Add VAT onto food price

Test227

Hi,

We are using NAV2009 R2 with LS Retail POS.

We have various baby food items for sale in our shop, and these do not have VAT on them.

However, customers can bring them to our cafe to be purchased as a meal, and in this situation we need to charge VAT, and increase the price accordingly.

Has anyone done this before, and do you have any suggestions on the best way to approach this? I have recomended that the business has two SKUs, but they do not wish to do this due to overhead on pricing setup and stock management.

Many thanks for your assistance,

Justin

vaprog

Hi Justin,

I do not know LS Retail, but with standard NAV you would

• Create a VAT Product Posting Group and assign it to the items.
• Create a VAT Business Posting Group and configure the system, such that it is used by invoices (or whatever "documents" the POS creates) issued by the cafe.
• Set up VAT Posting Setup for all possible combinations.

You should check with the accounting people whether you need to alter Gen. Product Posting Group, Gen. Business Posting Group, and General Posting Setup also.

Is there a standard way to solve this with Stockkeeping Units? How would you do it?

Kowa

VAT is added if the combination of VAT Business Posting Group and VAT Product Posting Group lead to a record in the VAT Posting Setup that has a VAT % value defined for it.

Create a special VAT Product Posting Group for baby foods.
Sundry customer for the shop has the usual VAT Business Posting Group (the combination with the above special VAT Product Posting Group points to a record without VAT in the VAT Posting Setup), sundry customer for the cafe has a different VAT Business Posting Group (combination here points to a record with VAT). All other product /customer combinations have to remain as they are, of course, so the additional VAT Business Posting Group has to cater for all other possible combinations too without changing the VAT calculation there.

Test227

Many thanks for the replies.

At the POS, we do not have a customer for the sale, instead the Gen Bus Posting Group comes from the Store record which will include all tills. I'll look into changing this to be by till, so we can have a different Gen Bus Posting Group on the cafe till.

Many thanks,

Justin

Kowa

The Gen Bus Posting Group resp. the General Posting Setup is (amongst other things) responsible to detect the revenue accounts, don't confuse this with the VAT. The two are usually linked, but need not necessarily be so, in NAV Standard transactions you can change them in the sales invoice header on the fly if required. But if there is only one store record for all POS transactions a separate Gen Bus Posting Group with identical accounts in the General Posting Setup linked to a new VAT Business Posting Group and the modified VAT Posting Setup with the separate VAT Product Posting Group should do the trick.