Impotance of tax category field in g/l master record

Question

hi,
pls tell that what is the importance of tax category field in g/l master record
regards
jana

Answer 1

Hi,
Tax Category in Account Master Record
Determines whether the following apply to the G/L account:
Is it tax-relevant?
Is it a tax account?
Is it a tax-relevant G/L account?
Use
Tax-relevant account?
You decide whether you want to use the account for tax-relevant postings. If not, leave the field blank.
Tax account?
You decide whether you want to use the account exclusively for posting taxes.
Define the type of tax on sales and purchases you want to use the account for:
< Input tax account
< Output tax account
">" and "<" are only supported for tax accounts.
Use the proposed keys from the possible entries help.
Tax-relevant G/L account?
You decide whether you want to use the account as a G/L account to which you make tax-relevant postings.
Define the tax code which can be used to post to the account. When posting to this account, the system then checks whether the tax code in the line item is permitted for this account.
This is useful if you always post to this account using the same tax rate. When you post to this account, the tax code is defaulted and can no longer be changed (for example, the account Domestic trip costs taxed flat rate in Germany).
If you only want to carry out a flat-rate check for the tax category, choose one of the following special characters:
+ Only output tax permitted
- Only input tax permitted
All tax types permitted
If the G/L account is then posted to, you must enter a tax code. This does not apply if you also permit postings without tax code to the G/L account and use your own code instead.
If this helps,Please assign points.
Thanks,
Rau