How is Semi Deductable Tax Treated?

Tax Details (TXD) allows you to spread the generated tax amount over two accounts. This is a requirement in a number of countries, where only a portion of the tax is deductible and is therefore accounted for separately.

You can use the Input and Output Tax Account Code % fields to split the tax portion of a transaction entered in Ledger Entry (LEN) between two accounts. These fields allow you to identify the percentage of the tax amount to be posted to the account identified in the Input or Output Tax Account Code 1 and 2 fields.