VAT Update
For all Sage Clients.
When you change to VAT rates to 20%, we have noticed a potential problem.
Some sales invoice layouts are configured such that, 17.5% is included as text.
This will usually occur if you have configured a special invoice layout.
If you are using the general Sage layouts, then you should be OK, but it’s still worth checking.
Obviously this will not change, when you change the VAT rate.
So the invoice will read incorrectly as 17.5% , but the VAT amounts will calculate as 20%
To fix this problem:-
Commence printing an invoice. ( any invoice will do)
When required to select the invoice layout, highlight the required layout ( 1 click), and then select edit.
This will take you into the invoice layout edit feature.
Go to the box that shows 17.5% - edit the box to 20.00% , and then SAVE the invoice layout.
( Remember to duplicate this if you have a Credit Note layout as well).
Also, we would recommend setting up T 17 as 17.50 % . This will allow you to process Dec. and prior purchases, at 17.5% while invoicing at 20% on sales.
When setting up, tick ‘ Include in VAT return’ box.
Also, when you are changing the VAT rates via ‘ Configuration’ and Tax Codes remember to save or apply. Then go back in to check the changes have been made.
Also please remember, because VAT rates changes are very rare events, all kinds of anomalies occur, that are hard to predict at the time of the rate change, so please continue to check your sales invoices carefully , and also check your supplier invoices as well, for the next few months.
Our experience of the temporary 15% change in 2009, was that ‘oddball’ problems were cropping up months later.
If you require any further information, please contact us on 01706 826757
