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Jun 26, 2007 at 11:34 AM

Seperate GL account for rentention amount using Instalment payment?


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.