SAP Sales and Distribution Certification Practice Exam

In the integrated SDFI down payment process, what needs to be done for down payments?

1. A sales order must be created with an installment plan

2. The standard billing type F2 must be used for down payments

3. A milestone billing plan must contain required down payment information

4. The down payment must be an independent item in the sales order

The correct answer is: A milestone billing plan must contain required down payment information

In the integrated SDFI (Sales and Distribution Finance Integration) down payment process, having a milestone billing plan that contains the required down payment information is essential. This is because milestone billing plans are designed to break down the overall billing process into specific stages that are associated with certain milestones, such as the collection of down payments. When you create a milestone billing plan, you can specify the amount and timing of the down payments within that plan. This ensures that the down payments are properly tracked and managed according to the terms of the sale, facilitating effective cash flow management for the business. The required information for down payments ensures that both the sales order and financial documentation align properly, making it easier to handle accounting and reporting. In contrast, while creating a sales order with an installment plan, utilizing the standard billing type F2, or having a down payment as an independent item in the sales order might be relevant actions, they do not specifically capture the needed integration and structure of down payments as well as a milestone billing plan does. The focus on milestone billing for down payments highlights the structured financial management that is crucial in an integrated sales and distribution environment.