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....

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Edited by: Shefford William on Jan 28, 2008 11:36 PM

Dear All
i am also having the same problem. The example is
Net invoice Value   = $ 100,000
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Total Invoice Value = $ 115,000
Cash Discount = 20% with in 20 days
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Credit W/H Tax deduction @ 3.5% = $ 3,325 ( 3.5% of 95,000 the Inv Value - Cash Discount that is $ 115,000 - $20,000)
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Hi,
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Hi
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Edited by: kamal.anandani1 on Apr 22, 2011 8:02 AM

Retention amount/ payment term

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