Calculating Withholding on Payment Cancellations

PeopleSoft Payables handles reversals for withholdings on payment cancellations. Withholding calculations occur at payment time, so the system needs to know not to calculate withholdings again. After canceling, run payment and withhold posting. The system creates a new entry in the PYMNT_VCHR_XREF table for the regular amount (gross amount − withholding = regular amount) and a reversal entry on the WTHD_TRXN_TBL so that you will not report withholding twice.

Here is an example of how it works.