Can someone explain in simple terms how each area is used and why it is needed? It seems as if its far more complicated than it needs to be!!
Thanks All
VAT is calculated on a combination of business and item.
The business is assigned with a VAT group, the VAT group is assigned with VAT Codes. The VAT codes hold the VAT rate. This enables you to specify a domestic VAT group, EU-Customer, EU-Vendor and Rest of World.
The items have Item VAT Groups. These contain VAT codes.
When an item is loaded on a transaction the VAT Group against the business is evaluated and the VAT codes notes, the Item VAT Group will have VAT Codes and only ONE of these will match the VAT Code against the VAT Group of the business and this is the rate.
It is not over complicated, but the setup allows an item to be sold to customers and not have VAT or have VAT. If you had a flat rate against an item this would not be possible.
Clear and precise as always Adam - Thanks!
Sorry for being a bit green Im pretty new to it.