Each G/L account and cost element has a tax category field with a variety of settings. Output tax is for SD/AR and input tax is for MM/AP. Blank is used for accounts not applicable like cash or accumulated depreciation accounts. Typical accounts designated as requiring output taxes include revenue accounts and trade receivables. Input taxes required is found on trade accounts payable and primary cost elements that are normally taxable, such as small tools and material consumed. In the US, component inventory is not taxable but in Canada, it is usually partially taxable (GST).