Create Payment Groups for Contractor Withholding
The Create Payment Control Groups program (R04570) calls an Argentina-specific program to determine if withholding applies to a payment and calculate contractor withholding. The program uses the setup from the Contract Services Withholding Percentages program (P760405A) and Contract W/H Exempt Percentage program (P760416A) to determine if withholding applies, then accesses the Contract Withholding – Payments Done table (F76A430) to access the accumulated payment and withholding amounts for the supplier. If the program determines that withholding applies, it makes the calculations.
When you run the Create Payment Control Group program to pay Argentine vouchers that include a contractor withholding concept, the system:
Retrieves setup information for the company and suppler from processing options and the withholding and UTE setup programs.
Processes each voucher line to accumulate the taxable amount.
Adds the base amount of the payment to the accumulated amount for the year to determine whether to apply the withholding percentage to the current payment.
The system maintains one accrued amount record for a supplier no matter that payments are made and withholding is calculated for multiple contractor withholding concepts. For example, suppose Supplier A provides both architecture and engineering services and you assign a different contract withholding concept to the voucher lines for the architecture and engineering services. When you process the payments for the voucher lines, the system adds both amounts to one accrual record to determine whether the supplier has reached the threshold amount at which withholding applies.
To process a payment without including the base payment amount in the accumulated amount, assign a value of blank for the contractor withholding concept. If you need to include the base payment amount in the accumulated amount without calculating withholding, assign a contractor withholding concept that has a zero percent (0%) withholding percentage.
Retrieves the withholding percentage and exempt information and calculates the withholding if applicable.
The system uses this calculation to determine the withholding amount: Withholding amount = ((Accumulated taxable + Voucher taxable) × Withholding percentage) − Accumulated withholding
If the payment has an adjustment, the system adds or subtracts the adjustment amount from the base amount before calculating the withholding amount.
When you pay vouchers that are in a foreign currency, the system calculates the withholding on the foreign amount and uses the currency processing options in the Create Payment Control Groups program to determine how to write the foreign amounts for the payment.
Generates a withholding record with a document type of $S in the A/P Payment Processing - Detail (F04573) table and PCG Detail Information Tag Table (F760473A).
The system writes the amount on which the withholding is based to the Remarks field of the Accounts Ledger table (F0411).