SAP-FICO

What is SAP-FICO 

SAP FI stands for Financial Accounting and it is one of important modules of SAP ERP. It is used to store the financial data of an organization. SAP FI helps to analyze the financial conditions of a company in the market.

SAP Controlling (CO) is another important SAP module offered to an organization. It supports coordination, monitoring, and optimization of all the processes in an organization.  

History of SAP

SAP FI Module

SAP FI enables companies to generate financial statements -- balance sheets or Profit, loss statement. SAP FI consists of several sub-modules that handle specific accounting processes.

General Ledger provides the functionality required to maintain one or more sets of books, generate financial statements and informational reports. Transactions are recorded in sub-modules that can be reconciled with the general ledger data in real time.

Accounts Receivable is used to manage and record Accounting data for all the customers. It handles customer invoices, approvals, payments and other allied activities. Accounts receivable captures customer transactions and manages customer accounts. 

Accounts Payable involves all of the transactions with vendors and manages vendor accounts.Any postings made in Accounts Payable is updated in General Ledger as well. Process covered in sub-modules are

• Maintain Vendor Master Data
• Invoice Handling
• Reports
• Account Analysis

Asset Accounting manages all of the transactions related to the company's fixed assets, such as land, buildings and heavy equipment.serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.

Bank Accounting is an important module in SAP fi which is used to handle accounting transactions. It can reconcile all transactions recorded on bank statements and compare them with the transactions in the system.

SAP CO modules 

SAP Controlling (CO) is another important SAP module offered to an organization. SAP CO includes managing and configuring master data that covers cost and profit centers, internal orders, and other cost elements and functional areas.

Cost Center Accounting is used for controlling purposes within your organization, such as sales, production, marketing or human resources. 

Cost Element Accounting is the area of cost accounting where you track and structure the costs incurred during a settlement period. It  describes the origin of the costs, and the cost elements represent specific costs that the company incurs. 

Profit Centers Accounting handles all of the cost data related to the company's business lines. It deals with both expenses and revenues. A profit center is a management‑oriented organizational unit used for internal controlling purposes. 

Product Costing manages the data about costs required to produce the company's goods and services. It allows you to calculate the price at which you can profitably marketed it.

Profitability Analysis is used to analyze the profit or loss of an organization by individual market segments,  such as sales organizations or business areas, with reference to company's profit.

Internal Order should settle to Fixed Asset, Project, Cost and/or Profit Centers at the accounting period (month) end.  It is used to collect and control according to the job that incurred them. 

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