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Training Manual

Client Name
Project Name

Al Turki Enterprises LLC
SAP Solution Enhancement in New Landscape

Document Name
Prepared By (Author)
Prepared On

MM_TM_23-Payment Certificate

Type of Document
Module

Training Manual
MM

Manual – Payment Certificate
Page 1 of 72

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

Manual – Payment Certificate
Page 2 of 72

Training Manual

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.

Manual – Payment Certificate
Page 3 of 72

Basis for Calculation Particulars 1 A 2 B 3 C 4 5 6 D=A+B–C E F=D+E Estimated Value of Work Done During the Month Estimated Value of Additional Work Executed Extra Work Deduction (will be used for deduction of extra work) Total Value of Work Executed Material on Site Total Value 7 G=E*% Retention Retention on Material on Site 8 H=D*% Retention Retention on Work Executed 9 H1=F*% Retention 10 I = G + H + H1 Additional Retention in Lieu of Performance Bond Total Retention 11 J Advance Payment on PO value 12 K = %of E Recovery of Advance Payment on Material on Site 13 L = % of D Recovery of Advance Payment on PO 14 M=K+L Total Recovery 15 N Contra Charges on Materials 16 O Contra Charges Other than Materials 17 18 19 20 Mark Up on Contra Charges (Value) Total Contra Charges Retention Release Release of Contra Charges 22 O1 P = N + O + O1 P1 P2 Q=F-I+J-M-P+ P1 + P2 R 23 S = Q-R 21 % tage Calculation for Payment Certificate Available from Posting of SES Available from Posting of SES Manual Entry in Certificate Auto Calculation Manual Entry in Certificate Auto Calculation Auto Calculated in Certificate. Auto 10% Calculated in Certificate. 10% however changes allowed Manual Entry in Certificate Auto Calculation Available from Posting of Advance Payment Request % Tage available from the PO. however changes allowed Auto Calculation Auto available from different material issue transaction on Internal Order wrt Work Order Auto available from Parking of contra charges booking on Internal Order wrt Work Order Manual Entry in Certificate Auto Calculation Manual Entry in Certificate Manual Entry in Certificate Total Auto Calculation Less Previous Certificate Auto from previous certificate Net Total Payable Auto Calculation Manual – Payment Certificate Page 4 of 72 . Auto 10% Calculated in Certificate. however changes allowed % Tage available from the PO. 10% however changes allowed Auto Calculated in Certificate.No.Training Manual S.

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. Material on Site . This field will be in display mode. Extra Work Deduction . Estimated Value of Additional Work Executed .Since material on site is also considered as work executed and later on. System will allow entering the negative quantities keeping the total value of service entry sheet as positive.Training Manual Following are the heads which are considered for payment certificate: 1. QS Department has to enter the value of material on site after calculating the value on 80% manually. This field will be in display mode and hence no manual entry will be allowed.To deduct the value of work executed. 4. if paid in the earlier payment certificates. hence this total will be the sum total of work executed and material on site. This field will also be in display mode and hence no manual entry will be allowed. retention percent will be available at the time of creation of payment certificate.To get the total value of additional work executed during a particular period. Estimated Value of Work Done During the Month . 5. 2. 6. the QS has to mention those line items in terms of quantity in the service entry sheet itself. This field will be used when there is no work balance (No service entry sheet) and only deduction of work is required. This field value will be allowed to enter manually at the time of creation of payment certificate. 7. The value of retention will be calculated on Manual – Payment Certificate Page 5 of 72 .This is a manual entry field.This will be the sum total of all the work executed after deduction of extra work and will be available automatically. 3. Total Value . This field will be in display mode. However if any work in terms of quantity is to be deducted in the current certificate which is related to the previous certificate. This value will be available after posting of service entry sheet.To get the total value of work executed during a particular period.Based on the retention mentioned in the work order. Total Value of Work Executed . this value is shifted / transferred to the work executed. Retention on Material on Site .

For any advance payment on PO like mobilization advance. 09. After creating request. 10. some contracts also have retention clause which are applicable in lieu of performance bond.Code ME2DP. 11. accordingly. When total cumulative value of total retention is reaching the max retention percent. Advance Payment on PO Value . the value of retention will be shown on total (work executed and material on site).Similarly. This value will be available in display mode and no changes will be allowed.Advance payment % will be available from the advance percent mentioned in the PO. Above two types of retention is shown separately for calculation purpose. Accordingly value of retention will get calculated on Total Contract Value. Additional Retention in Lieu of Performance Bond . QS department has to create the advance payment request with T. Value will get automatically calculated based on the value of Manual – Payment Certificate Page 6 of 72 . This field will be in display mode and no manual entry is allowed. 8. Retention on Work Executed . system will automatically proposed the max retention amount. Retention value will be in display mode. Recovery of Advance Payment on Material on Site . only percentage can be entered manually. However percentage is allowed to change as per the certificate requirement. If percentage is changed at the time of creation of certificate. This field will be in display mode.This will be calculated automatically which will be the total sum of all types of retention. 12. value of retention on total work executed will be calculated automatically based on the percentage and will be in display mode. QS department has to enter the retention percent manually. value of retention will get changed. However percentage is allowed to change as per the certificate requirement. Total Retention . this value of advance will be automatically available during creation of payment certificate.Training Manual Material on site value automatically and will be in display mode. For such type of retention. value of retention will get changed.As per the contract terms and conditions. However at the time of printing of payment certificate. accordingly. If percentage is changed at the time of creation of certificate.

If percentage is changed at the time of creation of certificate. repairs which need to be debited to contractor. food charges. This value will be in display mode. However percentage field will be allowed to change. if value is not coming. 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 material is debited to the contractor as per the terms and conditions mentioned in the WO.Similarly.For execution of work. advance payment % will be available from the advance percent mentioned in the PO. Total Recovery . These different charges are communicated to the QS team by site admin or site QS. Value will get automatically calculated based on the value of work executed. Manual – Payment Certificate Page 7 of 72 . Contra Charges on Materials .This value will be the total sum of recovery on advance payment on material on site and advance payment on PO. it means no material has been booked. This value will be in display mode and will not be allowed to change.Training Manual Material on Site. sometimes contractors requires material from our store. 14. This value will be in display mode and will not be allowed to change. Contra Charges Other than Materials . For issuing materials. store person will issue the material on contractor internal order with reference to contractor's work order number. Additional mark up is also debited from the contractor. Accordingly value of recovery of advance payment will be calculated as per the changed percentage. During the period.There are other charges like TAC charges. However percentage field will be allowed to change. This value of issued materials during the period will be available automatically at the time of creation of payment certificate. each contractor will have an internal order number on which the cost of materials will be booked. 13. accordingly value of recovery of advance payment will be calculated as per the changed percentage. This value will be in display mode and will not be allowed to change. penalties. 16. Recovery of Advance Payment on PO . At the time of creation of payment certificate. For this. 15.

account has to pass the accounting entry for contra charges release. if value is not coming. This value will be in display mode.During the creation of payment certificate. hence QS department has to mention the mark up value manually at the time of creation of payment certificate. internal order alongwith work order number shall be mentioned. This value will be allowed to enter manually. it means no material has been booked. account has to pass the accounting entry for retention release. if any contra charges is required to be released. In this transaction.This value will be derived from the last certificate saved and will be in the cumulative value till this bill. This value of issued materials during the period will be available automatically at the time of creation of payment certificate.Code FV50.Since system will not automatically calculate any mark up on contra charges.This value will be calculated based on the total cumulative values of all the heads. Mark up on Contra Charges . 18.This will be the total sum of all the contra charges and mark up value and will be in display mode. 17. This value will be in display mode and will not be allowed to change. Based on the value.During creation of payment certificate. 20. Total Contra Charges . Less Previous Certificate . 22. Retention Release . if any retention is required to be released. At the time of creation of payment certificate. Total Value . 21.Training Manual These charges will be booked by site admin or site QS at the internal order by parking the value in different heads through T. 19. Based on the value. then QS has to mention the value of contra charges to be released manually in the certificate. Release of Contra Charges . Manual – Payment Certificate Page 8 of 72 . then QS has to mention the value of retention release manually in the certificate.

Manual – Payment Certificate Page 9 of 72 . This value will be calculated from all above heads and will be in display mode.Training Manual 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.

Enter the necessary details on initial screen Sr. no Field Name 1 Purchase Document 2 3 Description R/O/ C User Action and Values Comments Purchase order Number R ZP03/ZP0 4 Posting Period Posting Period R Enter appropriate posting period Fiscal year Fiscal year R Enter fiscal year for entry of payment certificate Select Purchase Order Number while creating new payment certificate.Training Manual 2.0 Create Payment Certificate T-Code: ZMM_PC Step 1. Starting from 43* or 44* number series of purchase order Manual – Payment Certificate Page 10 of 72 .

“R” = Required. (Note: On above table. Sr. “O” = Optional. in column “R/O/C”. no Enter the header details for the payment certificate. “C” = Conditional) Step 2. option to create payment certificate.Training Manual 4 Select option: create Creation of payment certificate R * Select. Field Name Description R/O/ C User Action and Values Comments Manual – Payment Certificate Page 11 of 72 .

C. “R” = Required. in column “R/O/C”. (Note: On above table. “C” = Conditional) Manual – Payment Certificate Page 12 of 72 .C.Training Manual 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. “O” = Optional. O Reference text for ATE client valuation/ P. ATE client valuation/ P.

Training Manual The column wise details in the payment certificate are as follows. Net value: difference between total cumulative & cumulative till last bill All the values in gray are not editable. Cumulative till this bill: total cumulative value including the payment certificate 4. 1. Particulars: description & details for the amount 2. Cumulative till last bill: total cumulative value till last payment certificate (excluding the current) 5. Percentage: values calculated from the Percentage details for the specific particulars 3. Manual – Payment Certificate Page 13 of 72 .

0 Change payment certificate In order to correct or add entries of the payment certificate. after making necessary changes user can submit it to accounts & save it Manual – Payment Certificate Page 14 of 72 . no Field Name Description R/O/ C 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.Training Manual 3. “O” = Optional. “C” = Conditional) Payment certificate screen will opened in editable format. in column “R/O/C”. “R” = Required. T-Code: ZMM_PC Sr. change 4 Execute Execute the entry R Execute the process (Note: On above table. But user can change entries before submission of the certificate to accounts. user change option.

accounts shall process the advance payment request as per payment process Manual – Payment Certificate Page 15 of 72 .  Based on the payment certificate.Training Manual  Payment Certificate for only advance payment shall be printed and forwarded to accounts.

Training Manual 4. “O” = Optional. “C” = Conditional) Manual – Payment Certificate Page 16 of 72 .0 Print payment certificate T-Code: ZMM_PC Sr. “R” = Required. in column “R/O/C”. no Field Name Description R/O/ C 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 (Note: On above table.

Training Manual Manual – Payment Certificate Page 17 of 72 .

Training Manual Select. save or print option Manual – Payment Certificate Page 18 of 72 .

Training Manual Manual – Payment Certificate Page 19 of 72 .

Training Manual 5. User cannot delete the payment certificate if any subsequent payment certificate is created. if he/she has to change payment certificate after submission to accounts.0 Delete payment certificate User can make any changes in payment certificate. it should be deleted first & new payment certificate needed to be created again. Means if payment certificate -1 is needed to delete while payment certificate-2 already created & submitted. no 1 Field Name Purchase Document no Description Purchase/ work order number R/O/ C R User Action and Values Comments Specific purchase order number Manual – Payment Certificate Page 20 of 72 . T-Code: ZMM_PC Sr. till it’s submitted to accounts. which will be next serial number for the payment certificate. then system will not allow user to delete the payment certificate.

“C” = Conditional) Tick cancelation indicator. Manual – Payment Certificate Page 21 of 72 . “O” = Optional. in column “R/O/C”. delet 4 Execute Execute the entry R Execute the process (Note: On above table. “R” = Required. & Specify the reason to delete In the print preview of payment certificate.Training Manual 2 Certificate No Payment certificate Number R Payment certificate Number 3 Delet Select. Delet R Select option. the “CANCELLED” watermark gets printed.

Training Manual Manual – Payment Certificate Page 22 of 72 .

Training Manual

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

Manual – Payment Certificate
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Training Manual

Manual – Payment Certificate
Page 24 of 72

Training Manual

Sr.
no

Field Name

Description

R/O/
C

User
Action
and
Values

Comments

1

Purchase
Document

Purchase order
Number

R

Enter Purchase Order Number

2

Execute

Execute the entry

R

Execute the process

Select header, create document as shown in snapshot

Manual – Payment Certificate
Page 25 of 72

Execute the entry Manual – Payment Certificate Page 26 of 72 . 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.Training Manual Enter Purchase document number.

no Field Name Description R/O/ C 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 Manual – Payment Certificate Page 27 of 72 .Training Manual Sr.

Enter to proceed Sr.Training Manual 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. no 1 Field Name Amount Description Amount R/O/ C R User Action and Values Comments Enter amount for the down Manual – Payment Certificate Page 28 of 72 .

system will consider all ME2DP requests for this PO. Sr.  Advance payment value will automatically be available in the payment certificate. no Enter the necessary details on initial screen Field Name Description R/O/ C User Action and Comments Manual – Payment Certificate Page 29 of 72 .Training Manual payment 2 Tax Code Tax code R Enter. valid tax code. T-Code: ZMM_PC Step 1. AA 3 Save Header reference R Save the entry  Create Payment Certificate by mentioning the period of certificate. This value is fetched from the advance payment request created through ME2DP .

“C” = Conditional) Step 2. in column “R/O/C”. Manual – Payment Certificate Page 30 of 72 . “O” = Optional. Enter the header details for the payment certificate. Starting from 43* or 44* number series of purchase order Select. option to create payment certificate. “R” = Required.Training Manual Values 1 Purchase Document Purchase order Number R ZP03/ZP0 4 2 Posting Period Posting Period R Enter appropriate posting period 3 Fiscal year Fiscal year R Enter fiscal year for entry of payment certificate 4 Select option: create Creation of payment certificate R * Select Purchase Order Number while creating new payment certificate. (Note: On above table.

no Field Name Description R/O/ C 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 Manual – Payment Certificate Page 31 of 72 .Training Manual Sr.

in column “R/O/C”. “R” = Required.Training Manual 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. O Reference text for ATE client valuation/ P.C. (Note: On above table. Cumulative till this bill: total cumulative value including the payment certificate Manual – Payment Certificate Page 32 of 72 . “O” = Optional. Percentage: values calculated from the Percentage details for the specific particulars 8. ATE client valuation/ P.C. “C” = Conditional) The column wise details in the payment certificate are as follows. Particulars: description & details for the amount 7. 6.C.

Cumulative till last bill: total cumulative value till last payment certificate (excluding the current) 10. Step 3. Advance payment details Enter the necessary details on initial screen for the advance payment. Manual – Payment Certificate Page 33 of 72 . amount auto picked from PO.Training Manual 9. Check the net payable amount & save the certificate. Net value: difference between total cumulative & cumulative till last bill All the values in gray are not editable.

Training Manual Manual – Payment Certificate Page 34 of 72 .

he shall manually enter the amount to be paid in the certificate screen. QS Department has to create a new Payment Certificate for initiation of Material on Site payment. Prerequisite:  After that. Account shall consider the payment request created (F-47) for further payment processing  If any additional Material on Site is to be paid. an Advance Payment Request needs to be created through T.Material at Site-SC Vendor" has been created to track the material on site advances separately.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.  This payment certificate only for material on site needs to be printed and to be submitted to the accounts for payment processing. For this.Code F-47 by QS Department. In this certificate.Training Manual 7.  Based on the payment 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 Manual – Payment Certificate Page 35 of 72 . a special g/l indicator "G. request through F-47 shall be created to get the "Net Value this bill" in the certificate.

Training Manual Manual – Payment Certificate Page 36 of 72 .

Training Manual Sr. no Field Name Description R/O/ C 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 Manual – Payment Certificate Page 37 of 72 .

“R” = Required.Training Manual 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 (Note: On above table. “C” = Conditional) Manual – Payment Certificate Page 38 of 72 . “O” = Optional. in column “R/O/C”.

“C” = Conditional) Document number gets generated. “R” = Required. “O” = Optional. no Field Name Description R/O/ C 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 (Note: On above table.Training Manual Sr. in column “R/O/C”. Manual – Payment Certificate Page 39 of 72 .

Specify the amount for material on site excluding the percentage.( for example OMR 27.828) Manual – Payment Certificate Page 40 of 72 .Training Manual Creation of new payment certificate T-Code: ZMM_PC Enter the certificate header details.489 is 80% 34361.

Manual – Payment Certificate Page 41 of 72 .g.12. “C” = Conditional) System automatically calculates the amount as per the chart specified on page no. in column “R/O/C”.489 is 80% 34361. for example OMR 27. if necessary (Note: On above table. “R” = Required. “O” = Optional. no 1 Field Name Material on site Description Amount of material onsite R/O/ C R User Action and Values Comments Enter the Amount of the material onsite excluding the percentage (E.Training Manual Sr.828) 2 Retention of material onsite Percent of retention onsite C Change Percent of retention onsite.

Training Manual Manual – Payment Certificate Page 42 of 72 .

Advance recovery on material on site will be done manually).  QS Department shall initiate for the creation of payment certificate. 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.Training Manual 8.  Entry for Retention on vendor bill will be done auto through invoice booking in MIRO. However it is allowed to change as per the requirement. Manual – Payment Certificate Page 43 of 72 .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. (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.  This service entry will get released as per the approval hierarchy.  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.  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.

Training Manual  All entries which are to be made by accounts shall be on "Net Value this Bill" only.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 Manual – Payment Certificate Page 44 of 72 . Step.

Create new Service Entry Sheet Manual – Payment Certificate Page 45 of 72 . Click on.Training Manual Select the Other Purchase Order. Enter Purchase Order Number: Enter.

in column “R/O/C”. services can be entered in service entry sheet manually.Training Manual Service Entry for Unplanned Services: If in Work order services specifically not mentioned service limit is mentioned. needed to be confirmed 3 Gross Price Gross Price R Gross Price for service per unit (Note: On above table. “O” = Optional. Sr. “C” = Conditional) Manual – Payment Certificate Page 46 of 72 . “R” = Required. no Field Name Description R/O/ C 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.

Manual – Payment Certificate Page 47 of 72 .Training Manual Save the document.

Training Manual Service Entry for Planned Services: For Planned Services: if in Work order services specifically mentioned follow the process. no Field Name Description R/O/ C User Action and Values Comments Manual – Payment Certificate Page 48 of 72 . user can adopt the services with reference to work order. Sr.

Manual – Payment Certificate Page 49 of 72 .Training Manual 1 Short text Short text for ref R Reference short text 2 Reference Reference detail R Reference details for services 3 Service Sel. Enter. in column “R/O/C”. “R” = Required. “C” = Conditional) Select the Purchase order. Service Selection R Service Selection for adoption in Service entry sheet (Note: On above table. “O” = Optional.

Training Manual Select the services which are executed. as highlighted in snapshot. Adopt the Services in to service entry sheet. Manual – Payment Certificate Page 50 of 72 . Update the Quantity of service executed.

Training Manual Save the document. Manual – Payment Certificate Page 51 of 72 .

Training Manual Create Payment Certificate: T-code: ZMM_PC Sr. no Field Name Description R/O/ C User Action and Values ZP03/ZP0 4 Comments 1 Purchase Document Purchase order Number R 2 Posting Period Posting Period R Enter appropriate posting period 3 Fiscal year Fiscal year R Enter fiscal year for entry of payment certificate 4 Select option: create Creation of payment certificate R * Select Purchase Order Number while creating new payment certificate. “C” = Conditional) Manual – Payment Certificate Page 52 of 72 . (Note: On above table. Starting from 43* or 44* number series of purchase order Select. “R” = Required. “O” = Optional. in column “R/O/C”. option to create payment certificate.

Extra work deduction value can be entered manually if required.Training Manual Value of the work executed will automatically come from payment certificate. Manual – Payment Certificate Page 53 of 72 . After confirming all the details payment certificate can be submitted to accounts & saved.

Training Manual Print for the payment certificate for work executed Manual – Payment Certificate Page 54 of 72 .

 Entry for Retention on vendor bill will be done auto through invoice booking in MIRO. Advance recovery on material on site will be done manually).  This service entry will get released as per the approval hierarchy.  QS Department shall initiate for the creation of payment certificate.  For Material on site.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.  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. 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. (either on 10% as per PO or up to Maximum mentioned in the PO) Manual – Payment Certificate Page 55 of 72 .  All the service entry sheets values for the month posted till that date will be available in the certificate.Training Manual 9. the value of material advance will be reduced and billing is to be done for BOQ service line item.  At the time of invoice booking. The net impact of removing the material on site will be as -ve value in the column "Net value this bill".  QS Department has to create the Service Entry Sheet based on the certified quantities.  % tage calculation for retention and advance recovery will be available from the PO and will be auto calculated accordingly in the certificate. QS has to manual remove the value in the new certificate. In such case. However it is allowed to change as per the requirement.

Payment certificate created for the work executed along with reduction in material on site. as highlighted below. Manual – Payment Certificate Page 56 of 72 . Service entry sheet can be posted as per the process mentioned above. However the planned & additional value of the work done executed will directly come from Service entry sheet.  All entries which are to be made by accounts shall be on "Net Value this Bill" only.Training Manual  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.

Training Manual Manual – Payment Certificate Page 57 of 72 .

Training Manual Manual – Payment Certificate Page 58 of 72 .

 All the service entry sheets values for the month posted till that date will be available in the certificate.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.like repairs.  Contra charges other than materials .  % tage calculation for retention and advance recovery will be available from the PO and will be auto calculated accordingly in the certificate. then QS has to check with all other departments.Code FV50 by crediting the cost center and debiting the internal order along with PO number. QS Department shall park an FI document through T.  All the cumulative entries of contra charges will be available in the payment certificate based on the parked entries. These entries will happen as and when materials are issued on internal order. TAC charges. However it is allowed to change as per the requirement. These entries shall be parked in the respective g/l heads.Admin at site shall inform all the recoverable charges to QS Department. penalties.  Expense A/c  Expense A/C Dr (with internal order and PO number) Cr (with cost center with PO number)  QS Department shall initiate for the creation of payment certificate.Training Manual 10.P&M department shall provide the value of recoverable amount to QS Department. medical charges.   Other Charges .  This payment certificate shall be printed and submit to accounts for further processing Manual – Payment Certificate Page 59 of 72 . food charges etc  Repair charges .  Contra charges for materials shall be booked on Internal Order of the vendor with respect to the work order. If no values are coming in the contra charges.

Training Manual 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 Manual – Payment Certificate Page 60 of 72 .

General Ledger A R * Enter Document Header text Specific G/L for entries. 4040820 for accommodation expenses Manual – Payment Certificate Page 61 of 72 . Header Text Document Header text R 5 G/L Acct. E.g.Training Manual Sr. no Field Name Description R/O/ C 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.

“C” = Conditional) Create payment Certificate. then QS has to mention the amount at the time of preparation of payment certificate. If any markup is to be taken on Contra Charges. “O” = Optional. Purchase Order Number No (Note: On above table. As shown below.  Rest of entries for advance recovery and retention etc will be posted as mentioned in the details of the previous certificates.  Check the status "submit to accounts" in payment certificate before sending the physical paper to accounts. 9 Plant Plant code R Enter Plant code 10 Purchase Doc Purchase order R Enter. “R” = Required. Manual – Payment Certificate Page 62 of 72 . Payment certificate will reflect the entries made in FV-50 document as contra charges other than materials.Training Manual 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. in column “R/O/C”.

Transaction Code MB21 Manual – Payment Certificate Page 63 of 72 . Creation of the reservation. then QS has to mention the amount at the time of preparation of payment certificate.Training Manual  All entries which are to be made by accounts shall be on "Net Value this Bill" only. Contra charges on the materials:  Contra charges for materials shall be booked on Internal Order of the vendor with respect to the work order. Mark up on Contra Charges  If any mark up is to be taken on Contra Charges. 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. These entries will happen as and when materials are issued on internal order.

Training Manual IMG Menu SAP menu >> Logistics >>Materials Management >> Inventory Management >> Reservation >> MB21 -Create Manual – Payment Certificate Page 64 of 72 .

“O” = Optional.Training Manual Sr. “C” = Conditional) Manual – Payment Certificate Page 65 of 72 . in column “R/O/C”. “R” = Required. no Field Name Description R/O/ C 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 (Note: On above table.

Training Manual Sr. 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. no Field Name Description R/O/ C User Action and Values Comments 1 Goods Recipient Goods Recipient R Goods Recipient: Text 2 Order Internal Order No. proper Valuation Type Manual – Payment Certificate Page 66 of 72 .

Manual – Payment Certificate Page 67 of 72 .Training Manual Enter the Purchase Order number for the contract for the vendor & plant. Reservation is created. Save.

refer the below screenshot Manual – Payment Certificate Page 68 of 72 .Training Manual Goods Issue to Sub Contractor (by site personnel) As per the Goods Issue. all the entries will be reflected in the payment certificate.

Training Manual Manual – Payment Certificate Page 69 of 72 .

Training Manual Manual – Payment Certificate Page 70 of 72 .

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.Training Manual 11. Manual – Payment Certificate Page 71 of 72 . This needs to be mentioned manually in the payment certificate.

All the values posted other than the previous certificate will be available in the payment certificate. For manual entries. Material issued to contractor will be issued to the internal Order alongwith work order. This indicator needs to be set for submission of payment certificate to account. the user has to mention the PO number against which contra charges are being booked. 5. Also. Option of Create. Change and Display will be available for payment certificate. it can be rectified in the change mode. Manual – Payment Certificate Page 72 of 72 . amount will not be available in the payment certificate. Payment certificate will not be available for work execution amount until SES is not passed and material document is not posted. QS Department has to change the entry manual. user will not be able to create the new certificate. QS has to create the new certificate. For any correction. At the time of booking of retention amount for Material at site amount. 2. If this indicator is not set. This will also be applicable when any retention amount is being released. no change will be allowed in the same certificate. At the time of park and post of contra charges. once this indicator is set. corresponding to the plant and vendor code. the account has to mention the PO number against which retention amount is being retained. 4. 8. If any entry is missed. If Advance payment request on PO through ME2DP is not created. 6. 7. 3. There will be an indicator "Submit to account". the amount will not be available in the payment certificate. however all other entries which are posted through different transactions will appear automatically. If it is not mentioned. Payment Certificate will be prepared based on the period of work.Training Manual 12.0 Checks and Validation: 1.