Creating a Tax Withholding Category - Help - Single Cumulative Transaction Threshold

What is a Single Transaction Threshold and Cumulative Transaction Threshold?? What does it do? How does it affect my books? Why use it?

“2.2 How does the threshold work?”
“Consider a Supplier on whom a Tax Withholding Category is applied.”
“For example, let’s say a rate of 5% will be applicable on invoice where Single threshold is 20,000 and
the Cumulative threshold is 30,000. If an invoice is created with a grand total of 20,000 then the single threshold will be triggered and a 5% tax would be charged.”
“But if the invoice amount totaled up to be 15,000 then no tax will be charged as it didn’t cross the threshold. If again another invoice is created against the same supplier with a total of 15,000 then although it didn’t cross the Single threshold, charges will be deducted since the sum of the last invoice”
“and this invoice adds up to be 30,000 which is equal to the specified Cumulative threshold.”

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