What is withholding amount in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: withholding amount

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A portion of payment the Government withholds until completion of an order to mitigate risks.

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• Key Concepts: 
  Withholding amount is a feature of the SAP PSM-GPR Procurement for Public Sector module. It is used to withhold a certain percentage of the total amount of a purchase order from the vendor until the goods or services have been delivered and accepted. This ensures that the vendor is held accountable for delivering quality goods or services. 
  
  How to use it: 
  The withholding amount feature can be enabled in the SAP PSM-GPR Procurement for Public Sector module. Once enabled, it will automatically withhold a certain percentage of the total amount of a purchase order from the vendor until the goods or services have been delivered and accepted. The withholding amount can be adjusted as needed. 
  
  Tips & Tricks: 
  When setting up the withholding amount feature, it is important to ensure that the percentage withheld is reasonable and appropriate for the goods or services being purchased. It is also important to ensure that the withholding amount does not exceed any legal limits set by local laws or regulations. 
  
  Related Information: 
  The withholding amount feature is closely related to other features in the SAP PSM-GPR Procurement for Public Sector module, such as payment terms, payment methods, and invoice verification. It is important to understand how these features interact with each other in order to ensure that all payments are made in a timely and accurate manner.