SAP FICO Introduction

SAP FICO stands for Financial Accounting and Controlling. It is an essential module of ERP and FI and Co modules stores the transactional and financial data.

  • SAP FI (financial Accounting) is used in external reporting I.e. P&L statements and Balance sheet.
  • SAP FICO Module incorporates with the other different modules of SAP like MM-(Material Management), SD-(Sales & Distribution), PP- (Production Planning), PM- (Plant Maintenance), and PS-(Project Systems).
  • SAP FI (financial Accounting) Module obtains postings from the different modules like Materials Management, Sales & Distribution, and Human Resource) by integration.
  • All the accounting-relevant transactions made in logistics (LO) are posted real-time to Financial Accounts by automatic account identification. This data also can be passed to Controlling (CO).

SAP FI Modules Includes the below sub-modules

  • General Ledger Accounting
  • Accounts Payable
  • Accounts Receivable
  • Assets Accounting
  • Bank Accounting
  • Consolidation
  • Fund Management
  • Special Purpose Ledger
  • Travel management


General Ledger Accounting

This provides a complete report for internal and external accounting (Accounts, Journal, Monthly Debits, and credit, Balance sheet and recording all transactions of business.

Accounts Payable

Accounts payable records all the accounting data associated to vendors and manages the same.

Accounts Receivable

This records and handles all the accounting data related to customers.

Assets Accounting

This is used for handling the organization’s assets. SAP categorizes assets and sets values for depreciation calculations in every assets category.

Bank Accounting

Is used to handle the bank transactions in the system along with the cash management.

Consolidation

This helps in combining the financial statements for multi-entries of a company. These statements give an overview of the financial situation of the organization on the whole.

Fund Management

Manages the funds for revenue and expenses within the organization and tracks these entries in the area of accountability.

Special Purpose Ledger

This is used for defining ledgers for reporting reasons.

This provides a management system for all travel activities comprising booking trips and managing of expenses related to travel.

SAP CO Module

SAP Controlling fulfills a crucial role for the management in taking decisions and ‘CO’ Module is used in the internal reporting. Controlling is an organizational unit used in representing the controlling activities of the Cost Center accounting, Profit Center Accounting, Product Costing, and profitability etc.

SAP CO Module Comprises of the below sub-modules

  • Cost Element Accounting
  • Cost Center Accounting
  • Profit center Accounting
  • Internal order Accounting
  • Product Costing and
  • Profitability Analysis

sap modules-bigclasses

Cost Element Accounting

Is used for storing the data consistently in a group of loosely-paired system of SAP, in the cost element accounting, one can distribute it through Master [Ext.] and transactional Data[Ext.] among the systems.

Various data maintenance functions can be carried out in various systems as per the information in the distributed model.

Cost Center Accounting

This is used in calculation and evaluation of a cost of goods produced.

Profit Center Accounting

This includes

  1. Creating a Profit Center in sap co
  2. Creating Profit Center Group
  3. Fix a control Parameters for original Data
  4. Maintain Planning Versions
  5. Maintain Operating Concerns

Internal Order Accounting

This includes

  1. Internal Order Accounting
  2. Settling internal orders to cost centers

Product Costing

This comprises of

  1. Material Cost of a product
  2. Calculating the value added by every process and unit
  • Supports decision making
  1. Identify the real inventory and COGS values
  2. Calculating price floor for a unit cost

Profitability Analysis

This is the main difference between CO-PA and profit center accounting (EC-PCA). The PA is an external view of an organization, and PCS is the internal view of the organization for the management reporting. CO-PA is a market-oriented insight. Profitability from a customer can be reported, customer group, division, product, product group, distributing channel etc.

  • Reporting
  • CO-PA integrating

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