Seperate GL account for rentention amount using Instalment payment?

[former_member691877]

We have an interesting issue, our client is having a requirement regarding installment payment. Please find below the scenario. We hope to get some ideas in this regard.

We are using payment term with settings for installment payment.

Example: Payment term Y001 – Installment payment, Y002 – Installment payment 90% and Y003 – Installment payment 10%.

Invoice Amount : 1000

90 % outstanding for immediate payment : 900 (to be accounted in Vendor reconciliation account)

10% retention till tax certificate produced : 100 (to be accounted under separate retention GL account)

While posting invoice through MIRO & FB60, our client wants to split the amount in to two parts 90% outstanding to the Vendors and retain 10% of the invoice value till the tax returns certificate is produced. Presently Amount splitting is made to take care of this using a payment block in payment term Y003. This helps in retaining 10% of the amount till the tax paid certificate is produced.

Postings are happening with the split amount, to the reconciliation account maintained for the Vendors. This is presently showing the total payables towards vendors. But for statutory reporting purpose, we now need to maintain a separate GL account for the retention amount. This is again required to be a Vendor reconciliation account for control over outstanding amounts with respect to respective vendors.

We are exploring different alternatives to get this done. Please advice if you have come across any such scenario.

Thanks in Advance.

Regards,

Viswanath

[Former Member · Accepted solution]

Please look at FI-CA, contract Accounting.

I believe what you need will be dealt with here.

Assign points if useful.

[Former Member]

I understand when you use your Installment payment term, system must be posting two lines for vendor i guess must be like;

Expense Dr. 1000

Vendor Cr. 900

Vendor Cr. 100

Ok eventually both 900 and 100 goes to the same GL (Reconciliation)Account but your client wants that the 100 should goes to other GL accounts.

One of our collegue in this forun has answered you to use Special Gl Indicator, the solution upto some extent ok but i guess you will loose the automation of amount splitting which 900 and 100.

So i would advice you the following;

• Create one Retention Reconciliation Account

• Configure Alternative/Reconcilation Account in the IMG ( This config allows you to change reconciliation account while posting invoice )

So at time when you simulate your accounting entry double click on 100 line and manually enter the retention GL Account. I guess the solution is manual and painfull but if special gl indicator can be used with automation then you must go with that

regards,

FICO

[Former Member]

Hi.

You create a new GL account for retention.

You create a special GL indicator for retention and assign that vendor reconcilation account in OBXT with retention GL account.

If useful please reward points

Thanks

Uma