VAT Changes
To update MailOrderWorks to use the new 20% VAT rate, please follow the steps below on or after the 4th of January, before taking your first order.
If you are not a UK business or are not registered for VAT, your VAT mode will be "No VAT" and the rate change won't affect you, so you do not need to change any settings.
MOW v5: VAT Registered MailOrderWorks version 5 users
- Check you have version 5.902 or higher. If you are using the version 6 beta, please see the section below for v6 (a different process applies).
- Ensure all users are logged out.
- Login to your company account using the "admin" user.
- For your records, create an export of your current pricing using either a suitable report or using the table export button (repeat for each page).
- Click the System Settings icon (toolbox).
- At the bottom of the Company Settings tab, change the Default VAT Mode drop down to the appropriate setting for your business.
This will either be eg: "INC VAT @ 20%" when you show prices inclusive of VAT, or "EX VAT (add) 20%" when you show prices exclusive of VAT.
- Click Save and Close.
- Check your pricing and ensure you are happy with the new values - correct any prices as needed (such as where you wish to change the rounding).
- Staff users may now login and use the system, their new orders will default to the new rate settings.
If you wish to change your prices, such as increase them to accommodate the increased VAT you will need to do so via the normal product screen for each product. This will be a commercial decision for you to make depending on your market and existing pricing.
Changing the VAT setting for an order manually
You can manually edit the VAT mode on existing orders if needed by opening the order and clicking the VAT edit icon next to the VAT total shown in the orders Summary box (above Grand Total). Clicking this shows a drop down where you can change the VAT mode for the order, allowing you to use a different rate to the default.
Documents still showing the old rate
Some customised document templates may have the VAT rate written in text, rather than using the software's VAT fields. If documents for orders set to the new rate still show the old rate please contact us to have the template updated. If you have set your own text, such as terms of business, you should be able to amend these paragraphs yourself in System Settings.
MOW v6: VAT Registered MailOrderWorks version 6 users
If you are using the new version 6 beta please follow these steps.
- For your records, create an export of your current pricing using either a suitable report or save tables with the export button (pre v6.4 - repeat for each page).
- Ensure all users are logged out.
- Login to your company account using the "admin" user.
- Click System Settings in the main menu (toolbox icon).
- Click the Finance Settings tab.
- In the Update Rate section, select your main tax code in the drop down (usually T1 - selected by default).
- Enter the new rate (20%) in the New Rate box to the right.
- Select your update method for retail prices.
- Select your rounding option if required (rounding is not recommended when price breaks are used because price breaks won't be rounded)).
- Select your update method for default cost (and other) prices.
- Double check your settings.
- Click Change Rate, this will bulk update all applicable prices and re-calculate the Net and VAT values accordingly.
- If you have a large inventory the process can take several minutes - do not close or end the software's process while it's running the update.
- Repeat to update the other rates you use that have changed.
- Check your pricing and ensure you are happy with the new values - correct any prices as needed (such as where you wish to change the rounding).
- Staff users may now login and use the system, their new orders will use the new rate settings.
Important notes
Due to rounding, repeating the process (such as increasing then decreasing a rate) can cause prices to change (drifting by 1p up or down).
Subject to our normal terms and conditions relating to data backups, we will automatically take a snapshot backup of your data between around 1am - 3am on the 4th, should you require a restoration to this point due to making a serious mistake (eg: rounding) please contact us. Note, snapshot restorations are a chargeable service and provided on an as available basis. Please be aware there is no easy way to "roll back" bulk updates made with this tool, running the tool again with a new rate may suffice but when prices are rounded the changes are not easily reversed.
Be careful and double check your settings before running the process. Do not attempt to "stop" the process once it's started.
