Why do we have Tax category field on Sales Taxes and Charges Template?

ERPNext Accounting
1

Dear community members,

I play with tax setup and I am just wondering why do we have a Tax category field on Sales Taxes and Charges Template?

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I think if it is filled this should set the correct Sales Taxes and Charges Template on Invoice even if there is no tax rule. (documentation says using tax rule is just advised not mandatory Tax Category )

But without tax rule, it does not apply automatically on invoices.

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Am I missing something? Is it a bug? Or is this field designed for another purpose?

thank you for any hint

2

I have one client who have items with different tax rates. I am defining the item tax with category and call the same in sales invoice. System will calculate the taxes based on these category.

3

Thank you Saumyaseelan_Pv!

I think I have something similar to what you described: There are different taxes for item (category):

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and proper setup for tax category, but these do not calculate taxes on the tax table. There is only the item group tax settings are applied without any sales taxes and changes template.

thank you