3399348 - Partial payment and residual payment in SAP S/4HANA Cloud Public Edition

What is the difference between partial payment and residual payment.

SAP S/4HANA Cloud Public Edition

1. Post an invoice in app like "Create Outgoing Invoices".
2. Manually post part of the invoice amount with 'Allocated Amount' or 'Residual Amount' field via apps Post Incoming Payments, Clear Incoming Payments or Reprocess Bank Statement Items.

Both methods can be used to post payment differences manually.

Partial Payment

When a partial payment is posted, both the initial invoice and the partial payment remain as open items in the customer's account. By selecting the 'Use Invoice Ref.' option within the "Edit Options for Journal Entries" app, the system associates the partial payment with the original open item when manual clearing.

Residual Item

Posting a residual item involves clearing the initial invoice, followed by the creation of a new open item referencing the original invoice. This new open item is connected to the original via the 'Invoice Reference' field and is cleared separately at a later time.

Reason Code

Reason Code documents why payment differences were posted. In case of partial payment reason code can be added but in case of residual items it is a must.
Reason Codes can be defined under configuration 'Define Difference Reasons for Payment Differences' (ID: 103106).

Partial Payments Versus Residual Items

Reason Codes

Partial and Residual Payments in SAP S/4HANA Cloud Public Edition

Partial, Residual, Payment, Reason Code, Difference, 103106, Clear Incoming Payments, Use Invoice Ref., Open , KBA , FI-GL-GL-A-2CL , Posting/Clearing (Public Cloud) , FI-AP-AP-A-2CL , Posting/Clearing/Special General Ledger (Public Cloud) , FI-AR-AR-A-2CL , Posting/Clearing/Special General Ledger (Public Cloud) , How To