Downpayment Request VS Downpayment Invoices

DP is (Down Payment), which is a fee that must be paid in cash at the beginning when you want to buy goods on credit. Most people take credit when they want to buy expensive items such as vehicles or houses.

The amount of down payment that must be paid is taken from a portion of the total price of 15-50%. In other words, the down payment is included in the purchase price and is not a separate fee. Then, the remainder of the total price will be paid by credit or installments.

What is the difference between Downpayment and Term?

One of the things that differentiates Dwonpayment and Termin is whether or not the handover of goods has occurred. Payment of part of the costs at the beginning but the handover of the goods has not yet occurred can be called a downpayment. On the other hand, if the first payment is made after the goods are given, it can be called the first term payment.

So what is Downpayment Request and Downpayment Invoice?

Down Payment Request

This is a situation where a vendor or customer submits a request for an advance payment which will be made at a certain time. In SAP, creating a Downpayment Request transaction will not produce a journal entry. So that the A/R Down Payment Request and A/P Downpayment Request documents are based on Purchase Order or Sales Order transactions, the Base Document status will not be Close. Down Payment Request does not result in posting on stock.

Down Payment Invoice

This is a situation where the vendor sends or the customer asks for advance payment. In SAP, when an A/P Down Payment Invoice or A/R Down Payment Invoice document is created, a journal entry will be formed which will not affect the inventory value. You can create an A/P Down Payment Invoice or A/R Down Payment Invoice based on a Purchase Order or Sales Order just like creating an A/P Invoice.

The following is an explanation of Downpayment Request VS Downpayment Invoices. Check out this interesting article about other features in SAP Business One. Stay Tuned