You post an outgoing invoice for 1,000 USD to the customer account with the jurisdiction code PA001001000 and the tax code C1. The offsetting entry is made to the receivables account 800000, Domestic Sales. The document overview then looks as follows:

You post an incoming vendor invoice for 1,000 USD with tax code I1. The offsetting entry is made to the Payables account with cost center 111, to which the jurisdiction code PA001001000 is assigned. The document overview then looks as follows:

Document overview

The taxes paid are stored by the system but are not displayed in certain G/L accounts.