How do you treat advances/downpayment to Vendor?
In Accounting point of view, Advances to vendors are treated in Accounting as Asset. The same treatment should be configured in SAP system. A special GL should be created for the said transactions with Vendors.
The standard SAP transaction that you use to post advances to vendor is F-48. Do remember that when you post advances to vendor, it should always be charged to a vendor. Now you have the option to charge the advances against PO or not. If it’s a transaction originating from PO, I suggest the advances should be reference to the PO. Whe you display the PO using transaction ME23 or ME23N, you can see the downpayment/advances for the PO.
However, if it’s non-PO transaction then you don’t need to charge against PO. It’s still considered as advances to Vendor but not reference to a specific PO.
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