Allow tax calculation at invoice header level under Manage invoice options

Hello,

We want to check where we can mention that if we want to calculate tax on header level or line level. I read some documents and it said we can select at Payables options(Manage invoice options), however I could not find it . Is this option which we can just enable while implementation or I am checking at wrong level.

Please let me know the path where we can define the calculation for AP and AR.

Thanks,

Diksha