Retention PO
Holding the vendor payment partially .
It is a Process of holding a vendor payment partially against some conditions like
Warranty, Grantee.
🔹 Example.
The payable amount to the vendor is ₹10,000, but the customer has paid only ₹9,000.
The remaining ₹1,000 kept hold for a certain period based on specific conditions. This
called as Retention Process.
It has some steps to configure in SAP.
🔹 Steps:
• Business Function check
• Create Document type and Number Range
• Create the Special G/L Indicator
• Maintain retention parameters
1. Business Function Check
T-Code: SFW5
▶️ Procedure:
1. Navigate to T-Code SFW5.
2. On the screen, Check Business Function LOG_MMFI_P2P is in active, which is in
ENTERPRISE_BUSINESS_FUNCTION.
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2. Create Document type and Number Range
To create Document type for Retention Process. In addition, create number ranges for Document
type. It is use in invoice
T-Code: OMR4
2.1 Create Number Range for Document Type
▶️ Procedure:
1. Navigate to T-Code OMR4.
2. On the initial screen, enter the Click Number Ranges and create two Number Ranges
for Document type.(NK&NT)
2.2 Create Document Type
▶️ Procedure:
1. Click on the Document Type in OMR4
2. On the Screen, Create two Document Type Using New Entries
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2.3 Assign Document Type to Invoice (MIRO)
▶️ Procedure:
1. Click Document Type in Invoice Verification in OMR4.
2. On the Screen, Search MIRO by using position.
3. Double Click on the MIRO, It’s Display Document Type which was created already
1.3 Create Special G/L Indicator
To create a special G/L account for Retention Process.
T-Code: OMR4
▶️ Procedure:
1. Navigate to T-Code OMR4.
2. On the initial screen, enter:
➢ Special G/L indicator
➢ Name & Description
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3. On the Displayed Screen, Enable commitments warning and also enter credit & debit in
posting key.
1.4 Maintain Retention Process
In Retention Process need to maintain some Important Configuration based on Time,
Tax & company Code.
➢ Define Default Due Date for Retention
➢ Define Tax handling for Retention
➢ Define Control Parameter for Retention
1.4.1 Define Default Due Date for Retention
T-Code: OLMR
& Path: OLMR>Incoming Invoice>Retention> Define Default Due Date for Retention
▶️ Procedure:
1. Navigate to T-Code OLMR & Path and Execute Define Default Due Date for
Retention.
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2. On the screen, enter the Date Category.
1.4.2 Define Default Due Date for Retention
T-Code: OLMR
& Path: OLMR>Incoming Invoice>Retention> Define Tax Handling for Retention.
▶️ Procedure:
1. Navigate to T-Code OLMR & Path and Execute Define Tax Handling for Retention.
2. On the Screen, Enter the Tax Code and enable the Tax Reduct using New Entries.
1.4.3 Define Control Parameter for Retention
T-Code: OLMR
& Path: OLMR>Incoming Invoice>Retention> Define Control Parameter for Retention.
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▶️ Procedure:
1. Navigate to T-Code OLMR & Path and Execute Define Control Parameter for
Retention.
2. On the Screen, Assign the Special G/L Account to Company Code and enable due date
required.
1.5 Creation of Transaction key
Path: SPRO>Material Management>Purchasing>Conditions>Define Transaction or Event Key.
▶️ Procedure:
1. Navigate to Path and Execute Define Transaction/Event Key.
2. On the Screen, Create Account Key by using New Entries
OBYC for Retention Process
T code: OBYC.
▶️ Procedure:
1. Navigate to T code OBYC. Search EGX
2. On the Screen, Enter G/L of Account and assign this configuration
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Retention in PO
▶️ Steps:
1. Create a new purchase order.
2. Enter the Required Field.
3. It is display in Payment Processing in Header data.
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