Understanding the Process to Pay Withheld Amounts

Depending on whether you have tax information for a supplier when you calculate withholding, you either pay withheld amounts to a tax authority or pay the withheld amounts to the supplier.

When you pay withheld amounts, your vouchers can be either posted or unposted.

Type of Voucher	Instructions
Posted vouchers	If you pay only posted vouchers, post the negative pay item immediately after calculating withholding but before creating payment groups. When you calculate withholding for posted vouchers, the system: Creates pay items in the F0411 table with a posted code of blank. Creates zero amount (blank) records in the F0911 table so that the new pay items in the Accounts Payable Ledger table can be posted. These blank records use the GL account that you specify in a processing option.
Unposted vouchers	When the system calculates withholding on unposted vouchers, it does not create zero amount (blank) records in the F0911 table.

When you calculate withholding, the system creates a pay item for the tax authority. You can place the pay item on hold by setting a processing option. If you do not place the pay item on hold, and instead approve it at the time you calculate withholding, it will exist in the next automatic payment cycle instead of being accumulated and paid on a periodic basis.