If you are using Pastel Xpress/Partner V14, V17 or V18, you can install a build update that will automatically facilitate the changeover of the VAT rate on 1 April 2018.
The build updates can be found on http://pastelupdate.sagesouthafrica.co.za.
If you are using earlier versions of Pastel, you can follow my step-by-step instructions outlined below:
- 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.
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