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Advance to a Customer - peculiar case

Former Member
0 Kudos

Hi Friends,

This is my first question.

I am facing a peculiar problem.

One of the main customers of our client requested to get his roads repaired as it is becoming difficult for transporting purposes with client's money and he promised to repay that when he makes next payment for his purchases with the client. And now, the third party who is doing the work wants advance payment. How to make advance payment to this third party and how to collect this money from the Customer. Simply saying, the advance payment amount what we are paying to the third party (who is repairing the roads) should show against the customer so that we can claim from him. Hope i have explained the situation well. Please ask me for clarifications.

Thanks in advances

Regards

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

If you want simply that check should be printed in the name of third party but debit should go to the customer, then you can mention the thrid party account number in the "alternative payee" field in the customer master. Or else, you can even use the concept "Head office", the field you can find on the customer master itself.

Pl assign points, if helpful.

Former Member
0 Kudos

Hi

We have to make payment to third party and this amount should reflect in customer account as receivables so that we can receive payment from him later on. pls explain with t codes, posting keys etc.,

Former Member
0 Kudos

Hi

Please specify where can i find the alternative payee in the customer master. What you are saying about is true for vendor master and may not be true for customer master. Please clarify

regards

Sanil Bhandari

Answers (2)

Answers (2)

Former Member
0 Kudos

Hello

Create a vendor master record.

Create link between customer and vendor.

Enter account numbers in both master records.

Make a down payment using special GL..

Now when you take a statement of account the advance would be reflected.

When payment is recieved, the system will ask whether to adjust the advance, say No. Better to clear the advance manually, other wise, there could be uncleared open items in the customer account.

Reg

*assign points if useful

Former Member
0 Kudos

I have done like this ---

Made advance payment to the vendor who is doing the work.

When i receive the bill from Vendor, using f-43 I will Debit the customer and credit the vendor to whom i made the advance payment. This increases the debit balance of the customer. So we can claim from the customer later on when we receive the payment from him.

Suggest me if there is any alternative method.

Try to answer you will learn more and more.

Regards

Former Member
0 Kudos

HI,

I've tested you case F-43 will not allow Account Type D.

Give the Downpayment through F-47 and pay through F-48, and use the expense account in F-43.

After the Downpayment to vendor raise a debit memo for the customer through F-27, Though named as credit memeo will create a bebit memo in customer account, by crediting to a Misc. Receipt Accont or the relevent.

Thanks

VK

Former Member
0 Kudos

Hi

Why do u want to follow such a circuitous way. define the third party as a business partner in sales area and then make the payment to the partner for the customer.

Regards

Sanil Bhandari

Former Member
0 Kudos

Can u explain more clearly please.