What is legal entity in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: legal entity

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: An organizational unit for which financial statements must be created.

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• Key Concepts: 
  A legal entity is a business organization that has its own legal identity and is separate from its owners. In SAP, a legal entity is a company code that is used to identify the company in the system. It is used to track financial transactions and other business activities. 
  
  How to use it: 
  In SAP, the FS-BA-PM-AFP Accounting for Financial Products component allows users to create and manage legal entities. This component provides users with the ability to define and maintain legal entities, as well as to assign them to company codes. It also allows users to define and maintain the accounting principles for each legal entity. 
  
  Tips & Tricks: 
  When creating a new legal entity in SAP, it is important to ensure that all of the necessary information is entered correctly. This includes the name of the legal entity, its address, and any other relevant information. Additionally, it is important to ensure that all of the accounting principles are correctly defined for each legal entity. 
  
  Related Information: 
  For more information on creating and managing legal entities in SAP, please refer to the official SAP documentation on FS-BA-PM-AFP Accounting for Financial Products. Additionally, there are many online resources available that provide detailed instructions on how to use this component in SAP.