What is SAP FICO?
SAP FICO is an SAP ERP module used for external and internal financial reporting. SAP FICO stands for FI for (financial accounting) and CO for (control). SAP FICO is the leading ERP module and the FI and CO modules store the complete data of an organization's financial transactions.
SAP FICO stands for FI for (financial accounting) and CO for (control). SAP FICO is the leading ERP module and the FI and CO modules store the complete data of an organization's financial transactions.
SAP FICO is an SAP ERP module used for external and internal financial reporting.
The objective is to record all financial transactions recorded by a company and create a correct financial statement at the end of the trading period. The complete SAP FICO form is FI (financial accounting) and CO (control).
This SAP FICO fundamentals tutorial explains the overview of SAP FICO and the most important functions of the SAP FICO module.
SAP FI consists of SAP FICO sub-modules. The most commonly used sub-modules are accounts receivable, general ledger accounting, accounts payable, asset accounting, and bank accounting.
What exactly is the SAP FICO module?
- SAP FI is the important component of all SAP implementations
- SAP FI (Financial Accounting) is used for external reporting, for example, B. Balance sheet, profit, and loss account
- The SAP FICO module can be united with various other SAP modules such as MM (materials management), PM (facilities maintenance), and PS (project systems, SD (sales), PP (production planning).
- Thanks to the consolidation, the SAP FI (Financial Accounting) module receives inputs from diverse other modules, such as sales, materials management, human resources.
- All accounting-relevant processes that take place in logistics (LO) are recorded in financial accounting in real-time using automatic account determination. This data can also be transmitted to Controlling (CO).
SAP FI modules contain the following sub-modules:
The SAP Financial Accounting module is divided into several additional sub-modules, such as
- Financial Ledger Accounting
- Account Receivables
- Account Payables
- Asset accounting
- Bank accounting
- Funds Management
- Special Purpose Ledger
- Travel Management
- General Ledger accounting: - General accounting consists of creating a complete report for external and internal accounting, ie accounts, journals, monthly debits and credits, balance, and recording of all business transactions.
- Accounts Receivable: - Accounts Receivable in FICO SAP is a sub-module is used to record all transactions with customers and to manage accounts receivable. Separate accounts receivable are maintained and when transactions are posted to accounts receivable, the general ledger reconciliation accounts are updated with the numbers in real-time. Accounts receivable transactions include capturing invoices, capturing credits, advances, paying invoices, collecting and running customer reports.
- Accounts Payable: - Accounts Payable records and manages all accounting data related to suppliers. Accounts Payable is a sub-module that records all accounts payable transactions and manages accounts payable. Separate accounts payable are managed and when postings are made to accounts receivable, the reconciliation accounts in the general ledger are updated with the numbers in real-time. Accounts payable transactions including posting invoices, posting credits, advances, settlement of invoices, the automatic payment program, and running vendor reports.
- Asset Accounting:-Asset accounting is used to manage your company's assets. With SAP, you can categorize assets and define values for depreciation calculations on each asset class. Asset accounting in SAP FICO manages all transactions related to a company's assets. When transactions are posted to fixed asset accounts, the general ledger reconciliation accounts are updated in real-time. Asset accounting transactions include acquisition, disposal, sale, transfer of assets, revaluation, and impairment of assets.
- Bank Accounting:-Bank Accounting is used to manage banking transactions in the system, including cash management. Bank accounting records all transactions with banks. Bank reconciliation is performed to reconcile all transactions recorded on bank statements, comparing them with transactions in the system.
- Consolidation: -Consolidation allows you to combine the financial statements of various entities within an organization. These financial statements provide a general outlook of the financial position of the company as a whole.
- Fund Management:-Fund management manages the income and expense budgets within your company and tracks them within the area of responsibility.
- Special Purpose General Ledger: -Special Purpose General Ledger is used to define books for reporting purposes.
- Travel Management:-Travel Management is used to manage all travel activities, including booking travel and managing travel expenses.
SAP CO Module: - What is SAP FICO?
SAP management control plays an important role in management decision making. The SAP CO module is used for internal reporting purposes. The control area is the organizational unit used to represent the control activities of cost center accounting, profit center accounting, product cost and profitability, and so on.
The SAP CO module contains the sub-modules as below: -
- Accounting for cost items
- cost center accounting
- Profit Center Accounting
- Internal controls
- Product cost control
- Profit analysis.
- Introduction to SAP FICO: The SAP FICO module is an SAP ERP module used for external and internal financial reporting. To master SAP skills visit SAP Online Training.
- Meaning of SAP FICO: SAP Financial Accounting (FI) and Controlling (CO)
- All general ledger accounts used for reporting are managed using general ledger accounting. In SAP, a collection of all general ledger accounts used by a company or group of companies is called a chart of accounts.
- Accounts Receivable is a sub-module that records all transactions with customers and manages accounts receivable.
- Accounts Payable is a sub-module that records all accounts payable transactions and manages accounts payable.
- Asset accounting manages all transactions related to a company's assets.
- Bank accounting records all transactions with banks.