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Documentation > MAC-PAC Reference Library > Reference > Common Features > Key Concepts and Procedures > VAT Processing > Hierarchy for Defaulting VAT Codes on Sales Orders

Hierarchy for Defaulting VAT Codes on Sales Orders

 

 

The relevant VAT code must be specified for each line of a sales order.  To simplify sales order entry, MAC-PAC allows you to specify a number of defaults for use in assigning VAT codes.  For "normal" customers (when VAT is neither exonerated nor suspended), the appropriate VAT code is determined by three factors:

·     The item being ordered

·     The customer and selling company/location

·     The country where the customer is located

You define the relationship between these three factors on the Warehouse Balance File and on the Reference File as follows:

·     The Warehouse Balance File allows you to specify the VAT code appropriate for the item, regardless of who orders it or where that customer is located.  This VAT code will be used in most cases when the item is purchased.

·     Category 462 allows you to specify the VAT code appropriate for any combination of country and item.  This category is optional; it is only used when you need to use different VAT codes for the various countries where your customers are located.

·     Category 461 allows you to specify the VAT code appropriate for any combination of item, customer, and selling company/location.  This category is optional.  It is used only when specific VAT processing is required for a particular customer. 

·     The Customer Master File allows you to specify a VAT code that is typically used for the customer.  This default is typically only used for exonerated and suspended VAT, which are specific to customers rather than to items.  However, you may use a VAT code that is neither suspended nor exonerated.  The VAT code will be ignored by the Order Processing module if it is not suspended or exonerated.  It will be defaulted to items created in Accounts Receivable or Synchro, regardless of the VAT type.

The following figure indicates the hierarchy MAC-PAC uses in attempting to assign a VAT code to each sales order line.  You can override the default VAT code for any line.  In each case, after the appropriate VAT code is determined, MAC-PAC retrieves the rate associated with the VAT code and selling country.  This rate is then used to calculate the VAT, which is accumulated into the appropriate category and printed on the customer order and invoice.  The total for each VAT code is printed as a separate line.  Because exoneration and suspension apply only to customers, it is not possible to store a suspended or exonerated VAT code on the Warehouse Balance File.

 

 


Step


Condition to Be Determined


How Condition Is Determined


VAT Code Used

1

VAT exonerated for this customer

Customer Master File contains exception VAT code.

Reference File category 308 determines that exception VAT code has type exonerated.

VAT code on Customer Master.

2

VAT suspended for this customer

Customer Master File contains exception VAT code.

Reference File category 308 determines that exception VAT code has type suspended.

VAT code on Customer Master

3

A special VAT code should be used for this particular item when ordered by this particular customer.

Customer number/item number/company/location combination exists on Reference File category 461.

VAT code on category 461.

4

A typical VAT code has been defined for use whenever this item is purchased within the customer's country.

Country/item number combination exists on Reference File category 462.

VAT code on category 462.

5

No previous condition applies.

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VAT code on the Warehouse Balance File.

 If this field is blank,  the VAT code must be entered by the user.

          Hierarchy of VAT Code Defaults for Sales Order Lines.