Manual Partial Payment or Residual Payment Options in Vendor Payment

When open items are cleared, the system assigns them a clearing document number and the date on which clearing was made. In this way, invoices in a vendor account are indicated as paid and the items in the bank clearing account are indicated as applied. Such open items can be paid and cleared manually.

Manual payment option in SAP can be utilized for

  • Partial settlement
  • Residual settlement
  • Advance payment

Manual payments could be made for a partial amount and this can be carried out in two different ways.

Manual Partial Payment or Residual Payment Options in Vendor Payment

Partial payment in case of vendor

A partial payment is a payment that is posted to an account without any open items being cleared. Allocation of it to an open item is to be carried out. When posting, the system marks the document number of the original open item in the line item for the partial payment.

The original open item and the partial payment remain open. The system stores the document number, fiscal year and number of the line item from the invoice. This information can be found in the Payment for field. Thus it is possible to refer to the original open item from the partial payment.

When posting for the remaining amount of the invoice, both the partial payment and the invoice are to be manually cleared. However the disadvantage in this system is that the system would allow payments in excess of the open item and no control is possible.

Residual payment in case of Vendor

A residual item results when a payment is made for less than the actual amount outstanding. The original open item is cleared and the system posts a new open item. This new open item is for the same amount as the original open item minus the amount paid.

When the document is posted, the system stores the document number, fiscal year and item number of the original open item. For the residual item, the system either uses the terms of payment from the original invoice item or enters the predefined terms of payment.

Which payment terms are used depends on the settings made for the tolerance group in the vendor master data. The disadvantage here is that the original document number is lost as the system assigns a new document number.

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