Understanding the Setup of Taxes for Item Classification

Use the Taxes for Item Classification program (P76TX006) to set up the tax rate for the fiscal classification code for an item and specify a G/L Offset code to offset a transaction for the purpose of an accurate tax reporting.

When you create a purchase order or a sales order, the system calculates the selective tax for the tax rate specified in the setup and updates the G/L Offset and the tax amount in the Tax Calculation Amounts table (F76TX002).