MM TM 23-Payment Certificate

Training Manual

Manual Payment Certificate Page 1 of 72

Client Name Al Turki Enterprises LLC

Project Name SAP Solution Enhancement in New Landscape

Document Name MM_TM_23-Payment Certificate

Prepared By (Author)

Prepared On

Type of Document Training Manual

Module MM

Training Manual


Index

1.0 Payment Certificate ................................................................................................................................ 3

2.0 Create Payment Certificate ................................................................................................................. 10

3.0 Change payment certificate ................................................................................................................ 14

4.0 Print payment certificate ..................................................................................................................... 16

5.0 Delete payment certificate .................................................................................................................. 20

6.0 Scenario-1 Advance Payment to Contractor on Work Order .......................................................... 23

7.0 Scenario-2 Payment certificate for material on site ....................................................................... 35

8.0 Scenario 3: Creation of Payment Certificate for work executed .................................................. 43

9.0 Scenario 4: Certified Quantities and Material on site consumed .................................................. 55

10.0 Scenario 5: Creation of Payment Certificate with contra charges ............................................... 59

11.0 Release of Retention & Contra charges ............................................................................................. 71

12.0 Checks and Validation: ......................................................................................................................... 72

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1.0 Payment Certificate This document contains information about the process for Subcontract for all type of Civil and O&G

subcontracts which is given to nominated subcontractors or for third party services.

The main objective of this document is to describe the process of creation of payment certificate for

payment processing of subcontractor under different heads like booking the work executed, addition

work executed, retention on work executed and any advance payment requirement and recovery,

deduction of contra charges and release of retention and contra charges, wherever required.

For creation of payment certificate, a customized screen will be developed in which all the heads

which are required to generate the payment certificate will be available. In this screen, some fields

values will be derived automatically based on the various transactions during the period which will

not be allowed to change and some fields will be allowed to enter manually. This will show the

Cumulative Values till this Bill, Cumulative Values till Last Bill and Net Value this bill. The QS has to

enter the period for which payment certificate is required to generate. All the values posted for this

period will be automatically available in the payment certificate.

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S.No. Basis for Calculation Particulars %

tage Calculation for Payment Certificate

1 A Estimated Value of Work Done

During the Month Available from Posting of SES

2 B Estimated Value of Additional Work Executed

Available from Posting of SES

3 C Extra Work Deduction (will be used for deduction of extra work)

Manual Entry in Certificate

4 D = A + B C Total Value of Work Executed Auto Calculation

5 E Material on Site Manual Entry in Certificate

6 F = D + E Total Value Auto Calculation

7 G=E*% Retention Retention on Material on Site 10% Auto Calculated in Certificate, however changes allowed

8 H=D*% Retention Retention on Work Executed 10% Auto Calculated in Certificate, however changes allowed

9 H1=F*% Retention Additional Retention in Lieu of Performance Bond

Manual Entry in Certificate

10 I = G + H + H1 Total Retention Auto Calculation

11 J Advance Payment on PO value Available from Posting of Advance Payment Request

12 K = %of E Recovery of Advance Payment on Material on Site

10% % Tage available from the PO, Auto Calculated in Certificate, however changes allowed

13 L = % of D Recovery of Advance Payment on PO

10% % Tage available from the PO, Auto Calculated in Certificate, however changes allowed

14 M = K + L Total Recovery Auto Calculation

15 N Contra Charges on Materials Auto available from different material issue transaction on Internal Order wrt Work Order

16 O Contra Charges Other than Materials

Auto available from Parking of contra charges booking on Internal Order wrt Work Order

17 O1 Mark Up on Contra Charges (Value) Manual Entry in Certificate

18 P = N + O + O1 Total Contra Charges Auto Calculation

19 P1 Retention Release Manual Entry in Certificate

20 P2 Release of Contra Charges Manual Entry in Certificate

21 Q = F - I + J - M - P + P1 + P2

Total Auto Calculation

22 R Less Previous Certificate Auto from previous certificate

23 S = Q-R Net Total Payable Auto Calculation

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Following are the heads which are considered for payment certificate:

1. Estimated Value of Work Done During the Month - To get the total value of work executed during a

particular period. This value will be available after posting of service entry sheet. This field will be in

display mode and hence no manual entry will be allowed.

2. Estimated Value of Additional Work Executed - To get the total value of additional work executed during

a particular period. This will be identified by mentioning the supplement work in the work order for each

service line number. This value will be available after posting of service entry sheet. This field will also be

in display mode and hence no manual entry will be allowed.

3. Extra Work Deduction - To deduct the value of work executed, if paid in the earlier payment certificates.

This field value will be allowed to enter manually at the time of creation of payment certificate. This field

will be used when there is no work balance (No service entry sheet) and only deduction of work is required.

However if any work in terms of quantity is to be deducted in the current certificate which is related to the

previous certificate, the QS has to mention those line items in terms of quantity in the service entry sheet

itself. System will allow entering the negative quantities keeping the total value of service entry sheet as

positive.

4. Total Value of Work Executed - This will be the sum total of all the work executed after deduction of

extra work and will be available automatically. This field will be in display mode.

5. Material on Site - This is a manual entry field. QS Department has to enter the value of material on site

after calculating the value on 80% manually.

6. Total Value - Since material on site is also considered as work executed and later on, this value is shifted

/ transferred to the work executed, hence this total will be the sum total of work executed and material on

site. This field will be in display mode.

7. Retention on Material on Site - Based on the retention mentioned in the work order, retention percent

will be available at the time of creation of payment certificate. The value of retention will be calculated on

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Material on site value automatically and will be in display mode. However percentage is allowed to change

as per the certificate requirement. If percentage is changed at the time of creation of certificate,

accordingly, value of retention will get changed.

8. Retention on Work Executed - Similarly, value of retention on total work executed will be calculated

automatically based on the percentage and will be in display mode. However percentage is allowed to

change as per the certificate requirement. If percentage is changed at the time of creation of certificate,

accordingly, value of retention will get changed. This field will be in display mode and no manual entry is

allowed.

Above two types of retention is shown separately for calculation purpose. However at the time of printing

of payment certificate, the value of retention will be shown on total (work executed and material on site).

09. Total Retention - This will be calculated automatically which will be the total sum of all types of

retention. This field will be in display mode.

When total cumulative value of total retention is reaching the max retention percent, system will

automatically proposed the max retention amount.

10. Additional Retention in Lieu of Performance Bond - As per the contract terms and conditions, some

contracts also have retention clause which are applicable in lieu of performance bond.

For such type of retention, QS department has to enter the retention percent manually. Accordingly value

of retention will get calculated on Total Contract Value. Retention value will be in display mode, only

percentage can be entered manually.

11. Advance Payment on PO Value - For any advance payment on PO like mobilization advance, QS

department has to create the advance payment request with T.Code ME2DP. After creating request, this

value of advance will be automatically available during creation of payment certificate. This value will be

available in display mode and no changes will be allowed.

12. Recovery of Advance Payment on Material on Site - Advance payment % will be available from the

advance percent mentioned in the PO. Value will get automatically calculated based on the value of

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Material on Site. This value will be in display mode and will not be allowed to change. However percentage

field will be allowed to change. If percentage is changed at the time of creation of certificate, accordingly

value of recovery of advance payment will be calculated as per the changed percentage.

13. Recovery of Advance Payment on PO - Similarly, advance payment % will be available from the advance

percent mentioned in the PO. Value will get automatically calculated based on the value of work executed.

This value will be in display mode and will not be allowed to change. However percentage field will be

allowed to change. Accordingly value of recovery of advance payment will be calculated as per the changed

percentage.

14. Total Recovery - This value will be the total sum of recovery on advance payment on material on site

and advance payment on PO. This value will be in display mode.

15. Contra Charges on Materials - For execution of work, sometimes contractors requires material from our

store. This value of material is debited to the contractor as per the terms and conditions mentioned in the

WO. Additional mark up is also debited from the contractor.

For issuing materials, each contractor will have an internal order number on which the cost of materials will

be booked. During the period, store person will issue the material on contractor internal order with

reference to contractor's work order number. For this, QS person shall communicate the store for internal

order number and corresponding work order number for which material is being issued and value to be

debited.

This value of issued materials during the period will be available automatically at the time of creation of

payment certificate. This value will be in display mode and will not be allowed to change.

At the time of creation of payment certificate, if value is not coming, it means no material has been

booked.

16. Contra Charges Other than Materials - There are other charges like TAC charges, food charges,

penalties, repairs which need to be debited to contractor. These different charges are communicated to the

QS team by site admin or site QS.

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These charges will be booked by site admin or site QS at the internal order by parking the value in different

heads through T.Code FV50. In this transaction, internal order alongwith work order number shall be

mentioned.

This value of issued materials during the period will be available automatically at the time of creation of

payment certificate. This value will be in display mode and will not be allowed to change.

At the time of creation of payment certificate, if value is not coming, it means no material has been

booked.

17. Mark up on Contra Charges - Since system will not automatically calculate any mark up on contra

charges, hence QS department has to mention the mark up value manually at the time of creation of

payment certificate. This value will be allowed to enter manually.

18. Total Contra Charges - This will be the total sum of all the contra charges and mark up value and will be

in display mode.

19. Retention Release - During the creation of payment certificate, if any retention is required to be

released, then QS has to mention the value of retention release manually in the certificate. Based on the

value, account has to pass the accounting entry for retention release.

20. Release of Contra Charges - During creation of payment certificate, if any contra charges is required to

be released, then QS has to mention the value of contra charges to be released manually in the certificate.

Based on the value, account has to pass the accounting entry for contra charges release.

21. Total Value - This value will be calculated based on the total cumulative values of all the heads. This

value will be in display mode.

22. Less Previous Certificate - This value will be derived from the last certificate saved and will be in the

cumulative value till this bill.

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23. Net Total Payable - This value will be the total net value of the current certificate which will be

required to pay to the subcontractor. This value will be calculated from all above heads and will be in

display mode.

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2.0 Create Payment Certificate

T-Code: ZMM_PC

Step 1. Enter the necessary details on initial screen

Sr.no

Field Name Description R/O/C

User Action

and Values

Comments

1 Purchase Document

Purchase order Number

R ZP03/ZP04

Select Purchase Order Number while creating new payment certificate. Starting from 43* or 44* number series of purchase order

2 Posting Period

Posting Period

R Enter appropriate posting period

3 Fiscal year Fiscal year R Enter fiscal year for entry of payment certificate

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4 Select option: create

Creation of payment certificate

R * Select, option to create payment certificate.

(Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional)

Step 2. Enter the header details for the payment certificate.

Sr.no


User Action

and Values

Comments

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1 Remarks Remarks for the payment certificate

O Specific remarks or instructions for the payment certificate

2 Invoice Number

Vendor Invoice number

O Enter the vendor invoice number for the reference

3 PDO PO Ref PDO PO reference number

O PDO purchase order reference number for the reference in payment certificate

4 Work done up to

Work completed till month

O Enter the month till work completed for the payment certificate.

5 PDO SES Ref PDO SES reference number

O PDO service entry sheet reference number for the reference in payment certificate

6 ATE client valuation/ P.C.

ATE client valuation/ P.C.

O Reference text for ATE client valuation/ P.C.


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The column wise details in the payment certificate are as follows,

1. Particulars: description & details for the amount

2. Percentage: values calculated from the Percentage details for the specific particulars

3. Cumulative till this bill: total cumulative value including the payment certificate

4. Cumulative till last bill: total cumulative value till last payment certificate (excluding the current)

5. Net value: difference between total cumulative & cumulative till last bill

All the values in gray are not editable.

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3.0 Change payment certificate

In order to correct or add entries of the payment certificate, user change option. But user can

change entries before submission of the certificate to accounts.

T-Code: ZMM_PC

Sr.no


User Action

and Values

Comments

1 Purchase Document no

Purchase/ work order number

R Specific purchase order number

2 Certificate No

Payment certificate Number

R Payment certificate Number

3 Change Select change R Select option, change

4 Execute Execute the entry R Execute the process


Payment certificate screen will opened in editable format, after making necessary changes user can submit it to accounts & save it

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Payment Certificate for only advance payment shall be printed and forwarded to accounts.

Based on the payment certificate, accounts shall process the advance payment request as per

payment process

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4.0 Print payment certificate

T-Code: ZMM_PC

Sr.no


User Action

and Values

Comments




2 Certificate No



3 Change Select change R Select option, change



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Select, save or print option

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5.0 Delete payment certificate

User can make any changes in payment certificate, till its submitted to accounts, if he/she has to

change payment certificate after submission to accounts, it should be deleted first & new payment

certificate needed to be created again, which will be next serial number for the payment

certificate. User cannot delete the payment certificate if any subsequent payment certificate is

created. Means if payment certificate -1 is needed to delete while payment certificate-2 already

created & submitted, then system will not allow user to delete the payment certificate.

T-Code: ZMM_PC

Sr.no


User Action

and Values

Comments




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2 Certificate No



3 Delet Select, Delet R Select option, delet



Tick cancelation indicator, & Specify the reason to delete

In the print preview of payment certificate, the CANCELLED watermark gets printed.

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6.0 Scenario-1 Advance Payment to Contractor on Work Order

Advance Payment to Contractor on Work Order Recoverable in equal instalments)

Prerequisite: Advance Payment clause in terms of percentage must be mentioned in the work order

QS Department has to create the advance payment request through T.Code ME2DP.

Transaction Code ME2DP

SAP Menu SAP Menu >> Logistics >> Materials Management >>

Purchasing >> Purchase order >> Reporting>> ME2DP >>

Down payment monitoring for PO

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Sr.no


User Action

and Values

Comments

1 Purchase Document


R Enter Purchase Order Number


Select header, create document as shown in snapshot

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Enter Purchase document number, Press Enter for Down payment request

Enter the down payment amount, it should be less than or equalt to down payment amount specified in PO.

Execute the entry

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Sr.no


User Action

and Values

Comments

1 Document date

Document date R Enter Document date

2 Reference Text reference R Any reference for down payment

3 Document Header Text

Header reference R Any reference for down payment

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4 Vendor Vendor code R Vendor code as per PO

5 Trg sp G/L ind

Target Special G/L indicator

R Target Special G/L indicator: A Adv to Subcontractor

6 Enter R Press, Enter to proceed

Sr.no


User Action

and Values

Comments

1 Amount Amount R Enter amount for the down

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payment

2 Tax Code Tax code R Enter, valid tax code, AA

3 Save Header reference R Save the entry

Create Payment Certificate by mentioning the period of certificate.

Advance payment value will automatically be available in the payment certificate. This value is

fetched from the advance payment request created through ME2DP - system will consider all ME2DP

requests for this PO.

T-Code: ZMM_PC

Step 1. Enter the necessary details on initial screen

Sr.no


User Action

and

Comments

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Values

1 Purchase Document


R ZP03/ZP04


2 Posting Period

Posting Period







Step 2. Enter the header details for the payment certificate.

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Sr.no


User Action

and Values

Comments

1 Remarks Remarks for the payment certificate

O Specific remarks or instructions for the payment certificate

2 Invoice Number

Vendor Invoice number

O Enter the vendor invoice number for the reference

3 PDO PO Ref PDO PO reference number

O PDO purchase order reference number for the reference in payment certificate

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4 Work done up to

Work completed till month

O Enter the month till work completed for the payment certificate.

5 PDO SES Ref PDO SES reference number

O PDO service entry sheet reference number for the reference in payment certificate

6 ATE client valuation/ P.C.

ATE client valuation/ P.C.

O Reference text for ATE client valuation/ P.C.


The column wise details in the payment certificate are as follows,

6. Particulars: description & details for the amount

7. Percentage: values calculated from the Percentage details for the specific particulars

8. Cumulative till this bill: total cumulative value including the payment certificate

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9. Cumulative till last bill: total cumulative value till last payment certificate (excluding the current)

10. Net value: difference between total cumulative & cumulative till last bill

All the values in gray are not editable.

Step 3. Advance payment details

Enter the necessary details on initial screen for the advance payment, amount auto picked from

PO,

Check the net payable amount & save the certificate.

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7.0 Scenario-2 Payment certificate for material on site

Material on site will be treated as an advance and will be posted to a separate special g/l account. For

this, a special g/l indicator "G- Material at Site-SC Vendor" has been created to track the material on site

advances separately.

QS Department has to create a new Payment Certificate for initiation of Material on Site payment. In

this certificate, he shall manually enter the amount to be paid in the certificate screen.

Prerequisite:

After that, an Advance Payment Request needs to be created through T.Code F-47 by QS Department.

This payment certificate only for material on site needs to be printed and to be submitted to the

accounts for payment processing.

Based on the payment certificate, Account shall consider the payment request created (F-47) for

further payment processing

If any additional Material on Site is to be paid, request through F-47 shall be created to get the "Net

Value this bill" in the certificate.

F-47 transaction:

Menu Path:

Transaction Code F-47

IMG Menu SAP menu >> Logistics >> Accounting >> Financial

Accounting >> Account Payable >> Document entry >>

Down payment >> F-47 Request

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Sr.no


User Action

and Values

Comments

1 Document date

Document date R Enter Document date

2 Posting date Posting date R Enter Posting date

3 Reference Text reference R Any reference for down payment

4 Document Header Text

Header reference R Any reference for down payment

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5 Account Vendor code R Vendor code as per PO

6 Trg sp G/L ind

Target Special G/L indicator

R Target Special G/L indicator: G Material onsite SC vendor

7 Company code

Company code for the transaction

R Press, Enter Company code for the document entry

8 Currency Currency R Currency for payment


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Sr.no


User Action

and Values

Comments

1 Amount Amount for material onsite

R Amount for the material onsite

2 Tax Code Valid tax code O Enter Valid Tax code

3 Due on Date of payment R Date of payment due for material onsite

4 PO Number PO number R Purchase Order Number with Item No.

5 Account Vendor code R Vendor code as per PO

6 Save R Save the entries


Document number gets generated.

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Creation of new payment certificate

T-Code: ZMM_PC

Enter the certificate header details,

Specify the amount for material on site excluding the percentage,( for example OMR 27,489 is 80% 34361.828)

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Sr.no


User Action

and Values

Comments

1 Material on site

Amount of material onsite

R Enter the Amount of the material onsite excluding the percentage (E.g. for example OMR 27,489 is 80% 34361.828)

2 Retention of material onsite

Percent of retention onsite

C Change Percent of retention onsite, if necessary


System automatically calculates the amount as per the chart specified on page no.12.

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8.0 Scenario 3: Creation of Payment Certificate for work executed

Certified Quantities and extra work executed:

QS Department has to create the Service Entry Sheet based on the certified quantities and also for

extra quantities.

This service entry will get released as per the approval hierarchy.

QS Department shall initiate for the creation of payment certificate.

All the service entry sheets values for the month posted till that date will be available in the

certificate

All the billing will be on the cumulative values

Previous certificate values will be available in the current certificate

Percentage calculation for retention and advance recovery will be available from the PO and will be

auto calculated accordingly in the certificate. However it is allowed to change as per the

requirement.

Check the status "submit to accounts" in payment certificate before sending the physical paper to

accounts.

This payment certificate shall be printed and submit to accounts for further processing

At the time of invoice booking, accounts have to recover the advance payment mention in the

payment certificate in MIRO (amount should be adjusted only on value of work executed and not on

material on site. Advance recovery on material on site will be done manually).

Entry for Retention on vendor bill will be done auto through invoice booking in MIRO. (either on 10%

as per PO or up to Maximum mentioned in the PO)

System will calculate all the retention amount deducted and will post only the amount which is equal

to or less than the amount of maximum retention % maintained in the WO.

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All entries which are to be made by accounts shall be on "Net Value this Bill" only.

Step- Creation of Service Entry Sheet:

Transaction Code ML81N

SAP Menu SAP Menu >> Logistics >> Materials Management >>

Purchasing >> Purchase order >> Follow on function>>

Service Entry Sheet >> ML81N

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Select the Other Purchase Order, Enter Purchase Order Number: Enter.

Click on, Create new Service Entry Sheet

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Service Entry for Unplanned Services: If in Work order services specifically not mentioned service limit is mentioned, services can be

entered in service entry sheet manually.

Sr.no


User Action

and Values

Comments

1 Service Number

Service Number R select service number as per required service description

2 Quantity Amount of work completed

R Amount of work completed, needed to be confirmed

3 Gross Price Gross Price R Gross Price for service per unit


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Save the document.

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Service Entry for Planned Services: For Planned Services: if in Work order services specifically mentioned follow the process, user can adopt the services with reference to work order.

Sr.no


User Action

and Values

Comments

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1 Short text Short text for ref R Reference short text

2 Reference Reference detail R Reference details for services

3 Service Sel. Service Selection R Service Selection for adoption in Service entry sheet


Select the Purchase order,

Enter.

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Select the services which are executed.

Adopt the Services in to service entry sheet, as highlighted in snapshot.

Update the Quantity of service executed.

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Save the document.

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Create Payment Certificate:

T-code: ZMM_PC

Sr.no


User Action

and Values

Comments

1 Purchase Document


R ZP03/ZP04


2 Posting Period

Posting Period







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Value of the work executed will automatically come from payment certificate,

Extra work deduction value can be entered manually if required.

After confirming all the details payment certificate can be submitted to accounts & saved.

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Print for the payment certificate for work executed

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9.0 Scenario 4: Certified Quantities and Material on site consumed

This is applicable if the Material on Site is consumed and the valuation is done as per the BOQ line item.

In such case, the value of material advance will be reduced and billing is to be done for BOQ service line

item.

QS Department has to create the Service Entry Sheet based on the certified quantities.

This service entry will get released as per the approval hierarchy.



certificate.

For Material on site, QS has to manual remove the value in the new certificate. The net impact of

removing the material on site will be as -ve value in the column "Net value this bill".

% tage calculation for retention and advance recovery will be available from the PO and will be auto

calculated accordingly in the certificate. However it is allowed to change as per the requirement.

This payment certificate shall be printed and submit to accounts for further processing.


accounts.

At the time of invoice booking, accounts have to recover the advance payment mention in the

payment certificate in MIRO (amount should be adjusted only on value of work executed and not on

material on site. Advance recovery on material on site will be done manually).

Entry for Retention on vendor bill will be done auto through invoice booking in MIRO. (either on 10%

as per PO or up to Maximum mentioned in the PO)

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System will calculate all the retention amount deducted and will post only the amount which is equal

to or less than the amount of maximum retention % maintained in the WO.


Service entry sheet can be posted as per the process mentioned above,

Payment certificate created for the work executed along with reduction in material on site, as highlighted below,

However the planned & additional value of the work done executed will directly come from Service entry sheet.

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10.0 Scenario 5: Creation of Payment Certificate with contra charges

This is a scenario wherein materials and services are given to the subcontractor and those needs to be

recovered from the bill.

Contra charges for materials shall be booked on Internal Order of the vendor with respect to the work

order. These entries will happen as and when materials are issued on internal order.

Contra charges other than materials - like repairs, TAC charges, penalties, medical charges, food

charges etc

Repair charges - P&M department shall provide the value of recoverable amount to QS

Department.

Other Charges - Admin at site shall inform all the recoverable charges to QS Department.

QS Department shall park an FI document through T.Code FV50 by crediting the cost center and

debiting the internal order along with PO number. These entries shall be parked in the respective g/l

heads.

Expense A/c Dr (with internal order and PO number)

Expense A/C Cr (with cost center with PO number)



certificate.

All the cumulative entries of contra charges will be available in the payment certificate based on the

parked entries. If no values are coming in the contra charges, then QS has to check with all other

departments.

% tage calculation for retention and advance recovery will be available from the PO and will be auto

calculated accordingly in the certificate. However it is allowed to change as per the requirement.

This payment certificate shall be printed and submit to accounts for further processing

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Parking of document FV-50 for debiting the Services rendered to the subcontractor:

Transaction Code FV-50

IMG Menu SAP menu >> Accounting >> Financial Accounting >>

General Ledger >> Document entry >> FV-50 >> Edit or

Park G/L Document

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Sr.no


User Action

and Values

Comments

1 Document Date

Document Date R Enter the Document Date

2 Posting Date Posting date R Enter the Posting Date

3 Reference Reference R Reference text

4 Doc. Header Text

Document Header text

R * Enter Document Header text

5 G/L Acct. General Ledger A R Specific G/L for entries, E.g. 4040820 for accommodation expenses

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6 D/C Debit/Credit R Debit/ Credit entries

7 Amount Amount R Amount in doc

8 Order Internal order number

R Internal order: Vendor & plant specific,

9 Plant Plant code R Enter Plant code

10 Purchase Doc

Purchase order

No

R Enter, Purchase Order Number


Create payment Certificate,

Payment certificate will reflect the entries made in FV-50 document as contra charges other than materials,

As shown below,

If any markup is to be taken on Contra Charges, then QS has to mention the amount at the time of

preparation of payment certificate.


accounts.

Rest of entries for advance recovery and retention etc will be posted as mentioned in the details of

the previous certificates.

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Mark up on Contra Charges

If any mark up is to be taken on Contra Charges, then QS has to mention the amount at the time of

preparation of payment certificate.

Contra charges on the materials:

Contra charges for materials shall be booked on Internal Order of the vendor with respect to the work

order. These entries will happen as and when materials are issued on internal order.

Goods Issue to the sub-contractor on Debitable basis:

Reservation made for Goods Issue to the sub-contractor on Debitable basis Z-61 MvT & Vendor internal

order with reference to the work order, followed by Goods Issue to the vendor,

Creation of the reservation,

Transaction Code MB21

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IMG Menu SAP menu >> Logistics >>Materials Management >>

Inventory Management >> Reservation >> MB21 -Create

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Sr.no


User Action and

Values

Comments

1 Base date Base date R Base Date for reservation

2 Movement Type

Movement Type R Enter the Movement Type for the reservation Z-61: GI to sub con Debitable basis

3 Plant Plant Code R Plant Number


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Sr.no


User Action and

Values

Comments

1 Goods Recipient

Goods Recipient R Goods Recipient: Text

2 Order Internal Order No.

R Internal Order Number: vendor & plant combination

3 Material code

Material code R Material code for the reservation

4 Qty Quantity R Quantity for the reservation

5 Batch Valuation Type R Select, proper Valuation Type

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Enter the Purchase Order number for the contract for the vendor & plant.

Save.

Reservation is created.

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Goods Issue to Sub Contractor (by site personnel)

As per the Goods Issue, all the entries will be reflected in the payment certificate, refer the below screenshot

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11.0 Release of Retention & Contra charges

Release of Contra Charges

At the time of preparation of certificate, if any contra charges needs to be released, QS has to manually

enter the amount of contra charges to be allowed. This information will also be passed on to the account

through payment certificate.

Retention Release

Any retention release required by QS needs to be mentioned at the time of creation of payment certificate.

This needs to be mentioned manually in the payment certificate.

Training Manual


12.0 Checks and Validation:

1. Payment Certificate will be prepared based on the period of work. All the values posted other than the

previous certificate will be available in the payment certificate.

2. Option of Create, Change and Display will be available for payment certificate. If any entry is missed, it

can be rectified in the change mode. For manual entries, QS Department has to change the entry manual,

however all other entries which are posted through different transactions will appear automatically.

3. There will be an indicator "Submit to account". This indicator needs to be set for submission of payment

certificate to account. If this indicator is not set, user will not be able to create the new certificate.

Also, once this indicator is set, no change will be allowed in the same certificate. For any correction, QS

has to create the new certificate.

4. If Advance payment request on PO through ME2DP is not created, the amount will not be available in the

payment certificate.

5. Material issued to contractor will be issued to the internal Order alongwith work order, corresponding to

the plant and vendor code.

6. At the time of park and post of contra charges, the user has to mention the PO number against which

contra charges are being booked. If it is not mentioned, amount will not be available in the payment

certificate.

7. At the time of booking of retention amount for Material at site amount, the account has to mention the

PO number against which retention amount is being retained. This will also be applicable when any

retention amount is being released.

8. Payment certificate will not be available for work execution amount until SES is not passed and material document is not posted.

Documents

MM TM 23-Payment Certificate