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Retention and Deductions in PO

Former Member
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Hello team of experts,

I am Krishna working on a VIM-ABAP assignment.

My client has deductions in requirement. His system is on EHP7 so he got "Payment Processing" tab in PO header. He is giving retention % and so % is getting deducted in invoice.

My questions for you are

1. Is retention in Payment Processing only option to deduct the money?

2. If we have other ways, what they are?

3. How invoicing is handled?

Please let me know.

Thanks in advance,

Krishna.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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I have 2 questions for you

  1. 1. Is retention in Payment Processing only option, supported by SAP for PO deductions?
  2. 2. Do we have other ways supported by SAP for PO deductions? Please explain me, what they are.

Please let me know

Former Member
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Hi,

There is deduction in case of subcontracting process but in PO there is only 'Retention' as a decduction which can be paied later to the vendor.

Regards,

Priti.

Answers (3)

Answers (3)

Former Member
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HI in the purchase order give as NA (not applicable ) so system will not deduct any amount

Former Member
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Hi Krishna,

Retension is nothing but ability to hold back a portion of a requested or planned payment.Retention is commonly used in construction. In this some amount of retention % is withhold by contractors because, at the time of invoice, the quality of the goods cannot be assessed. If no quality problems arise, the money that was withheld is paid to the contractor.

1. You can enter retension % at header level or at item level. As i have explained the purpose of retention so it is not deduction but a part that can be withhold for some reason so you cna use it in PO.

3. To handle retension in Invoice you have to do configuration LIV- incomming invoice- retention.

View this doc.

Retention - ERP SCM - SCN Wiki

Hope it helps you..

Regards,

priti

Prasoon
Active Contributor
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