Introducing retention % and Advance payment in Contract.

[Former Member]

Hello Friends,

I have a scenario like this.

Its a construction industry. The contractor submit bills on a regular basis as the work progresses.

I have to retain 1% of his amt every time of the bill. This has to be captured with reference to his contract value every time.

Also the advance money given to him (in value or %) is to be captured from the bill which shall be deducted from the gross amt paid.

Can u helpme whether the said conditions can be captured at the header level of the contract? Whether the same conditions can be introduced at the item level?

Also please guide me as to how this scenario can be mapped?

Regards,

Prasanna.

[BijayKumarBarik]

Hi,

You can go for advance payments to vendor WRT to PO.

Follow the following steps:

1.Check the Vendor reconciliation A/C,

2.Go to FS00, and check Filed Status Group,

3.Go to OBC4, check the Filed Status Group, what u have mentioned for the Vendor reconciliation account.

4. Go To material management segment and put optional entry for the field of Purchase Order and save.

5.Now come to F-48, enter the date, vendor, assign the sp.G/L transaction(A),bank sub account, amount,

&

then enter, it will take to next screen

Here you enter amount & your purchase order number with reference to your are going to make the payment. Now simulate and save.

6. After the GR & IR is done, Perform F-54 for Down Payment Clearing

Part payment can be done in F-53 also.

Regards,

Biju K

[pankaj_singh9]

Hi,

For the Fixed Discount &, it will be better if you create a Discount Condition Type by taking a copy of RA01 in M/06 and activate this condition as Header and Item both. And maintain the % against this condition type in Contract. This will copy it every time in PO created w.r.t. this Contract.

Follow the below mentioned steps for Advance Payment against the PO / Contract;

1. F-47 - Create Down Payment Request (Here in selection screen specify all the necessary details (Doc Type - KA) and press enter, on this screen specify amount to be paid in advance and also specify the PO Document and line item and SAVE)

2. F-48 - Down Payment Entry w.r.t. Down Payment Request No

3. F-54 - Down Payment Clearing

At the time of MIRO, it will pop-up that advance payment is done to this vendor against this PO.

Also take help of your FI Consultant if required.

Note: - Prerequisite for Advance Payment: - Go to FS00, and check Filed Status Group for Vendor Reconciliation Account, then go to OBC4, check the Filed Status Group, what you have maintained for the Vendor reconciliation account. Here go To Material management segment and put optional entry for the field of Purchase Order and save.