Understanding the Process for Calculating Italian Withholding Taxes

The system processes withholding tax at specific stages of the automatic payment process:

Stage	Description
Create payment control groups	When you create a payment control group that includes vouchers which are subject to withholding tax, the system updates the Discount Taken field in the A/P Payment Processing - Summary (F04572) table and the Payment Processing - Detail (F04573) table with the withholding tax amount from the Withholding Tax Detail - Italy (F74411) table. The system calculates the payment amount by subtracting the withholding tax (discount) from the gross amount.
Work with payment control groups	When you reset or remove individual vouchers from the payment control group, the system removes the withholding tax amount from the Discount Taken field in the F04572 table and the F04573 table. At this point in the process, the system does not update the Accounts Payable Ledger (F0411) table and does not impact the voucher records.
Update payment group	When you update the payment group, the system changes the payment status of the withholding tax to 1 (payment made to supplier) in the F74411 table. The system also updates the F0411 table with the amount in the Discount Taken field for the withholding tax amount.