Vendor invoice with VAT & retainage

[Former Member]

I need a solution for posting VAT invoice with retainage using a tax code.

Cr Vendor (100)

Cr Retention account (5)

Dr Cost 100

Dr VAT GL 5

SAP standard retainage is calculated on the total amount of the invoice payable to the vendor(including taxes) which is not coming correctly

[sanilbhandari]

Hi

If you have to make the above posting for AP invoices, you need to create a condition type in your tax procedure. Mark the condition type as statistical and assign the Accounting key and accrual key. Now in OB40, for the accounting key and accrual key, assign the relevant GL Account for VAT GL and retention account respectively. Also in the procedure, assign the step in your tax procedure from which the base amount for retention calculation should happen.

There after create a tax code and use it in your invoice posting. You should than be able to see the retainage as you want.

Thanks & Regards

Sanil Bhandari