Specifies the Tax product posting group codes for items or resources for Tax purposes. These codes distinguish between the types of items or resources that are sold or purchased and whether they are subject to or exempt from VAT.
On each item and resource card, you must enter the VAT product group code that represents the group to which the item or resource belongs. Enter the code in the Tax Prod. Posting Group field.
In addition to setting up the necessary product posting group codes, you must also set up the necessary Tax business posting group codes in the Tax Business Posting Group window. Then you must combine the different Tax product posting group codes and Tax business posting group codes in the Tax Posting Setup window.