacturing etc. This is used to pay some amount to vendor before receiving goods. Down Payment Request is created as per the details maintained in Purchase Order. In this process, you create a purchase order in Materials Management; this order is then delivered on receipt of a down payment. After you have posted the goods receipt, enter the invoice in invoice verification in Materials Management. Clearing between goods delivered and goods invoiced is carried out automatically. Since you have already made a down payment, you then have to clear the down payment with the invoice amount. Then you make the final payment.

To simplify matters, assume that the down payment request is entered today, just a short time after the purchase order. The down payment occurs on the same day. The invoice is entered with a date ten days from today’s date, and is paid immediately.
Here are the steps involved for complete process.

  1. Entering Purchase Orders
  2. Entering Down Payment Requests
  3. Displaying Vendor Accounts
  4. Posting Down Payments
  5. Displaying Purchase Orders
  6. Displaying Vendor Accounts
  7. Processing the Goods Receipt for the Purchase Order
  8. Posting Incoming Invoices in Materials Management
  9. Clearing/Reversing Down Payments
  10. Displaying Vendor Accounts
  11. Displaying Purchase Orders
  12. Posting Final Payments
  13. Displaying Vendor Accounts

In this document, I have explained how to create Down Payment request from MM side and how to do the Down payment from FI side. We can use ME2DP for both transactions or we can use F-47 for Down Payment Request and F-48 for Down Payment.

F-47 – Create Down Payment Request

F-48 – Down Payment Entry

F-54 for Down Payment Clearing

Downpayment Manual



9 thoughts on “Down Payment Process in SAP

  1. Thanking you is not enough… No words … Simply awesome and it shows your dedication and hard work you put in your job/SAP. Initiatives you are taking on sharing your valuable knowledge is amazing sir. Thank you once again. God bless you!


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