What is down payment in SAP FI-AA - Asset Accounting?

SAP Term: down payment

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A payment made for an asset under construction. In the SAP System, down payments are acquisition postings that are identified by a special transaction type. The steps involved in a down payment to an asset under construction are described below: Posting the down payment Posting the closing invoice that belongs to it Clearing the down payment with the closing invoice

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• Key Concepts: 
  Down payment is a payment made in advance of the full amount due for a purchase. In SAP FI-AA Asset Accounting, down payments are used to record the advance payments made for the purchase of an asset. The down payment is recorded as an asset in the asset master record and is amortized over the life of the asset. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, down payments are recorded in the asset master record. The down payment is posted to the asset account and is amortized over the life of the asset. The down payment can be posted as a one-time payment or as a series of payments. 
  
  Tips & Tricks: 
  When recording a down payment in SAP FI-AA Asset Accounting, it is important to ensure that the correct account is used for posting the down payment. It is also important to ensure that the correct amortization period is used for the down payment. 
  
  Related Information: 
  For more information on recording down payments in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.