Use

When you pay your subcontractor depends on which offsetting method you use:

If you use the consumption-based method, you run the payment program before you offset the deductible payables against the invoices for chargeable components.

If you use the percentage-based method, you run the payment program after you have offset the deductible payables.

To see the activity in its context, see step 7 of the Subcontracting Process .

Procedure

Execute the payment program following the http://aiokeh.wdf.sap-ag.de:1080/SAPIKS/~S~987040d59d1e4320b108af9e07ec3dfa/KW/KW/IWB_EXTHLP~01A9BC83455711D182B40000E829FBFE/standard procedure , and, if you use the consumption-based method, exclude the Alternative Accounts Payable account from the payment run. Otherwise, you would pay the deductible payables.

To do so, when you enter the payment program parameters:

On the Free Selections tab, enter G/L Account in the Field Name field.

Select Exclude Values .

In the Values field, enter the following accounts, depending on which offsetting method you have agreed on with the subcontractor:

If you want to permanently exclude an account from the payment program, you do so in Customizing for Materials Management (MM), by choosing Inventory Management and Physical Inventory  → Subcontracting with Chargeable Components  → Deductible Payables  → Alternative Accounts Payable Account  → Exclude G/L Account from Automatic Payments .