Two possibilities spring to mind.
1. Use deferred tax for the holdback part of the original invoice which means tax is not due and is not reported until the retention is paid. This is standard SAP functionality which works well and I have used it a number of times in the past. Look at the documentation for program RFUMSV25 for more information.
2. Post a manual tax-only invoice at the end with a line before tax then the tax and then another line without tax that cancels the first line, so you credit just the tax to the vendor account additionally.
Regards,
Roy
mark as helpful.
Roy Brookes FFA, FInstBA,
SAP Financials Expert
Senior SAP Financials Consultant
| | | ---------------Original Message---------------
From: kash J
Sent: Friday, November 04, 2011 10:36 AM
Subject: Holdback (without taxes) on PO Invoice
Hi all, I have a requirement where business holds back 10% (without taxes) and pays 90% (with taxes) to the vendor.
Any help on how to accomplish this would be great! The invoice is broken down as follows:
PO Invoice with original contract: 197,299.00 HST
invoice 1: $133,250.70
less 10% holdback: $13,325.07
Sub-total: $119,925.63
HST@13%: $15,590.33
INVOICE TOTAL: $135,515.96
invoice 2: $19,145.10
less 10% holdback: $1,914.51
Sub-total: $17,230.59
HST@13%: $2,239.98
INVOICE TOTAL: $19,470.57
.. and so on
at the end, the last invoice is the HOLDBACK only is received:
holdback invoice: $197,229.00
HST@13%: $2,563.98
INVOICE TOTAL: $22,286.88
Issues:
-cannot simply use payment terms at invoice level since taxes would be calculated on holdbacks as well but we don't want taxes calculated till the end (when holdback invoice is posted)
-The last holdback invoice creates double liability in the vendor account since there are holdbacks already posted from previous invoices.
-One option is to break PO in 2 line items. Original Amt. and Retention Amt and do a MIGO and MIRO for each line item for all invoices. Original Amt. line is set with tax H1 and Retention line with no taxes (V0)
This posts invoice with 2 line items. Orig. amt is paid but retention item is blocked (i use block indicator in split payments tab of MIRO to do this)
At the end, I have a bunch of holdbacks sitting without Taxes and I am unable to add tax to them (unless i do a manual invoice for just the taxes which is not feasible) this could work if system could automatically calculate different lines for taxes based on amount.
thanks! |
| __.____._ Copyright © 2011 Toolbox.com and message author.
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
| |  Roy B
SAP Accounting Top Contributor
Contributed the most posts in a group for a month to earn a Silver Achievement Popular White Papers
In the Spotlight   _.____.__ |
