2025 Changeover

There are no updates or requirements for this changeover required from the system point of view, the facility to perform these calculations has always been in your system as it has been used for beers, ciders, spirits and high strength wines since the system inception.

You should ensure that you have :

• ABV for all your products setup

• That the excise tax code is setup to use the Rate/LOA (Litres of Alcohol) calculation and NOT Rate/LOL (Litres of Liquid) for the EXCISE CALCULATION

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• The excise tax rate is correct (this is set by you)

• If you have price lists with underbond prices fixed in those price lists you will need to update those (this is a normal process for customers to undertake when the budget is announced each year)

When Should you do this

You should have already done this when the updated in 2023 was implemented, but if you felt you had only stocks within this category many customers did not make the change at that time due to the easement and set the above to work for the easement at the easement rate.

You can continue to do this until the changeover date if you like but you need to make the change when you are ready to update the rates and excise calculation.

Failure to Check

If you do not check the above and do not ensure it is correct then you will be affected when the system has to calculate prices for underbond orders or where you are Confirming Despatch of items manually which use the inbuilt calculation.

If you utilise the API from the warehouse which performs the confirm despatch then within this EDI information is the ACTUAL duty you have paid for the specific line coming from the warehouse and this is used during the confirm despatch process instead of the inbuild calculation when it posts the stock movement costs.

2023 Original Announcement

What is changing

HMRC is bringing in a new revenue calculation model on 1st August 2023

Further information is obtained here Alcohol Duty: rate changes - GOV.UK (www.gov.uk)

In order for the WMS to accommodate these changes a number of changes will have to be made, these are released in Commerce v2023.3

Latest Timescales

Vision Commerce v2023.3 is already released, expectations are that this will contain all changes necessary however a later software version may be required.

Further information will be released on this page when it becomes available.

Current Outline Plans

Data updates we will automate

We will be offering to offer to automate the required changes for the rates structure to Commerce customers.

How to search for products with no ABV entered

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Using your navigation bar under Maintenance>Product, edit the ABV field to show ‘0' quantity, press 'Search’ all products will be listed.

This would have to work off the changes based on :

• Strength ABV field, as such we urge customers to start using this field correctly if not doing so already and to ensure that the field is set correctly for all historical records. Where this is not done, for any records without this set we may have to assume the highest permitted strength for their tax or commodity code in order to switch it over to the new rate.

• Existing Tax Rate field as we will be using the 4xx codes to convert to the new 3xx codes and using the lookup for the ABV to categorise them correctly.

Modifications to Commerce v2023.3

1. Strength will be added to the PO, which will also be submitted to the warehouse. This will be defaulted from the product record but can be overridden by the warehouse file at the time of receipt or through the manual method. Actual strength is already recorded on the stock record when the stock is receipted either manually through the screen, or via the automated warehouse interface.

2. Strengths will also be visible on the stock & product searches.

3. Strengths for existing stocks and outstanding POs will be updated from the product record.

4. Interim Easement exceptions will follow the same process and be setup the same as all others however the calculation of duty for those will take into account the easement to 12.5% until 2025

Your System will be updated

This update to your system will be run on Tuesday 1st August from 0500 - 1000 and users will not be able to use their systems during this period of time.

IMPORTANT WARNING

You MUST ensure that ABV for all products which fall into the alcohol categories are correct. There has been a change to your navigation searches to help you find the items with no ABV set.