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Payment Retention

In Purchasing (MM-PUR) you can define a retention for a purchase order. The system transfers this data as default values to Logistics Invoice Verification (MM-IV-LIV). Here, you also define the due date by which the retention amount is to be paid to the vendor.

In which industry specific SAP we have Payment retention through PO.?

This is not installment payment.

Please advice.

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1 Answer

  • author's profile photo Former Member
    Former Member
    Posted on Aug 14, 2009 at 01:46 AM

    You can define Retention through payment terms but can not Define any date for that,

    moreover this is not related to any industry, it is for certain business processes..

    ex: for Contracts in each & every payment the Client wants to deduct certain % amount from Vendor payment.

    So that it can be paid after the warranty period say 6 months or 1 year.

    Suppose the Retention is 30 %, It can be addressed in this way

    Go to Transaction code OBB8. Create a new terms of payment say Z001, which has the "Installment Payment" ticked.

    Now create two more terms of payment Z002 and Z003. Here mark the "Payment Block" (A or B) for the terms of payment Z003.

    Now go to OBB9, fill as below

    Z001----- 1


    70-----Z002

    Z001--


    2
    30
    -----Z003.

    Now at the PO stage, make sure that the terms of payment is Z001.

    At the stage of the invoice verification, the entry would be

    Expense A/c Dr 1000

    To Vendor A/c 700

    To Vendor A/c 300 ( This would be with a payment block)

    At the time of automatic payment, this Rs.300/- will not be selected unless we remove the payment block.

    When you want to pay Go to FB02 trxn and remove the block.

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