Company Setup > Purchase Tax Schedule

GP10. On the company setup main window there are 2 tax schedule fields. Is Purchase tax schedule used when purchasing inventory via POP so if I resell it should be set to a purchase exempt type schedule or is it used when I purchase consumable items?  If consumable, the tax paid is included in the cost of the items unless there are many items purchased together in which case I don’t want to itemize the tax per item so just post the tax amount to a sales tax paid expense account.

Thanks!
G