Defining Chain Liability Methods and Assigning to Company Codes 

Use

If you are posting a proportion of your vendor invoice to your sub-contractor’s blocked account, you need to define a chain liability method and assign it to your company code global data. The method specifies:

·         The general percentage rate for blocked account postings, as fixed by the Dutch government. This enables the system to automatically suggest a split of the vendor item amount into two line items, one for payment to the sub-contractor’s regular account and one for payment to the blocked account

·         Your payment block reason for blocking payments to sub-contractors whose certificates have expired

·         The partner bank type of your sub-contractor’s blocked account. This information is transferred to the Financial Accounting (FI) document

·         The type of message to be output if the total number of actual work hours exceeds the number specified in the original purchase order

Prerequisites

You have defined your payment block reason.

Procedure

To create a chain liability method, in Customizing for Financial Accounting, choose Financial Accounting Global Settings ® Chain Liability ® Define Chain Liability Methods.

When you have defined the method, you need to assign it to your company code global data. To do this, in Customizing for Financial Accounting, choose Financial Accounting Global Settings  ® Company Code ® Enter Global Parameters.