Customer Retention Money Accounting

[Former Member]

Dear Sir/Madam,

I am a SAP FI Certified consultant doing implementation Tata Refratories. I am from TCS and a project manager for this project

Please read my query below and try to answer.

Accounting Customer Retention Money

Retention amount is deducted by the customer and retained the amount as per terms of the sales order until the project of the order is completed. Once the sales order is fulfilled the Retention Money is returned by the customer to supplier.

I want to know whether SD Module can handle this. During invoice posting through SO, system must be able to post portion of the SO amount to retention account this is an Spl GL account which should not affect regular customer recon account.

For example lets say the invoice amount is 1000 out of which the customer will retain 100 and will pay 900 hundred only.

My expectation is whether Invoice posting from SO to AR can generate a seperate line item debiting Spl-Recon account

and Crediting the sales account for 100 INR and the actual Invoice must be posted with 900 INR debiting customer 900 and crediting sales account 900.

During customer payment customer will pay first 900 which will be cleared with invoice amount 900 and later when the customer return the retention amount then the 100 INR receipt will be cleared with 100 INR invoice which was accounted to Spl-recon account.

Accounting Entries during Invoice posting from SOwould be (One SO must post 2 transaction line item to AR subledger)

-

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Debit Credit Amount

Customer Account with regular recon acct Sales Account 900

Customer Account with Special Recon/retention Acct Sales Account 100

Note: Vendor retention is available in MM/PO side and this is handled the same way that I explained above

MIRO Posting takes care the Vendor retention accounting in to Spl-Recon account.

Thanks

R.Venkat

SAP FI/CO Consultant from TCS

[sanilbhandari]

Hi

In your SD Pricing, you can set up conditions, based on which system will create a posting to another balance sheet account. Against this condition type, maintain the condition record for the retention. You can assign the GL Account in VKOA. You have to something called as Accruals in SD. Also note that the retention a/c will not be a customer reconcilliation a/c. If you want to know customer wise details, your should maintain the sort key as Customer, so that line items can be sorted based on Customer No filled in Assignment. You need to maintain the necessary copy controls in VTFA

Regards

Sanil