Processing of retention money

Dear Friends,
We have following requirement:
We awarded a PO to vendor in that there is portion of retention money. This is a sort of security money which we keep for getting complete qty / services from vendor.
After receiving total qty. , we may pay the retention money to vendor.
I am thinking of two options:
1. Creating two condition for this purpose. One will be for cr & another for Dr. GR Entries will be
Inv. account : 1000
GR/ IR  : 1000-
Exp. acount: 100
Accrual Amt: 100-
After completing all GRs we will do payment for the vendor from accrual amount (GL A/C) thru FI entry.
2. Considering TDS process & same way mapping, Do IR accordingly. so that we accumulate total amount. Pay the vendor as if treating TDS.
Which one will be the correct & best one. 
Pls. let me know is there any another best method.
Regards,
Sai Krishna

Hi,
What do you mean by creating two condition?
Annelize

Similar Messages

  • Retention money handling

    Hi Friends,
    In our process we need to retain 10% of the amount from the vendor's invoice on each bill. Vendor can send partial invoices.
    Suppose our total PO value is 1000USD and our terms are 10% retention money.
    In 1st invoice vendor claims 200USD, we need to pay him 180USD and remaining 20USD should go as retention money. This can be settled after final project / completion of services.
    This has to be done theu MM and LIV / IR process. When ever we raise invoice for 200USD system should automatically do entries :
    Vendor 180 Cr
    GR/IR : 200 Dr
    Rentention account : 20 Cr
    Earlier we did thru TDS tax code. Now we are working for middle east project where there is no taxes at all. So we are not impleting any tax procedure / TDS codes. In this scenario how can we do ?
    Can we do thru discount , I don't think so. or else can we do thru rebate conditions?
    Regards,
    Sai Krishna

    Hi,
    I could able to solve upt certain exten & struck at MIRO.
    In PO for ECC6.0 EHP4 , there is new tab, payment processing at header. Here we can choose Secure by bond / applicable at header level / applicable at item level. At item / header we can % of retention accordingly.
    Normal GR to be done.
    While doing MIRO , it will prompt that there is retention money. U can retention due date at basic data tab. Then at item level it will show retention %, retention amount, due date etc.
    While posting it is asking "Specify the document type for retention". I did the customization at SPRO- MM- LIV- Incoming invoice- Maintain Number Assignments for Accounting Documents, then maitain new doc. type & assign no. range for that.
    I couldn't able to find any field where can I enter retention doc. type. Can u help here. Or else shall I need to apply any note ?
    Regards,
    Sai Krishna

  • How to handle retention money concept in B1

    Hi,
    My customer using the concept of retention money concept,
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    Eg:he want to pay 10000
    so 10% is the retentation money:-1000
    this one thousend should go to the retention money account.
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    Naresh K.

    You can process an incoming payment for 10,000 and then create a JE to the Retention Account

  • Accounts Payable - Retention Money

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    Can any one guide me on configuration relating to maintaining retention money.
    Thanks
    Kiran

    Hi,
    You create retention as special GL as of;
    1. CREATE RETENTION GL ACCOUNT
    2.CREATE SPECIAL GL INDICATOR T IN DEFINE ALTERNATIVE RECONCILATION ACCOUNT FOR
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      TO VENDOR RECONCILATION ACCOUNT IN IMG
    3. ENTER GL ACCOUNT IN DEFINE ALTERNATIVE RECONCILATION ACCOUNT IN IMG.
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    Uma

  • Advance Payment and Retention Money adjustment.

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    Atul

    hi,
    try with installment - payment terms.
    This sould help you.
    Thanks,
    Sujai C

  • Retention Money

    Hi All,
    The P.O. contains the % of Retention money to be deducted. The amount to be deducted is on the invoice value including all purchase related expense but exclluding Purchase Tax.
    When MIRO is done the % of retention money has to flow and the amount had to be deducted from the vendor dues.
    How to configure this? Will it be in MM module or FI module?
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    Ameet

    Dear Amit,
    Use Tr.code OBB8 AND OBB9 with a link in MEK1 Pricing condition of the material price with the payment term.
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  • Retention Money from Customer

    Hi Experts,
           My Scenario is : I have to bill my customer say for Rs 100000/-
            Now at the time of Payment: Customer will pay Rs 91000/- say by Cheque,
            Deductions are: Rs 2000 TDS, RS 2000 Work Contractors Tax, Rs 5000 as Retention Amount
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    So how I will make entries of this Incoming payment in SAP, i.e, How retention money will be treated in SAP...???
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    Hi
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    Edited by: Praveen Chirakkel on Mar 10, 2011 2:01 PM

  • Retention Money Senario

    Dear all,
    my client required retention money senario?
    e.g.: customer placing a order with condition that 10% retention money as a payement terms.
    Like if i sold 100 rs material in that case he gives me only 90 rs and 10 rs as a retention money for one year after one year he returns the 10 rs.
    In that cse my client requires if he dosenot give 90 rs then it reflect as outstanding but not as total 100 rs as outstanding?
    how is possible.
    Can u plz send me some solution for the same.
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    PM

    Dear Murali,
    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"
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    Go to Transaction code OBB8. Create a new terms of payment say Z001, which has the "Installment Payment" ticked.
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    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.

  • Maintain of retention money

    what is the need for maintain retention money?
    is it applicable in customer poin as well as vendor point
    how do we do the settings for this?
    what the impact at the time of receipt and payments?
    is there any relation between retention money and the customer and vendors?

    Hi,
    For retention money u can create a spl gl indicator, which will show retention money separately in trial balance, as well can trackrf in vendor account
    regards,
    Shailesh

  • Accounting Customer Retention Money  through SD Module

    Dear Sir/Madam,
    I am a SAP FI Certified consultant doing implementation Tata Refratories. I am from TCS and a project manager for this project
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    Accounting Customer Retention Money 
    Retention amount is deducted by the customer and retained the amount as per terms of the sales order until the project of the order is completed. Once the sales order is fulfilled the Retention Money is returned by the customer to supplier.
    I want to know whether SD Module can handle this. During invoice posting through SO, system must be able to post portion of the SO amount to retention account this is an Spl GL account which should not affect regular customer recon account.
    For example lets say the invoice amount is 1000 out of which the customer will retain 100 and will pay 900 hundred only.
    My expectation is whether Invoice posting from SO to AR can generate a seperate line item debiting Spl-Recon account
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    Thanks
    R.Venkat
    SAP FI/CO Consultant from TCS
    Invoice posting through SO

    Hi,
    Create a GL account as Retention Money from Customer A/c. Now through your pricing conditions and VKOA settings take the 10% of the sales amount and post it in Retention Money account.
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    Customer A/c 1000 (subledger)
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    To Revenue A/c 900
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    Best Regards
    Vimal

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    hi Roahn,
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  • Auto Reversal Of Retention Money with Debtors

    I need auto reversal of Retention of debtors like spl G/L adjustment with Debtors ("Adance from debtors" ).
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  • Project Billing- Retention money due after project end

    Hi,
    We have PS, FI and SD integration. We have different contract for projects, which we are handling through PS.
    We are doing billing for the contract project each month. Project duration is long and each month we are doing billing to customer.
    We require that in each billing some part is belongs to retention---which is kept by customer from each bill and that will be payable by customer only after project end.
    So when doing billing each month retention amount should be separate line item for each billing and due date for that retention should be the date after project end date. Bcz customer will release the all retention amount together only after project end.
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    Total Project Revenue (Contract Amount) 36000
    Duration for Project : 36 month
    Billing to Each Month : 1000
    Retention = 10% from each billing (Due after project end)
    Payment term : 90% due immediately, 10% retention due after project end date (means after 36 month)
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    But for project related billing my all retention should be due on same date, which is project end date.
    How to do this.....Please reply.
    Regards,
    Bharat
    Edited by: Bharat Gadkar on Nov 22, 2008 10:24 AM

    Hi
    You can define an instalment payment term with 90% & 10%.  You can assign different payment terms for these two items so that the payment date can be met according to your requirements.  so make your payment date requirements in the payment terms and assign the same to the instalments.

  • Retention amount not detecting in INVOICE VERIFICATION

    Dear Experts,
    I am trying to to use retention money process.
    MY PO Value - 1000 - Retention % 10 - Rs.100 is retention amount
    My GR Amount - 1000
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    Please help me on this.
    Regards
    Soundar.G

    Hi,
    If the excise invoice is not posted (Part-II), then it will not flow in MIRO.  Pls check same. 
    You may even check whether the capter id assigned to the material is extended to new excise calculation period.
    Regards,

  • Vendor Retention

    Hi ,
       I need to do Customization settings for Retention of Vendor.
      Following is the example :--
    On 1/04/2008 Purchase of Raw Material  1,00,000.
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    1)   In F-43 :----  on 01/04/2008
           Inventory Raw Material a/c DR  1,00,000
                To Vendor                                1,00,000
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             Vendor a/c   DR 1,00,000
                   To Bank a/c                                    90,000
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       in FBKP. and assign Vendor Reconcilation a/c and Spl Gl account(Retention account)
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    Hi,
    Retention Money is a deduction from vendor to be retained for a specific period as per PO terms. This is a liabiltiy in the BS.
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    1. F-43    Inventory 1,00,000 Dr
                    Vendor    1,00,000 Cr
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                     Vendor 10,000 Dr (Normal Recon Account)
                     Vendor 10,000 Cr (WIth Spl GL Indicator to Retention Money Recon Account)
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                    Bank outward 90,000 Cr
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    Regards
    Hari

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