How can I control different VAT codes on the same consignment?
There are two main options to control VAT codes while posting a consignment. These can be set up depending on the type of trade performed by the company.
The two settings are the following:
Option 1: Default VAT code set on the Supplier
The setting of the default VAT code per supplier is available on the supplier account, Secondary Details tab.
For each consignment, you are required to select a supplier code. If the system identifies that there is a default VAT code linked to the supplier, it will automatically allocate this VAT code to the consignment. This VAT code is applied to each of the products within the current consignment. This is useful for companies that import consignments from EU and non EU countries and sold with the same VAT rate.
Option 2: Default VAT Code set on the Stock Group
For those companies that require to report different VAT codes for different products within the same consignment, the following settings are required to be set in SIMS.
- From Support Menu > Stock Groups, set up the related Purchase VAT codes as follow. Please note that each combination requires a different VAT code.
- From Admin Menu > Company Maintenance, select the Purchases tab and make sure to tag the option RC Default Vat Code on Lines from Stock Group.
The above setting will work in conjunction with the option available on each of the consignment header check box, Non EU Consignment.
EU Consignment If the Non EU Consignment check box is not ticked on, in other words the consignment is an EU Intra community supply, the system will default the VAT Code from the Stock Group field - VAT Import EU. | Non EU Consignment |
This option is applicable for items purchased and sold with different VAT codes including 0%, 5% or 18%. With this setting switched on, the VAT code is defaulted by the system based on the setting available on the Stock Group of each product automatically.
Consignments with different VAT codes will be posted accordingly to SFM and therefore each supplier’s invoice may be split in two or three records for VAT return purposes. Only one record with the total invoice amount will be posted in the Purchase Ledger.
Please note that this setting will overwrite the default VAT code allocated to the supplier.
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