What are S1 & S2?
These codes are used to determine if goods are eligible for tax or not.
When you create a product in Sage accounts you will select if that item is either -
S1 – tax applies
S2 – Tax exempt
If you create an item you will then need to define the tax code – if the item is eligiable for tax and you have determined the specific tax code this will be classed as S1.
When a transaction is then processed from Sage accounts using the products you have created the code you have assigned will be applied to the item.
“How can I pass tax codes with my Sage Pay Virtual Terminal”
When a transaction is processed using the Sage Pay virtual terminal you are required to capture certain pieces of information from your customer.
This includes –
You are also able to capture additional information such as email address, delivery address, and add your own reference for the transaction.
Unfortunately you are not able to pass a “basket” or list of goods that have been purchased by the customer.
As a result you are not able to apply tax or the tax codes to the transaction.
The virtual terminal only processes a value for the transaction and does not include the breakdown of the items purchased.
Important – If you are using Sage Pay Server, inFrame, or Direct integration you can build your own terminal. Because of this you are also able to include a basket field as part of the transaction which will enable you to pass items that can deduct from your Sage Accounts stock and apply the correct tax.
“How can I pass tax codes with my ecommerce transactions”
Processing transactions using an ecommerce platform is completely different to processing virtual terminal transactions.
An ecommerce transaction requires your customer to select an item or services and process through to a checkout page.
As this is the case your website will be able to pass a “basket” field with the transaction that includes the item, amount, tax amount, volume, and total.
This information can then be used to subtract from your stock levels when the transaction is imported into your accounts software.
This is done by passing the product code with the item in the basket. The basket contains a line for tax that is used to identify the amount of tax that is imposed on the product.
If you have already created the item in Sage Accounts and assigned a tax value this is what should be used for the transaction.
However, if you pass an item you have created in Sage accounts as S1 – tax applicable (with a tax code) and do not pass a tax value in the basket the item will be recorded as S2.
This is because the tax line in the basket overrides the code that was assigned to the item within Sage accounts.
The same will apply if you pass an item you have created as S2 but include a tax value in the basket.