In this window, you must set up VAT product posting group codes for items or resources for VAT 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 VAT Prod. Posting Group field.
In addition to setting up the necessary product posting group codes, you must also set up the necessary VAT business posting group codes in the VAT Business Posting Groups window. Then you must combine the different VAT product posting group codes and VAT business posting group codes in the VAT Posting Setup window.