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Down payment & Retentions against the PO
The down payment to vendor normally we pay against the purchase order only, but in many cases we could not link that down payment to the Purchase order in the SAP system, it is maintained outside the system or some other way.
While we are doing the Invoicing to the vendor against the Invoice the down payment link is not visible.
The retentions amount against the purchase order also get captured outside the system.
We should maintain the link for the retentions amounts with the purchase order to avoid the missing amounts of retentions.
The linkage of the down payment and retentions amounts with the purchase order is very important and must to have features for any business.
Importance of Linkage
Why integrating these payments matters:
- 1 Direct PO Linkage: Eliminates the need for external tracking of down payments.
- 2 Invoice Visibility: Ensure down payments are visible and deducible during vendor invoicing.
- 3 Retention Tracking: Capture and link retention amounts directly within the system to the PO.
- 4 Data Integrity: Prevent missing retention amounts and ensure accurate financial records.
- 5 Business Necessity: A critical feature for maintaining robust financial control and vendor management.
Have Questions?
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Frequently Asked Questions
2- While we are doing the Invoicing to the vendor against the Invoice the down payment link is not visible,
3- The retentions amount against the purchase order also get captured outside the system.
4- We should maintain the link for the retentions amounts with the purchase order to avoid the missing amounts of retentions.
5- The linkage of the down payment and retentions amounts with the purchase order is very important and must have features for any business
Retentions can be tracked with the purchase order to monitor and release after the specified terms
1. Activate the business functions for the features for the down payments and retentions 2. Configuration of the required settings for the down payments and retentions
Assumptions:
1. Down payment request to be created against the purchase order 2. Posting of the down payment against the request 3. No direct down payment to be posted in the system
The configuration steps are listed with the UAT Testing scripts and documents
1 week for preparing the solution documents based on the understanding and sign off
2 weeks for Realization and Testing the solutions in the DEV and Quality system of SAP
1 week for moving the TR To Production system and generate bank book report in Production system
M2 – Solution Document sign off
M3- UAT Sign off
M4- First month end closing
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