Advance & Retension for a vendor

[Former Member]

Dear Friends,

My Issue:

For a vendor my payment should be:

--> 10% Advance of the total Contract should be given to the Vendor

--> when ever vendor invoices (partial invoices) we should cut 10%(on advance given before) and 10% Retension and pay him 80% of the value in invoice

--> at the end of the final work we should pay to vendor the 10% retension which we are deducting with all the invoices

Hope this is clear

Reg

Rajesh

[Former Member]

Dear Rajesh

There are two scenario's for your problem. if the invoice comes from the Purchasing order or directly from the FI vendor.

If it is from the Purchase order, pl follow the following sequence.

1) pay the advance as usual which is the same for the both the cases F-48

2) raise the invoice for total amount.Say Ex. invoice amount, 10,000, (retn amount,500, and recovery of the advance, 1000 and any penalty etc, 500) 3) using clearing to some of the balance sheet accounts for retention amount and recovery of the advance amount paid and if any penalty etc through P&L accounts through F-51for the balances of 500, 1000 etc.,)

4) Now only you are able to see the open item for the particular vendor i.e. 10000-500-1000= 9500

5) pay for the open item 9500 then the issue was solved.

When you want to repay the retention amount, such time debit that amount and credit the bank account.

I hope it will suffice you requirement.

Regards

madhav

[Former Member]

Hi friends,

Thanks for ur inputs,

But the calculation is carried entirly in FI, being an MM consultant, i want to see the debits & credit in the FI Accounting documents in my invoice screen seperatly for advance, retensions etc

when i post the invoice will the FI clear it refering the Invoice, or they do DPC

if they do DPC, how do we link it up with my Invoice (or Purch Ord or Good Recipt)

i observed a field Purchasing document while doing DPCbut that is only for reference it is not valuated field

Thanks in Advance

Reg

Rajesh

[Former Member]

Hi,

i think you can achieve this with payment terms.

Configure installment payment terms and set percentages.

1.OBB8-payment term

2.OBB9-Installment.

Thanks,

Rau