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
AR & AP Down PaymentsPresented 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
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
Settings – G/L Account Determinations
Go to: Main Menu > Administration > Setup > Financial > Financials > GL Account Determination
� Enter GL code on
Sales - Purchasing> General Tab
Numbering Series – Down Payments
Go to: Main Menu > Administration > System Initialization > Document Numbering
� Define numbering series for Down Payment Invoices
How to Create Down Payment Invoices
Go to: Main Menu > Sales A/R > AR Down Payment InvoiceMain 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
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
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
General Ledger Transactions
Standard Process - AR Down Payment Invoices
DR CR DR CR DR CR
Acct. Rec. DT Account Cash Acct Rec. DT Account Revenue
Standard Process - AP Down Payment Invoices
DR CR DR CR DR CR
DT Account Acct Payable Acct. Payable Cash Expense/Inven DT Account
[A] [B] [C]
AP Down Payment Invoice Payment Sent AP Invoice - Apply DT
[A] [B] [C]
AR Down Payment Invoice Payment Received AR Invoice - Apply DT
Long Business Systems, Inc. (LBSi)
Cleveland – Columbus – Cincinnati – Pittsburgh
Contact Information:
Vicki Smith
Senior Consultant
email: [email protected]
Phone: 440-846-8500 ext 22
www.lbsi.com
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
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?
Long Business Systems, Inc. (LBSi)
Cleveland – Columbus – Cincinnati – Pittsburgh
Contact Information:
Vicki Smith
Senior Consultant
email: [email protected]
Phone: 440-846-8500 ext 22
www.lbsi.com