Invoice Retention or payment retention

[Former Member]

I am using milestone billing plan linked with PS

I have a scenario where customer retains say 5% of every invoice generated for a milestone.

Please help me how to configure this in SD

and how this process will move on

[former_member184065]

Hi,

Kindly share your Business requirement this

Thanks,

Naren

[Former Member]

Hi narendra

we have a milestone billing scenario

say

milestone1:    Rs 500   customer pays 475 retains 25 that is 5%

Milestone 2:    Rs 400  customer pays 480 retains 20 that is 5%

Closing invoice: Rs 400 customer pays 400 plus the retained amounts 25 and 20

                              that is 400+25+20

[former_member184065]

Hi,

If you have 2 milestones then use two manual condign types ( one is for adding and another one is deducting the amount ) to deduct the percentage amount from net value.Now,when you are going to create final invoice try to add one condition type manually to add that amount to net value.I think,may be this way ,you can process this ( not sure also ).

Try to create Z- report for tracking the values of milestones with condition types per customer wise to easily for adding that amount in final invoice.

But you didnt explain why you want this requirement and why customer is retaining and paying back in final invoice like etc.If you clarify / share more then it would be helpful to us as well as to assist you.

Note: Moazzam has explained very well on this.Actually ,that is the right way to accomplish this.

Thanks,

Naren

[Former Member]

Hi Naren

every milestone is a different software services (part of a project) and so customer is holding 5% to ensure against the quality, which will be paid at the conclusion

[former_member184065]

Hi,

Ok. please go ahead with my explanation.

Thanks,

Naren

[Former Member]

Hi naren

Can u please provide me with more details like what will be details for condition type and where and how it will be placed in pricing procedure

[former_member184966]

I have a scenario where customer retains say 5% of every invoice generated for a milestone.

          means will your customer payback that 5% or not? If he pay when and how the payment will happen.

          Also, what is the main intention to retain 5% of every invoice?

Kindly update the same.

Anand Kumar KS

[Former Member]

he will retain 5% of every invoice and will pay back the total retained amount at the final invoice

[former_member184966]

he will retain 5% of every invoice and will pay back the total retained amount at the final invoice

You can retain 5% of every invoice and your client can pay all the retained amount at any time.

Here, you can use the HOLD document which is configured by the FI Consultant.

This configuration helps you to hold the 5% of amount in every invoice and it can be released when your customer makes the payment. At the same time if you want you can cancel/delete the hold retained amount from FI side.

Hope it will help you to solve the issue.

Anand Kumar KS

[moazzam_ali]

Hi

This is not milestone. Why does customer retain 5% on every invoice? Please go through milestone functionality once again.

Thank$

[Former Member]

sorry not on every invoice

[Former Member]

but how can we configure this in SD, i think i need to configure a different condition type which will hit a different G/L account, but what will be that condition type and its detail

[moazzam_ali]

Hi

As far as I know there is no concept of this kind of retention in SD. If you are thinking about some different condition and G/L how would you use it? Could you please explain it?

Did you talk with your FI guy? I think you have to invoice with full amount but clear invoice with invoice price minus 5%. On final payment clear the remaining amount. I dont know this is good idea or not thats why I am asking you to discuss with your FI guy.

Thank$