SAP FICO | Learn and Master SAP ABAP - Software Development PDF Download

SAP FICO (SAP Finance and SAP Controlling) is a functional component of SAP ERP. It is used to manage entire financial data of an organisation. The core functionality of SAP FICO is generation and management of financial statements which are used for analysis and reporting. This leads to better planning and critical decision-making. This module can be easily integrated with other SAP modules such as SAP SD (Sales and Distribution), SAP PP (Production Planning), SAP MM (Materials Management), SAP QM (Quality Management), amongst others.

SAP FI

SAP Finance deals with reporting and accounting of overall financial data through balance sheets or profit and loss statements. It also provides tools for compliance and auditing which helps organizations to meet various regulatory requirements. It consists of various sub-modules which deal with a specific area of the accounting process.

Sub-Modules of SAP FI

• General Ledger: General ledger accounts record all the business transactions that take place in SAP system. It is updated every time a financial transaction is posted in the system by a user.
• Accounts Receivable: This sub-module captures invoicing, payments, approvals, and other tasks related to them for a customer. It maintains the accounting data of all customers. This data provided by AR is helpful in effective credit management.
• Accounts Payable: This sub-module captures invoicing, payments, approvals, and other tasks related to them for a vendor. Any financial postings in AP is automatically updated in general ledger.
• Asset Accounting: This sub-module is used for managing and monitoring fixed assets. It is used to extract detailed information about the transactions that involve fixed assets.
• Bank Ledger: It is used for editing and displaying bank master data, processing cashed cheques, posting bills of exchange, processing returned bills of exchange, processing bank account statements, and financial status reports.
• Consolidation: It is used for managerial or legal consolidation of financial statements. It can also be used for combining statements of multiple entities to provide an overview of an organisation's financial status.
• Funds Management: It helps organizations to plan and manage their financial resources by creating budgets and forecasting future cash flows. It helps organizations to manage their cash and cash equivalents, including cash forecasts, cash balances, and cash transactions. It also provides tools for monitoring and controlling bank accounts and bank transactions.
• Special Purpose Ledger: It is a receiver system which is used to monitor and evaluate data entered & created in other SAP applications. It is not a sender system for other applications of SAP.
• Travel Management: It is used to handle all processes which are a part of handling business trips. It allows you to plan, request, and book trips along with creating expense reports for the trip.

SAP CO

SAP Controlling helps businesses plan and manage their financial and internal management processes. It includes tools for cost and profit centre accounting, activity-based costing, and internal order management. The module also provides functionality for budgeting, forecasting, and financial reporting. It provides a comprehensive solution for financial management and helps businesses make better decisions by providing accurate and timely financial information.

Sub-modules of SAP CO

• Cost Element Accounting (CEA): It deals with the recording and reporting of costs incurred in an organization. It also describes the origin of the costs that the organization incurs.
• Cost Centre Accounting (CCA): It helps to record and evaluate the costs incurred by different cost centres in an organization. It deals with the expenses of all internal departments in an organization.
• Activity-Based Costing (ABC): It is a method of measuring the cost and performance of activities and cost objects.
• Profitability Analysis (PA): It helps to determine the profitability of different products, customers, and sales channels. It supports in making decisions such as pricing of the product, target market segments and channels of distribution.
• Product Cost Controlling (PC): It helps to determine the costs of products manufactured by an organization. It records manufacturing costs and optimize efficiency in the process.
• Internal Orders: It helps to manage and track costs related to internal projects, events, non-fixed assets, and other activities.
• Profit Centre Accounting (PCA): It helps to determine the profitability of different profit centres within an organization. It deals with both expenses and revenue of business lines of the company.
• Budgeting and Forecasting: It provides functionality for budgeting and forecasting which helps organizations to plan and manage their financial resources effectively.