Use Deduction Category Create (27.6.16.1) to create deduction categories that enable you to assign characteristics to a deduction. The category designates the type of deduction, the expense account to which the deduction is posted when approved, and whether you can write off low-value amounts without review and approval.

Deduction categories are partially stored at system level and partially stored at domain level. The deduction code, the description, and the deduction type are stored at system level. The values for the other fields are stored in the current domain. Therefore, if you reuse a category in another domain, specify the expense account, COA analysis elements, and daybooks that are relevant to that domain.

If the deduction category allows automatic write-offs, the system automatically writes off any standard deduction within the specified deduction limits to the account associated with the deduction category. If you do not want to write off all or part of the deduction, use another category without automatic write-off.