cancel
Showing results for 
Search instead for 
Did you mean: 

Retainage fees / Installment payments

Former Member
0 Kudos

Dear experts,

We have a process at out business for their large projects. They create a work order/project for a large project which eventually be created as PO I believe. They will also do the GR against the PO and validate the % of work has been done.

Based on the % of work has been done they will retain certain % of the invoice and pay the remaining balance.

Example we receive an invoice for 20000 and they wanted to pay only 19000. So, the invoice total will be 20000 and pay only 19000 via F110. The 1000 should be posted to a GL.

1) How can we make it possible through automatic payment process as the retainage % is not standard and it always changes even if I setup a payment term?

2) We will not have any materials for this work order.. so, how can we receive goods against this??

Please help

Accepted Solutions (1)

Accepted Solutions (1)

former_member188028
Active Contributor
0 Kudos

Installment payment term can be created for this requirement.

e.g. Invoice Amount-- 100000

Retaining Amount--10% which is 10000

You have to create a payment term with two installments.

Create a payment term in OBB8 first(select installment payment)-Main term

again you have to create two terms 90% and 10%

assign a block key for 10% payment term(This can be done in OBB8)

Install payment terms can be assigned to main term in OBB9

now while doing MIRO, system will create two AP line items

while doing the payment through APP, 10% line item remains in the exception list as it has payment block.

Rgds

Murali. N

Former Member
0 Kudos

Thank you

Answers (0)