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hold the retention amount excluding VAT

Jan 05 at 07:57 AM

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Former Member

Dear Experts,

We have a requirement in the construction field industry which is to hold the retention amount excluding VAT. The example below will explain the already mentioned case . Example : Invoice amount in 1000 AED ,

VAT 5%= 50

Retention = 10%

At present SAP with standard configuration, will retain AED 105 (100+5% VAT) and pay the Vendor AED 945 (900 + 5% VAT)

Service= AED 1,000

VAT 5% - AED 50

Net Amount = AED 1,050

The net Amount would be split in 2 as: AED 945 current and AED 105 retention amount.

The new Requirement :

The vendor account should be credited with 945 AED. (900 + VAT 45) and we will retain 100 AED .

Service= AED 1,000

Less Retention = AED 100

Gross Amount = AED 900

VAT 5% - AED45

Net Amount = AED 945

Please advise about this new requirement and how it can be achievable .

Thanks ,

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