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Deduction of penalty from Vendor in Service Entry sheet

Hi Consultants,

Our maintenance department prepares service entry sheet to certify all bills submitted by vendors and according our accounts department proceeds for the payment to vendor.

There are many circumstances where we have to recover money from contractors as mentioned below

1. Liquidated damages & penalty due to bad workmanship of contractor

2. Chargeable issue of materials like diesel & other consumables

3. Tools & tackles issued to contractors but not submitted by contractor while contract closing or damage of tools tackles & measuring instruments by contractor.

4. Similar Issues while material reconciliation

As on date we donu2019t have any provision in service entry sheet to recover money from contractoru2019s bills due to any of the above reasons. Right now, only available option is to deduct the certified quantity of contractoru2019s bill. In service entry sheet we can not show this deduction as penalty and even can not document the same.

When ever there is Audit we are unable to justify auditor that we are following terms & conditions as mentioned in contract with vendor. So we need to look for other alternative to incorporate all penalty charges while service entry itself.

This is Audit query as our users are not able to justify how and why they have deducted particular amount from vendor.

Also, we need to know how this can be link with ARC release order or service PO.

Also please let us know is there any provision to issue chargeable material to contractors against vendor code/contract no date wise & same material issue record should be available somewhere for reference before doing monthly service entry.

With Best Regards,

Rajesh Jadhav.

SAP MM /IS OILConsultant.

replied

Hi

In service entry you can include Unplanned service costs in anew line item as negative ( Penalty on the Contrcator ) include the details in the Service text & service long text , so that they can be viewed.

Thanks & regards

Kishore

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