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: vicki@lbsi.com

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: vicki@lbsi.com

Phone: 440-846-8500 ext 22

www.lbsi.com