The due date is determined through default payment terms entered in the business
partner’s master data and setting a baseline date for payment terms. Payment terms can be configured through T-codes OBB8 and OBB9.
In a simple business scenario, you will pass the following accounting entries from
the time of goods receipt until payment to vendor.
1. Transaction code MIGO
Material Account debit
GR/IR Account credit
2. Transaction code MIRO
GR/IR Account Debit
Vendor Account Credit
3. Transaction code F-28
Vendor Account debit
Bank Account credit
A vendor master contains three segments, which control different fi elds for a vendor.
■ General data segment: This segment holds a common set of data applicable
for all company code.
■ Company code segment: These are company code specifi c data that can’t be
shared with other company code.
■ Purchase organization segment: Like company code data, this segment contains
specifi c purchase organization data.
When the customer is also a vendor, or the vendor is also a customer, you need to
follow these steps:
1. Create the customer master and vendor master records.
2. Assign a customer account number in the vendor master record and a vendor
account number in the customer master record.
3. In the customer master record in the company code data segment, select the
Payment Transactions tab, and then select the check box labeled Clearing with
4. In the vendor master record in the company code data segment, select
the Payment Transactions tab, and then select the check box labeled Clrg
5. Now when you try to clear using T-codes F-28 or F-53, it will show all of the
transactions related to vendor and customer. You can just pay the balance
amount after net off transaction between vendor and customer.
You need to use a down payment request to a vendor. This will create a noted item
in the vendor, which you need to include with the APP. This will post the advance
to the vendor as a special G/L transaction.
There are two steps to make an advance payment to a vendor:
1. Create a down payment request through T-code F-47.
2. Post the down payment through T-code F110 (APP).
The system will pay for all down payment requests by check or bank transfer.
You can clear two general ledgers through transaction code F-04 (posting with
clearing), provided both general accounts are open item managed accounts.
The payment program can make payment to a vendor other than the one to which
the invoice was posted. The payment is made to an alternative payee, which must
be specifi ed in the master record.
You can specify an alternative payee in the general data area or in the company
code data area of a vendor master. The alternative payee specifi ed in the general
data area is used by every company code. If you specify an alternative payee in
both areas, the specifi cation in the company code area has priority.
To always make vender payments to an alternative payee, proceed as
1. Create a vendor master record for the alternative payee. Block this account from
2. Specify the account number of the alternative payee in the Alternative payee
fi eld within the payment transactions section of the vendor master record.
3. When making payments for this vendor, the payment program will always
access the name and address of the alternative payee.
In some instances, it may be better to specify a payee in the document. To do this,
you have to activate this function by selecting the payee in the document indicator in
the general data area of the Payment Transaction tab. When you enter documents for
this account, the system displays a fi eld in which you can enter an alternative payee.
The system always uses the payee that is most specific. This means that
when you enter a payee in a document, it has priority over payees specifi ed in the