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Hi, I have just joined an organisation where they have been using standard vat rate (17.5%) and than amending it manually every time. Can some one please tell me how do I set up new vat rate code on GP v9.
Thanks in advance.
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Hi, I'm guessing from the 17.5% rate that you are UK based?
When you say 'amending it every time'...do you mean that each time the VAT rate changes, they change the %age for the Tax Detail set up in GP...or the6 use the same Tax Detail for all tranactions but change the Vat calculated per transaction (if for example the transaction is a zero rated transaction)?
To set up VAT rates in GP you need to first set up a Tax Detail. Go to Set up >> Company >> Tax Detail.
My preferred convention on setting up tax details is as follows:
The Tax Detail ID should not contain the VAT %age (since this can change). Instead call your Tax Detail 'SSTD' (Sales Standard Rate)... PSTD (Purchases Standard Rate)...PLWR1 (Purchases Lower Rate 1)...SZERO (Sales Zero Rate)...etc.
In this way if the standard rate changes from 17.5% to 17%...then the Tax Detail ID still makes sense.
Type in your preferred Tax Detail ID, enter a description, then select if this is a sales or purchases tax detail, enter the GL posting account for taxes calculated using this detail, then select the calculation method ('to the nearest currency decimal' is probably the one you want), then enter a vat percentage. Thats mostly it. Click save.
You will then need to set up a Tax Schedule. Go to Set up >> Company >> Tax Schedule.
If for example you set up a Tax Detail called SSTD, then create a Tax Schedule called SSTD. Enter a description and select the SSTD Tax Detail ID from the left hand column and insert it into the right hand column. Tick 'Auto Calc' so that Vat is calculated when you enter transactions.
Depending on your setup (and this is where it is hard to advise you), and if you are UK based you probably have a Tax Schedule each for Sales and Purchases that contain all the available Tax Details. If you do, you will probably need to insert this new Tax Detail you created into one of these schedules as well.
There are a number of settings that affect calculation of VAT, so it is hard to give you exact advice, but if you try the above it will give you a start. If you run into difficulties, drop me an email.
Best regards,
Ian.
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