SAP ERP Financials and FICO Handbook

278 CHAPTER 7 SPECIAL AREAS
to the vendor. In SAP solutions, the P2P cycle may be simple or complex,
depending on the modules implemented and the client’s business process. The
following shows how the P2P process can be viewed using different modules.
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P2P process with FICO module: When you are only working
with the FICO module, the P2P process is pretty simple. In this
case, the recording of goods movement will be taken care of
outside of the SAP solution.
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Vendor invoice posting
Payment to vendor
P2P process with FICO and MM modules:
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Source determination
Purchase order
Goods receipt
Invoice verification
Payment to vendor
7.9 VENDOR DOWN PAYMENT AND CLEARING
“Down payment” is the term used when you are entering into agreement with
your vendor to purchase an expensive item or capital assets. It means an upfront
payment to the vendor before delivery of goods and services, and is also called
an “advance payment.” According to the accrual concept, a down payment or
advance payment is not a liability but rather an asset. Since the down payment is
treated as an asset for your financial statement, it cannot be mixed with normal
transactions with vendors. In SAP solutions, a down payment is treated as a
special G/L transaction. Down payment transactions are shown and recorded
in a different reconciliation (control) account called an alternative reconciliation
account. As per SAP standards, a vendor down payment process involves the
following steps:
1. Down payment request (T-code F-37)
2. Down payment (T-code F-29 or F110)
3. Invoice (T-code FB70)
4. Down payment clearing (T-code F-39)