The need for VAT product posting groups is determined by the way items are taxed. One example could be differentiated VAT, for example, 10% for food and 15% for non-food items.
Open the VAT Product Posting Groups window.
In the Code field, enter a code to identify the group.
In the Description field, enter a brief description of the group.
Repeat this procedure for each VAT product posting group you must set up.
Setting Up VAT Business Posting Groups
Assigning VAT Business Posting Groups to Customer and Vendor Accounts
Assigning VAT Posting Groups to G/L Accounts
Assigning VAT Product Posting Groups to Item and Resource Accounts
Entering Combinations of VAT Business Posting Groups and VAT Product Posting Groups