Supplier Down Payment

When to Use This Form

• When the company pays supplier before final invoice is received.
• When finance needs to track advance balance per supplier.
• When supplier down payment will later be applied to Purchasing.
• When the company needs journal and audit trail for supplier advances.

Supplier Down Payment Balance Concept

• Down payment increases supplier advance asset balance.
• Purchasing can consume the balance when invoice is recorded.
• Remaining balance stays available for the supplier.
• The balance should be reconciled with supplier statement and accounting reports.

Prerequisites Before Entry

• Supplier master data is active.
• Payment type cash/bank is active and has proper account.
• Currency and exchange rate are correct.
• Supplier advance account is prepared in supplier group or related setup.

Workflow

1. Open Procurement / Requests & Receiving / Supplier Down Payment.
2. Choose supplier, division, date, currency, and payment type.
3. Fill paid amount and memo.
4. Save after checking payment account and amount.
5. Use the down payment in Purchasing when recording supplier invoice.

Form Fields

Used in Purchasing Form

• Purchasing can apply available supplier down payment to reduce payable balance.
• Applied amount reduces down payment balance.
• Check supplier and currency before using the balance.
• Do not apply more than available balance.

Journal Impact After Save

• Cash/bank decreases when payment is made.
• Supplier advance asset is recorded.
• When Purchasing consumes the advance, the balance moves from advance to payable/payment settlement.
• Exchange-rate difference can appear when currency differs.

Edit, Delete, and Print

• Editing a supplier down payment can change supplier advance balance and journal.
• Deleting should only be done when the down payment has not been used by Purchasing.
• Printed documents should show supplier, amount, currency, payment type, and memo clearly.
• If the transaction has been used, create a correction according to accounting policy instead of deleting it carelessly.

Checklist Before Saving

• Supplier is correct.
• Payment type and account are correct.
• Amount, currency, and exchange rate are correct.
• Memo explains the purpose of the advance.
• The down payment is not duplicated with another payment.

Common Issues

• Down payment not available in Purchasing: check supplier, currency, status, and remaining balance.
• Wrong balance: check previous usage in Purchasing.
• Cannot save: check payment type account and required fields.
• Journal mismatch: check supplier advance account and payment account.