Hi - I'm looking to connect with Concur Invoice clients who have configured the tax module for the UK. Anyone willing to have a chat on your configuration and specifically around the changing regulatory requirements happening in October. Thank you!
Hi - I'd be interested to hear about this too, as I cannot see a way to comply with MTD (UK government tax reporting automation legislation) - as in not touching the records once the invoice details have been captured - that will account for a single invoice for supplies at different VAT rates. Either you configure the system to capture all VAT on one line, or else the total invoice VAT is distributed pro-rata across all the lines in the invoice, whether or not it's applicable. This would also cause real issues for anyone trying to integrate with any ERP with tax validation functionality - including any version of SAP! - because the tax code is checked against the tax value as % of net value, and throw up an exception when outside tolerances.
Neither way captures the expense with a tax code and amount attached, which by the way would also allow for accurate net cost v budget reporting directly out of Concur, which is a big SAP Concur Invoice selling point.
The only way around this I can see is to choose single line VAT, exclude this somehow from the GL extract, but instead use the tax codes to calculate the VAT on each invoice line. Bonkers! And I suspect non-compliant for MTD, as you're manipulating the values. And there are bound to be penny rounding issues.
Any ideas or opinions?
We've gone ahead with the option to capture VAT on a single line and use the VAT codes to calculate the line by line VAT on the purchases. Then there's a validation to ensure the calculated VAT is penny-perfect aligned to the invoiced VAT amount, but the GL postings rely on the calculated amounts, for the reasons I gave in my original post. The VAT lines captured are used only for the validation, and are not posted into the GL. This process works, but it's clunky, and requires back office to pay close attention, and to be reasonably knowledgeable about VAT in the UK. Shudder to think what the solution would be in Spain with real time VAT reporting, or in Canada or India with their multi-state super-variable tax rates and levels of recoverability.
Good luck whatever route you decide on!