Specifying Company Accruals for Contractor Withholding
You can specify how the system accrues payments by setting the first processing option on the General tab in the PO - PCG process - ARG program (P76A570). Specify one of these options:
Independent Accrual by Company.
The system calculates profit and contractor withholding independently for each company, with no relationship established for payment accruals that exist for other companies or branches. The system accrues completed payments for each transactional company that exists.
Unique Accrual for All Companies.
The system calculates the withholdings based on the sum of all of the accrued payments for all of the companies and branches that exist. No unique accrual of completed payments occurs.
For example, suppose you have two companies, Company A with branch A, and Company B. In this situation, the base for the calculation is the sum of payments that are accrued for Company A, its branch, and Company B.
Accrual by Related Company (Parent Number.)
If you specify Accrual by Related Company for the same organizational structure (Company A with a subsidiary branch, and Company B), two scenarios are possible:
If the withholdings are calculated when a voucher from Company A or its branch is paid, the base for the calculation are payments accrued for Company A and its branch.
The Company B accrual is not part of the calculation.
If the voucher that is being paid belongs to Company B, only its payment accrual determines the withholding amount. Accruals for Company A and its branch are not a part of the withholding calculation.