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Vendor Retention Process in SAP

This document describes the vendor retention process in SAP. It involves configuring settings like activating the business function, defining document types, creating special GL accounts, and setting up transaction keys and retention parameters. It then explains the step-by-step process of creating a purchase requisition, purchase order, goods receipt, vendor invoice, payment, and retention claim document. The goal is to retain a portion of payment for a set period according to contracts to mitigate risk for the purchaser.

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Prateek Mohapatra
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2K views

Vendor Retention Process in SAP

This document describes the vendor retention process in SAP. It involves configuring settings like activating the business function, defining document types, creating special GL accounts, and setting up transaction keys and retention parameters. It then explains the step-by-step process of creating a purchase requisition, purchase order, goods receipt, vendor invoice, payment, and retention claim document. The goal is to retain a portion of payment for a set period according to contracts to mitigate risk for the purchaser.

Uploaded by

Prateek Mohapatra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Doc 05_Vendor Retention Process


In SAP

Tarek Hossain Chowdhury


Sr. Consultant SAP FICO,
Bangladesh
M & WhatsApp: +8801819-210126
Email ID: [email protected]
Skype ID: tarekhchy
Linkedin:https://www.linkedin.com/i
n/tarek-hossain-chowdhury-
b192a341/

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 1
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Doc 05_Vendor Retention Process
In SAP
Contents
A) What is Vendor Retention Process? ............................................................ 3
B) Configuration Process ............................................................................... 4
1) Activate Business Function LOG_MMFI_P2P // T Code SFW5 .................... 4
2) For the retentions a new field is offered to define a new document type // T
Code OMR4............................................................................................... 4
3) Special GL creation // T Code FBKP ......................................................... 8
4) Define the Transaction Key EGX............................................................ 10
5) OBYC setup for Transaction key EGX .................................................... 11
6) Retention Parameter Set // T Code OLMR............................................... 12
C) Execution Process of Vendor Retention ..................................................... 15
1) Create Purchase Requisition T Code ME51N .......................................... 15
2) Release Purchase Requisition T Code ME54N ........................................ 15
4) Create Purchase Order T Code ME21N.................................................. 16
5) Release Purchase Order T Code ME29N ............................................... 17
6) Goods Received by Warehouse T Code MIGO ....................................... 18
7) Vendor Submit invoice to the Company................................................... 19
8) Vendor Invoice Creation T Code MIRO ................................................... 19
9) Accounting impact display of Vendor Retention Entry during Vendor invoice
Creation................................................................................................... 22
10) Vendor Payment T Code F-53 ............................................................ 23
11) After 180 days Vendor submit Retention Claim Document to the Company24
12) Vendor Retention Amount Payment T Code F-53 .................................. 24

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 2
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Doc 05_Vendor Retention Process
In SAP
A) What is Vendor Retention Process?

Retention as the word indicates is the ability to keep back


something. In SAP business process depending on the contracts
between purchaser and vendor the purchaser has the authority to
retain a portion of the payment for the vendor until the end of
warranty period or any other condition agreed upon by purchaser
and vendor. This is done in order to mitigate the risk to the
purchaser.

PO issue to Vendor
PO Amount BDT 15,000/-
Retention Percentage 10%

Goods Received
Good Received at
Warehouse

Payment of
Immediately
Vendor Invoice
Vendor Invoice
Invoice Amount BDT 13,500/- After 180 Days

Retention Amount BDT 1,500/-

Payment of
Vendor
Retention
Amount

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 3
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Doc 05_Vendor Retention Process
In SAP
B) Configuration Process

1) Activate Business Function LOG_MMFI_P2P // T Code SFW5

2) For the retentions a new field is offered to define a new


document type // T Code OMR4

Document Type

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
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TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 5
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Doc 05_Vendor Retention Process
In SAP
Number Range for Document Type in FI

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
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Doc 05_Vendor Retention Process
In SAP

Document Types in Invoice Verification

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
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3) Special GL creation // T Code FBKP

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 8
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Doc 05_Vendor Retention Process
In SAP

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 9
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4) Define the Transaction Key EGX


Manu Path >> Materials Management >> Purchasing >> Conditions >>
Define Price Determination Process >> Define Transaction/Event Keys

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
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5) OBYC setup for Transaction key EGX

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
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6) Retention Parameter Set // T Code OLMR

Manu Path >> Logistics Invoice Verification >> Incoming Invoice


>> Retention >> Define Default Due Date for Retention

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 12
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In SAP

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 13
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Doc 05_Vendor Retention Process
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Manu Path >> Logistics Invoice Verification >> Incoming Invoice


>> Retention >> Define Control Parameters for Retention

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 14
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C) Execution Process of Vendor Retention

1) Create Purchase Requisition T Code ME51N


Manu Path >> Logistics >> Materials Management >> Purchasing
>> Purchase Requisition >> ME51N – Create
3000000470

2) Release Purchase Requisition T Code ME54N


3)

Manu Path >> Logistics >> Materials Management >> Purchasing


>> Purchase Requisition >> Release >> ME54N - Individual
Release

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 15
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Doc 05_Vendor Retention Process
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4) Create Purchase Order T Code ME21N


Manu Path >> Logistics >> Materials Management >> Purchasing
>> Purchase Order >> Create >> ME21N - Vendor/Supplying Plant
Known
4500001511
TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
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This Retention Field will be appeared after activation of business
Function LOG_MMFI_P2P

5) Release Purchase Order T Code ME29N


Manu Path >> Logistics >> Materials Management >> Purchasing
>> Purchase Order >> Release >> ME29N - Individual Release
4500001511

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 17
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6) Goods Received by Warehouse T Code MIGO


Manu Path >> Logistics >> Materials Management >> Purchasing
>> Purchase Order >> Follow-On Functions >> MIGO - Goods
Receipt

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
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7) Vendor Submit invoice to the Company

After goods delivery, Vendor has been submitted invoice along


with relevant document to the company for payment.

8) Vendor Invoice Creation T Code MIRO

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 19
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Doc 05_Vendor Retention Process
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TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 20
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Doc 05_Vendor Retention Process
In SAP

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 21
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Doc 05_Vendor Retention Process
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9) Accounting impact display of Vendor Retention Entry during
Vendor invoice Creation

FBL1N

S_ALR_87012078 - Due Date Analysis for Open Items


By executing this report – user can see the net due date of Vendor
Retention amount.

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 22
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10) Vendor Payment T Code F-53

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 23
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Doc 05_Vendor Retention Process
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11) After 180 days Vendor submit Retention Claim Document
to the Company

After 180 days vendor submit retention claim document to the


company for payment along with relevant documents.

12) Vendor Retention Amount Payment T Code F-53

TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 24
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TAREK HOSSAIN CHOWDHURY ---------- SR. CONSULTNAT (SAP FICO) EMAIL : [email protected] /// M
+8801819210126 25

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