How To: Financial Setup for World-Wide Suppliers
Table Of Contents
This article explains how to configure suppliers that are located outside the UK and outside the European Community (EC).
To process purchases correctly from worldwide suppliers, you will need to configure supplier settings, currencies, tax settings and, where applicable, import commodity numbers (ICN codes).
Before You Begin
Ensure you have created the bank account that will be used to pay the supplier.
The bank account must use the same currency that the supplier will be paid in, for example:
- Pounds Sterling (GBP)
- Euros (EUR)
- US Dollars (USD)
For guidance, see How To: Create a New Bank Account.
Configure the Supplier Record
Open the supplier record and review the settings on the [ Customer | Detail | General ] tab.
Ensure:
- The Company Pays Tax checkbox is ticked.
Note: When creating a new supplier, this option is normally selected automatically.
Configure System Data
Several areas within System Data must be configured before worldwide suppliers can be used successfully.
Currencies
Configure the required currencies in Currencies.
When creating or reviewing currencies:
- Verify that the currency has been created correctly.
- Ensure the appropriate tax settings are selected in the relevant tax columns.
Currency Conversion Rates
Configure exchange rates in Currency Conversion Rates.
Enter the conversion rate from your system's base currency, which is normally GBP, to each currency used by your suppliers.
Keeping exchange rates up to date helps ensure accurate purchasing costs and valuations.
Tax Rates
Review the settings in Tax Rates.
Ensure the required tax rates are configured and available for use with worldwide suppliers.
ICN Numbers (Optional)
If you use import commodity classifications, configure the required ICN codes for the products you purchase.
Configure Stock Items
Where imported goods require ICN codes, these should be added to the relevant stock records.
Add the ICN Code
On the Stock record:
- Open the stock item.
- Enter the appropriate ICN code.
Configure Stock Suppliers
On the Stock Suppliers tab:
- Add the supplier to the stock item.
- Mark at least one supplier as the Preferred Supplier.
Tip: If you need to update multiple stock items at the same time, use Block Change Selected Items from the [ Stock | List ] screen shortcut menu.
Prerequisite
Before assigning an ICN code, ensure the correct description has been created against that code.
Important Information About Countries
Khaos Control is normally supplied with the ISO-3166 Countries table already configured.
This includes:
- Standard ISO country records.
- A UK zone containing:
- United Kingdom
- Guernsey
- Isle of Man
- Jersey
Country records include settings that identify whether:
- VAT applies to that country.
- The country should be treated as an EU member state for VAT purposes.
In most cases, these settings should not need to be changed.
However, you may need to amend them if you wish to:
- Treat specific territories separately, such as the Canary Islands.
- Group countries into regional zones, such as the European Union.
- Create separate country entries for England, Scotland, Wales and Northern Ireland.
Validate Your Configuration
After completing your setup, we recommend running a system health check.
- Open the File menu from the main screen.
- Select Health Check.
The Health Check can help identify any significant issues within the country configuration or related system data settings.
Summary
To successfully set up a supplier located outside the UK and the EC, ensure you:
- Configure the supplier correctly.
- Set up the required currencies and exchange rates.
- Verify tax settings.
- Create any required ICN codes.
- Configure preferred stock suppliers.
- Check the country configuration where necessary.
- Run a Health Check to validate the setup.
Following these steps will ensure purchases, supplier payments and imported goods are processed correctly within Khaos Control.