Here’s some important information from Concentrix Support on how to change VAT rates in Sage 200 and relevant Sage 200 modules.
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 the following products, and what you need to do:
- Sage 200 & Sage MMS
- Sage 200 POS (Point of Sale)
- Sage 200 Construct
- Sage 200 Manufacturing
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%
Important: 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.
How to Change the VAT Rate in Sage 200 or Sage MMS
To change the VAT Rate in Sage 200 & Sage MMS To change the standard rate of VAT you will need to do the following:
- Accounting System Manager - Settings - Tax Rates
- Edit the Standard tax code to 17.5%
You should also edit the EC Standard Purchase Ledger (PL) Code (Purchase, Goods and related Services) to 17.5%
Important - We recommend that you print and post any invoices presently in the system that need to be invoiced at the 15% rate before following any of the advice on changing the VAT rate. If you amend an order after the Tax Rates have been changed, this will correctly recalculate the VAT for the order - this will also be the case if you run Balance Ledgers on Commercials to Fix - it will revalue all non-complete orders to the newly amended rate.
To Credit an Invoice at the Old Rate
If you need to credit invoices at the old VAT rate, you should create a new tax code at the old rate of VAT. You can do this as follows:
-Accounting System Manager -Settings -Tax Rates,
The Accounting System Manager Tax rate details box appears.
-Choose Add -
Enter a description of your choice
-Select Vat Return Option
-Enter "Not Applicable'' in the EC terms box
-Enter the rate of 15%
-Ensure relevant Input/ Output Nominal Codes
Entering Late Suppliers Invoices/Supplier Purchase Orders
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 Sage 200 & Sage MMS'' has been followed.
Additional Information
Existing Sales & Purchase Orders
Existing sales and purchases orders entered into the system can be viewed using the View Order option. Caution should be used when selecting to Amend Order once you followed the section "Change the VAT rate in Sage 200 & Sage MMS'' has been followed. Amending an order and Saving or Closing without saving will recalculate the VAT at the new rate.
Re-Printing Invoices
For invoices entered in the system the VAT summary section will show the VAT rate as displayed in the Accounting System VAT Rate settings section however all monetary values will be based on the VAT rate selected at point of invoice posting.
Copy SOP Order
If you copy a SOP order that was created before you followed the section "Change the VAT rate in Sage 200 & Sage MMS'' ensure that you check all values on the order as it will calculate the VAT at the new rate on the order created by the copy.
Recording Payments In Advance
We recommend any orders entered in the system before the change in tax rate, that are not complete, and have advance payments associated with them, are checked to ensure that the increase in VAT has not resulted in the payment value being less or more than the value of the goods.
How to Change the VAT Rate in Sage 200 POS (Point Of Sale) with Sage 200
To change the VAT Rate in Sage 200 POS please follow the procedure for Sage 200 and MMS (above). Then make the changes in line your particular circumstances:
- If net prices are used and you want to increase prices in line with the new VAT rate, only tax codes require adjustment in the back office, prices can remain the same.
- If net prices are used and you don't want to change prices at this point, prices and tax codes in the back office need to be adjusted accordingly.
- If you use gross prices and want to increase prices in line with the new VAT rate, you need to adjust prices and tax codes in the back office accordingly.
- If you use gross prices and don't want increase prices at this point, only tax codes require adjustment in the back office, prices can remain the same.
How to Change the Vat Rate in Sage 200 Construct with Sage 200 or Sage MMS
First, change the standard rate of VAT in Sage 200 as described above, then
- log directly into Construct and run Utilities > Load Accounts.
Note if you cannot see Utilities on your menu, go to Tools > Users and change the Tree Menu by selecting 'Construct' from the drop-down list.
To enter a 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. Change the standard rate of VAT in Sage 200 and then run the procedure for Load Accounts.
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. Change the standard rate of VAT in Sage 200 and then run the procedure for Load Accounts.
How to Change the VAT Rate in Sage 200 Manufacturing
Change the standard rate of VAT in Sage 200 - no settings need to be altered within manufacturing.
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 200 or MMS, Sage 200 POS, Sage 200 Construct or Sage 200 Manufacturing, please contact the Concentrix support desk on 01509 410555 or email [email protected]
