How To Fix FC261 - Holdback/retainage pmnt only possible for terms of pmnt with day limit 0

SAP Error Message - Details

• Message type: E = Error

• Message class: FC - FI configuration error messages

• Message number: 261

• Message text: Holdback/retainage pmnt only possible for terms of pmnt with day limit 0

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

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Smart SAP Assistant

• What is the cause and solution for SAP error message FC261 - Holdback/retainage pmnt only possible for terms of pmnt with day limit 0 ?

  The SAP error message FC261, which states "Holdback/retainage payment only possible for terms of payment with day limit 0," typically occurs in the context of payment processing, particularly when dealing with retainage or holdback payments in accounts payable.
  Cause:
  This error arises when you attempt to process a holdback or retainage payment using a payment term that has a day limit greater than 0. In SAP, holdback payments are designed to be processed under specific payment terms that allow for immediate payment without any delay, which is why the day limit must be set to 0.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Payment Terms: Review the payment terms assigned to the invoice or payment document. Ensure that the payment terms used for the retainage payment have a day limit of 0.
  
  
  Modify Payment Terms: If the current payment terms do not meet the requirement, you may need to create or modify the payment terms in the SAP system:
  
  Go to the transaction code OBB8 to maintain payment terms.
  Create a new payment term or modify an existing one to set the day limit to 0.
  
  
  
  Reassign Payment Terms: After ensuring that the correct payment terms are available, reassign them to the relevant invoice or payment document.
  
  
  Test the Payment Process: After making the necessary changes, attempt to process the payment again to confirm that the error has been resolved.
  
  
  Related Information:
  
  Retainage Payments: These are payments withheld until the completion of a project or until certain conditions are met. They are common in construction and contract work.
  Payment Terms Configuration: Understanding how payment terms are configured in SAP is crucial for managing cash flow and ensuring compliance with contractual obligations.
  SAP Documentation: Refer to SAP Help documentation for detailed information on payment terms and retainage processing.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in accounts payable and payment processing within SAP.