What is 'retainage' in SAP SRD-FIN-GL - FIN-General Ledger?

retainage - Overview

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: A percentage of a payment withheld by a buying company as assurance until the completion of a project.

retainage - Details

• 
  Key Concepts: 
  Retainage is a feature in SAP's General Ledger (GL) component that allows users to set aside a portion of an invoice for payment at a later date. This feature is useful for businesses that need to manage their cash flow more effectively, as it allows them to pay only a portion of an invoice upfront and the remainder at a later date. 
  
  How to use it: 
  To use retainage in SAP's GL component, users must first set up the retainage account in the Chart of Accounts. This account will be used to track the amount of retainage that is held back from each invoice. Once the account is set up, users can then configure the retainage settings in the GL configuration. This will allow them to specify which accounts should be used for retainage and how much should be held back from each invoice. 
  
  Tips & Tricks: 
  When setting up retainage in SAP's GL component, it is important to ensure that the correct accounts are used for both the retainage account and the accounts that will be used to pay the retained amount. Additionally, it is important to ensure that the retainage settings are configured correctly so that the correct amount is held back from each invoice. 
  
  Related Information: 
  For more information on setting up and using retainage in SAP's GL component, please