What is VAT subscenario in SAP FI-LOC - Localization?

SAP Term: VAT subscenario

• Component: FI-LOC

• Component Name: Localization

• Description: A way for the system to report information from the original documents according to your business processes. We deliver several default VAT subscenarios but you can adjust them if necessary. The process looks like this: First, the system selects the original document based on the VAT scenario, Then, it selects certain data from it for the VAT Return based on the VAT subscenario. For example, depending on the VAT subscenario, the system would retrieve the business partner differently: For the incoming invoice with deferred tax code subscenario, the system takes the business partner from the document, For the incoming corrective invoice with amount decrease and deferred tax code subscenario, the system takes the business partner from the company code, For the foreign customs declaration subscenario, the system takes the business partner from the customs declaration. Likewise, the system outputs Customs Declaration, Purchase Order and other data differently based on the VAT subscenario.

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• Key Concepts: 
  VAT subscenario is a feature of the FI-LOC Localization component of SAP software. It allows users to define different VAT scenarios for different countries, regions, or business areas. This allows users to easily manage their VAT requirements in different locations. 
  
  How to use it: 
  To use the VAT subscenario feature, users must first define the different scenarios they need. This can be done by creating a subscenario for each country, region, or business area. Once the subscenarios are defined, users can assign them to the relevant documents and transactions. 
  
  Tips & Tricks: 
  When creating subscenarios, it is important to ensure that all relevant information is included. This includes the applicable tax rates, tax codes, and other relevant information. Additionally, it is important to ensure that all documents and transactions are assigned to the correct subscenario. 
  
  Related Information: 
  For more information on the VAT subscenario feature of FI-LOC Localization, please refer to the SAP Help documentation. Additionally, there are many online resources available that provide more detailed information on how to use this feature.