We are making a change to the way that VAT is handled in Manu Online.
Until now VAT has been specified as a percentage on orders and invoices, either directly or by reference to the item’s account and customer or supplier’s VAT location. We are now changing to the so called “tax code” system as is used in many accountancy programs. This tax code contains the percentage of VAT to be used in the order or invoice and each bookkeeping account is associated with one tax code.
· the VAT rate of order lines will be specified by a tax code.
· the VAT rate of invoices lines will be specified by the tax code specified on the invoice line
Your system has been updated with the tax codes appropriate to your linked bookkeeping system. If you do not have a linked bookkeeping system your system has been updated with a generic system and a generic chart of accounts, and from now on it will be necessary to specify accounts on invoices so that the VAT can be shown.
The default tax code of any particular customer is set by the tax code of the default sales or default purchase account on the partner card. If these are not specified, it is set from the default accounts in your own company details. If these are not specified then it uses the first code in the list which is for normal domestic sales or purchase.
To change your tax codes, go to Admin -> System settings and select “Tax codes”. You can add and remove tax codes and mark are they visible in either sales or purchase or both. To change the codes in your chart of accounts, then go to the “Accounts” in the same location.
Certain accountancy programs allow entries of different tax rates to the same account. In the company settings we have introduced a new parameter “Tax code must be same as account’s”. This is used to control whether you can enter different tax codes to that of the invoice line’s account. By default, entering different rates is prevented, but you can change this parameter if required. Discuss this change with your accountant.
Your historical purchase and sales order data has been updated with the appropriate tax codes. In exceptional circumstances it may not be possible for us to ascertain the correct code for old orders appropriate for your linked accountancy system. We are aware of this and will contact you if we need further information after the upgrade.
Note: The tax codes depend on your connected bookkeeping system, so maybe different from those shown in the image.
This change will come into effect following a system upgrade that will happen this eventing, Tuesday 21st January, at 8 pm. During the upgrade the system will be offline for about 1 hour.
For any questions or queries, please contact us through the support link in the program.