Posting Interfaces (EPOS, Spa etc.) – Important consideration for the analysis of Alcoholic versus Non-Alcoholic Drinks.
As most of us should already be aware, the temporary 5% reduced rate of VAT in the UK will only affect the sales of non-alcoholic beverages.
As we have never had to deal with a tiered product VAT rate in the UK before (other than zero or exempt), sales analysis may have been in many cases configured with no provision for this new division and is often covered by a generic code representing ‘DRINK’ or ‘WET’ sales.
If you believe that your drink / wet sales are currently being reported against a single sales analysis code in both PMS and EPOS then you will need to take action.
It would be wise to check the current situation in both your PMS and EPOS systems before drawing up a plan.
Start by checking your PMS reporting to see if there is already a separate ‘SOFT_DRINK’ code being used by your EPOS interface – if there is then it is less likely that you will need to be concerned about the mapping between the EPOS and PMS systems - you can focus on changing just the VAT rules for soft drinks in both systems on Wednesday morning.
If all drinks (both alcoholic and soft) currently report to the same analysis code in the PMS then you will need to consider all of the following:
- Create new separate PMS codes for soft drinks – you may have ‘revenue centre’ based analysis – if you do then you will need to create a new soft drink specific code for each revenue centre i.e. where you only had ‘BAR_DRINK’, ‘REST_DRINK’ you will now also need ‘BAR_SOFT, ‘REST_SOFT’ – attaching the new 5% tax rule to each new soft drink code (don’t forget to set these new codes as ‘External only’ if you wish to prevent manual posting or deletion in the PMS).
- Once you have created soft drink specific codes in your PMS, you will need to turn your attention to your EPOS system. Your EPOS system provider may already have provided you with some guidance on changing the VAT status of your EPOS soft drink articles and may already have mentioned making provision for changes to your PMS interface so follow this advice closely.
- In all EPOS posting interfaces, there will be a concept of mapping EPOS articles to the PMS and it is at this level that you need to re-map the existing EPOS soft drink articles to your new PMS soft drink codes.
- If the interface mapping is not held within an area of your EPOS software that has been made accessible to you then you must seek advice from your EPOS system maintainer in the first instance and let them advise on how the particular system handles the mapping.
- In some instances you may require support from the team here at Guestline with remapping the codes but in all instances you will still require guidance from your EPOS maintainer on making VAT changes in EPOS first so always make a start here.