VAT Utilities
Select the option you wish to perform from the VAT Utilities menu.
Contents |
Recalculate Batched Transactions |
Update VAT % on Transactions |
Calculate Non-recoverable VAT |
Recalculate Batched Transactions
This option enables you to recalculate VAT for transactions that are already batched. For example, where transactions held in a batch have a VAT rate of 17.5% and you want to change to a new VAT rate of 20.0%.
This option applies to batched Sales Order Processing (SOP) and Purchase Order Processing (POP) transactions and Credit Notes. You should be aware that Settlement Discounts are excluded when using the Recalculate Batched Transaction VAT Utility so that VAT is correctly calculated when payment is made. See VAT on Settlement Discounts.
The recalculation of VAT for batched transactions applies where:
no VAT rate has been entered on a transaction or the VAT rate is different to the one that has been set.
VAT Codes 1, 11, A, R, V, U and X are used. Note that any other VAT Codes, including any created by you, are unaffected.
Changes are made both to the VAT rate and the gross value.
Note: you should edit orders entered in Gross mode from the batch and Save in order for the Net to be recalculated rather than the gross. Existing Net values will be unaffected (this means that Costing and Nominal committed values are also unaffected).
Before you run this utility, ensure you have backed up your data.
Run the Recalculate VAT on Batched Transactions Utility
To run the Recalculate VAT on Batched Transactions utility:
Select Recalculate Batched Transactions from the VAT Utilities menu.
The following message is displayed: 'Please make sure you have a backup of your data. OK to continue?' Select OK.
Enter the required VAT Rate in the input box and select the OK button to continue.
The following message is displayed: ' Are you sure you want to recalculate the VAT and gross total on all batched transactions with a code of 1,11, A, R, V, U or X to n.n%'.
If successful, the following message is displayed: 'Batched Orders processed successfully.'
Update VAT % on Transactions
This option enables you to update the VAT % on transactions that have been already batched or posted and ensures that the correct VAT% is displayed/printed in the transaction. The utility will only work where the VAT Rate field is empty.
All existing transactions of the following types (batched and posted) are updated:
Sales Ledger: Invoices and Credit Notes
Purchase Ledger: Invoices and Credit Notes (including PIR transactions)
Nominal Ledger: VAT Journals and Recurring VAT Journals
Sales Order Processing: Order and Credit Notes
POP: Order and Credit Notes
To run the Set VAT Rate on Ungraded transactions
Select Update VAT% on Transactions from the VAT Utilities menu.
The following message is displayed: 'Please make sure you have a backup of your data. OK to continue?' Select OK to continue.
Select a VAT Code from the drop-down list. (Note that you will need to run this utility for each code in turn).
Specify a VAT Rate in the input box.
Specify the exception dates in the From/To Date fields and then enter your required exception rate under the Rate field
Select the OK button to continue.
The following rules apply:
Only detail lines that use the VAT Code specified by the user will be affected.
Detail lines where transaction date falls within the specified Exception date range will have the Exception Rate applied.
Detail lines where transaction date falls outside the specified Exception date range will have the Default Rate applied.
Note: No transaction values are recalculated.
Recalculate Non-recoverable VAT
Where a new Recovery Rate has been issued with an effective from date that is earlier than today, this utility allows you to recalculate the Non-Recoverable VAT value of transactions posted since that Recovery Rate became effective. Also see the Partial Exemption VAT overview, and the VAT Rates topics.
The cost is accounted for in the period of the original transaction, regardless of whether you have security permissions to post to restricted periods. If the period of the original transaction is closed, then the cost is posted to the current Open period (not working period). Where the transactions being recalculated have been posted to multiple periods, then multiple journals are created, each updating the appropriate periods. the
Select Recalculate Non-Recoverable VAT; you are prompted to backup your data.
You are then prompted to select the affected VAT Code; you should select the VAT Code from the list. The current Recovery Rate and Effective From date are shown as read-only information.
Where the Utility has been opened from a VAT Rate record then the relevant VAT Code is pre-filled.
Select OK; you are prompted to confirm that you want to recalculate the Non-Recoverable VAT on transactions with the selected VAT Code posted since the Effective From date.
Click Yes to proceed with the recalculation.
The Non-Recoverable VAT is recalculated based on the new rate, and the difference between the original and the new value is posted as a VAT Journal using this VAT Code so that the correct VAT values are updated to the VAT Control account and the VAT Return.