Sage 50cloud Accounts

E-commerce VAT in the EU has changed from 1^st July 2021

The way VAT is handled for online sales from business worldwide to consumers B2C in the European Union (EU) changed on 1^st July 2021, instead of registering and paying VAT in each country you sell to, you can choose to report and pay all EU VAT through a single return using.

• One Stop Shop (OSS)
• Import One Stop Shop (IOSS)

With Sage 50cloud Accounts v27.2 and above, you can enable OSS/IOSS to help you deal with sales to consumers in EU under the One Stop Shop and the Import One Stop Shop.

1. Make sure you have Sage 50cloud V27.2 or above loaded.
2. Click Tools then click Activation then click Enable OSS/IOSS reporting.
3. Click Next and select the nominal codes to use for the VAT liability control accounts for each scheme.

Scheme                        Nominal Code  Description     

Union OSS                    2205                             Union OSS Tax Control Account

Non-union OSS             2206                             Non-union OSS Tax Control Account

IOSS                            2207                             IOSS Tax Control Account

By default, nominal codes 2205-2207 are used, if these codes are already in use, three other codes within Current Liabilities will be used.

4. Click Next then click Finish.

Setting up tax codes to use with OSS/IOSS reporting

 When using OSS/IOSS reporting, to make it easier to process transactions and give you flexibility when you run reports, it is recommended setting up separate tax codes for each different tax rate within each country.

Example – Germany has three rates, Zero, Reduced and Standard, for both goods and services, you would set up 6 different tax codes for use with just Germany.

1. Click Settings then click Configuration and click Tax Codes.
2. Select the required Code and click Edit.

Tip: you can use any free code you are not already using; however, it is recommended using a range that has a number of free tax codes together.

3. Enter the following details:

Enable Import/Export Code                 Select this checkbox.

OSS/OISS codes                                  Select this checkbox.

Goods/Service drop-down                   Select whether the tax code is for goods or Services.

Rate                                                     Enter the rate for this tax code.

Description                                          Enter a description to help identify this tax code

4. Click OK, then click OK.

Processing OSS/IOSS transactions

 Using Batch Invoices or Batch Credit Notes

1. Click Customers then click Batch invoice or Batch credit.
2. Create the batch invoice or credit as usual, however, when you select the tax code, choose one of the OSS/IOSS tax codes you have previously set up.

Note: do not use the same tax code for both goods and services.  This is because they affect your VAT return differently.

3. With OSS/IOSS transactions, there are two new options you need to select:

• Country of VAT – the country you are shipping to.
• Report type – select one of the following

Union OSS – only if you are in Northern Ireland

Non-Union OSS – use this when supplying services to an EU consumer from a supplier outside the EU.

IOSS  – Use this when distance selling goods up to the value of €150 to an EU consumer, from a supplier outside the EU.

4. Click Save then click Close.

Using Invoices and credits and sales orders

1. Create a new invoice, credit or sales order as usual:

• Product and services invoice – Click Invoices and credits then click New invoice.
• Product and services credit – Click Invoices and credits then click New credit.
• Sales order – Click Sales orders then click New.

2. When entering your tax codes, choose one of the OSS/IOSS tax codes you previously set up.

Note: do not use the same tax code for both goods and services.  This is because they affect your VAT return differently.

3. Click the Order tab and select the Apply OSS/IOSS reporting check-box.
4. Click Country of VAT and select the country the product is shipped to.
5. Click Report type and select one of the following:

Union OSS – only if you are in Northern Ireland

Non-Union OSS – use this when supplying services to an EU consumer         from a supplier outside the EU.

IOSS – Use this when distance selling goods up to the value of €150 to an EU consumer, from a supplier outside the EU.

6. Click Save then click Close

If you would like help setting up new tax codes or training on how to enter the new information required, or need any other help, please contact us

Sage 50cloud Payroll

Sending submissions to HMRC

Every time you process your payroll, your need to submit information to HMRC.  To ensure HMRC are receiving your submissions, you can run a submissions health check.

Check your submission details in Sage Payroll are correct

The first thing you need to check is that all of the HMRC details used to submit your payroll information are correct.

1. Click Company then click Settings.
2. Click the Details tab then ensure the Tax Dist./Ref. is correct.

This is also known as your PAYE reference number.

3. Click the HMRC Payments tab then ensure the Accounts Office Reference is correct.
4. Click OK.
5. Click e-Submissions then click e-Submission Settings.
6. Click the Settings tab then ensure the Company Name and Tax Dist./Ref. are correct.
7. The User ID and Password are your login credentials for the HMRC Government Gateway. If you are unsure of your details please contact HMRC.
8. Click the Contact Details tab then ensure the contact details for the person registered with the Government Gateway.
9. Click Save then click Close.

Check the values you are submitting are on time and correct

The most important and common submission you make for RTI is the FPS.  You must submit this every time you pay your employees and it’s important that you submit it on or before the date the employees actually receive their pay.  If you submit after this date, you must enter a reason as to why it’s late and you may receive a penalty from HMRC.

As well as sending your information on time, it’s important that what you actual sending is correct.  This means you will not need to reprocess and resubmit information at a later date.

Ensure you get a submission successful message

Every time you make a submission to HMRC through Sage Payroll, it checks for a response from the Government Gateway to say whether or not the submission was successful.

If the Government Gateway is busy, it may take some time to receive a response.  Using the Check again later option, you can continue working and leave the submission running in the background.  You can then collect your response at a later date.

If the submission is successful, you get a message notifying you of this and you have the option to view and print the submission log.

It is strongly recommended that you view the submission log and make a note of the correlation ID.  This is the confirmation that your submission was make successfully and you can use it to help refer to a specific submission when speaking to HMRC.

If the submission was unsuccessful, you can click to see why the submission failed.

To check past submissions, click e-Submissions, then e-Submissions Log and you can then view any past submissions.

Check for the email confirmation from HMRC

When you make a submission to the Government Gateway, a confirmation email is automatically generated and sent to you.  The email is sent to the email address you registered on your Government Gateway account.  To locate this in Sage 50cloud Payroll

1. Click e-submission then click e-Submissions Settings.
2. Click Contact Details then click E-Mail.

We recommend that you save this email for future reference.  If you don’t receive this email, check your junk or span folders.  If you still haven’t received an email but you have a correlation ID, you should contact HMRC on 0300 200 32000.

Check the values on your Government Gateway account are what you expect

We recommend that you regularly log in to your Government Gateway account and check your values.  HMRC have an online PAYE Liabilities and Payments Viewer that you can use to check your own account to see what is due and what payments you have submitted.

If you would like help with your Payroll Submissions or need any other help or advice with your payroll please contact us

Sage 50cloud Accounts

How to check your audit trail for possible duplicate transactions

It is a good idea every so often to check your data for possible duplicated transaction.

To do this:-

1. Click Transactions, then click Accounts audit.
2. Select the Identify possible duplicate transactions check box then click OK.
3. Enter the date range you want to check then click OK.

The Accounts audit window displays any possible duplicate transactions. Transactions appear if they have the same transaction type, details, account, nominal code, date, reference, net amount and tax amount. You can then investigate and then remove any incorrect duplicates

If you would like help checking for duplicate transactions, or need any other help please contact us

Accounts

Selecting Multiple Records

Using Sage 50cloud Accounts, there are two different methods of selecting multiple records.

There are times when you may want to select more than one record at a time, for example you might want to highlight six different customers at once.

When selecting more than one record, here are two methods you can use:

• Windows selection style – select multiple records in conjunction with the shift and Ctrl keys.
• Sage selection style– select records by clicking them individually.

When you first install the program, Windows style selection is turned on by default.

Choose the selected method

1. Click Tools then click Options and click the Environment
2. Click the required List selection style then click OK.

Windows style selection

Select multiple records

Select continuous records:

1. Click the first record in the list you want to select
2. Press and hold the Shift
3. Click the last record in the list you want to select.

Select non-continuous records

• Press and hold the Ctrl key then click any required records.

Find a specific record

By entering a sequence of alphanumeric characters on the keyboard, the record selected will relate to all the characters entered.  For example, if you enter SA whilst in the Customer window, the first customer record starting with SA will be selected.  If you enter the same characters again, without a pause, the next record starting with those characters is selected.

Note: Where the window can be sorted into a different order, based on the column heading, the record selected will be based on the current sort.  For example, if the customer records are sorted in name order then the record selected is based on  the Name column, rather than the A/C column.

Sage style selection 

Select multiple records

To select multiple records, you can just click them individually, one by one, or the Swap and Clear options.

• Swap – swaps the selection on the currently selected records.
• Clear – clears the selection on the currently selected records.

Find a specific record

By entering a sequence of alphanumeric characters on the keyboard, the record selected will relate to all the characters entered.  For example, if you enter SA whilst in the Customer window, the first customer record starting with SA will be selected.  If you enter the same characters again, without a pause, the next record starting with those characters is selected.

Note: Where the window can be sorted into a different order, based on the column heading, the record selected will be based on the current sort.  For example, if the customer records are sorted in name order then the record selected is based on  the Name column, rather than the A/C column.

If you would like help changing from one selection style to another or need any other help please contact us

Payroll

Holiday Schemes

You can manage and record the holidays your employees book and have taken within your Sage 50 Payroll.  You can create different holiday schemes for different employees

Assign a holiday scheme to an employee

1. Double-click the relevant employee.
2. Click the Absence tab, then click Holiday.
3. Select the required Scheme Number (see previous month’s newsletter on how to set up a scheme), then click Ok
4. Check the holiday scheme details are correct, then click OK.
5. Click Save, then click Close.

You have now assigned a holiday scheme to an employee.  You can now start recording holidays taken.

Record holidays booked and taken

1. Double-click the relevant employee.
2. Click the Absence tab, then click Diary Entry.
3. From the drop-down lists, select Holiday.
4. Click Booked or Taken.
5. In the From drop-down, Choose AM or PM, then enter the required date.
6. In the To drop-down list, Choose AM or PM, then enter the required date.
7. If required, enter details of the holiday in the Comment Box.
8. Click OK, then click Save.

You have now recorded a booked or taken holiday on your employee’s absence diary.  The total number of days is deducted from their entitlement.

If you would like help recording your employees holidays etc or need any other help or advice with your payroll please contact us

Accounts and payroll

Nominal link

If you have Sage 50cloud Accounts and Payroll, you can save time when you process your wages, by automatically posting your salary journals to the accounts.

The Nominal Link connects your Sage 50coud Payroll to your accounts data, this means that when you process your wages, it automatically posts your salary journals to your selected nominal ledgers as soon as you complete your payroll run, saving time and helping to reduce errors.

To use the Nominal Link you must first find out where your Sage Accounts company file is located, then set up the Nominal Link in Payroll.

Locate your Sage Accounts company file

The company file holds the location of you Sage Accounts data and you need to enter it into your nominal settings in Sage 50cloud Payroll.

It is usually located in C:\Program Data\Sage\Accounts. If you cannot find the company file you can go to Help > About in Sage Accounts

Note: If you can’t see the Program Data file you may need to amend your file explore settings to show hidden items

Payroll

Set up Nominal Link

1. Go into your Sage Payroll
2. Click the Company navigation bar then click Nominal Settings.

Defaults Tab
1. On the Accounts Software or File list, select Sage 50 Accounts.
2. Click Browse, then locate the Sage 50 Accounts Company File.
3. Click the Company file, it’s usually at the bottom of the list, click Open.
If you have more than one company, on the Company list, click the one you want to post to.
4. To use the default nominal codes, click Use Default Nominal Codes, then click OK.
P&L Analysis Tab
1. Click the P&L Analysis tab.
2. Enter any additional nominal codes for the remaining categories.
3. If required, enter the code in the Acc C/C (cost centre code) column.
4. If required, enter the code in the Acc Dept (department code) column.
5. To automatically record the bank payment for your net wages when you post the nominal link, on the Bank Payment N/C list, click the bank account you want to record the payment against.
You have now set up the nominal link and are ready to post the nominal link.

Post the Nominal Link
1. Ensure you have processed the payroll as normal for the pay period you want to post.
2. If you are posting directly to your accounts software we recommend that you take a backup.
3. From the Employee list, select the required employees.
Note: You can only post the nominal link for one payment frequency at a time e.g. you cannot post a mixture of weekly and monthly paid employees at the same time.
4. Click Payroll, click Nominal Link then click Next.
5. Check, and where necessary, change the information as follows:
Posting Destination – this box shows the accounts software you selected in Company > Nominal Settings.
Transaction Reference – Enter your own reference up to eight characters, for example Week 4.
Transaction Date – Enter the date you want to post the transactions with. To change the date use the calendar button.
Group Transactions – To post the transactions totalling all employees, select this check box. To post separate transactions for each employee and have the information shown by employee on the Nominal Link Transaction Report, clear this check box.
6. Click Next, click Print, then click OK.
7. To send the details of the transactions to Microsoft Excel, click Send to Excel.
8. Click File, then click Exit.
9. If you have set up the nominal code for bank payments, click Next. Alternatively, proceed to step 11.
10. Check, and where necessary, change the following information:
Transaction Reference – Enter a reference for the bank posting. This reference become the transaction reference in your accounts software.
Transaction Date – Enter the date you want to post the bank payment transaction. To change the date use the calendar button.
11. Click Next, click Print, click OK, then click Finish.
12. You will need enter your Sage 50cloud Accounts user name and password. Click OK, then click OK.
Note: If you have a multi-company version of Sage Accounts, choose the required company, enter your user name and password, click OK, then click OK.

If you would like help setting up your nominal link or processing the nominal link etc. or need any other help or advice with your payroll please contact us