Tax Code Properties and Tax Procedure Combinations

A tax procedure defines the roadmap of how taxes are calculated, including the order of condition types (e.g., base, tax, surcharge) and account determination. It governs tax code behavior.

A tax code represents a specific tax rate and rule set (e.g., 20% output VAT). It is assigned to invoice lines and determines tax calculation and G/L account posting.

Controls error tolerance during tax calculation: if set, discrepancies between expected and calculated tax trigger errors; otherwise, warnings are issued.

Classifies the tax for internal processing and reporting; e.g., 'A' for standard rate, 'B' for reduced, 'E' for exempt.

Used to mark tax codes for statistical reporting or special exemption handling; does not affect tax calculation but may influence output determination or reporting.