Tax handling in SAP Retention functionality

[former_member749349]

Hi SAP Experts,

Appreciate your expert opinion for a potential solution for the below requirement.

Currently we are using SAP retention functionality to holdback 10% of the invoice amount for one of our Canadian entity. When we do MIRO, a normal invoice (RE Doc) is posted along with a Retention (RR) document.

The document looks like below. Please note that the input tax is 5% and the retention is 10%.

RE Document-

Cr (31) Vendor 157.5-

Dr (86) GR/IR 150.0

Dr (40) Tax 7.5

Current RR Document-

Dr (21) Vendor 15.0

Cr (39) Vendor Spl GL 15.0-

The expectation is that we reduce the tax amount (here CAD 0.75) relevant to the holdback amount (CAD 15), so that we don't overclaim the tax. Therefore the requirement is as follows-

Expected/Required RR document-

Dr (21) Vendor 15.75

Cr (39) Vendor Spl GL 15.00-

Cr (40) Tax 0.75-

Any suggestion how we can achieve this result?

Regards,

Hrudaya M.

[former_member213253]

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[angela_flynn]

Did you ever get a solution for the taxes as described by yourself here? We have the same requirement we have custom code for it now but would like to use std functionality if possible

[ahmed_abdelatif]

HI Dear

as i understood from accounting entry you need to to offset the tax GL with same amount once in RE document with debit side and another with the expected RR document with credit side which means this transaction will be with zero value overall.

i think you exclude tax amount from the retention amount if that you mean see the attached example
retention amount without tax.

and for achieve this step you need to add your tax code at the following configuration
T-Code: OLMR then follow next path.

hope it help you

[former_member749349]

Hi Ahmed,

First of all many thanks for looking into it.

I am not sure if you understood the requirement precisely or not, but the solution that you mentioned was also suggested by someone else and we infact did the same configuration in OLMR, but still couldn't achieve what we wanted.

Reiterating the requirement- Currently in our Retention document (RR Doc), the tax isn't calculated for the retention amount. What happens with that is, even if we holdback 10% of the amount (as a part of retention), we still charge 100% of the tax. Our requirement is that the RR document should also calculate the tax for the retention amount. In the exampled that I illustrated- CAD 150 is the GR/IR amount. At 5%, the tax amount becomes CAD 7.5, therefore the vendor in the RE document (Invoice) is credited with CAD 157.5. In the retention document, there is no line item for tax (in credit side). The requirement is that, in the retention document we should also have a tax line item (in credit side) of CAD 0.75 (relevant to the retention amount for CAD 15 @ 5% tax).

The problem statement in simpler word is- "Even when we holdback 10% of the money and pay only 90%, but we still apply 100% tax. We should apply tax only for the money that we pay right now i.e, for 90%. If the retention document would be capable of calculating the tax for the retention amount, this problem would have been solved."

Regards,

Hrudaya M.

[ahmed_abdelatif]

as a limit of my knowledge, you can't edit in the retention document but as a work around you can overwrite the calculated tax and put your tax amount (net amount) at tax field before you enter the amount.