What is Residual Payment in SAP with Example

By : Mason Garcia Mason Garcia
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⚡ Smart Summary

Residual Method in SAP FI clears an open invoice in full and creates a brand-new open item for the unpaid balance, giving accountants a clean audit trail for incoming and outgoing partial payments processed through transactions F-28 and F-53.

  • 💰 Residual Logic: The original invoice is cleared completely, and the remaining open amount becomes a fresh receivable or payable document.
  • 🧾 F-28 Workflow: Incoming customer payments are posted with company code, bank account, customer ID, and the residual amount on the Residual Items tab.
  • 📑 F-53 Workflow: Outgoing vendor payments mirror the same steps using vendor ID, ensuring the supplier ledger stays aligned with cash outflow.
  • ✅ Versus Partial Method: Unlike the Partial Payment Method, Residual posting does not keep the original invoice open, so reporting reflects only the unpaid balance.
  • 🧪 Verification Step: A document number appears in the status bar after saving, and FBL5N or FBL1N confirms the new open item amount.
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Residual Payment in SAP

What Is the Residual Method in SAP FI?

In SAP Financial Accounting (FI), the Residual Method is a posting technique used when a customer or vendor settles only a portion of an outstanding invoice. Instead of leaving the original invoice partially open, the system clears the full original document and automatically generates a new open item that carries the remaining balance. This approach keeps the accounts receivable and payable ledgers tidy, because each unpaid amount sits on its own document with a fresh posting date.

The Residual Method differs sharply from the Partial Payment Method. With the Partial Payment Method, the original invoice stays open, and the payment is linked to it as a related item, so two documents exist side by side until the balance is settled. With the Residual Method, only one open document remains at any time, which simplifies aging reports, dunning runs, and reconciliation work performed by AR and AP teams.

Why Choose the Residual Method for Partial Payments?

Accountants prefer the Residual Method when audit clarity and clean aging buckets matter more than retaining the original invoice reference. Because the remainder is posted as a new document with a current date, the residual amount restarts its aging clock, which can be helpful for dispute tracking or when a customer renegotiates payment terms. It is also a clean fit for organizations that run automated dunning, because the open item amount always reflects the true unpaid balance.

How to Post Incoming Partial Payments by Residual Method (F-28)

The steps below show how to post an incoming customer payment using transaction code F-28. When the Residual Items tab is used, the system clears the original invoice and creates a new open item for the unpaid amount.

Step 1) Open Transaction F-28

Enter Transaction Code F-28 in the SAP Command Field.

Incoming Partial Payments Posting F-28 command field

Step 2) Enter Header Data

On the Post Incoming Payments: Header Data screen, enter the following information:

  1. Enter the Document Date
  2. Enter the Company Code in which the payment is to be posted
  3. Enter the payment currency
  4. Enter the Cash or Bank Account in which the payment is to be posted
  5. Enter the Payment Amount received
  6. Enter the Customer ID of the customer making the payment
  7. Press Process Open Items

F-28 header data for residual incoming payment

Step 3) Select the Residual Items Tab

After processing the open items, switch to the Residual Items tab to record the unpaid balance.

  1. Choose the Residual Items tab
  2. Select and activate the invoice against which the partial payment has been received
  3. Enter the Residual Amount that remains unpaid

Residual Items tab in F-28 with residual amount

Step 4) Save the Payment Document

Press Save to post the payment document. SAP clears the original invoice and creates a new open item for the residual amount.

Save button on F-28 residual posting

Step 5) Verify the Document Number

Check the status bar for the Document Number generated by SAP. This confirms that the residual posting has been saved successfully.

Status bar showing generated document number

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How to Post Outgoing Partial Payments by Residual Method (F-53)

Outgoing payments to vendors follow the same Residual Method logic, but use transaction code F-53. The system clears the vendor invoice and posts a new payable document for the unpaid amount.

Step 1) Open Transaction F-53

Enter Transaction Code F-53 in the SAP Command Field.

Outgoing Partial Payments Posting F-53 command field

Step 2) Enter Header Data

On the Post Outgoing Payments: Header Data screen, enter the following information:

  1. Enter the Document Date
  2. Enter the Company Code in which the payment is to be posted
  3. Enter the Cash or Bank Account in which the payment is to be posted
  4. Enter the Payment Amount being sent
  5. Enter the Vendor ID of the vendor receiving the payment
  6. Press Process Open Items

F-53 header data for residual outgoing payment

Step 3) Select the Residual Items Tab

After processing the open items, move to the Residual Items tab to record the unpaid balance.

  1. Choose the Residual Items tab
  2. Select and activate the invoice against which the partial payment has been made
  3. Enter the Residual Amount that remains unpaid

Residual Items tab in F-53 with residual amount

Step 4) Save the Payment

Press Save to post the outgoing payment document. SAP clears the original vendor invoice and creates a new open payable for the residual amount.

Save button on F-53 residual posting

Step 5) Verify the Document Number

Check the status bar for the Document Number generated. This confirms that the outgoing residual posting has been saved.

Status bar showing generated document number for F-53

Residual Method vs Partial Payment Method

The Residual Method clears the original invoice and posts a new open item for the unpaid balance, while the Partial Payment Method keeps the original invoice open and links a payment document to it. Pick the Residual Method when you want a single open document with a fresh aging date, and pick the Partial Payment Method when you need to keep the original invoice visible until full settlement, which can help when customers reference the original invoice number on remittances.

FAQs

The Residual Method clears the original invoice in full and posts a new open item for the unpaid balance. Only one open document remains, which keeps the aging report and reconciliation work clean for AR and AP teams.

The Partial Payment Method keeps the original invoice open and links a payment document to it. The Residual Method clears the invoice and posts a fresh open item for the unpaid amount with a new posting date.

Use F-28 to post incoming customer payments and F-53 to post outgoing vendor payments. In both transactions, the Residual Items tab is used to enter the unpaid balance that becomes the new open document.

Check the status bar at the bottom of the SAP screen for the generated document number. Then run FBL5N for customers or FBL1N for vendors to confirm that the new open item shows the residual amount.

AI-based cash application tools read remittance advices and bank statements, match payments to invoices, and propose residual postings for review. Accountants approve the suggestions in F-28, which cuts manual matching effort and reduces unapplied cash on the AR ledger.

SAP Joule is the generative AI copilot inside S/4HANA. Accountants can ask it to explain a residual posting, locate the related open item, or summarize a customer balance, which speeds up training and day-to-day F-28 and F-53 work.

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