Scenarios

Scenarios are used to comply with the strict VAT legislation in force in some countries. This legislation provides, for instance, that 'VAT' and 'Reverse-charged VAT' are to be posted according to separate scenarios.

Scenarios are not mandatory. If you do not use them, it will not affect the financial policies.

Each sales or purchase invoice can have just one scenario. The scenarios are linked to the financial VAT code on the Financial VAT policies form. One scenario can be defined for each financial VAT code.

Example

These scenarios can then be linked to an existing VAT code on the Financial VAT policies form.

When creating invoices where there are two scenarios, you need to create two sales invoices. In the financial VAT policies, you have to enter the VAT code and the scenario code.

Whenever different VAT codes apply, where both are linked to the same scenario, only one sales invoice is created, because in that case, both VAT codes can be combined.

If an order has two different VAT codes that are linked to separate scenarios, the lines cannot be combined on a single sales invoice. In this case, two sales invoices will automatically be created based on the invoice recommendations.