Payable Class

If your company uses classes, the Payable Class will allow you to further segregate tax payments for a specific sales tax. Payable Class will automatically be assigned to sales tax transactions generated for taxable invoice detail lines in Create Invoices & Credit Memos.

If Validate Classes By Account in Company Setup is checked, the list of valid classes will be limited by the entries defined for the Sales Tax Payable Account in the Account Class Validation screen OR to all active classes, depending upon the Account Class Validation Type in Company Setup. 

NOTE:  When you enter an invoice or credit memo in Create Invoice & Credit Memos or create an invoice from a sales order or estimate, entries to record applicable sales tax are automatically generated.  If a Payable Class is not setup for the sales tax, ObjAcct will attempt to use the Class entered in the document header.  This Class must also be valid for the sales tax Payable Account.