Use this procedure for tax rate correction, that is, to keep tax rates in the created documents and correct them in the Items register for future receiving and issuing. In addition, unlike the Change Tax Type procedure: there will be created a corresponding number of price change documents (that is, for items for which stock tracking is checked, and not for services), you can select items in the Pricing panel in Items to change tax rates.

Use price change document to
post stock at retail prices (to consolidate book value of stock and calculated VAT) and consolidate report of
commercial records
by retail prices. (It is not required to use price change document whenever performing stock valuation, posting it by purchase price and displaying commercial records by retail prices.)

Regardless of the type of stock valuation, you must change default tax type (and at the same time tax rate) in the
Costing/Pricing panel of the Items register.

Changing tax rates does not affect sale price. On the other hand, the retail price changes accordingly for the amount of tax on sale price.

Example:

• price €100, tax rate 20 %, retail price €120.


• after transition to 8.5 % tax rate the result will be:


• price €100, tax rate 8.5 %, retail price €120.


• Enter new tax rate and retail price in the Costing/Pricing panel of the Items register.


• Reduce retail price of items on stock for the amount of 69 EUR. Use a price change document to multiply the calculated amount with quantity on stock.

Setting Criteria for Changing Prices and Tax Rates for Items

Set criteria for items for which you want to change tax rates:

ID	Enter or select an item ID. You can use wildcard characters.
Only Active Items	it is checked by default. This means that tax rates will be changed only for active items.
Primary Category	Set primary category of items.
Secondary Category	Set secondary category of items.
Tax	Set tax type (e.g. B2) of items.
Item Types	Set item type of items and thus narrow selection. You can check it. All items types except services are selected by default. You cannot leave it empty!

Setting-up Price Change and New Tax Rate

Document Type for Price Change	Set warehouses in price change document and select document type for price change (see Confirm price change). Create price change for: retail warehouses warehouses for which commercial records are kept at retail price normally, also for warehouses with allowed separate pricing (that is, because we here typically speak of retail units with stock and for which commercial records are kept). After confirming price change, the amount is changed for basic and separate pricing respectively. The selected warehouses are included in the price changre document.
New Tax ID	Set a new tax ID (e.g. B5). You cannot leave it empty! To successfully carry out the procedure, you have to enter all the necessary tax types in the Tax Types register.
Document Type for Price Change	Set document type for price change for warehouse where you checked price change. You cannot leave it empty!

Proceed by clicking
.
An items table is opened listing old and new prices.

Cancel the operation by clicking
.

Items and Prices

	The item will NOT appear on the list if the old and new tax rates are equal! On the other hand, if the old and newly set tax types are equal, the item will appear on the list. However, no price document will get created (since prices are not changed). The changed tax rate will be recorded in the Items register.
	Click title field in column to sort data in the ascending or descending order (see Edit Lines).
	Data are calculated automatically.

New Tax ID	Displays tax type ID which you selected in the previous panel. After confirming the changed tax type, it is recorded in the Items register (as the new tax type and rate).
Rate	Displays tax rate for calculating new values. It is recorded in Tax Types.
Item	Displays item ID.
Name	Displays item name.
Primary Category	Displays ID of primary category of item.
Sec. Cat.	Displays ID of secondary category of item.
Old Values	Displays sale and retail price recorded in the Costing/Pricing panel in Items. Here you will see displayed sale price, tax rate and retail price.
New Values	Displays new values used in price change document and which are recorded in the Costing/Pricing panel in Items. Sale Price - Since it is the base for calcuting retail price, it is equivalent to the one in the "Old Values" field. Retail Price - Here is displayed a new retail price which is calculated based on the existing retail price and a new tax rate. Here you will not find values of separate pricing. Nonetheless they will be recorded accordingly (price change and separate pricing).
Sel.	All items are selected by default. Having verified the old and new price, check the item to confirm change.
	Click this button in order to: create price change documents for all items across all warehouses where price change is checked, record new prices in the Costing/Pricing panel in Items. calculate retail prices in separate pricing and create price change document if Allow Separate Pricing for Warehouse is checked record new tax type in the Items register simultaneously. After confirmation, the price change documents are created and confirmed automatically. Additionally, values are changed accordingly in the Costing/Pricing panel in the Items register and separate pricing. It is wise to carefully view and check all data before confirmation! After the procedure completes successfully, the following message is returned (see Operation completed!).
	Click it to cancel the operation.

Automatic Posting of Price Change Document (Posting at Retail Prices)

According to settings (for warehouses where you set Posting at Retail Prices), the automatic posting of price change document from items is peformed:

• to Inventory account, and the corresponding contra entry


• consists in part of gross margin and calculated VAT.

Hence you have to change journal entry so that the value of gross margin is reposted to calculated VAT. To do this, simply change account ID in journal entry.