From 4th January 2011 VAT will increase to 20%
- A new VAT Prod Posting Group will need to be created and VAT Posting Setup will need to be updated.
- We have a routine to update the VAT Posting group from 17.5% to 20% on Items, G/L Accounts, Resources, Item Charges and open sales and purchase lines.
- The routine will go through and update every Sales & Purchase Line (quote/order/invoice/credit/return) and change the VAT17.5 to VAT20 where it existed, ONLY on sales and purchase order lines which have not been part transacted (shipped/receipted).
- We will provide a report to identify those lines that you need to go through and reduce the original qty down to match what has been transacted and insert a new line for the balance.
The update needs to take place when all shipping has been completed for the month of December.
I will contact customers early November to arrange when we can run this update.
http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf