Customer Advance Invoices

Are you concerned that your customers are not paying on time? Would you like to increase the likelihood of receiving payment for the goods or services you deliver? We can help.

We have developed a solution for setting up the SAP system for ​​issuing customer advance invoices, including payment posting and deducting advance payments from invoices. The advantage of the solution is that it does not require modification of the SAP system; it is delivered as a separate program module.

Customer advance invoices are issued as a “Proforma invoice” linked to a quotation, sales order, or delivery.

Solution Description

The issued Proforma invoice contains separate items, including the required advance amount and a request for its payment. If Treasury is active in the accounting area, the expected advance payment is posted as a “Branded item” when the invoice printout is generated for the first time.

The creation of Branded items can also be enforced without activating Treasury using an application parameter.

Once the customer makes an advance payment and the amount is credited to the account, the incoming payment is identified using the Proforma invoice number, which is indicated as a variable payment symbol, and processed by a special transaction created for the purpose of processing the advance payment. It is possible to determine whether the payment relates to a specific business case or customer, allowing multiple payments associated with a single Proforma invoice to be processed.

Incoming payments can also be registered easily, so they can be automatically deducted from the invoice without issuing a tax document to the payer.

During final invoicing, advance payments are deducted from the total amount. The resulting invoice includes a recapitulation of the settled advances, including VAT calculation, and reflects only registered payments.

Integration with FI, SD and Treasury Modules

  • Creation of a Proforma invoice in the SD module
  • Integration of an SD Proforma invoice into the FI module as an advance payment request
  • Creation of an SD advance tax document
  • Integration of the SD advance tax document into the FI module as a customer advance item
  • Settlement of the customer advance against the final invoice, including VAT, in the SD module, with an impact on the FI module

In the Treasury module, advance requests, advances, invoices, and the associated payments are fully reported.

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