Hi,
What is difference between partial payment and residual payment and what is the effect of this payment on Payment Terms and Customer aging analysis report?
Can any body help me out.
Thanks & Regards
Amar Adam
The difference is:
For ex. an amount of Rs.100000 outstanding in customer account.
you have recd Rs.25000/- while selecting the open items if you select partial payment the entry will be
Bank a/c dr. 25000
customer a/c cr. 25000
both 100000 and 25000 will be in open items
while selecting the open items if you select residual payment the entry will be
Bank a/c dr.25000
Customer a/c cr. 100000
customer a/c cr. 75000
100000 will be cleared and fresh 75000 will be created as new open item.
Hi BSR,
Thanks lot for your quick responce. But can we get the any report so we can understand better of which invoice partial paid or residual paid.
Thanks & regards
Amar
Hi Amar,
Payment Terms - Partial payment ages from entry date with no terms.Residual item inherits baseline date of original invoice and keeps same terms or customer default terms
Aging report - Partial Payments will have original invoice amount fully aged and the partial payment credit aged based on entry date. In residual payments only the residual item is listed and is aged according to the original invoice.
Hope this will help you..
Regards,
Praisty
Edited by: Praisty on Jul 30, 2009 9:58 AM
Hi Praisty,
Thanks lot for your response. Could you give me one example with transaction amount.
Thanks & Regards
Amar
Hi ,
We can take the example given by BSR
For ex. an amount of Rs.100000 outstanding invoice (let say 2000 is the invoice number) in customer account which has payment terms as ZPTERM.
you have recd Rs.25000/- while selecting the open items if you select partial payment the entry will be
Bank a/c dr. 25000
customer a/c cr. 25000
Let us say the document posted is 1000 , which is a partial payment document.
Now this document ages from the posting date, and the payment terms of the invoice are not inherited i.e. you cannot see the ZPTERM in the payment terms field for partial payment document.
Both the Invoice(2000) and Partial Payment(1000) documents remain as open items.
If you make a residual payment, you can see the payment terms ZPTERM in the residual document i.e. payment terms are inherited from the invoice.
And the baseline date is same as invoice date. so ageing of residual document is same as that of invoice.
In this case the invoice document 2000 is cleared and a new open item is created. you can check after posting the residual document, the baseline date and payment terms will be same as that of Invoice.
Hope this explanation will clear your doubts..
Regards,
Praisty
Hi,
When you make a partial payment, it does not clear your invoice. Both the original invoice entry and the payment entry will be shown in the customer/vendor account as open items.
In case of residual payment, even though a part of the invoice amount is paid, it clears the original invoice. System will create a new document for the balance amount and this document will be shown as open item. The original invoice document and the payment document will be shown as cleared items.
Hope this helps.
Anil
Issue solved
Hi Gurus,
I understand the purpose behind Residual Payment. But I don't understand why we need to do partial payment. Because neither the Original Invoice nor the Partial Payment Document will tell you how much amount is remaining from being paid. The next time you pick the Original Invoice you still find the same amount though you have already paid some of it.
I request you to clear the confusion.
Thanks and Regards,
Sagar
Hi Gurus,
I understand the purpose behind Residual Payment. But I don't understand why we need to do partial payment. Because neither the Original Invoice nor the Partial Payment Document will tell you how much amount is remaining from being paid. The next time you pick the Original Invoice you still find the same amount though you have already paid some of it.
I request you to clear the confusion.
Thanks and Regards,
Sagar