You define the following information for each condition type:

• Condition type and condition class. For example, where tax is to be calculated, the condition type might be "base amount" (K) or "tax" (D), and the condition class "base amount" (A) or "tax" (D).

• Calculation rule: Either "percentage included" (A) or "percentage separate" (I)

• The side of the account to which the tax amount is posted. This need only be specified for additional taxes, since these (in contrast to input, output, and acquisition tax) can be posted to either side of the account. If you want tax to be posted to the opposite side of the account, select the +/- sign field.

• Whether it is possible to change the tax amounts and percentages (which are displayed on a special screen) when you enter a document. To make this possible, choose the Manual entries field, then choose either Rate/percent (to make the percentages changeable), or Value (to make the tax amounts changeable).