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Veeam Transaction Log Settings: Microsoft SQL Server Question

We are using Veeam to backup our MSSQL servers and there is a setting under application-aware processing that allows us to Truncate the log files.  Currently we have both Simple and Full databases (which we backup log files throughout the day). If we were to chose Truncate logs would this only change the logs on the Veeam backup or does it Truncate the files on our MSSQL server first and than backs up the server? Would this cause any issues with our full databases when we are taking log back ups?
Thanks

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>> Some of that wording doesn't make sense for SQL Server.

Agreed.  Hence my comment about VM

But not sure why a backup would offer the option.... Maybe the replication aspect of Veeam ?
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Thanks for your help.