Deduction amount from the bill should hit reconciliation account.

[Former Member]

Hello Friends,

In my current implementation scenario, The customer will deduct some amount from every invoiced amount as a retention amount.So net payable will be amount after deduction.

Here in pricing if i create condition type for deduction then it will hit the GL account but not the reconciliation account.

How to map this scenario?

Thank you

Regards!

Sadanand.

[Former Member]

Hi Sadanand:

If you have to map it in SD pricing, for the retention amount which needs to paid at the end, you will have to create a separate billing document. For this, you will have to show that an item of work with value equal to the retention amount is pending (which you will enter in the sales order and then bill it).

Instead, can you bill the full amount, but manage it in FI such that payment release against invoice is only equal to 90% of the value of the invoice. The system will then show that 10% against each invoice is pending. Check with your FI team if this is possible. You can probably check if you can manage to set payment terms such that 90% is payable as per your credit terms and balance 10% at the end of contract.

Trust this helps. Do let me know if you find a solution.

Thanks and best wishes,

Sumanth

[Former Member]

Dear Sumanth,

We tried with FI team as well, another problem is client wants this calculation should reflect in print output.

this is not possible unless the condition is maintained which can capture this retention amount.

i have created that as well but posting it to reconciliataion account is a difficuilty.

Please check again is there any other way?

Thank you,

Sadanand.

[Former Member]

Hello,

As you rightly pointed out that this is possible with FI, wherein he will show payment received 90%.

So far as invoice print goes, add a statistical cond to ur princing proc and let that cond be captured during print.

i hope this will be helpful.

Thanks and regards,

AK

[eduardo_hinojosa]

Hi Sadanand,

Check SAP Note Number 178824 'Withholding tax from SD for countries other than Argentina', I think that it will help you.

Regards,

Eduardo

[Former Member]

Hi Eduardo,

I checked the note, it specifies about the WT where as here it is not related to tax, please find the example below:

i have a project costing say 20 crores.

i will be raising monthly bills as per the progress.

out of what ever the amount i have raised in the bill my customer is going to deduct 10 % against retention.

this accumulated retention amount from every bill will be paid to me aftre the completion of the project rather after the defect liability period is over.

Please suggest how can i manage this part.

Thank you in anticipation.

Sadanand.

[eduardo_hinojosa]

Hi friend,

I'm sorry, for me retentions means taxes.

One question, is crores the unit in the Indian numbering system for large amounts?

One idea, as you tell me, a solution perhaps will be a rebate with the sign changed (in V/06). I haven't try never, because I haven't found this request never. You do the retention/provisions (when you do the invoice, so, do it in V/08) and when you do the settlement you can invoice the provision or retention with a debit memo.

For rebates you can check SAP Note 410579 - FAQ: Rebate processing.

I hope this helps you

Regards

Eduardo

Edited by: Eduardo Hinojosa on Jul 2, 2009 9:47 AM

Edited by: Eduardo Hinojosa on Jul 2, 2009 9:49 AM

[Former Member]

Hello Eduardo,

1 crore = 10 million.

Regarding rebate it is like you are paying the amount as a refund or reimbursement,

here customer is holding some part of the bill as a retainage amount, which he is going to pay after the completion of the project.

Please share more thoughts.

Thank you,

Sadanand.