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
        Here, Customer Account will show Zero Balance
        The Retention money will be received only when we deliver the product to the customer, i.e., after completion of the project
So how I will make entries of this Incoming payment in SAP, i.e, How retention money will be treated in SAP...???
Regards,
Nimish

Hi
You Can solve the above problem by using Special Gl Indicator H in Transaction code F-29
Hope it will work for you
Regards
Praveen
Edited by: Praveen Chirakkel on Mar 10, 2011 2:01 PM

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I am a SAP FI Certified consultant doing implementation Tata Refratories. I am from TCS and a project manager for this project
Please read my query below and try to answer.
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.
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I Dont want to disturb This link Flow, so that is the reason i am asking my doubt here
Return Sales order - update of Item category change
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In our process we need to retain 10% of the amount from the vendor's invoice on each bill. Vendor can send partial invoices.
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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 ?
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my client required retention money senario?
e.g.: customer placing a order with condition that 10% retention money as a payement terms.
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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?
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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.
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Z001----- 170-----Z002
Z001--230-----Z003.
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Expense A/c Dr 1000
To Vendor A/c 700
To Vendor A/c 300 ( This would be with a payment block)
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Venkatesh
PS: Assign points if useful.

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what the impact at the time of receipt and payments?
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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
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