Input or Output Tax 

You use the tax type to specify whether the tax is an input tax or output tax.

The system uses the tax type to check that you are posting to an account with an allowed code. An error message is output if necessary. This happens, for example, if you enter a tax code for input tax when posting to a customer account for which only output tax codes are allowed.

For every individual tax type, there are country-specific definitions for whether the tax amount fields and the fields for the percentage specifications are ready for input. For more information on this, see Calculation Procedure: Overview.