Magento 2 is a feature-rich platform with default functionalities suitable for E-commerce businesses. However, with the evolving nature of shopping online and types of businesses, the default Magento 2 falls short. Fortunately, due to the customization capability of the platform, the store owners can use Magento 2 extensions to implement additional functionalities.
Now, there are many extensions where the store owner or admin has to configure a few settings and for which one needs to create system.xml configuration in Magento 2.
Allow the admin to flexibly configure the module by offering fields at Admin Panel > Stores > Configuration.
Example:

Create system.xml configuration file in Magento 2 with the below code:
Steps to create system.xml configuration in Magento 2:
Create system.xml file at appcodeVendorExtensionetcadminhtml
<?xml version="1.0"?>
<config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xsi:noNamespaceSchemaLocation="urn:magento:module:Magento_Config:etc/system_file.xsd">
<system>
<tab id="vendor" translate="label" class="vendor" sortOrder="100">
<label>vendor</label>
</tab>
<section id="extension" translate="label" type="text" sortOrder="40" showInDefault="1" showInWebsite="1"
showInStore="1">
<class>separator-top</class>
<label>Extension</label>
<tab>vendor</tab>
<resource>Vendor_Extension::config_extension</resource>
<group id="general" translate="label" type="text" sortOrder="20" showInDefault="1" showInWebsite="1"
showInStore="1">
<label>Configuration</label>
<field id="enable" translate="label comment" type="select" sortOrder="10" showInDefault="1"
showInWebsite="1" showInStore="1">
<label>Extension Enable</label>
<source_model>Magento\Config\Model\Config\Source\Enabledisable</source_model>
</field>
</group>
</section>
</system>
</config>
That’s it.
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Thank you.