How To Change 5% VAT in Pegasus Opera 3
As per the latest Government Update regarding the reduction of VAT to the Hospitality Sector, we have created the new Guide on amending your VAT rates and also Guidance on stock pricing changes.
5% VAT Rate Update
To update the current Sales Standard VAT rate to 5% please follow the below guide.
- All users should be out of Pegasus Opera 3
- Open Administration – System – VAT Processing – Vat Codes
- Within the VAT Code screen, find your Standard Sales VAT Code. This is most cases will be using the H/S/1 code as per below however please check your systems to confirm the correct code currently in use.
- Within the “Rate 2%” please change this to 5% and within “Date 2” please enter the date of which the 5% VAT will take place. This is currently the 15th July 2020.
Once this change has been made, any Sales Orders / invoices created on the 15th July will automatically use the 5% VAT code where the Standard VAT code was in use. Any Orders that were created Prior to the 15th but then invoiced on or After the 15th will also have the 5% VAT code applied automatically.
Stock Price Changes
As the Government changes are decreasing the VAT Liability, depending on your Stock Price Calculations, there may be a requirement for your business to update your Stock Prices.
If your Stock Price is held Exclusive of VAT, the Price on Sale will automatically be updated with the 5% VAT rate I.E. £100 Goods + £5 VAT rather than £100 + £20 VAT
If your stock Price is held Inclusive of VAT, The Sell Price on Sale will not be updated as the VAT % will be deducted from the Price. I.E. Where £100 Sell Price is VAT inclusive would usually be £84.00 Goods and £16.00 VAT. It would become £96.00 Goods and £4 VAT therefore your Price would be maintained at £100.
Options for Manual Price Changes
- Updating the Sell Price on Each Stock Record Manually
- This will amend the Sell price for the stock item unless you are using Special Prices
- Adding a “Sale Price” to your stock item.
- This option is found on the individual item – action – Price and Discounts. The Sale Price has a Start and Finish date to allow of the Automatic switch back to the main Sell price at a set date.
Global Price Changes
This routine is available to update the Price of Stock items by grouping them by Category or Stock Ref List. This routine also allows not only the Stock Sell Price to be updated but also the Special Pricing, Warehouse and Supplier Prices
- Navigate to Stock – Utilities – Global Price Changes
- Select the Sequence and Range of Products to Update
- Select the File to Update which is the Sell price location
- Product – Main screen Sell Price
- Price List – The relevant stock item on the range of Price Lists specified
- Warehouse – Warehouse Sell Price if Used
- Supplier – Supplier Cost Prices against each item
- Select the Change by options to determine how the Price will be updates
- This can be a Positive percentage of Value
- Once the changes have been made, select ok.
- A report will be generated showing the price changes applied. On closing the report, you will be prompted to confirm the changes can be applied.
- Selecting Yes will Update the Prices as per the report
- Selecting No will cancel the process and no changes will be made
If you require any further help, please contact our dedicated Pegasus support line, or log a ticket through our customer portal.