Retention ammount of Vendor

Hi
sap gurus
can any one pls explain Retention amount of Vendor and how this is configured
Details question awareded
Thaks in Advance
Regards
Rams

Hi,
The retention amount can be accounted by using a SPL GL indiacator.
Configuration, (FBKP)
1. You have to create a SPL GL Indicator for vendor retention amount
2. In the properties, select "others" and give the posting keys
3. Assign the different Recon account against the Recon account mentioned in the vendor master.
Transaction,
1. Post the vendor invoice (F-43 or MIRO)
Dr.Expenses              100
Cr.Vendor account              80
Cr. Vendor account SPL GL 20 (optional)
if you have not used the above optional, then you have to post a transfer entry, (F-04)
Dr Vendor Account 20
Cr Vendor A/c PL GL       20
2. Payment (Normal items) (F-58 or F-53)
Dr Vendor account 80
Cr Bank                          80
3. Payment (SPL GL Item) specify your SPL GL indicator in ourgoing payment screen, (F-58 or F-53)
Dr Vendor account SPL GL A/c 20
Cr Bank                                     20
Hope it clear your doubt
Saravanan.A

Similar Messages

Retention Amount during vendor invocing

Dear All,
I have a doubt related to retention amount for vendors.
Scenario is:
Client is keeping certain amount as retention amount from the vendor bill. Now this amount is pre-decided in PO terms & confitions and the same is known to purchase department. But no such comminucation is made to accounts dept. Hence the person who is passing the payment entry is not aware of the amount to be retained. Client requirement is that, vendor invoice should be passed with the full invoice amount & during payment only the amount other than retention amount should be paid. But no manual intervention is required.
e.g. Vendor invoice is INR1000
       Retention amount - INR 300( decided during PO)
       FB60 / MIRO passed with INR1000
       F-58 should automatically pick up INR 700 for payment    & rest of the amount should remain in vendor cr with spl GL indicator.
Can this be possible.
Thanks in advance,
Regards,
Ajay Gupte

Dear Ajay,
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.

Problem in posting Retention amount to Vendor

Dear All,
I had activated business function 'LOG_MMFI_P2P'. As a result i am getting Payment processing tab in PO.
There i can define Down payment and Retention percentages. I had created a service purchase order and then service entry sheet.
After the acceptance of service entry sheet i did invoicing (MIRO). Here i get an option to clear down payment (an additional button becomes available to clear down payment). That scenario is working perfectly fine. System also proposes the retention amount. I can change retention amount/percentage or continue with same.After invoice is posted the retention amount is visible in Invoice number row in PO History Tab.
Now my problem is when i am doing payment of retention amount(after doing payment of services deducting down payment and retention) to vendor the 'Posted Retention in Document Currency' column in PO history tab for invoice is not updated.
What is the correct way of posting retention to Vendor against invoice by doing which 'Posted Retention in Document Currency' column gets updated ? I am currently posting payment by F-53 for open Special G/L Items.
One more thing currently FK10N is giving proper values. I mean after payment is done balance under Special G/L account for retention becomes zero.
Regards,
Kamal
Edited by: kamal.anandani1 on Apr 22, 2011 8:01 AM

Hi,
First check the Current period in OMSY trx...for your Comp code..
Then go to MMPV and enter Comp code, Period & Year
and execute...
Ex: if the current period in OMSY for your Comp code is 01,2008
then you need to enter period 02, 2008 in MMPV trx...
so, that period 01 will be closed & Period 02 will be opened automatically...
You need to close periods one by one like this..
until the period you want use...
Remember you can not Roll back the closed period
Be careful in closing the MM period in PRD client.
Thx
Raju

How can I get Vendor Balances to Payroll

Dear Experts,
I came across a scenario,
My client is paying some ammount in behalf of employee like Mobile Bill and keeping this ammount in Vendor account,
How can I take that Balance in to payroll to deduct in Payroll?
is there any Standard way of picking direcly from Vendor Open Balances?

There is no such option available in SAP as per my knowledge.
yaa, if requierd a report can be taken from SAP FI module, and the same can be used to deduction.
ASk abaper to create a BDC for this.
Regards
...Sadhu

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

Accounts Payable - Retention Money

Hi Experts
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
VENDOR. ATTACH THE RETENTION GL
TO VENDOR RECONCILATION ACCOUNT IN IMG
3. ENTER GL ACCOUNT IN DEFINE ALTERNATIVE RECONCILATION ACCOUNT IN IMG.
IF useful please reward points
Thanks
Uma

Retention amount/ payment term

Hi Sap Gurus ,
I have a request from the client to configure , retention amount from vendors
Can any one please xplain the configuration steps for the business process mentioned below .
Cost of the COntract 100000 thousand , to be executed in four months
At the end of 1st month invoice received for payment 25% of the contract amount
At the end of 2nd month invoice received for payment 25% of the contract amount
At the end of 3rd month invoice received for payment 25% of the contract amount
At the end of the contract invoice received for the final payment of 25% amount
THe business requirement is ,THe client wants to retain 10 % of every invoice(2500 per invoice ) and make the payment after six months ,starting from the end of the contract, that is at the end of 10th month from the contract start period .
Request you all to please provide me a solution on the above
Regards
Vik

Hi Vik,
You need to configure 3 terms of payment for this purpose.
Tcode: OBB8
Z001   Main terms of payment which you will enter at the time of posting.
In this terms of payment, you should flag the "Installment Payment" Checkbox.
Z002   Immediate or X number of days from the posting date or document date as the case may be in your situation for 90% of the amount.
Z003   After six months from the end date of the contract for 10% amount.
Now Goto TCode: OBB9 and give new entries as follows:
Payment Terms    Installment   Percentage   Payment term
               Z001                   1                90                Z002
               Z001                   2                10                Z003
In case you dont want to give it in the number of days, you can also specify it in the form of fixed date+additional months in the OBB8 while configuring the payment terms..
Hope this answer helps you. Please assign points if found useful..
Regards,
Sreekanth....

Payment Processing Tab function in PO

Dear Friends,
In Purchase order at header payment processing tab is there.
Cab any one explain me how it works.??
can i make its use to make retention money of vendor , how we can do it??
Regards,
Mahesh.

Hi,
This is ECC 6.0 EHP4 Functionality.
Refer Following Links;
[MM, Integration Materials Management and Financial Accounting|http://help.sap.com/erp2005_ehp_04/helpdata/en/42/fbded750e61febe10000000a422035/frameset.htm]
[Down Payment and Down Payment Request|http://help.sap.com/erp2005_ehp_04/helpdata/en/fa/f6b132c23146918babf211677ac6b1/frameset.htm]
[Down Payment Clearing|http://help.sap.com/erp2005_ehp_04/helpdata/en/48/b42c22e8603095e10000000a421937/frameset.htm]
[Retention|http://help.sap.com/erp2005_ehp_04/helpdata/en/6d/5e74d1cfbb4513bb13d566bd70a15a/frameset.htmhttp://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]

Retention amount paid to vendor is not updated in PO history tab

Dear All,
I had activated business function 'LOG_MMFI_P2P'. As a result i am getting Payment processing tab in PO.
There i can define Down payment and Retention percentages. I had created a service purchase order and then service entry sheet.
After the acceptance of service entry sheet i did invoicing (MIRO). Here i get an option to clear down payment (an additional button becomes available to clear down payment). That scenario is working perfectly fine. System also proposes the retention amount. I can change retention amount/percentage or continue with same.After invoice is posted the retention amount is visible under PO history tab against Invoice number.
Now my problem is when i am doing payment of retention amount(after doing payment of services deducting down payment and retention) to vendor the 'Posted Retention in Document Currency' column in PO history tab is not updated.
Regards,
Kamal

Dear Pankaj,
Thanks for quick Reply.
I think you did not understand my question. In PO history tab for down payment scenario (defined through PO and cleared in MIRO) proper lines are getting created. For retention new line will not be created. But the invoice row in PO history tab is having two columns -
1) Retention in Document Currency.
2) Posted Retention in Document Currency.
The first column is having value which is the retention amount. But second column is not having any value even after the payment (portion held as retention)is made.
I will add one more thing. If i run FK10N for the vendor- then Special G/L account for retention is updated properly.
Regards,
Kamal
Edited by: kamal.anandani1 on Apr 22, 2011 8:02 AM

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.
Due Date is 30/04/2008. Retention Percentage is 10% of Invoice.
The following are the entries to be posted in sap:---
1)   In F-43 :---- on 01/04/2008
       Inventory Raw Material a/c DR 1,00,000
            To Vendor                                1,00,000
2) In F-53 :---- on 30/04/2008 ( By using Residual Payt functin)
         Vendor a/c   DR 1,00,000
               To Bank a/c                                    90,000
               To Vendor a/c(Retention Spl Gl a/c) 10,000
3) I created one special gl indicator for above credit line item.
   in FBKP. and assign Vendor Reconcilation a/c and Spl Gl account(Retention account)
But My question is where we can give special gl indicator inorder to transfer the amount to special gl account(Retention a/c) in F-53.
Thanks & Regards,
Kiran Konujula

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.
You can do the following way:
1. F-43    Inventory 1,00,000 Dr
                Vendor    1,00,000 Cr
2. Post a JV using F-42 as follows
                 Vendor 10,000 Dr (Normal Recon Account)
                 Vendor 10,000 Cr (WIth Spl GL Indicator to Retention Money Recon Account)
3. Payment - when making the payment using F-53/F-58, do not select any recon account. Just Select the Process Open items button.
From the open item documents ie normal documents in vendor account as per credit entry in point no:1 and Debit entry as per point no:2 will be displayed. Select these documents (ie.1,00,000 - 10,000 = 90,000). The enty would be
                Vendor            90,000 Dr
                Bank outward 90,000 Cr
The credit entry with Spl GL indicator would appear in the BS under Rentention Money payble and forms an MIS. When you intend to refund it, in F-53/ F-58 you can select special GL indicator in the initial screen for processing payment.
Regards
Hari

Posting Vendor retention

Hi
I want to post into vendor retention at the time of posting invoices in FB60.
For ex:
Invoice is of Rs.10000
Retention is of 10%
Entry should be:
Expenses A/c.. Dr 10000
To Vendor a/c 9000
To Vendor Retention (with special GL for retention) 1000
Let me know how its possible in SAP
I do not want to use F-02 or F-43 for the same.

Hi Deepak and other members
standard SAP does not support to post any retention, advance deduction during FB60 or MIRO. hence only way is to first post transaction thru MIRO or FB60 than report to retention special GL by another document.
but thru Z development we can come over from this problem. follow the steps for Z development:-
1) create retention or advance specific payment terms e.g. R001, A001
2) while posting MIRo or FB60, identify the retention amount in amount split tab with payment term. e.g. total invoice 1000 and retention is 100 than in amount split tab page 900 with normal payment term and 100 with payment term R001
3) crate a Z table and make a relationship of company code, spl gl indicatior and payment term
4) record a BDC with transaction code F-51 in which debit vendor with normal line item and credit vendor with spl gl indicator like R
5) once document posted, system will read payment term available in document and if payment term match with entries maintain in Z table, will start re posting
in my openion this is the only way thru which auto reposting will happen and manaul entries can be avoid.
any other good solution / suggessation are welcome.
Regards
DD

Retention and Advance for Vendors in SAP

Dear All
Iu2019m part of the SAP ECC 6.0 (with EPH4) E2E implementation team for Construction industry. They have a unique requirement. They will create P.O {(say for Example 10000 RS with 20% advance, 10% retention (of invoice value)} and then
During Advance
Advance to Vendor a/c Dr           2000
                      To Vendor a/c Cr     2000
Vendor a/c Dr                     2000
        To Bank a/c Cr          2000
During GRN
Stock a/c DR                    3000
     To GR/IR a/c CR          3000
During Invoice
GR/IR a/c DR                    3000
     To Vendor                2100
     To Retention Payable          300
     To Advance to vendor          600
During payment
Vendor a/c DR               2100
     To Bank a/c Cr          2100
Is this possible in SAP? If yes please let me know how this can be done.
Regards
Rajaram

Hi,
My suggestion is you go following way:
Vendor A/c Dr ....Specail GL (A)
       To Bank
this is for the advance payment
Then complete the GRN Part
Then complete the MIRO Part without retention, where in you book entire amount to the credit of sundry creditors
For retention, create a special gl and post the entry separately
Vendor Account Dr
Vendor Account Cr....special GL (R)
This will also keep the track of the things in vendor account, as you will require this amount to be paid later once the contract is complete.
Let me know, if it helps.

Retention of vendor amounts

Hi,
I want to retain some % amount on each vendor invoice as guarantee money. this can be paid back to the vendor after a period of time. is there any way in standard SAP.
Thanks in advance,
Mallik

Hi Dipak,
I have already done these seeting. but the problem I am facing.
1) when i do MIRO system split 90 and 10 value but both on the same reconcillation account . I want to bring the 10 value in special GL account. how can it be possible.
2) 2nd issue is the fields in MIRO at item level retention % , retention due are greyed, how Can i make it open.
3) when I post the MIRO system is showing only the one document in PO history not the second/retention one.
I will really appreciate if you or anyone help me in this regard. this is very urgent for me.
Thanks
Shahab

Vendor retention not transferred to PC

Hi
A user requires testing the Vendor retention process via MM and we are facing the below issue. Appreciate any guidance on this.
A Purchase Order was raised for a vendor with retention. The retention amount was calcultaed correctly. The PO has a Work Order which is linked to a Profit Centre. We carried out the month-end processes F.5D & IKEK but, the amount of the retention is lying in the DUMMY profit centre instead of being transferrd to the PC linked in the Work Order.
Thanks & Regds
Nadini

Resolved with assistance of OSS note 81374.

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.

Retention ammount of Vendor

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