Holdback/Retainage

Hi
What is the use of Holdback/Retainage indicator while defining a payment term
Yogesh

Hi
This indicator allows the system to automatically break out a single line item into multiple line items with different due dates based on the payment term. The system would also prompt you for the break up when an FI Document is entered.
Thanks & Regards
Sanil K Bhandari

Similar Messages

To know about holdback/retainage payment term

to know about holdback/retainage payment term configuration/control parameters to set in customer/vendor master records.

HI Anand,
Hold back/retainage/installment payment terms are defined in T.code OBB9.
First create payment terms in Obb8 t.code and you combine/bind them into a hold back term in OBB9 T.code.
You assign these payment terms in the customer/vendor master record.(payment transactions in CC data)
you can always overwrite these payment terms at the time of posting the invoices.
Regards
Aravind
Assign points if useful

Holdback/retainage terms of payment

Hi
What is Holdback/Retainage terms of payment and how is it different from Installment payments
Thanks in Advance.
Regards

Hi,
Instalment payment is nothing but the total invoice amount is split up into individual items for each installment and each installment is calculated with the relevant payment term.
If we want to define instalment payment select the instalment payment check box while defining Payment terms in OBB8 and give the holdback/retainage percentage in OBB9.
Instalment amount is calculated based on the holdback percentage per instalment that you give in OBB9.

Holdback / Retainage to be calculated before tax

I am looking for 90/10 holdback which i configured in payment terms.
When I create an invoice using "MIRO" (reference to PO) , I can see the holdback working fine (10% being blocked) BUT SAP calculates tax before discounting holdback. The client wants the total holdback be discounted from the Invoice amount and tax calculated on the sub-total.
Scenario 1: Eg of what I want:
Invoice $100
Holdback: $10 (blocked)
sub-total: $90
tax (13%): $11.70
total payable: $101.70
(taxes on holdbacks are calculated when holdback is to be paid)
Scenario 2: Eg. of what SAP is doing:
Invoice $100
tax(13): $13
sub-total: $113
holdback: $11.3
total payable: $101.70
as you see the total payable is same in both cases however the "TAX" account and the "Holdback" account will be different in these two scenarios.
Is there a way to make SAP follow the first scenario?

Hi anand,
can u provide me the details of same.
what is the flow of taxes from migo to miro
Thanks & Regards
Manish

Installment Payment (OBB9)

When I am trying to setup configuration for Installment payment (OBB9), it is trowing message
"For term of pmnt GE, holdback/retainage no. 01 is missing" and not getting save.
Could any one explain elaborately to rectify this error.
regards,
Krishna

Hi,
Please check in OBB8 for payment term GE, whether you have ticked instalment payment in payment terms.
Regards,
Sadashivan

Report to find the retainage amount per each supplier site

Hi All
Is there a report to find the retainage amount per each supplier site ?
Regards;

Hi.
The Withholding Tax by Supplier Report shows both supplier and site.
Octavio

Holdback (without taxes) on PO invoice?

hi all, i have a requirement where business holds back 10% (without taxes) and pays 90% (with taxes) to the vendor.
Any help on how to accomplish this would be great! The invoice is broken down as follows:
PO Invoice with original contract: 197,299.00 + HST
invoice 1:           $133,250.70
less 10% holdback:     $13,325.07
Sub-total:           $119,925.63
HST@13%:          $15,590.33
INVOICE TOTAL:          $135,515.96
invoice 2:          $19,145.10
less 10% holdback:     $1,914.51
Sub-total:          $17,230.59
HST@13%:          $2,239.98
INVOICE TOTAL:          $19,470.57
........................... and so on
at the end, the last invoice is the HOLDBACK only is received:
holdback invoice:     $197,229.00
HST@13%:          $2,563.98
INVOICE TOTAL:          $22,286.88
Issues:
-cannot simply use payment terms at invoice level since taxes would be calculated on holdbacks as well but we don't want taxes calculated till the end (when holdback invoice is posted)
-The last holdback invoice creates double liability in the vendor account since there are holdbacks already posted from previous invoices.
-One option is to break PO in 2 line items. Original Amt. and Retention Amt and do a MIGO and MIRO for each line item for all invoices. Original Amt. line is set with tax H1 and Retention line with no taxes (V0)
This posts invoice with 2 line items. Orig. amt is paid but retention item is blocked (i use block indicator in split payments tab of MIRO to do this)
At the end, I have a bunch of holdbacks sitting without Taxes and I am unable to add tax to them (unless i do a manual invoice for just the taxes which is not feasible) this could work if system could automatically calculate different lines for taxes based on amount.
thanks!

Dear Sridevi ,
You need to maintain condition record in TCode MEK1 . The rate will flow in. You shall find that when you click on the taxes tab (in Invoice tab of item line) . In the output also you will find the taxes flowing. The need to maintain conditions in MEK1 is for posting in GRN while doing MIGO.
Hope it solves your problem.
Regards
Nandini

How to keep Retainage amount information and pay later

Hi,
We have a scenario where in we deduct a certain % of amount from the subcontractor for each bill submitted by him on various types of clauses with him and once the contract is done at the final bill the amount is repaid to him.
How to capture in AP and how can we simplify the solution so that each if we want to see the retainage amount we can retrieve from Oracle.
How can we make a consolidated Payment to Him.
Thanks

Are you on R12 or R11i,
If you are on R12, you can use the retainage feature of AP.
Please find the functionality of Retainage as mentioned below:
Retainage
Supplier invoices are managed and paid as specified by the complex payment terms of
the associated service procurement contract. Service procurement payment scenarios
exist in numerous industries. For example, during the procurement of equipment that
has a long production lead time, such as engineered-to-order items, periodic progress
payments are paid to suppliers by the deploying company. The progress payments are
based on the costs incurred by the supplier or upon delivery of specified milestones
contained in the contract.
Retainage is the act of withholding a portion of a payment until a substantial portion or
all of the work is completed. It is a common practice in project-based construction and
public sector service procurement contracts and is generally used in projects with a high
value or with long-term contracts. A portion of a progress payment is generally
withheld by the buying organization until all work in the contract is complete and
accepted. The percentage withheld is negotiated, defined in the contract, and is based
on the risk factors involved. These risk factors include the performance and reliability of
the supplier.
The retained amount is based on the contractual terms defined in the service
procurement contract or purchase order line. A contract line can be associated with one
or more progress payments. After performing a portion of the contractual work, the
supplier sends a progress invoice to the buying organization, requesting payment
against the service procurement contract line or purchase order.
The progress invoices submitted by a supplier are recorded as Standard Invoices in
Oracle Payables. Oracle Payables withholds a portion of a progress invoice during
matching to these payment lines (2-way matching) or to the receipts of these payment
lines (3-way matching). The retained amount is represented as negative distribution
amounts of type Retainage to the matched invoice line.
Note: No manual override or manual entry of retainage amounts is
allowed.
Oracle Payables supports progress invoices with the following invoice amounts:
• net of retainage
• gross of retainage
Thanks
Manish Jain.

1. Retainage of certain amount of Total payment to be made to vendor

Hi gurus
can someone help me to configure the below scenario please
1. Retainage of certain amount of Total payment to be made to vendor
Thanks

Dear Lakshmi,
Retention money is that part of the invoice of a vendor, which is not paid to the vendor until some pre agreed conditions are satisfied.
For example, a vendor may suppy a machinery and as per the terms, 90% of the amount would be paid and the remaining 10% would be paid say after 6 months after satisfactory commissioning of the machinery.
The retention money concept is used in Accounts Payable and can be configured with the help of "terms of payment"
You can use the Terms of payment to acheive this requirement.
Go to Transaction code OBB8. Create a new terms of payment say Z001, which has the "Installment Payment" ticked.
Now create two more terms of payment Z002 and Z003. Here mark the "Payment Block" (A or B) for the terms of payment Z003.
Now go to OBB9, fill as below
Z001----- 170-----Z002
Z001--230-----Z003.
Now at the PO stage, make sure that the terms of payment is Z001.
At the stage of the invoice verification, the entry would be
Expense A/c Dr 1000
To Vendor A/c 700
To Vendor A/c 300 ( This would be with a payment block)
At the time of automatic payment, this Rs.300/- will not be selected unless we remove the payment block.
Regards
Venkatesh
PS: Assign points if useful

Retainage of certain amount of Total payment to be made to vendor

Hi MM gurus
I need to configure with the below requirement, can someone through light on it please
1. Retainage of certain amount of Total payment to be made to vendor
2. Separate Tax ID for Vendor

Dear Lakshmi,
Retention money is that part of the invoice of a vendor, which is not paid to the vendor until some pre agreed conditions are satisfied.
For example, a vendor may suppy a machinery and as per the terms, 90% of the amount would be paid and the remaining 10% would be paid say after 6 months after satisfactory commissioning of the machinery.
The retention money concept is used in Accounts Payable and can be configured with the help of "terms of payment"
You can use the Terms of payment to acheive this requirement.
Go to Transaction code OBB8. Create a new terms of payment say Z001, which has the "Installment Payment" ticked.
Now create two more terms of payment Z002 and Z003. Here mark the "Payment Block" (A or B) for the terms of payment Z003.
Now go to OBB9, fill as below
Z001----- 170-----Z002
Z001--230-----Z003.
Now at the PO stage, make sure that the terms of payment is Z001.
At the stage of the invoice verification, the entry would be
Expense A/c Dr 1000
To Vendor A/c 700
To Vendor A/c 300 ( This would be with a payment block)
At the time of automatic payment, this Rs.300/- will not be selected unless we remove the payment block.
Regards
Venkatesh
PS: Assign points if useful

COMPLEX PO - NO FUNCTIONALITY TO REDUCE TO VALUE OF RETAINAGE HELD

Hi,
R12 Purchasing provides Retainage functionality. Retainage represents funds withheld from payment to ensure that the contractor finishes work as agreed. The buying organization releases these funds only after verifying that the contractor has fulfilled all contractual obligations. Retainage is also called "retention" or "contractual withholds".
The only way to reduce the Retainage amount held is to create a retainage release invoice which then pays the Supplier.
No functionality is provided to reduce the value of the retainage down to reflect the buying companies use of the funds to penalise the contractor if they have not fulfilled all contractual obligations.
This is an incomplete solution. the purpose of retainage is to provide the buying company funds to recompense failure of the selling company. But how do we record use of those funds?
If there is no mechanism to reduce the value of the retainage held then the value is always available to be paid to the contractor
Thanks
Umesh
Edited by: Umesh Chandra Moharana on Jun 25, 2009 4:05 PM
Edited by: Umesh Chandra Moharana on Jul 2, 2009 9:40 AM

Umesh
If you want to partially pay (out of retained amount), create AP invoice manually (which is the way to get rid of retained amount) for that amount and pass GL entries in GL for the remaining.
If decide not to pay at all, you can either manually pass entries in GL or enter AP invoice manually and cancel the invoice and pass entries manually to get rid of retained account value.
Also something can be done in the SLA to create these entires automatically (with custom AAD)
Thanks
Nagamohan

Invoice Retainage in Payables

Hi All,
We are in the process of implementing R12.0.6. We are not using Oracle Services procurement, but still would like to use the Invoice retainage functionality as the business witheld a portion of payment for some Procurement contracts. For example if we would like to retain USD 2000 of the total USD 10,000 payments. We would enter 2000 as the negative amount and assing the retaninage account to it and the remaining 8000 as positive amount on the invoice distribution.The net invoice amount becomes 8000, but if we have a PO against this invoice then during the match Accrual account is defaulted that poses the problem.
Can we use the retention functionality in R12 payables for PO matched invoices if we are not using Service procurement? Please note that retention solution outlined above is a workaround I have been using for retaining amounts on invoices in 11i when the invoice retainage was not introduced.
Any help will be highly appreciated.
Thanks in advance
Regards,
Raza

Hi
Just got hold of a very good white paper from Oracle:
White Paper on Processing Complex PO's and Retainge Invoices in Payables
Search by Doc ID is 793477.1 on Oracle metalink.
It explains the functionality of complex POs that involves retainage.
Hope this helps.
Regards,

Retainage happens on retainage that is some 10%is deducting from the retain

Hi
In R12.1.3 I found one invoice is raised attaching Complex po and Raised Retainage invoice of the same and found that the retainage invoice is also taking 10% retainage on it. Can I know what can be the reason for that to happen in R12.1.3
Regards
R.K.Kumar

Hi
In R12.1.3 I found one invoice is raised attaching Complex po and Raised Retainage invoice of the same and found that the retainage invoice is also taking 10% retainage on it. Can I know what can be the reason for that to happen in R12.1.3
Regards
R.K.Kumar

Vendor Retention (holdback)

We have a contract with our vendor to retain 5% of each invoice payment to be paid to the vendor later once a milestone has been reached. Could someone help me with the flow?
So far, we know that there are some settings needed for special G/L indicators but are unclear on everything needed in FI as well as how to represent this retention on the purchasing document.
Any help is appreciated and points will be granted.
Thank you,
bak

Hi,
If you are using ECC 6.0 with EHP4 then SAP has provided Retention in Standard. For which you can refer the following link;
[MM, Integration Materials Management and Financial Accounting|http://help.sap.com/erp2005_ehp_04/helpdata/en/42/fbded750e61febe10000000a422035/frameset.htm]
[Retention|http://help.sap.com/erp2005_ehp_04/helpdata/en/6d/5e74d1cfbb4513bb13d566bd70a15a/frameset.htm]
[Retention Processing|http://help.sap.com/erp2005_ehp_04/helpdata/en/01/df47a55d34401c84e10923ed2b4adb/frameset.htm]
If not in EHP4 then best option is to use concept of Installment Payment Term.

Script to open a file and zoom to pixel

Hi, I work for a mapping company and one of our digital camera has a fault with the lens resulting in a small black mark appearing in exactly he same location of every image we capture what I would like is a script that can be used to open a file set the zoom say to 100% and move to pixel 3324x5493 so I user can repair it.
I thought this would be simple but I've been looking all evening without finding anything
Thanks
Stu

I have something started but it isn't quite finished. It will center on the pixel and zoom in, but the only holdback is it increases the canvas size which will need to be cropped later. If you first set the Background layer to a non-Background layer your extra canvas will be transparent which will allow for a simple trim to return to the normal image later.
function centerON (x,y) {
    var startRulerUnits = app.preferences.rulerUnits;
    var startTypeUnits = app.preferences.typeUnits ;
    var startDisplayDialogs = app.displayDialogs;
    app.preferences.rulerUnits = Units.PIXELS;
    app.preferences.typeUnits = TypeUnits.PIXELS;
    app.displayDialogs = DialogModes.NO;
    var centerDoc=app.activeDocument;
    w=centerDoc.width.value;
    h=centerDoc.height.value;
    hdiff=Math.round(Math.abs((x-w/2)*2));
    vdiff=Math.round(Math.abs((y-h/2)*2));
    if (x>w/2) {var hor="LEFT";}
    else if (x<w/2) {var hor ="RIGHT";}
    else {var hor="CENTER";}
    if (y>h/2) {var ver="TOP"; }
    else if (y<h/2) {var ver="BOTTOM"; }
    else {var ver="MIDDLE"; }
    newwidth=w+hdiff;
    newheight=h+vdiff;
    switch (ver) {
        case "TOP":
        switch (hor) {
            case "LEFT": anchor=AnchorPosition.TOPLEFT; original=[0,0,w,h]; break;
            case "RIGHT": anchor=AnchorPosition.TOPRIGHT; original=[hdiff,0,hdiff+w,h]; break;
            case "CENTER": anchor=AnchorPosition.TOPCENTER; original=[0,0,w,h]; break;
        }; break;
        case "BOTTOM":
        switch (hor) {
            case "LEFT": anchor=AnchorPosition.BOTTOMLEFT; original=[0,vdiff,w,vdiff+h]; break;
            case "RIGHT": anchor=AnchorPosition.BOTTOMRIGHT; original=[hdiff,vdiff,hdiff+w,vdiff+h]; break;
            case "CENTER": anchor=AnchorPosition.BOTTOMCENTER; original=[0,vdiff,w,vdiff+h]; break;
        }; break;
        case "MIDDLE":
        switch (hor) {
            case "LEFT": anchor=AnchorPosition.MIDDLELEFT; original=[0,0,w,h]; break;
            case "RIGHT": anchor=AnchorPosition.MIDDLERIGHT; original=[vdiff,0,vdiff+w,h]; break;
            case "CENTER": anchor=AnchorPosition.MIDDLECENTER;original=[0,0,w,h]; break;
        }; break;
    app.runMenuItem(charIDToTypeID("FtOn"));
    centerDoc.resizeCanvas(newwidth,newheight,anchor);
    app.runMenuItem(charIDToTypeID("ActP"));
    app.refresh();
//    centerDoc.trim();
//    centerDoc.crop(original);
    app.preferences.rulerUnits = startRulerUnits;
    app.preferences.typeUnits = startTypeUnits;
    app.displayDialogs = startDisplayDialogs;
centerON(234,3500);
For centerON(234,3500); you would of course input your own x,y coordinates where you want to center the image.
The issue I'm having is that if I trim or crop the image, it will sometimes re-center the image elsewhere. I've tried using a crop with hide to center on the pixel then Reveal All to show the whole image again, but that also re-centers the image. Though, that may actually be a better way for you to do it afterall. Instead of increasing the canvas size, you could crop with hide to put the center on the pixel you want, then when finished just Reveal All.
It would just be easier if Photshop kept focus centered during a crop.

Holdback/Retainage

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