Retention Amount during vendor invocing

Question

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

Answer 1

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.