Posting and Clearing of vendor advance

Down Payment

Posting of Vendor Advance

Transaction code: F-48

Open the vendor advance posting screen either by typing the T code and navigate above or through the drill down menu as shown below

In this transaction vendor advance can be posted. Vendor advance is done through special gl indicator.Before it starts, pl be sure that in Vendor Master there are two types of Tax Codes – 1 for Invoice & 2 for Payment, in payment Tax codes only Tax codes should assign & No % should be assigned, it is neccesssary for smooth running of F-54 Tcodes under which we adjust this advance

Enter the following details as shown below:

  • Document date
  • Posting date
  • Reference & document header text (for additional information)
  • Vendor account number
  • Vendor spl GL indiacator
  • Bank account number
  • Business area
  • Profit center
  • Check number in assignment field


Press enter button in keyboard and enter the following details.

Enter the following details as shown below :

  • Amount
  • Business place/Section code
  • Business area
  • Profit center
  • Purchase order number (If advance is made against purchase order number)
  • Narration in long text


Click on overview icon Now the document will be in simulate mode as shown below.


Save the document.

Clearing of Vendor Advance

Transaction Code: F-54

After posting vendor advance, Let’s see the tutorial to clear the vendor advance.Open the Vendor advance clearing screen either by typing the T code & mentioned above or through the drill down menu as shown below

In this transaction vendor advance which is posted is adjusted against the invoice.Enter the following details as shown below:

  • Document date
  • Posting date
  • Reference (if required)
  • Document header text (if required)
  • Vendor account number
  • Invoice reference

Click on “Process down pmnts” button. & Enter the amount to be adjusted against the invoice, as shown below.

If partial amount is adjusted, enter the partial amount in transfer posting column.

Go to document and select simulate option

Double click on blue line shown below

Enter Text

Click on overview button

Now the entry is clear and ready to post.

Click on save button.

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