Professional Documents
Culture Documents
Retention Process Document
Retention Process Document
Retention Process Document
Retention process is Holding back a portion of payment to vendors who works for your organization.For example, the retention
amount is released to the vendor when certain expectations are met or on a specified date that your vendor has agreed upon.
An organization can have an agreement with the vendor that a certain percentage or amount will be retained from the total amount
that needs to be paid to be vendor. The agreement can have a retention date on which the help back amount will be paid to the
vendor or when certain expectations are attained.
The Purpose of this Blog is to Explain the SAP flow of the Retention process.
Functionality that needs to be activated is : LOG_MMFI_P2P via tcode SFW5.
Customization:
Tcode - OMR4.
Click on "Document types in Invoice Verification" tab.
Select the "MIRO" transaction code line and display its details.
The tab highlighted in yellow is where we maintain the document type for Retention process which will then flow while we are
Invoicing the Purchase order.
The Steps to be done in SAP are given below:
Tcode – ME21N
Enter all the relevant details such as Material, Quantity, Unit Price, Plant, Vendor and Retention category.
We will enter 10% as retention.
Save the Purchase order.
Tcode – MIGO
Enter the Storage location and tick on “Item OK” icon.
Tcode – MIRO
Enter the PO Number, Invoice date and reference field and hit Enter.
Enter the Amount, Retention due date and Hit
Enter.
Click on “Messages” icon to view the message log.
Click on the “Simulate” icon
Hit Enter
Display Invoice document to check for the GL accounts that are hit in Retention process.
Two accounting document will be generated :
Tcode – MIR4
Hit Enter
This is the document we just posted via MIRO.
The screenshot given below is the subsequent accounting entries for Accounting document 5100000112.
Subsequent accounting entries for Accounting document 5100000113.
Note - Payment to vendor can be done via Tcode F-53.
Conclusion :
3. A special G/L indicator needs to be created for Retention process so that correct G/L accounts will be hit from the FI side.
5. Retention percentage and category in the PO and Retention due date in MIRO are a mandate.