This article will explain the Category Type: Tax for Step 7G

Category Type - Tax

Tax categories are used in a couple of ways:

1.  They are assigned to individual tax rates in order to allocate those sales tax amounts to specific General

Ledger accounts when processing customer and vendor invoicing

2.  They can also be used in Settings & Controls for defining how NITC accounting entries are to be

allocated. This is functionality specific for our Dealers in Australia and New Zealand

Your Blackpurl should be setup with two tax categories 

  • one to account for the taxes charged to customers / collected from customers

  • one to account for the taxes charged on vendor invoices / payable by the Dealership

We would suggest that all dealers please avoid using only one tax category for both selling and purchase tax amounts

However for our Australian / NewZealand - you can assign the same General Ledger account for selling and purchasing categories.  This is because your tax rate is the same for both 

Any time you wish to have a sales tax trigger a different General Ledger account, you will be required to add an additional Tax Category to make this happen ie County Tax, State Tax, GST, Environmental Tax etc

Entries to your accounting package will simply flow into the Tax General Ledger account assigned for that Tax Category: