You can assign condition types to tax categories within two different applications. The two assignments have to be maintained separately.
In the FI module, you can assign a tax condition type to the tax category. This information is used to restrict the number of possible tax codes displayed in the F4-Help when posting a document. If the assignment is complete, it will be much easier for the user to select the correct tax code among the numerous tax codes defined in the system. By using F4-Help, the relevant tax categories together with all tax codes, which fit to the assigned condition types, are displayed.
In the SD module, the assignment is directly used for tax calculation purposes. Here, it is very important that a certain condition type is not assigned to more than one tax category.