Advance rent settlement in installments

Question

Hi Experts,
I've a business case where the client has a scenario to settle the advance rent (say 4 lakhs) in installments.
The business case is shown as under:
A new store has been opened on 01.01.2014.
Advance rent paid by the retail client to the landlord (at the time of store opening) = 4, 00,000 INR
Fixed rent paid by client to its landlord = 10,000 INR (per month). (Jan 2014- Dec2014)
Month
Rent (in INR)
Jan 2014
10,000
Feb 2014
10,000
Mar 2014
10,000
Apr 2014
10,000
May 2014
10,000
June 2014
10,000
July 2014
10,000
Aug 2014
10,000
Sep 2014
10,000
Oct 2014
10,000
Nov 2014
10,000
Dec 2014
10,000
After one year, the client wants to settle the advance rent (400,000 INR) which was paid at the time of store opening.
Advance rent to be settled in 10 EMIs= 4,00,000/10= 40,000 INR
Fixed rent (after 1 year)=  50,000 INR
Therefore, vendor account to be credited= 50000 (current rent) -40000 (1st EMI on Jan 2015) = 10000
TDS to be deducted on vendor amount @ 10%= 10000-1000= 9000
Hence vendor will be credited by 9000 Rs.
Accounting entries to be posted to settle the advance rent post Jan 2015 onwards:
Accounting entries
Dr (in INR)
Cr (in INR)
Rent a/c
50,000
To Vendor A/c
9000 (10000-1000)
To Advance A/c
40000
To TDS on rent A/C @ 10% ( on balance amount only)
1000
To meet this requirement in SAP RE-Fx:
1) What are the configuration steps to be done in RECACUST?
2) Is there any SAP Note available to be applied for executing advance rent settlement in installments.
Please advice.
Thanks
Shantanu Kar

Answer 1

Hi Bala
You have mentioned above the reason why you use MTO at stage 4. Going by that, your settlement process at stage 4 will be same as earlier stages
You don't need to settle to sales order. Don't go by what else you have read. Just follow the same process
Br. Ajay M