Tax type . This is required for reporting purposes, to be able to determine where the individual tax line items in a document are to be displayed. As tax type you can specify either output tax ( 1 ), input tax ( 2 ), additional tax ( 3 ) or not relevant to tax ( 4 ).

Non-deductible input tax . This specification is also required for reporting. When input tax and non-deductible input tax is posted, separate line items are created if the non-deductible part is not to be distributed to the G/L account line items and asset line items. For tax reporting, you must indicate the input tax line items that do not display the non-deductible portion of input tax.

Posting indicator . You specify whether the tax amount is posted separately ( 2 ) or distributed between expense and revenue line items ( 3 ).