SAP FICO

What is SAP FICO?

SAP FICO Stands for FI (Financial Accounting) and CO (Controlling). SAP FICO is the important module of ERP and both FI and CO modules stores the financial transactions data. 

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What is SAP FICO – SAP FI Module :-

• SAP FI  is the important module of all SAP implementations
• SAP FI ( Financial Accounting ) is used for external reporting i.e Balance sheet, Profit and Loss statements
• SAP FICO Module integrates with various other SAP Modules such as MM (Materials Management), SD(Sales and Distribution),  PP (Production Planning), PM (Plant Maintenance),and PS (Project Systems).
• SAP FI (Financial Accounting) Module receives postings from various other modules such as Materials Management, Sales and Distribution, Human Resource) through integration.
• All accounting-relevant transactions which are made in Logistics (LO) are posted real-time to Financial Accounting by  automatic account determination. This data can also be passed on to Controlling (CO). 

SAP FI Modules contains the following sub-modules

• General Ledger accounting
• Accounts Receivables
• Accounts Payable
• Asset Accounting
• Bank Accounting
• Consolidation
• Special Purpose Ledger
• Travel Management

Exaplanation for each sub module :

• General Ledger Accounting :- The general ledger accounting is to provide a complete report for  external and internal accounting  i.e Accounts, Journals, Monthly debits and Credit, Balance sheet and Recording all business transactions.
• Accounts Payable :- The Accounts Payable records and manages all accounting data related to vendors 
• Accounts Receivable :-  The Accounts receivable  records and manages all accounting data related to Customers
• Asset Accounting :- Asset Accounting  is utilized for managing your company’s  Assets. SAP allows you to categorize assets and to set values for depreciation calculations in each asset class.
• Bank Accounting  :- Bank accounting is used to manage the bank transactions in the system including cash management.
• Consolidation enables the combining of financial statements for multiple entities within an organization. These financial statements provide an overview of the financial position of the company as a whole.
• Funds Management :- Funds Management manages budgets for revenues and expenses within your company as well as track these in the area of responsibility.
• Special Purpose Ledger  :- Special purpose ledger is used to define ledgers for reporting purposes.
• Travel Management  :- Travel Management provides management of all travel activities including booking trips and handling of expenses associated with travel.

SAP FI Training Tutorial Step by Step with Screen Shots

SAP CO Module:- 

SAP Controlling plays an important role for the management decision making and CO Module is used for the internal reporting purpose. Controlling Area is the organization unit used to represents the controlling activities of Cost Center accounting, Profit Center Accounting, Product Costing, and Profitability etc.

SAP CO Module contains the following sub-modules :-

• Cost Element Accounting
• Cost Center Accounting
• Profit Center Accounting
• Internal Orders
• Product Cost Controlling
• Profitability Analysis