Here’s some important information from Concentrix Support on how to change VAT rates in Sage Line 100 and Sage 50 Construct linked to Sage Line 100.
Please read each section of this article thoroughly before taking any action.
From 1st January 2010, the UK standard rate of VAT will increase from 15% to 17.5%. This article explains how this change affects Sage Line 100 and what you need to do. It also describes how to change the VAT rate in Sage 50 Construct linked to Line 100.
The following are not affected by the change in VAT rate:
-Zero-rated goods, for example, basic food stuffs, children's clothing and children's footwear.
-Goods and services subject to VAT at the reduced rate of 5%
Note: Concentrix is unable to advise which VAT rate you should apply in specific circumstances. If you are unsure, please confirm the correct VAT rate with HMRC either by phone or by consulting the relevant guidance on the HMRC website, http://www.hmrc.gov.uk.
To Change the VAT Rate in Sage Line 100
First, backup your data directory before implementing the VAT change. Also ensure that all sales and purchase postings are updated before proceeding.
To change the standard rate of VAT you will need to do the following:
-Accounting System Manager -System Parameters -Vat Rates
-Select the standard rate tax code and select, then edit the vat rate field and enter the rate of 17.5%. Also edit the EC Standard purchase ledger (PL) Code (Purchases, Goods and related Services ) to 17.5%.
To Credit an Invoice at the old Rate
To credit invoices at the old vat rate, create a new tax code at the old rate of VAT as follows:
-Accounting System Manager -System Parameters -Vat Rates
-Move down to locate an empty field and enter in a relevant tax code number and description
-Tick the option for include in vat return
-Enter rate of 15%
-Ensure relevant Input/ Output Nominal Codes and also relevant cost centres
Please note that the EC purchase flag should not be selected.
Entering Late Suppliers Invoices/ Supplier Purchase Orders
If you receive an invoice from a supplier that you need to enter at the old rate of VAT, you must manually amend the VAT amount. To do this simply over type the VAT amount with the correct value on the Invoice / Order entry screen.
If you receive an order from a supplier that you need to enter at the old rate of VAT, ensure when entering the order that you select the relevant tax rate.
Create an Invoice at the New Rate of VAT
The invoice will post correctly at the rate 17.5% once the section "Change the VAT rate in Line 100."
Existing Sales & Purchase Orders
Existing sales and purchases orders entered into the system can be viewed using the Screen Enquiries option. Caution should be used when selecting to Amend Order once you followed the section "Change the VAT rate in Line 100".
Re-printing invoices & Backup
All invoices re-printed after changing the VAT rate to 17.5% will print at that rate even if the invoice was originally printed at the 15%. As a workaround we would suggest taking a backup of the data prior to changing the rate and use this backup to access the data via a new company to reprint any historical invoices.
Unposted Invoices through Sales Order Processing (SOP)
Any invoices printed but not posted before you followed the section "Change the VAT rate in Line 100", will be posted at the new rate.
Unposted Invoices through Invoicing
It is advisable to print and post invoices prior to following the section "Change the VAT rate in Line 100."
How to Change the Vat Rate in Sage 50 Construct with Sage Line 100
Follow the procedure to Change the VAT Rate in Sage Line 100 above. Sage 50 Construct will pick up the VAT rate automatically from this.
Entering Late Subcontractor or Supplier Invoice:
If you enter either of the above and they are to be invoiced at the old rate of 15% you will need to create a new VAT code.
To Credit a SubContractor or Supplier Invoice at the old VAT rate:
There may be occasions when you need to credit invoices at the old VAT rate. If you need to do this, you should create a new tax code at the old rate of VAT - follow the procedure to change the VAT rate in Sage Line 100 and then run the procedure for Load Accounts.
Further Help and Information
If you are a Concentrix customer with a current support contract and are experiencing any problems changing VAT rates in Sage Line 100 or Sage 50 Construct linked to Sage Line 100, please contact the Concentrix support desk on 01509 410555 or email [email protected].