Retention: in payable
Hi,
How I can implement the retention business on oracle Payable
The case:
I have agreement with supplier for project such as Software implementation
I create invoice for supplier with total amount 100.00,00
I want to pay the supplier 90% from the amount "100.00" and the remain amount 10%
I need to hold till the end of the project
How I can implement this in oracle
The module we have (AP, PO, GL)
The account affects:
When I create invoice for 100.00
Debit/ cost account 100.00
Credit/ liability "90%"
Credit /retention "10%"
When I pay first payment "90%"
Debit/liability
Credit/Bank
At the end of the project, pay 10%
Debit/ retention
Credit/Supplier
Debit/supplier
Credit/bank
Thanks
Please review the following note in metalink
White Paper on Processing Complex PO's and Retainge Invoices in Payables [ID 793477.1]
Thanks and Regards
Manish Jain.
Similar Messages
-
In F-51 transaction was not posted,& due date field for advance payment VEN
1. In F-51 transaction was not posted.
In the above T-code I want to tranfer Invoice amount (RE) to special GL debit retention money payable the following error was throwing,
Balancing Field "Profit Center" in the line item 001 not filled.
2. For advance payments for vendors due date field is not appearing in document entry screen. How can I see due date field in document entry screen.
In OB41 I changed the field status for posting key 29 in payment transations I made due date field required, but it is not appearing due date field in document entry screen, while posting transaction.
Please advise on this.
RegardsHi thru f-51 u cannot post the transaction here u can enter first line item and select process open item and post it and the base line date is already entered in invoice document based on that one the advance amount is adjusted u con't enter that base line date at the time of advance payment and also the payment terms are maintained in vendor master based on that on also due date is calculated i hope it will be helpful.
-
Accounts Payable - Retention Money
Hi Experts
Can any one guide me on configuration relating to maintaining retention money.
Thanks
KiranHi,
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 -
Can I get a list of various cycles which are possible in Accounts Payable:
Eg. Vendor DP(F-48) --> Invoice Booking(FB60) --> DP Clearing(F-44) --> Invoice Payment (F-53)
Same way I want other cycles which can cover scenarios like BoE, LC, Retentions etc. Also cycles which involve MIGO and MIRO for Invoice Verification.Hi
Some scenarios...
DP Request F-47
DP made F-48/F-53/F-58/F110
Invoice FB60
Credit Memo FB65
Payment F-53/F-58/F110
Account clear F-44
DP Request F-47
DP made F-48/F-53/F-58/F110
Purchase order ME21N
Goods receipt MIGO
Invoice MIRO
Credit Memo MIRO/FB65
Payment F-53/F-58/F110
Account clear F-44
Thank You, -
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
RajaramHi,
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. -
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,
RazaHi
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, -
Kindly assist by giving me the steps to configure Retention Account from Account Payable not from material management and how to post the retained amount in the system.i.e
Vendor Invoice - $1000
Amount to Retain - 5% of the total amount
How can i post the retained amount in the system after the initial amount have been posted and paid.
Thank you.Hi Kayode,
There are 2 scenarios for Retention.
1. Post retention while booking the invoice
2. Post retention while making the payment against vendor.
As suggested by Mr.Ravi ,you can follow the same configuration to post invoice with retention amount ,but you never shown the same as special retention amount ,if invoice booking against purchase order.
You can use F-43 ,if invoice is not against PO with special GL indicator. While preparing the balance sheet we can able to shown the same under separate group.
See to make payment is normal thing ,you can use F-53 with special GL indicator selection.
Next method is :- Book an invoice as it is and while making the payment reduce the retention amount with special GL indicator.
As suggested by Mr.Ravi that is correct method as per standard.
Rgds
SumaMani -
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.
Thx & Regards,
PMDear 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"
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. -
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.
If I take one example for the scenario:.........
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)
When I am doing 1st month billing and maintain payment term as installment (90%+10%) than for this month system create two line item for billing i. e 900 (90%) due immediately and 100 (10%) due after 36 month.
When I will do 2nd month billing system again create two line item i.e. 900(90%) due immediately and 100(10%) due after 36 month........means this 10% will be due after 36 month from the date of billing.
I am doing billing in 2nd month so retention for 2nd billing will be due 1 month after the project end date......same will be continue for 3rd 4th.......36th month billing and retention amount will be due after 36 month from the billing date.
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 AMHi
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. -
I just wondered (especially for UK posters) if there are any data retention issues for supplier (Payables) and customers (Receivables) that must be adhered to for compliance with data protection act?
I am not sure if theres any personal data on a general ledger as I am not an accountant, but with clients and suppliers in Oracle EBS you have names addresses and more which falls into the remit of data protection.
What are the rules around your data retention policies for personal client and supplier data? When do you have to dispose of it? I.e. a one time supplier/customer -- do you need their personal data forever more?user599292 wrote:
In the uk there are specific legislation around keeping data that stores pii (personally identifiable information) only as long as is required for business purposes (data protection act). I just wonder how challenging that is to a DBA. Take for example an oracle database that houses personal information about HR/Payroll? Do you have to set procedures to delete data of ex employees after x amount of months? Is it practical? Do you have to go through your backups and delete any trace of such information there as well? It seems a bit of a nightmare to my I just wondered how you go about dealing with this issue for any databases you support that process/store PII?While the DBA certainly needs to be involved in these discussions, ultimately it is up to the apps guys to develop an app that properly maintains the app data. There is no parameter "pii_retention="
The dba can advise on how to structure the schema such that the PII is easily isolated, identified, and maintained without conflicting with other requirements, like fiscal's requirement to retain data for several years for auditing purposes. -
I just wondered (especially for UK posters) if there are any data retention issues for Oracle Financials supplier (Payables) and customers (Receivables) that must be adhered to for compliance with data protection act?
I am not sure if theres any personal data on a general ledger as I am not an accountant, but with clients and suppliers in Oracle EBS you have names addresses and more which falls into the remit of data protection.
What are the rules around your data retention policies for personal client and supplier data? When do you have to dispose of it? I.e. a one time supplier/customer -- do you need their personal data forever more?
Your mainly DBA's so I assumed some would know?DBMS Direct wrote:
An example is VAT related accounting which may require you to keep your Payables and Receivables for up to 6 Years.Thanks. Is that documented in legislation anywhere online? And also what level of data is required, does it included the personal names addresses bank data etc for customers and suppliers? -
Hi,
My client want to implement the retention process.
For example, the vendor payable is Rs 10000. Client want to pay 9000 as immediate and remaining 1000 want to pay after 6 months.
And this client want to tract this Rs 1000 in separate recon. account with special gl indicator.
How can we do this.
Please guide me with steps.
by
Ramesh.S
Edited by: Rob Burbank on Jul 28, 2010 3:59 PMModerator message - Please do not post your requirements and ask the forum to do your work for you - post locked
Do not include private information (phone noi.)
Rob -
Retention in Each invoice for project billing
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.
If I take one example for the scenario:.........
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)
When I am doing 1st month billing and maintain payment term as installment (90%+10%) than for this month system create two line item for billing i. e 900 (90%) due immediately and 100 (10%) due after 36 month.
When I will do 2nd month billing system again create two line item i.e. 900(90%) due immediately and 100(10%) due after 36 month........means this 10% will be due after 36 month from the date of billing.
I am doing billing in 2nd month so retention for 2nd billing will be due 1 month after the project end date......same will be continue for 3rd 4th.......36th month billing and retention amount will be due after 36 month from the billing date.
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 17, 2008 4:07 PMHi,
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.
If I take one example for the scenario:.........
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)
When I am doing 1st month billing and maintain payment term as installment (90%+10%) than for this month system create two line item for billing i. e 900 (90%) due immediately and 100 (10%) due after 36 month.
When I will do 2nd month billing system again create two line item i.e. 900(90%) due immediately and 100(10%) due after 36 month........means this 10% will be due after 36 month from the date of billing.
I am doing billing in 2nd month so retention for 2nd billing will be due 1 month after the project end date......same will be continue for 3rd 4th.......36th month billing and retention amount will be due after 36 month from the billing date.
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 -
Auto FI Entry of Retention based on Work Done in Invoice
Through MM generate Contractor's Invoice into FI as:-
Work Done Expense 5000/-
Contractor Payable 5000/-
As per agreement with contractor Retention Applicable @ 10% is Rs.500/-
Option 1:-
Can MIGO Invoice book the Entry directly as:-
Work Done Exp Dr 5000
Contractor Payable Cr 4500
Contractor Retention Cr 500
Option 2:-
If Payable is 5000
Can we auto transfer 500 Rentention by way of a seperate FI entry
Currently the user has to manually post Retention entryHi Beena,
For acheiving seperate line item of retention money, u will have to create an payment method for the same (installment method)
By creating and assigning the new payment to the vendor, the vendor line item will be split into 2 lines
Regards,
Kiran -
AP error while submitting "Payable Open interface"
Hello,
I am trying to run the request 'Payables open interface'. I got the output once and the error was because the supplier site was invalid. I created a supplier site saved it and ran the request again. Now, I am getting the following error.
Payables: Version : 11.5.0 - Development
Copyright (c) 1979, 1999, Oracle Corporation. All rights reserved.
APXIIMPT module: Payables Open Interface Import
Current system time is 21-JUN-2009 08:15:01
+-----------------------------
| Starting concurrent program execution...
+-----------------------------
Arguments
p_source='SQLLDR'
p_batch_name='N/A'
p_purge_flag='N'
p_trace_switch='N'
p_debug_switch='N'
p_summary_flag='N'
p_commit_batch_size='1000'
p_user_id='1007990'
p_login_id='2532036'
APPLLCSP Environment Variable set to :
XML_REPORTS_XENVIRONMENT is :
/u02/applmgr/lmtestora/8.0.6/guicommon6/tk60/admin/Tk2Motif_UTF8.rgb
XENVIRONMENT is set to: /u02/applmgr/lmtestora/8.0.6/guicommon6/tk60/admin/Tk2Motif_UTF8.rgb
Current NLS_LANG and NLS_NUMERIC_CHARACTERS Environment Variables are :
American_America.UTF8
Spawned Process 1752
MSG-01104: (Before Report) Modified file
MSG-00000: p_purge_flag :N
MSG-00000: c_nls_yes :Yes
MSG-00000: c_nls_no :No
MSG-00000: p_summary_flag :N
MSG-00000: p_nls_summary :No
MSG-00000: p_nls_purge :No
REP-1419: 'beforereport': PL/SQL program aborted.
Report Builder: Release 6.0.8.27.0 - Production on Sun Jun 21 08:15:02 2009
(c) Copyright 1999 Oracle Corporation. All rights reserved.
Enter Username:
Start of log messages from FND_FILE
End of log messages from FND_FILE
Program exited with status 1
Concurrent Manager encountered an error while running Oracle*Report for your concurrent request 2776668.
Review your concurrent request log and/or report output file for more detailed information.
Executing request completion options...
Finished executing request completion options.
Concurrent request completed
I am trying this for first time. Any help is highly appreciated.
Thanks.Hi,
Please go through the following documents and see if it helps.
Note: 107628.1- Payables Open Interface Invoice Import Troubleshooting Guide (APXIIMPT)
https://metalink2.oracle.com/metalink/plsql/ml2_documents.showDocument?p_database_id=NOT&p_id=107628.1
Note: 220355.1- APXIIMPT-Payables Open Interface Import Fails Rep-1419:'Beforereport' : Pl/Sql Program Aborted
https://metalink2.oracle.com/metalink/plsql/ml2_documents.showDocument?p_database_id=NOT&p_id=220355.1
Regards,
Hussein
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