What is preferential treatment in SAP FI-LOC - Localization?

SAP Term: preferential treatment

• Component: FI-LOC

• Component Name: Localization

• Description: Policies issued by the Chinese government to leverage the tax burden of taxpayers whose business meet the requirements of specific standards.

Smart SAP Assistant

• Key Concepts: 
  Preferential treatment is a feature of the FI-LOC Localization component of SAP software. It allows companies to provide preferential treatment to certain customers or vendors based on their country of origin. This can be used to comply with local regulations or to provide preferential pricing or terms to certain customers or vendors. 
  
  How to use it: 
  In order to use preferential treatment in SAP, you must first set up the relevant country codes in the system. This can be done by going to the FI-LOC Localization component and selecting the “Country Codes” option. Once the country codes have been set up, you can then assign preferential treatment to specific customers or vendors by selecting the “Preferential Treatment” option in the FI-LOC Localization component. 
  
  Tips & Tricks: 
  When setting up preferential treatment in SAP, it is important to ensure that all relevant country codes are included in the system. This will ensure that all customers and vendors are treated fairly and that any applicable regulations are met. Additionally, it is important to review any applicable regulations before setting up preferential treatment in SAP, as some countries may have specific requirements for how preferential treatment should be applied. 
  
  Related Information: 
  For more information on setting up preferential treatment in SAP, please refer to the official SAP documentation on FI-LOC Localization. Additionally, you may find it helpful to consult with a local expert on any applicable regulations related to preferential treatment in your region.