--- description: In SAP, when a Partial Payment by customer is posted as Residual Item against an outstanding document title: What is Residual Payment in SAP with Example image: https://www.guru99.com/images/what-is-residual-payment-in-sap-with-example.png --- [Skip to content](#main) **โšก 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. * ๐Ÿ’ฐ **Residual Logic:** The original invoice is cleared completely, and the remaining open amount becomes a fresh receivable or payable document. * ๐Ÿงพ **F-28 Workflow:** Incoming customer payments are posted with company code, bank account, customer ID, and the residual amount on the Residual Items tab. * ๐Ÿ“‘ **F-53 Workflow:** Outgoing vendor payments mirror the same steps using vendor ID, ensuring the supplier ledger stays aligned with cash outflow. * โœ… **Versus Partial Method:** Unlike the Partial Payment Method, Residual posting does not keep the original invoice open, so reporting reflects only the unpaid balance. * ๐Ÿงช **Verification Step:** A document number appears in the status bar after saving, and FBL5N or FBL1N confirms the new open item amount. [ Read More ](javascript:void%280%29;) ![Residual Payment in SAP](https://www.guru99.com/images/what-is-residual-payment-in-sap-with-example.png) ## What Is the Residual Method in SAP FI? In [SAP](https://www.guru99.com/sap-training-hub.html) 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. [](https://www.guru99.com/images/sap/2012/06/CustPartRes01.png) ### 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** [](https://www.guru99.com/images/sap/2012/06/CustPartRes02.png) ### 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 [](https://www.guru99.com/images/sap/2012/06/CustPartRes03.png) ### 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. [](https://www.guru99.com/images/sap/2012/06/CustPartRes04.png) ### 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. [](https://www.guru99.com/images/sap/2012/06/CustPartRes05.png) ### RELATED ARTICLES * [How to Define Retained Earnings Account in SAP ](https://www.guru99.com/how-to-create-retained-earnings-account.html "How to Define Retained Earnings Account in SAP") * [FB60 Tcode in SAP: How to post a Purchase Invoice ](https://www.guru99.com/how-to-post-a-purchase-invoice.html "FB60 Tcode in SAP: How to post a Purchase Invoice") * [Posting Rounding Differences in SAP Tutorial ](https://www.guru99.com/posting-rounding-differences.html "Posting Rounding Differences in SAP Tutorial") * [How To Create a Vendor Account Group in SAP FICO ](https://www.guru99.com/how-to-create-a-vendor-account-group.html "How To Create a Vendor Account Group in SAP FICO") ## 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. [](https://www.guru99.com/images/sap/2012/07/OutPayRes01.png) ### 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** [](https://www.guru99.com/images/sap/2012/07/OutPayRes02.png) ### 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 [](https://www.guru99.com/images/sap/2012/07/OutPayRes03.png) ### 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. [](https://www.guru99.com/images/sap/2012/07/OutPayRes04.png) ### 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. [](https://www.guru99.com/images/sap/2012/07/OutPayRes05.png) ## 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 ๐Ÿ’ก What is the Residual Method in SAP FI? 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. ๐Ÿ”„ How does the Residual Method differ from the Partial Payment Method? 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. ๐Ÿงพ Which SAP transaction codes are used for residual postings? 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. โœ… How can I verify a residual posting after saving? 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. ๐Ÿค– How can AI automate residual partial payment processing in AR? 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. ๐Ÿง  Can SAP Joule help accountants work with residual payments? 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. #### Summarize this post with: ChatGPT Perplexity Grok Google AI **Stay Updated on AI** **Get Weekly AI Skills, Trends, Actionable Advice.** ##### Sign up for the newsletter Subscribe for Free You have successfully subscribed. 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