Hello
I am new to BC365 and in the process of setting it up for the company I work for that is based in UK (and VAT registered). We are not using items/resources and I will therefore be posting directly to the G/L account when raising sales and purchase invoices etc. Even though I am posting to G/L accounts, from my research, I believe I still need to set up general posting group and since we are VAT registered, we need to use VAT posting groups.
All customer and vendors are in the UK, so initially I just had one VAT business posting group – called ‘domestic’.
I have set up VAT product posting groups called ‘standard’, ‘reduced’, ‘zero’ and ‘no VAT’. I think I have to use these VAT product posting groups on the G/L account cards for P&L/income statement accounts.
My question/scenario is this:
We have a G/L expense account called ‘IT consultancy’. On the G/L account card for ‘IT consultancy’ I think I must enter a VAT product posting group, but the VAT on that ‘product’ will vary depending on who the vendor is….. As some vendors whose invoices are posted against this account are VAT registered and other are not VAT registered.
At the moment I have added a VAT product posting group called ‘Standard’ to that card.
How do I set-up the posting groups to make sure input VAT is correctly charged??
To get around it (and on the assumption that I must have a VAT product posting group on the G/L account card), I have set up two VAT business posting groups, one called ‘domestic’ and another called ‘domestic – not VAT registered’ and I have just left the VAT product posting group as ‘standard’. The VAT posting set-up is configured so that it selects 20% VAT if the posting groups are ‘domestic’ and ‘standard’ and 0% if the posting groups are ‘domestic – not VAT registered’ and ‘standard’.
Is there a better way to set up the VAT posting groups? Or have I missed something simple?
Finally, I think I am right in saying that since we are using VAT, I must use enter ‘sale’ or ‘purchase’ in the ‘General Posting Type’ so that VAT is correctly categorised on the VAT statement??
Any help very appreciated, thank you.
