Thanks for reaching out to the Community. I'll be happy to share more info on this.
ITC's are anything that are expenses related with taxes. If you make an expense, and apply taxes on it (and it's a ITX tax like GST/PST) it'll will become an ITC. Since you're using budgets, you may not see it since everything is put in the payable account.
Let me know if you have further questions on this. I'll be here in case you need further assistance.
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