Customer ONE time pre-payment

[Former Member]

Hi Experts.

we have a scenario where Csutomer will make ONE time payment (say for a year) and we create Sales Order and deliver those till the payment made by customer lasts. I read through down payment conditions AZWA / AZWB and down payment for Sales order. But all the downpayment's are after a Sales Order is made.
I also tried setting up a custom down payment with value contract but fails due to various validation at specific points.

if any one of you have come across such a scenario kindly share your experience. Is it possible to set-up pre-paid account in R3?

Thanks,

Abhishek

[jignesh_mehta3]

Hello Abhishek,

Do you mean to say that Customer will just pay one time in advance and and you will create Sales orders and Deliveries till the payment lasts.

If the above understanding is true then you do not need Down Payment, but SAP Credit Management settings.

Set the Customer Credit Limit as Re. 1.

Now, if the Customer has paid Rs. 1,00,000 in advance his Credit exposure will be -1,00,000. Now say you create a Sales Order worth Rs. 10,000, the Credit exposure will come down to -90,000. This will go on till entire credit exposure is used and then system will not allow to create any Sales Order more than Re. 1.

Thanks,

Jignesh Mehta

[Former Member]

Hi Jignesh,

Thanks for feedback. But this requirement has come due to Down Payment which was already in system. So, some customers would pay upfront for a certain amount and multiple sales orders will be created for the same.

your suggestion is good, not sure if that will be readily adaptable, I will check. can you tell me for initial creadit management how did you set up

1. intial payment was it with reference to contract 2. and control invoicing?

Thanks,

Abhishek

[jignesh_mehta3]

Hello Abhishek,

Even the initial payment was with reference to a Contract the Credit Exposure will be updated for the Customer and system will execute Credit check every time a Sales Order / Delivery is created (depending on system settings).

As far as Invoicing is concerned, if you are able to create Sales Orders & Deliveries for the Customer (with available Credit limit) there should be no issues in Invoicing.

Once the Credit Limit is exhausted, system will automatically block Sales Orders or Deliveries (depending on system settings) and obviously no Invoice will be created.

Thanks,

Jignesh Mehta