Outside VAT Scope


Although this option has to be enabled it is part of the Accounts area of the system and will not incur additional charges.
If you wish to have this functionality enabled, please email Development.

Overview

Out of Scope entries will be excluded from the VAT Return. The following areas of the system are affected:

Caveats

  • Opening Balance tax posting will not be supported in this development.
  • Out of Scope only works with a zero Tax Rate.
  • Create Allocation Transaction (under & over payments): used to write-off small amounts, does not work with Out of Scope functionality, see How To: Create an Under / Over Payment.

Configuration

System Data

You will need to create the new Out of Scope stock item before you can use it.

  1. Open a System Data screen (show me how).
  2. Double click on [ Accounts | Tax Rates ].
  3. Unhide the Outside VAT Scope column:
    1. Open the grid menu Btngridmenu.jpg.
    2. Select Configure Grid.
    3. Use the Edit Profile for drop-down to select whether you want the columns to be un-hidden for the current user or for users belonging to a specific user profile.
    4. In the Grid Area of the dialog box, select the Outside VAT Scope column you wish to un-hide by clicking on it (columns can only be un-hidden one at a time).
    5. Untick the Hide Column checkbox BtnTriStNoXP.jpg.
    6. Click 'OK' to save the grid profile and close the dialog.
  4. Mark Outside VAT Scope tax rate.
  5. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  6. Press F3 or click the NEW ITEM button has an icon that shows two sheets of paper (identified by having the top right corner folded down), arranged diagonally on the icon from top left to bottom right to add a new item.
    1. Add a code
    2. Add a description, for example Outside VAT Scope.
    3. Make sure the rate is 0.
  7. Tick the Out of Scope checkbox.
    Note: The setting can only be ticked when the corresponding Tax Rate has a zero rate.
  8. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save the changes.

Stock Items

Stock items which are required to be 'Out of Scope' can have their 'Base Tax Rate' set to be Out of Scope.

  1. Open a Stock screen (show me how).
  2. Open the Accounting screen.
  3. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  4. In the Base Tax Rate dropdown, select the Out of Scope rate.
  5. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save the changes.

Sales Order - Unhide Out of Scope column

To view Out of Scope items in a sales order, the Out of Scope column needs to be unhidden. This column is read-only.

  1. Open a Sales Order screen (show me how).
  2. Move to the [ Sales Orders | Main ] tab.
  3. Unhide the Outside VAT Scope column:
    1. Open the grid menu Btngridmenu.jpg.
    2. Select Configure Grid.
    3. Use the Edit Profile for drop-down to select whether you want the columns to be un-hidden for the current user or for users belonging to a specific user profile.
    4. In the Grid Area of the dialog box, select the Outside VAT Scope column you wish to un-hide by clicking on it (columns can only be un-hidden one at a time).
    5. Untick the Hide Column checkbox BtnTriStNoXP.jpg.
    6. Click 'OK' to save the grid profile and close the dialog.
  4. Close the sales order.

Purchase Invoice - Unhide Out of Scope column

To view Out of Scope items in a purchase invoice, the Out of Scope column needs to be unhidden. This column is read-only.

  1. Open a Purchase Invoice screen (show me how).
  2. Open a Purchase Invoice screen.
  3. Unhide the Outside VAT Scope column:
    1. Open the grid menu Btngridmenu.jpg.
    2. Select Configure Grid.
    3. Use the Edit Profile for drop-down to select whether you want the columns to be un-hidden for the current user or for users belonging to a specific user profile.
    4. In the Grid Area of the dialog box, select the Outside VAT Scope column you wish to un-hide by clicking on it (columns can only be un-hidden one at a time).
    5. Untick the Hide Column checkbox BtnTriStNoXP.jpg.
    6. Click 'OK' to save the grid profile and close the dialog.
  4. Close the purchase invoice.

Usage

SPLedger

A new column, Outside VAT Scope is in the grid which will be automatically ticked when the Tax Rate is set to 'Outside VAT Scope'. When ticked, any postings made will be written to the accounting areas, but not appear in the VAT Return.

Notes:

  • If the SP ledger posting contains some tax then the 'Outside VAT Scope' option cannot be ticked.
  • Out of Scope entries are not supported when using Multi-line SPLedger entries.

Sales Orders

When a Sales Order is created or an additional stock item added to an existing order and the item is Outside the Scope, this is shown in the Tax Rate column. When the sales invoice is issued, this item will not appear on the VAT Return.

Note: sales orders can be raised with a mixture of items both In and Out of Scope.

Purchase Invoices

When a Purchase Invoice is posted, each item that is Outside of Scope will be excluded from the Tax Return.

Note: Purchase Orders and therefore Purchase Invoices can have a mixture of items In and Out of Scope.


See Also

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