Follow the below mentioned steps for Advance Payment against the PO / Contract; 1. F-47 - Create Down Payment Request (Here in selection screen specify all the necessary details (Doc Type - KA) and press enter, on this screen specify amount to be paid in advance and also specify the PO Document and line item and SAVE) 2. F-48 - Down Payment Entry w.r.t. Down Payment Request No 3. F-54 - Down Payment Clearing At the time of MIRO, it will pop-up that advance payment is done to this vendor against this PO. Also take help of your FI Consultant if required. Note: - Prerequisite for Advance Payment: - Go to FS00, and check Filed Status Group for Vendor Reconciliation Account, then go to OBC4, check the Filed Status Group, what you have maintained for the Vendor reconciliation account. Here go To Material management segment and put optional entry for the field of Purchase Order and save. accounting entry When payment is done then it passes following entry; Vendor Account - DrBank Account - Cr And at the time of IR, it will pass following entry; Vendor Account - CrGR/IR Clearing A/c - Dr So now the difference remained in Vendor Account (Check in FBL1N) after these 2 transactions should be payed extra or to be charged back to Vendor, you have to decide manually and accordingly raise Credit Memo to Vendor and adjust the payment.