[sims] Record only VAT

[MCollingwood]

Is it possible to post invoices on SIMS with Net and VAT, but the gross goes to the cost centre?

 

We'd like to record the VAT but we cannot claim it back, as we are a new academy.

 

Many thanks, Margaret

[creese]

Which module?

[MCollingwood]

Hi creese

SIMS FMS 6.124

[creese]

Sorry no knowledge of FSM

[MCollingwood]

thanks anyway - anyone else?

[Sivadam]

thanks anyway - anyone else?

I have a working knowledge of FMS but I am not sure that you can change the setup to do what you want to do. However, we have to work within the remit of the LA and it may be that there is such a setup but we would be unaware of it, as it is outside our experience. It may well be that you can re-define the Ledger Codes to do what you want with the Ledger Code Definition Creation Wizard. You can set up your own VAT Codes and it may be possible to align them to your own definitions.

Unfortunately my Financial colleague is now on holiday. She will probably be in school at some time and I will ask her if I do see her.

Have you posted a case with Capita Support? You should get a quick response as to whether it is possible or not!

Edited July 26, 2010 by Sivadam

[Sarconia]

I'm with Sivadam on this one as my first thought was "hmm, I wonder if you could create a new ledger code for this?". Although I'm not really that great with FMS either.

[PhilNeal]

I recommend talking to our service desk as we have a briefing sheet on this. Below is an extract that should help:

 

Creation of the Chart of Accounts

Vat Input (VI) and Vat Output (VO) ledger codes will need to be defined with a rate of zero percent. These ledger codes will become the default Vat ledger codes for Expenditure (VI) and Income (VO) ledger codes.

 

A possible solution that could be adopted to account for Non Recoverable VAT (NRV) is to create Expenditure (EX) ledger code(s) with the description of “Non Recoverable VAT” – one for standard rate at 17.5% and a reduced rate at 5.0% currently. These ledger codes could be linked to a specific Fund allowing the value of NRV to be indentified easily. These ledger codes will need to be linked to the cost centres appropriately.

Allocation of budgets

Budgets should be allocated allowing for NRV to be charged to the appropriate ledger code / cost centres.

Accounting for Non Recoverable VAT (NRV)

The following table provides guidance upon how existing functionality can be used in the following areas where the budgets have been allocated to include NRV:-

a) The VAT Input (VI) and VAT Output (VO) ledger codes have been defined with zero percent.

b) NRV is committed and recorded against ledger codes and cost centres at source

c) An expenditure ledger code is used to record the NRV in the cost centre

Functionality Guidance

Purchase Orders Select the items as normal but add additional line(s) for each cost centre using the Expenditure ledger code defined for NRV entering an estimate for the NRV.

Supplier Invoices and Credit Notes When the Invoice for the Purchase Order is entered, the actual value of the NRV can be recorded and posted on the expenditure ledger code defined on the Purchase Order for NRV.

Cash Book Journals Select the appropriate ledger code / cost centre combination(s) entering the net value against each line. If NRV is applicable, enter journal lines using the expenditure ledger code defined for NRV for each cost centre.

Reoccurring Payments Select the supplier and the appropriate ledger code / cost centre combination(s) entering the net value against each line. If NRV is applicable, enter journal lines using the expenditure ledger code defined for NRV for each cost centre.

Normal Journal Select and the appropriate ledger code / cost centre combination(s) entering the appropriate net value against each line. The expenditure ledger code that has been defined for NRV could be included within a normal journal.

Petty Cash Enter the value of the Petty Cash expenditure using the appropriate ledger code / cost centre combination(s). If NRV is applicable, enter a separate line for using the expenditure ledger code that has been defined for NRV for the appropriate cost centre.

Income transactions These transactions should be entered as normal. In most circumstances, Academies are not allowed to charge VAT on their transactions.