What is legal nature in SAP FI - Financial Accounting?

SAP Term: legal nature

• Component: FI

• Component Name: Financial Accounting

• Description: A legal classification that is used by government officials in some countries for example, Brazil and Colombia to determine tax obligations, to collect statistics, and so on.

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• Key Concepts: 
  Legal nature is a feature of the SAP Financial Accounting (FI) component that allows users to assign a legal nature to a company code. This legal nature is used to determine the legal requirements for the company code, such as the type of taxes and reporting requirements. 
  
  How to use it: 
  To assign a legal nature to a company code, go to the SAP Easy Access menu and select Financial Accounting > Financial Accounting Global Settings > Company Code > Assign Legal Nature. From there, you can select the appropriate legal nature for the company code. 
  
  Tips & Tricks: 
  It is important to ensure that the correct legal nature is assigned to each company code, as this will determine which taxes and reporting requirements are applicable. It is also important to keep this information up-to-date in case any changes occur in the legal requirements for the company code. 
  
  Related Information: 
  For more information on assigning a legal nature to a company code in SAP FI, please refer to the SAP Help Portal at https://help.sap.com/viewer/product/SAP_ERP_Financials/6.0_SPS12/en-US?q=legal+nature&scope=CORE&language=en-US.