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Retention money handling

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Hi Friends,

 

In our process we need to retain 10% of the amount from the vendor's invoice on each bill. Vendor can send partial invoices.

 

Suppose our total PO value is 1000USD and our terms are 10% retention money.

 

In 1st invoice vendor claims 200USD, we need to pay him 180USD and remaining 20USD should go as retention money. This can be settled after final project / completion of services.

 

This has to be done theu MM and LIV / IR process. When ever we raise invoice for 200USD system should automatically do entries :

Vendor 180 Cr

GR/IR : 200 Dr

Rentention account : 20 Cr

 

Earlier we did thru TDS tax code. Now we are working for middle east project where there is no taxes at all. So we are not impleting any tax procedure / TDS codes. In this scenario how can we do ?

 

Can we do thru discount , I don't think so. or else can we do thru rebate conditions?

 

Regards,

Sai Krishna


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