What is security retention amount in SAP FI-AF-DPC - Down Payment Chains?

SAP Term: security retention amount

• Component: FI-AF-DPC

• Component Name: Down Payment Chains

• Description: Safeguards against inaccuracies arising when work values are inputted. Security retention amounts for partial invoices never become due, but are cancelled when the final invoice is created. Security retention amounts for final invoices are also known as guarantee retention amounts and become due after expiry of a contractually defined warranty period.

Smart SAP Assistant

• Key Concepts: 
  Security retention amount is a feature of the FI-AF-DPC Down Payment Chains component of SAP. It is a type of security deposit that is held by the vendor to ensure that the customer meets their contractual obligations. The security retention amount is typically a percentage of the total value of the contract and is held until the customer has fulfilled their obligations. 
  
  How to use it: 
  The security retention amount can be set up in SAP by creating a down payment chain. This chain will define the terms of the contract, including the security retention amount, and will be used to track payments and ensure that all contractual obligations are met. The security retention amount can be adjusted as needed throughout the duration of the contract. 
  
  Tips & Tricks: 
  When setting up a down payment chain, it is important to ensure that all contractual obligations are clearly defined and that the security retention amount is appropriate for the value of the contract. It is also important to keep track of payments and adjust the security retention amount as needed throughout the duration of the contract. 
  
  Related Information: 
  For more information on setting up down payment chains in SAP, please refer to SAP Help documentation or contact your SAP support team.