1816/28, 1025 PAA Community [SAP Retention Process | SAP Blogs ®© SAP Community Log-in Update x Ina few months, SAP Community will switch to SAP Universal ID as the only option to login. h SAP Univer Create your SAP Universal ID now! If you have multiple S- or P- accounts, use the Consolidation Tool to merge your content. Aska Question Write Blog Post Bi Personal Insights Follow i Like BN RSS Feed Gaurav Misri March 27,2019 | 3 minute read SAP Retention Process Bal gh3l © 42,925 What is Retention Process? 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 hitpssblogssap.com2019/03/27/sap-etenton-pracess! 11201816/28, 1025 PAA [SAP Retention Process | SAP Blogs The Purpose of this Blog is to Explain the SAP flow of the Retention process. oo tn prin Points tobe noted Purthase Order Creation MEZIN Manly iaMEZIN Retenoncategryand Retention are imandstehere ‘An idtonlfunctionaltyneedstobe ava fortis prcessto work ‘Good ReceiptNote Mico Manallyvia MIGO Creates a Goods eceiptaganst Purchase Order Invoice Bcoking MIRO Manually Message MB 2303 needstobe acthated, Two Accounting documents are generatedhere, 1, Retention invoice 2. Vendor invorce Functionality that needs to be activated is : LOG_MMFI_P2P via tcode SFW5. Customization: Anew document type needs to be created for the retention process. ‘Teode - OMR4. Doc.Types/Number Range: Invoice Receipt Eien Weber emcee peer Faneal Accounting Document Types umber Range for Financal Accounting Click on “Document types in Invoice Verification” tab. hitpssblogssap.com/2019/03/27/sap-etenton-pracess! 21201816/28, 1025 PAA [SAP Retention Process | SAP Blogs Change View "Document Types Invoice Verification/Valuation": Overview % @ newennes (DO BB ‘Transaction Code ‘Transaction text a 1 Post Cosng - Sotiomant @ Supple Rabato As ar invoice Fast voce Entry (UR account mahnterance Price Change eters nebe/crede Cancel voice Document Sette myoieng Pan Settle ConsionmentPipelne Lats. yobsted ReceptSettement Erausted Recept Seitiment Select the “MIRO” transaction code line and display its details. Change View "Document Types Invoice Verification/ Valuation”: Details ? Kev oces DROS GE Tanseton code RD Tandon Tox [Bite eomno hoes (Detauk va Docume pe i feces) 22e. 98 real 0 Doc. type add. doc. 0 Doctype invoice reducton [Rx [invoice Reducton — (avear mania Dime Ret. 5 hitpsxblogs.sap.com/2019/03/27isap-etention-process! 31201816/28, 1025 PAA [SAP Retention Process | SAP Blogs ‘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: Create Purchase order, Teode ~ ME2IN Enter all the relevant details such as Material, Quantity, Unit Price, Plant, Vendor and Retention category. We will enter 10% as retention. hitpssblogssap.com/2019/03/27/sap-etenton-pracess! 41201816/28, 1025 PM [SAP Retention Process | SAP Blogs ‘Save the Purchase order. Standard ?O created under the number 4500000087, PO 4500000087 has been created. Create GRN. Teode - MIGO Enter the Storage location and tick on “Item OK" icon. hitpssblogssap.com2019/03/27/sap-etenton-pracess! 5201816/28, 1025 PM 'SAP Retention Process | SAP Blogs Click on“Post" icon to Post the GRN. Material document 5000000164 posted GRN 5000000164 has been created. Book the Vendor Invoice Teode - MIRO Enter the PO Number, Invoice date and reference field and hit Enter. hitpssblogssap.com2019/03/27/sap-etenton-pracess! 6201816/28, 1025 PAA [SAP Retention Process | SAP Blogs Enter the Amount, Retention due date and Hit Enter. Click onMessages” icon to view the message log. See =_—— hee Em anes 18 mms el oe Click on the “Simulate” icon hitpssblogssap.com2019/03/27/sap-etenton-pracess! 17201816/28, 1025 PAA [SAP Retention Process | SAP Blogs EE a bam nee Click on the “Post” icon to book the Invoice. @ Document no. 5100000139 created Document 5100000139 has been created. Display Invoice document to check for the GL accounts that are hit in Retention process, ‘Two accounting document will be generated : hitpssblogssap.com2019/03/27/sap-etenton-pracess! 81201816/28, 1025 PM [SAP Retention Process | SAP Blogs 1 Original vendor invoice 2. Retention amount invoice. Teode - MIR4 Enter the Invoice document and Fiscal year. 4 Dpay Document Invoke Document No, SLOGODEIE, Fiscal Year This is the document we just posted via MIRO. Click on Follow-On documents icon. hitpssblogssap.com2019/03/27/sap-etenton-pracess!1816/28, 1025 PM ‘We have got 2 Accounting documents been generated here. The screenshot given below is the subsequent accounting entries for Accounting document 5100000112. ‘Subsequent accounting entries for Accounting document 5100000113. hitpssblogssap.com/2019/03/27/sap-etenton-pracess! 101201816/28, 1025 PM 'SAP Retention Process | SAP Blogs Note - Payment to vendor can be done via Teode F-53. Conclusion 1. LOG_MMFI_P2P functionality needs to be activated. 2, Message M8_2303 needs to be activated. 3. Aspecial G/L indicator needs to be created for Retention process so that correct G/L accounts will be hit from the Fl side. 4. Two Accounting entries be generated after booking the Invoice. 5, Retention percentage and category in the PO and Retention due date in MIRO are a mandate. hope you liked the blog, and if you have any suggestions or questions please let me know. Alert Moderator Assigned Tags MM Purchasing SAP Supply Chain Management retention hitpssblogssap.com2019/03/27/sap-etenton-pracess! 1201816/28, 1025 PAA [SAP Retention Process | SAP Blogs sapmm Similar Blog Posts Retention Process Configuration & its Process Flow By Prashanth Kothapally Mar 10,2022, Integration issues in S/4HANA ~TM breaks supply chain and how to fix it By Dominik Tylezynski Feb 14, 2023 Purchase Requisitions Process in SAP Fiori By Shiv Kumar Mandowara Apr 28, 2022 Related Questions Spotcheck Process - Goods Recept By Jelel Pires Santos Mar 30,2023 Invoicing plan with retention By Javier CollVinent. Sep 06, 2019 MEN report change in S/4 HANA 2020 after upgrade By SAP Support Nov15,2021 21 Comments You must be Logged on to comment or reply to a post. Santhosh Kolla April], 2019 at 8:58 am Hello Gauray, hitpssblogssap.com2019/03/27/sap-etenton-pracess! 122019623, 1025 Pa ‘SAP Retention Process | SAP Blogs Good Blog. Keep it up. Thanks, Santhosh Kolla. Like1 | Share ‘Amaranatha Reddy Musali April3, 2019 at 10:54 am Very helpful blog. Since you have provided step by step screenshots, it makes the it easily under: Regards, Amar Like1 | Share Samay R Nanda ‘April, 2019 at 9:06 am Insightful to the Vendor retention Functionality Any Use cases or industry specific examples where we can use it? Like | Share Gaurav Misti | Blog Post Author April 8, 2019 at 2:00 pm Retention is common practice in certain areas, for example, construction In construction projects, itis standard to withhold a percentage of the invoices sent by contractors because, at the time of invoice, the quality of the goods cannot be assessed. Typically, about six months after construction projects are finished, quality issues appear and can be assessed. Ifno quality problems arise, the money that was withheld is paid to the contractor, hitpssblogssap.com2019/03/27/sap-etenton-pracess! 13201816/28, 1025 PAA 'SAP Retention Process | SAP Blogs Like © | Share ‘Adams Hamzat November 2, 2020 at 3:27 pm Good day Sir, i will ike to ask, when you post at MIRO an Retention is generated, DR & Cr generated on Vendor retention GLand and Retention GL, Now when you run your Vendor report via FBLIn with Normal Item it shows a Dr to the vendor as retention but when you go back and click crittera of Special GL and execute it generate a DR & Cr leg knocking itself out. My Question how do you post your Invoice in order to capture the right Liabilty on the vendor upon posting the invoice ann. vike C | Share Samay R Nanda April9, 2019 at 10:22 am Thank you! @ That helps Like 1 | Share Sophia Scott ‘April 19, 2019 at 5:46 am Thanks For Sharing...Very Helpful Blog Like1 | Share hitpssblogssap.com2019/03/27/sap-etenton-pracess! 4i201816723, 1025 PM ‘SAP Retention Process | SAP Blogs Olga Nevo May 3, 2019 at 2:09 am Hello Gaurav, Very nice document. Thank you. Can you please advise, if there are two Ratios of retention in one PO (10% and 5%), means two Retention documents should be created during MIRO? How to proceed? Thanks. Olga Like 0 | Share Gaurav Misr | Blog Post Author May 7, 2019 at 2:22 pm 2 Different ratios of retention ina PO means 2 PO line items, So if you do MIRO for these 2 PO line items in a single go, Yes... 2 Retentions documents would be created.. 1 for each line item. Like 0 | Share Olga Nevo May 22,2019 at 2:58 pm Thank you very much, Gaurav. Actually, the company has a kind of gradual retention process, when two different rates should be applied to the single PO line... Do you have any advice? Thanks, Olga Like C | Share Gaurav Misri | Blog Post Author ‘August 6,2019 at 10:32 am ohh fisshh, sorry for the delayed response, firstly, i did not understand how would you apply 2 different rates in PO for a single line. hitpssblogssap.com2019/03/27/sap-etenton-pracess! 15:20816723, 1025 PM ‘SAP Retention Process | SAP Blogs Just an FYI, we can change the retention percentage while doing MIRO. ihope this helps you. Like C | Share Naresh Raghavan ‘August 7, 2019 at 7:08 pm Good one Gaurav! Like 1 | Share Oren Gershon March 16, 2020 at 9:46 am Hello Gauray, Is it possible to activate the retention in $/4 Fiori app (Mange Purchase Order App)? Many thanks Oren Gershon Like © | Share Shishir Kumar Jaly 20,2020 at 11:57 am Hi Gaurav, My client wants round off retention amount in miro. For example the gross amount is 1250 in invoice and if the retention is 2.5% then retention amount will be 31.25. they want this amount round off to 31. Is there any configuration in sap to do that whenever system calculate retention it will automatically give the roundoff figure. And after that further calculation will be based on that. Please let me know if there is such a configuration. hitpssblogssap.com2019/03/27/sap-etenton-pracess! 16201816/28, 1025 PAA 'SAP Retention Process | SAP Blogs Thanks Like © | Share ‘Takudzwa Charles Nyamweda March 31, 2021 at 9:05 am Hi Gaurav When the Retention due date is reached. What is the process for paying the retained amount to the Vendor? Like © | Share Victor Sokov May 24, 2021 at 10:03 am Many thanks, Gurav! Yes, Retentions are extremely relevant for the construction industry. Question: we encounter return positions in POs. Looks like the setting does not cover them - the field for retention percentage is hidden, Retention sum is calculated incorrectly - any idea how to activate it? Like © | Share Shaji Abraham Novernber 18, 2021 at 6:14 am Where to check assignment of retention indicator and special GL Indicator. Like © | Share Divraj Agarwal November 19, 2021 at 10:41 am Very informative blog.... Gaurav. hitpssblogssap.com/2019/03/27/sap-etenton-pracess! 17201816/28, 1025 PM [SAP Retention Process | SAP Blogs If the retention amount is also required to be calculated on unplanned costs being entered during invoicing then how it can be achieved. Thanks, Divraj Like © | Share Bhumika dodia Hi Nice Document !1! | just want to know to where is a contig. that system will generate different FI Document for Retention or we can split the amount in main Fl document. Like © | Share Thilak Chagantipati March 17, 2022 at 6:07 am Sir, Ihave doubt on after done Vendor invoice which includes Vendor adv 10%, Retention money and other deductions then if want to make payment (Via F110-APP) to vendor how system will pick net amount, is there any easy process to clear those line items and make payment to vendor. Like © | Share Thilak Chagantipati March 17,2022 at 6:23 am Hisir, hitpssblogssap.com/2019/03/27/sap-etenton-pracess! 18120816723, 1025 PM ‘SAP Retention Process | SAP Blogs | have doubt on after done Vendor invoice which includes Vendor adv 10%, Retention money and other deductions then if want to make payment (Via FI10-APP) to vendor how system will pick net amount. is there any easy process to clear those line items and make payment to vendor. Advanee in 30 ME2IN PO 1 arfir ac dr 300 MIRO vendor cr “245 Deduction! dr 15 Deduetion2 dr -10 Deduction3 dr 15 Deduction4 dr Deduction 5 -10 2 vendor dr 30 MIRO vendor cr 3 Payment to Filo Vendor Vendor Ac Dr 165 Like 0 | Share Find us on hitpssblogssap.com/2019/03/27/sap-etenton-pracess! 191201816/28, 1025 PAA Privacy Legal Disclosure Trademark. Newsletter htpssblogs.sap.com/2019/03/27isap-etention-process! SAP Retention Process | SAP Blogs Terms of Use Copyright Cookie Preferences Support 20120