Correct combinations of Tax Explanation and Tax Rates/Areas codes

Hi,

I have a bit of confusion around the valid combinations of Tax Explanation and Tax Rates/Areas codes. We are using Tax Explanation Code 'V' and various Tax Rates/Areas codes we have setup for our tax reporting (BAS reporting out of JDE). Lets say the two tax rate/areas are GO (GST Purchases - 10% tax) and EO (Exempt Purchases - 0% tax). Now if I am entering a voucher / JE with GST, I use V+GO. But if I am doing a voucher/JE with non-GST line, shall I use Tax Explanation code as 'E' (+Tax Area = EO) or shall I be