Problem with Retention

[Former Member]

Hi Experts,

We have created a purchase order with option “Retention” as a Applicable (Header Level) - 10% has been created. We have done “Good receipt” and “Invoice receipt”.

Ten percent should be retained as guarantee but system put payment term zero days (immediate payment). This is incorrect. Is there any possibility to set in PO condition of payment term for this 10%? In our case we done payment proposal and it’s taking the whole amount.

We tried to change manually payment term for guarantee in FI document but the only change we could do was entering date 28.02.2015 in field ZFBDT due day for payment. However system is ignoring this date and position is still taken to payment proposal with condition immediately.

To sum up:

Is there anywhere possibility to set payment term for quarantine in purchase order.

In case any mistakes where in FI document is any possibility for change this payment day which will be not ignored by payment proposal.

[former_member822223 · Accepted solution]

Not sure if your issue is that you want to exclude the retention payment from the proposal or if you want to push out the payment due date for the retention payment and then allow it to be picked up by proposal, but either way there should be a solution.  If you wish to keep the retention payment in queue until the work can be verified, you can exclude the special GL indicator in FBZP, then AP can pay later via F-07 or F-53.  If you want to have the retention payment default to a certain number of days beyond the default terms for the regular payment, you can set up a default warranty duration by material group using MM > Logistics Invoice Verification > Incoming Invoice > Retention > Default Due Date for Retention.

[former_member267327]

HI,

If you want to deduct 10% from your IR and retain this to retention account as deposit then you have to entered the retention GL account with 10% amount of IR. So your vendor will get paid by 10% less.

if this is not the situation, please provide one example.

Regards,

Dattatraya

[Former Member]

HI,

I want to block this retention amount for the payment. can you please guide me.

[former_member267327]

Hi,

Please refer the below link if your are doing retention money deduction at first time:

Regards,

Dattatraya