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Jun 25, 2019 at 10:21 PM

How can I reserve part of an AP invoice total in a different control account


Hi Experts,

I have a case in which the vendor submits multiple invoices linked to an agreement of deliverables.

The agreement has a term saying that all invoices will be subject to an agreed upon percentage to be reserved till the end of agreement. By the end of the agreement and full delivery, the vendor will be paid all reserved amounts.

How can I setup this at business partner level or at agreement level so that the reserved amounts are always reflected on a separate control account at liability side?

I thought that defining this percentage as a special withholding tax code would do it but not sure if this tax GL will be dealt with as a control account linked to the vendor or not.

Thank you in advance