General Ledger Posting Without Tax Allowed

If you select this indicator, no tax code need be entered when posting to this account. If a tax code is entered, it is checked according to the tax category for this account.

You use this indicator if taxable and non-taxable postings are to be entered to an account at the same time. In such a case, you normally set up your own tax code to allow for non-taxable transactions. However, this is not possible - for example - for tax entry with jurisdiction code, since no jurisdiction code can be specified for customers abroad. You would then also allow postings without tax codes for the corresponding expense or revenue accounts.

This indicator is not needed for invoice verification postings, since the account assignments are generally derived from the purchase order. The indicator is therefore not read by the system for these postings.

For items with no tax code, no tax information is created and they are not contained in the tax report lists.