What is legal entity in SAP AP-TTE - CRM Transaction Tax Engine?

SAP Term: legal entity

• Component: AP-TTE

• Component Name: CRM Transaction Tax Engine

• Description: A legally organized business entity which seeks to sustain profitable activities. Depending on the nature of the business, it may be geared towards maximizing profit, or towards generating a reasonable rate of return.

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• Key Concepts: 
  A legal entity is a distinct business unit that is legally separate from other business units within an organization. In SAP, a legal entity is used to define the scope of a transaction tax engine (TTE) calculation. The TTE calculation is used to determine the applicable taxes for a given transaction. 
  
  How to use it: 
  In order to use the TTE calculation, the legal entity must be specified in the transaction. This can be done by entering the legal entity code in the appropriate field in the transaction. Once the legal entity has been specified, the TTE calculation will be performed using the applicable tax rules for that legal entity. 
  
  Tips & Tricks: 
  It is important to ensure that the correct legal entity is specified in each transaction, as this will ensure that the correct taxes are calculated. Additionally, it is important to keep track of any changes to the legal entities within an organization, as this may affect the applicable taxes for transactions. 
  
  Related Information: 
  For more information on legal entities and how they are used in SAP, please refer to SAP Help documentation on Transaction Tax Engine (TTE). Additionally, please refer to SAP Help documentation on Legal Entities for more information on how they are used in SAP.