What is 'CIT settlement code' in SAP FI-LOC - Localization?

CIT settlement code - Overview

• Component: FI-LOC

• Component Name: Localization

• Description: General Ledger Accounting FI-GL Code that is assigned to formulas that the system uses to calculate amounts for the Corporate Income Tax Framework. These formulas are defined in the Business Reporting Framework plus BRFplus.

CIT settlement code - Details

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  Key Concepts: 
  CIT settlement code is a feature of the FI-LOC Localization component of SAP. It is used to define the tax rate for a particular country or region. This code is used to determine the amount of tax that needs to be paid on a transaction. 
  
  How to use it: 
  The CIT settlement code is used in conjunction with the country or region code to determine the applicable tax rate. The CIT settlement code is entered into the system when creating a new transaction. The system will then use this code to calculate the amount of tax that needs to be paid on the transaction. 
  
  Tips & Tricks: 
  It is important to ensure that the CIT settlement code is entered correctly when creating a new transaction. This will ensure that the correct amount of tax is calculated and paid. 
  
  Related Information: 
  The CIT settlement code is part of the FI-LOC Localization component of SAP. This component also includes features such as country and region codes, currency codes, and language codes. These features are all used to ensure that transactions are processed correctly in different countries and regions.