Retention

[former_member209616]

If there is a case where Retention is kept at say 10% for projects which are being carried out for a client. How can this be captured.

[former_member209616]

Hello

I was talking from the other end. When the client keeps retention money with himself and gives to us the vendor providing the service with only 90%. How do we handle this. And moreover if some bank guarantee is given to the client then he releases the retention money which has been collected at 10% for each mile stone.

Rgds

[kishore_babu15]

Hi,

Use Special GL Indicator - R for Retention

Ex. Once Invoice Credited full amount later post another entry like

For Invoice:

Vendor Cr. 1000

Goods/ Purchase Dr. 1000

For Retention:

PK - 39 - Vendor Account with Retention (R) Cr 100

PK - 27 - Vendor Account (S. Creditors) Dr 1000

PK - 24 - Vendor Account Cr. 900.

Note: If you are using EHP4 Package you can reduce the total Retention Value in the Purchase order. then It will come Retention value automatically at the time of MIRO booking.

Hope Now Clear.

Regards,

[Former Member]

Hi Chetan,

As I understand your issue.. you need to keep a retention back of 10% from the Invoice of the vendor Invoice payment.

If this is the case..

You can use Installment payment terms in OBB9, where you can split the Payment terms in two parts 90% and 10% and have a long outstanding date for 10% as per your requirement..

Regards,

SAPFICO