Withholding Tax: Automatic Postings 

If withholding tax is to be withheld, the system automatically posts the amount to a tax account. This takes place only if you have created the appropriate account and defined the account number for account determination in the system. You can post the tax to different accounts according to the withholding tax code.

For tax posting, the posting keys for debit or credit postings are defined in the system.

For information on how to set up the automatic posting of withholding tax, see the Implementation Guide for Financial Accounting under the activity Define Accounts for Withholding Tax. See also Configuring the System Using the Implementation Guide.