The field for the tax category in the reconciliation accounts plays a special role. Your specifications affect the vendor or customer account when posting is made. You have two options with this field:

• You can use it to hide the Tax code field for posting to the vendor or customer account if you do not have to post taxes on sales/purchases.

• You can have the Tax code field output as ready for input when posting to the vendor or customer account. If you enter a tax code in the open item account item, it is defaulted in the asset and G/L account items posted subsequently. This is useful when you enter several line items with the same tax code.

If you enter one of the above indicators in the master record of a reconciliation account, the Tax code field is output with the default value ** when line items are entered.