Pastel Accounting Vat adjustment to 15% on the 1st of April 2018

[Anneke Barnard]

Afternoon everyone,

I think the buzz at the moment is all about the Vat adjustment at the end of March 2018

I must still go and sit and try and figure out how this will be done.

In the meantime, i will be watching the Forum to see if anyone has figured it out for all of us.

So many question i could come up with of which one is how are you going to handle a credit, wether on the Customer or the Supplier side, for goods purchased or sold before the 1st of April?

Has anyone figured out that problem yet?

Yeah, i know some of you pay your annual Pastel Accounting license fees but some of us work for companies who don't. We are going to SUFFER!

Wishing you luck for the end of March.

[Mike C]

When one does the changes one must also remember to change the "Box Entries" if you use the VAT Box report.

[Anneke Barnard]

When one does the changes one must also remember to change the "Box Entries" if you use the VAT Box report.

Thank you Mike C

It would be much easier if someone could post it step by step.

I will be watching the Forum 24/7

[Neville Bailey]

I am meeting with my associates tomorrow morning to discuss this very issue.

During the meeting we will formulate a plan of action that can be implemented at our clients. Some of the steps might be a little too technical for some users, in which case remote consultations can be arranged to assist.

Watch this space.

[Neville Bailey]

In light of the pending VAT percentage increase on 1 April 2018, certain adjustments to your Pastel company setup will need to be made, particularly if you are not using the latest version of Pastel (Version 18). If you are using V18, you should soon receive a build update which will facilitate the VAT change.

If you are using a version of Pastel prior to V18, please take note of the following step-by-step procedure:

• Go to Setup…Tax…General Settings…Percentages.
• In Row number 1, change the description from "Vat - Standard rated” to "Vat - Standard rated 14%” and change the date in the End column to 31/03/2018.
• In Row number 11, insert the description "Vat - Standard rated 15%”, insert 15 in the Tax % column, change the Start date to 01/04/2018 and the End date to 31/12/2050.
• In Row number 12, insert the description "14% Credit Note Mar 18”, insert 14 in the Tax % column, change the Start date to 01/04/2018 and the End date to 28/02/2019. This VAT code is to be used where credit notes need to be passed after 31 March 2018, relating to invoices processed before 1 April 2018.
• The above steps can be done anytime between now and the end of the month.
• The following changes can only be done after the last transaction has been processed on 31 March 2018, but before the first transaction on 1 April 2018:
  • For each customer account, go to the Processing tab and, in the Tax section, change the default tax code from 01 to 11. If there is no default tax type set up, you can ignore this step.
  • For each supplier account, go to the Processing tab and, in the Tax section, change the default tax code from 01 to 11. If there is no default tax type set up, you can ignore this step.
  • Go to Setup…Customers…Control and, in the Configuration tab, change the Default Tax Type for Financial Lines from 01 to 11.
  • Go to Setup…Suppliers…Control and, in the Configuration tab, change the Default Tax Type for Financial Lines from 01 to 11.
  • For each inventory item, go to the Details tab and, under the Allow Tax section, change the VAT code from 01 to 11 for both Purchases and Sales.
  • Go to Setup…Inventory and, under the Integration/Groups tab, change the Default Buy Tax and the Default Sell Tax from 01 to 11.
  
  
• If you have too many customer/supplier/inventory codes to make the above adjustments manually, let me know and we can set up a TeamViewer session so that I can edit the accounts directly in the database.
• If you have any outstanding Sales Orders or Purchase Orders on 1 April 2018 with a VAT code of 01 on the line items, please note that the VAT code will need to be manually adjusted to 11 for each line item once the Order has been converted to a Tax Invoice / GRN / Supplier Invoice.
• If you are using VAT inclusive selling prices, please note that your VAT exclusive selling price will be reduced on 1 April unless you increase the VAT inclusive price to accommodate the VAT rate increase.
• If you have Recurring Invoice batches, you will need to change the VAT code, for each line item on each invoice, from 01 to 11, before your April 2018 invoices are created. Let me know if you require a TeamViewer session in order to make these adjustments directly in the database.
• If you have invoices on hold carried over from March 2018, you will need to change the VAT code, for each line item on each invoice, from 01 to 11, before the invoices are finalised. Let me know if you require a TeamViewer session in order to make these adjustments directly in the database.

The first working day of April is on Tuesday 3 April, after the Easter Weekend, so I anticipate a rush of requests for me to assist with the above adjustments before you start processing April transactions, so please bear with me, as I can only deal with one client at a time. I will not be booking TeamViewer sessions in advance for 3 April, as I cannot guarantee that I will be ready at a particular time, so I will assist on a first-come-first-served basis.

In order to ease the pressure on 3 April, I will make myself available over the Easter Weekend to log on with TeamViewer to make the necessary changes. If you are willing and able to send me your TeamViewer details at the close of business on Thursday 29 March, together with your Pastel supervisor password, I will log on sometime during the course of the Easter Weekend to make the adjustments.

My usual hourly rate will apply for all remote sessions. If I have consulted for you before, please email me your company details so that I can open an account for you.

[Mike C]

In light of the pending VAT percentage increase on 1 April 2018, certain adjustments to your Pastel company setup will need to be made, particularly if you are not using the latest version of Pastel (Version 18). If you are using V18, you should soon receive a build update which will facilitate the VAT change.

Has anyone installed Version 18.1.1 yet? And if so ... were there/are there any hassles?

[Neville Bailey]

Has anyone installed Version 18.1.1 yet? And if so ... were there/are there any hassles?

No issues on my side or at any of my clients.

[Mike C]

Well I hit the first problem. I downloaded the upgrade and when I started the install it said that it did not recognise the Base Serial Number. Now I will have to phone customer support.

I presume that this version is free for all who are paying their yearly subscription fees?

[Ros Clark]

Have read the above article about vat changes to 15%.
If one changes the date for the ending of 14% to 31/03/2018 and adds and new date for 15% to start 01/04/2018 I have a problem in that our business is commission based and received commission in arrear some times two months in arrear so commission received April would be for Feb or March which is 14%.These entries are always cash receipts entries and are accounted for in the books as and when received so the financial institution paying the vat to us is not invoices. If we invoices the financial house the commission would appear in the incorrect month.

[Anneke Barnard]

Have read the above article about vat changes to 15%.
If one changes the date for the ending of 14% to 31/03/2018 and adds and new date for 15% to start 01/04/2018 I have a problem in that our business is commission based and received commission in arrear some times two months in arrear so commission received April would be for Feb or March which is 14%.These entries are always cash receipts entries and are accounted for in the books as and when received so the financial institution paying the vat to us is not invoices. If we invoices the financial house the commission would appear in the incorrect month.

Good Morning,

I am not sure if i understand your post correctly.

Vat should not affect your commission as you do not pay Commission, Vat included. Is your company paying commission on Vat?

If you do, you are doing it wrong. Commission should be paid on the amount before Vat.

Regards

Anneke Barnard

[Anneke Barnard]

Good Morning Neville,

I want to ask your professional advise if you don't mind please.

The company i work for, a furniture manufacturer, had Pastel Xpress Version 11 installed in 2011

As the consultant is family of our director, we did not pay annual license fees since 2011

However, now she is not available to help us out any longer, as she has retired, i am a little unsure of what to do.

So far we had no major issues on Pastel but now that the Vat is changing, it obviously is a problem.

How i would like your advise is as follows:

As i am currently working on Pastel Xpress Version 11.12.1;

Should i rather now upgrade?

1.) Can i stay with this version and download updates? (Don't know if this is a possibility)
2.) Would you rather suggest that i call a consultant to assist us in all this?

Your advise would be greatly appreciated.

Regards

Anneke Barnard

[Mike C]

I came across this on the Pastel website:

The VAT increase is effective from the 1st of April 2018. Sage will make build updates available for Version 14, Version 17 and Version 18 which will automatically make the necessary changes to ensure you remain VAT compliant. Once these updates are ready for release we will communicate with all our cover customers on the steps to follow to update.

So if we start making changes now will it interfere with their build update?

[Neville Bailey]

I came across this on the Pastel website:



So if we start making changes now will it interfere with their build update?

Hmmm, this is news to me, as I was led to believe that Pastel was only going to release a build update for V18. However, I see that the build update is only available to "cover customers", i.e. those paying the annual licence fee.

In that case, rather wait for the build update before changing anything.

[Neville Bailey]

Good Morning Neville,

I want to ask your professional advise if you don't mind please.

The company i work for, a furniture manufacturer, had Pastel Xpress Version 11 installed in 2011

As the consultant is family of our director, we did not pay annual license fees since 2011

However, now she is not available to help us out any longer, as she has retired, i am a little unsure of what to do.

So far we had no major issues on Pastel but now that the Vat is changing, it obviously is a problem.

How i would like your advise is as follows:

As i am currently working on Pastel Xpress Version 11.12.1;

Should i rather now upgrade?

1.) Can i stay with this version and download updates? (Don't know if this is a possibility)
2.) Would you rather suggest that i call a consultant to assist us in all this?

Your advise would be greatly appreciated.

Regards

Anneke Barnard

Hi Anneke,

If you upgrade, you will receive an update that will automatically facilitate the VAT change, but at a cost...

Send me an email with your current package's base serial number and I will send you an upgrade quote.

You cannot download updates for V11.

I can assist with the change-over, as per my post earlier, via TeamViewer.

[Ros Clark]

We receive commission from Financial institutions like Old Mutual. The commission received is made up of commission plus vat. The vat received constitutes output vat and as we receive it in arrears we would be receiving 14% vat in April. I understand Neville Bailey's instructions about introducing a new vat number but my cash book for April would have for example bank charges paid which would be at 15% and commission received at 14%. As Neville Bialey is specifying an end date to the 14% vat as at 31/03/2018 I am not sure how to handle the vat on receipt because its at 14%