What is a residual item?
A residual item is a new open item created for the balance left outstanding when an original invoice is cleared against a short payment. It allows the original invoice to be treated as settled while the unpaid amount remains available for collection or investigation.
Residual-item processing is one way to handle a payment difference. It differs from partial-payment treatment, where the original invoice remains open.
How does a residual item work in SAP?
Example: A customer owes £10,000 and pays £8,000.
If the payment is processed using a residual item:
- SAP clears the original £10,000 invoice
- SAP clears the £8,000 payment against it
- A new £2,000 residual item is posted to the customer account
- The residual item remains open for collection or further investigation
The new item can retain a reference to the original transaction and may have its own payment terms, due date or reason code depending on configuration.
When are residual items used?
A residual item may be appropriate where:
- The unpaid balance is still collectible
- The original invoice should be treated as cleared
- The remaining amount needs separate follow-up
- A reason code or revised due date should be assigned
- The short payment results from a recognised deduction or dispute
The decision should follow the organisation’s accounting and credit-control policy.
What is the difference between a residual item and a partial payment?
A residual item replaces the original open invoice with a new open balance. A partial payment leaves the full invoice open and records the payment separately.
This difference affects ageing, collections activity, customer statements and how users trace the outstanding amount. Finance teams should apply the treatment consistently.
How are residual items handled in automated customer clearing?
Automated processing can identify a short payment and propose the relevant invoice, but the posting treatment may depend on the reason for the difference and configured rules.
The BEST Customer Clearing module supports customer-payment matching, clearing and exception handling within SAP. It includes user-friendly processing for residuals arising from short payments. Exceptions can remain available for finance review where the required treatment is not clear.
Frequently asked questions
Does a residual item clear the original invoice?
Yes. The original invoice is cleared and a new item is created for the outstanding balance.
Can a residual item have a new due date?
Depending on configuration and processing, the residual item can be posted with new payment terms or a revised due date.
Is a residual item a write-off?
No. A residual item remains open. A write-off posts the difference to an expense or other designated account in line with configured tolerances and policy.