FHR Rent of PO Building Payment Process through SAP

• This document describes the process for Rent of Building payments in CSI –SAP.
• Following would be the 3 steps in new process 

Note: 

1. There is no need to create Service entry sheet for FHR _Rent payment in CSI, henceforth.
2. Create Purchase Order for a year’s payment only, so that Budget (Fund) of single year is consumed.
3. Contract may be created using T – code ME31K if Rent amount is above 2.5 Lakh.
4. Purchase Order may be created once in a year. Each month with the same PO no. Payment office would verify invoice and make payment.

Steps: 1 Create Purchase Order for Rent payment

1. Go to ME21N

2. Select order type as Framework Order (FO)

3. Enter Landlord vendor code (Create Landlord Vendor code using XK01 under category – ZLND)

4. In Header data

Under the Org. Data tab, enter

- Purchasing Org – DOPI

- Purchasing Group (Enter the group of Plant which is raising PO)

- Company Code- DOPI

In additional data tab, enter

- Validity start

- Validity end

It can be kept for an Year’s duration . For example . Validity start :01.04.2020 , Validity End :31.03.2021

5. In Item Overview, Enter following

Account Assignment Category – K
Item Category – B (Limit)
Short Text – Rent of ………….Office
Net Price- Enter amount of rent for entire year (20000 per month as Rent to be entered as Rs 240000)
Material Group- 201(Hiring of Buildings)
Plant ID
Contract No. (If the value >= 250000, then a contract has to be created and contract item must be entered while creating the framework order. If value < 250000, this is not mandatory

6. In Item Detail, under account assignment category tab, enter

Also read :Find GL Code for 15Digit Head of Account (HOA) in SAP and Alternate GL for Plan/Non Plan GL

• G/L Account
• Cost Center
• Funds Center

In the Limits tab, enter

- Overall limit

- Expected value

Overall Limit and Expected Value should be equal to 12 months rent amount that is 12x20000=240000

Please Note: the actual value would be initially 0 but as every month Invoice would be verified it would get added & would be visible in Purchase order. In the Invoice tab, enter the relevant tax code. If No GST – enter V0

7. Check and Save.
8. Framework Order would be created – Note it down since every month’s rent would be verified
and paid with reference of same PO no.

Step 2. Invoice Verification – Invoice verification

1. Go to MIRO

2. Enter company code as DOPI

3. At Header Data level, under the Basic Data tab,

• Enter Invoice Date
• Enter Reference number
• Check calculate tax checkbox
• Select tax code (This should be same as entered in Purchase Order)

Under PO reference, enter framework order number against the purchase order scheduling agreement (Every month same Purchase order no. to be entered).

4. At the item level, click on multiple selection under the Acct Assgt tab.

5. Enter Amount & Click on Check and the Back. The invoice amount would get populated on main screen.

6. At the header data level, enter the value in the amount field as what appears as the balance at the top right corner.

7. Click on Simulate. Entries would appear as below

8. Click on Post.

9. Invoice document is now posted.

10. Check the framework order document through transaction ME23n. The invoice value also gets reflected at the Item Details level in the “Actual” Value field of the Limits tab

Also read :SAP Released for production after maintenance

Actual Value would be Actual Rent of the Building

Step 3. Payment

Liability (Accounting) document created after invoice verification is to be used for making Payment.

1. In case Unit doing invoice verification is HO (DDO) itself – then make Payment to Landlord Vendor ID a) Cash - Using T code -F-53 , b)Cheque –Using T-code – F-58

2. If the Unit verifying invoice is SO or any NCDDO attached to HO , raise request through Workflow

III.A- Landlord Vendor Account can be checked using t –code FBL1N, Once Process would complete entries would look as below

Do’s & Don’ts:

1. It is recommended to maintain Landlord Vendors as Registered Vendor (under category ZLND) so that anytime Payments due & payments made can be checked.

2. While raising Rent Purchase Order for SO , Cost center of SO can be given, if payment to be made there , However as Funds are allotted only up to HO , enter Fund center of HO.

3. Do not mismatch the purchase group /Plant ID combination. For example: If HO is raising PO, then purchase group and Plant ID need to be of HO.