Partial and Residual Payment in SAP S/4 HANA

What is Partial Payment in SAP?

Partial Payment refers to a situation where a customer pays only a portion of the total amount due for an invoice. This can occur for various reasons, such as the customer not having enough funds to pay the full amount at once, or the agreement between the customer and the vendor to make payments in installments.

• When a partial payment is made in SAP, the Invoice and Partial Payment remains Open on Customer/Vendor Account.

How to make Partial Payment in SAP ?

Let's understand this in the system with below Example :

Assume 'Vendor' sent an invoice of 20,000 INR to 'BAJAJ'. However, you do not pay the full amount and you only make a payment of 14,000 INR. If you post 14,000 INR as a partial payment, this doesn't clear the initial invoice of 20,000 INR. Instead, the system adds a new open line item of 14,000 INR which decrease the amount 'BAJAJ' owes to pay to Vendor to 6,000 INR. The initial invoice and the partial payment remain open until you make the the remaining payment of 6,000 INR.

• Vendor Invoice (FB60) of 20,000 INR (includes tax) to BAJAJ.
  

• Vendor Balance Display (FBL1N) Invoice Item status is Open.
  

• Go to Transaction Code (F-53) to make Partial Payment of 14,000 INR

Enter Document date, Posting date, Vendor a/c, Amount, Bank fields and click on 'Process Open Items'.

• Select 'Partial Payment' tab and Double-click on Payment amount field of Invoice line and then click on Post.
  

• Vendor Balance Display (FBL1N), Invoice Item and Partial Payment status is Open.

• After making final Payment of 6,000 INR to vendor system clears the Invoice.

What is Residual Payment in SAP ?

Residual payment in SAP means when you pay only part of an invoice initially, leaving some money still owed. The part you pay is called the initial payment, and it clears some of the invoice. The remaining unpaid part is known as the residual or balance payment.

• When Residual Payment is made, the initial invoice and the payment are cleared and a new open item with reference to the original invoice is created.
  

How to make Residual Payment in SAP ?

Let's understand this in the system with below Example :

Assume 'Vendor' sent an invoice of 30,000 INR to 'BAJAJ'. However, you don’t want to pay the full amount and you only make a payment of 20,000 INR. If you post the remaining 10,000 INR as a residual item, the system clears the initial invoice of 30,000 INR and creates a new open item of 10,000 INR. This new open item remains open until you make the remaining payment of 10,000 INR.

• Vendor Invoice (FB60) of 30,000 INR (includes tax) to BAJAJ.
  

• Vendor Balance Display (FBL1N) Invoice Item status is Open.
  

• Go to Transaction code (F-53) for making residual payment of 20,000 INR, In Next screen Select 'Residual Payment' tab and Double-click on Payment amount field of the Invoice line and then click on Post.

• Vendor Balance Display (FBL1N), Invoice Item and Partial Payment status is cleared, and New open item of Residual Payment line is created.

• After making final Payment of 10,000 INR to vendor system clears the Residual Payment Line item.

In conclusion, partial payment in SAP refers to paying only a portion of an invoice or bill, while residual payment involves paying part of the invoice initially and leaving a balance to be paid later.

Thank you for taking the time to read my blog. I appreciate your support and hope you found this content valuable. Stay tuned and follow me for more insightful articles in future.

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