Incoming Partial Payments By Residual Method
Let us go to the next topic, which is incoming partial payments by residual method.
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We have already seen incoming payments in the basic training session, but we have not seen partial payments yet. What will happen if the invoice amount is 1000 and the customer makes a payment of 200, so this is known as partial payment because the full payment amount should be 1000, but he’s making only 200 out of the 1000. So let us see how SAP allows you to handle these kinds of transactions. Basically, you have two ways of posting these partial payments. One is by using the residual method, and the other way is using the partial payment method. We’ll see the residual method first. Okay. Let me quickly create an invoice for this purpose.
Just ignore the message. See if it’s relevant for taxes. Just post it. Okay, the document has been posted.
Okay, now let me copy the document. Okay, let us use the document number now. Go to the payment screen, which is here. Document entry, incoming payments, enter the date, account, enter the bank account. All these are normal, and for the customer account, you have to enter customer account that you have entered. Okay, let us process open items, so I need to enter an amount, I entered 200.
Alright, our document is here, the one that we created just now. It’s 1000, right? So I’m going to erase this cash discount calculation, so that we can work with $1000. Now out of this $1000, what I’m going to do is that I’ll apply 200. Just select 200, and there’s a balance of 800, right? I go to residual items and I key in the residual item of 800. This means that the system will create a new invoice document for this amount 800 and clear the old invoice document, which is 1000. Before I save, let me just show you here in this report so that we can figure out what has happened.
Come here, FBL5N. Alright, do you see this 1000 here? This 1000 meaning it is open, and the document number is ending with 7.
Okay, let us see what will happen if I go to the residual items tab, enter the balance amount of 800, I’m telling that the system should create a new invoice document for 800 and settle off the 1000. Okay, so what it means is that the 200 is supplied against the 1000 outstanding, and the balance of 800 will be created as a new invoice document, so let us simulate this.
It says, correct the marked line items, so it is highlighted in blue, double-click that because there is a required entry here. That’s why it is highlighted in blue. Just put in the document, and then, go to simulate again, so the blue highlighting is gone. I can simulate.
Alright. So what has happened here is that the amount of 800 will be created as a new invoice document for this customer and the earlier amount of 1000 will be fully settled. That’s why it’s in the credit. Alright, so let us post this. Okay, it’s posted now. Take note of this document. I am going to take note of it.
Okay. I will go to customer line items, so I refresh. Alright, see the 800 has been created as a new invoice document with the document number, 1400001, so where is the document number ending with seven? It’s not listed in the open items, so you need to go for clear items so you can see the 1000 here. It’s ending with seven, right? This is the one. Now, it’s highlighted as cleared, the green light.
Okay, if you want to see both the open and clear items go here, all items, so that you can see all items. The cleared one ending with 7 is here. The old invoice document is here. It’s fully settled, and the new invoice document has been created with the balance amount of 800.
Alright, sounds good. This is what we call partial payment posting with residual method. This is what we call residual. Residual means invoice document will be created for the residual amount. The residual amount is the balance amount. It is the 800. That‘s about it. We’ll see the partial payment method, the next method here.