CIS taken to the next level

Leading solution provider extends and enhances functionality

13 June 2006

Pegasus Software has extended the functionality of its Construction Industry Solution (Pegasus CIS) with the launch of version 2.

This major release contains a large number of new features and functional enhancements that will assist construction firms to improve further all aspects of contract management. It also ensures compliance with the legislative changes being introduced by HM Revenue & Customs (HMRC) in 2007 as well as offering integration with Microsoft SQL Server.

Pegasus CIS was first launched in 2005 and provides complete control over every aspect of contract management, from contract costing, purchasing, timesheets and Payment Applications through to VAT invoicing and cash receipt matching. Crucially, it also offers compliance with the legislation pertaining to subcontractors, their CIS certificates, payment and of course statutory returns to the Inland Revenue. The solution was among the first to be made available to construction firms and the take up rate has been significant. Indeed since its launch, Pegasus and its partners have installed the solution at over 50 customer sites across the UK.
 
Pegasus believes that there is a significant amount of confusion in the marketplace about what the HMRC changes actually mean and that a large number of firms are ill prepared and ill equipped to deal with the requirements. Indeed the latest update from the HMRC dispenses of CIS cards, certificates and vouchers and will incorporate a registration process whereby subcontractors will register with HMRC either in person, online or by phone. They will then be instructed whether to receive payments gross or net. Secondly, a verification process dictates that upon engaging a subcontractor who has not worked for a contractor for a set period of time, the contractor will no longer have a card or certificate to reference. Instead the contractor will need to contact HMRC to confirm the contract is one of self-employment, and to ascertain whether the subcontractor should be paid net or gross. Thirdly, Payment by Contractor to Subcontractor will be introduced whereby the contractor will make payment to the subcontractor, in accordance with the net or gross instructions given by HMRC. And finally, Recording and Reporting Payments under which the contractor will submit a monthly return to HMRC showing the amount paid and, in net cases, the amount of materials and deductions for all subcontractors to whom payments have been made.

Gary Turner, managing director for Pegasus, explains:”The extent of the changes brought about by the new HMRC legislation is quite extensive and this will mean that an estimated 250,000 construction and allied contracting firms must either update or implement new systems and processes to ensure that they fully adhere and therefore avoid the stiff financial penalties from HMRC. This latest version of Pegasus CIS features all the necessary software functionality for the 2007 changes and will therefore enable construction companies to successfully navigate the minefield of legislation dominating the industry painlessly. And we should not forget that the ease with which our solution integrates with Microsoft SQL Server 2000 will also improve the quality of, and access to, enterprise wide information about their operations and their performance.”

In addition to this interoperability the Pegasus CIS update also includes a number of functional enhancements and a host of new tools that improve the data input, processing management and review mechanisms.

Among the key developments is the addition of a new contract applications model, which provides greater flexibility and control where high volumes of applications are processed and where the corresponding payment values rarely match up to the application value.
 
Pegasus CIS version 2 will also allow the amount of tax withheld from a contract sales payment by a main contractor to be entered via the contract receipt screen. The system will also post the relevant nominal ledger journals. Such processing efficiency will streamline operations, saving time and money and eliminating the need to re-key important data between systems.

On the purchasing side Pegasus CIS delivers a new facility through which GRN accruals and nominal ledger journals to be created from respective purchase order lines. The nominal journal is reversed at the time of the purchase invoice posting and any difference between the purchase cost and purchase invoice is catered for by the system.

While a new timesheet matrix interface will enable the entering of timesheet allocations for an employee. This new interface significantly enhances the speed and ease of data entry and provides greater visibility of all data entered. Having access to up to date, accurate and comprehensive data will assist companies to understand their operations more effectively and will enhance the decision making process.

Turner concluded: “We have invested a lot of time and effort in making this release a strong one that doesn’t just tick the HMRC compliance box, but also ensures that management and wider business users within the construction and allied industry sectors continue to adopt a proactive approach to managing their businesses. The new version of Pegasus CIS is a comprehensive, fully integrated and compliant financial and operational solution that enables companies to develop and maintain complete and effective control over the whole contractor and sub contractor management process, while ensuring compliance with legislation, improving information management and collaboration which will help to build sustainable competitive advantage.”

For further information on Pegasus CIS version 2 please visit www.pegasus.co.uk, e-mail info@pegasus.co.uk or call 01536 495200.

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