3664070 - FF804 - Error "Payment with residual items in invoices with defer $1" in "Clear Incoming Payments app" - SAP S/4HANA Cloud Public Edition

• Unable to use the "Clear Incoming Payments" app with the Residual Payment option to clear invoice documents against incoming payments.
• Error message displayed: "Payment with residual items in invoices with defer $1".

SAP S/4HANA Cloud Public Edition

1. Open the "Clear Incoming Payments" app.
2. Select "Clear Open Items".
3. Choose the invoice document and incoming payment document to clear.
4. Enter the residual amount to use the Residual Clearing option.
5. Simulate before posting.
6. Observe the error message: "Payment with residual items in invoices with defer $1".

The solution for deferred taxes does not support the Residual Item payment option. Invoice link loss - When clearing line items using residual payment, the system creates a new open item while clearing the original item. Because subsequent residual items do not maintain direct reference back to the original invoice, tax transfer logic cannot reliably determine the underlying original invoice details

Use the Partial Payment option instead of the Residual Payment option when clearing invoices containing deferred tax codes.

KBA 1824967 - SAP FI/SD/MM: error "Payment with residual items in invoices with defer $1" (FF804) 

Partial and Residual Payments in S/4HANA Cloud

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