What is SAP FICO?
It is SAP Financial Accounting software which enables exceptionally complex methods of financial transactions and offers reporting and better handling of accounts. The software is well suited for professionals who are looking to excel in the fields of accounting and finance. The external reports generated by using SAP FICO are increasing being used by banks, tax authorities, administrators, stockholders, and managers. SAP FI is responsible for integrating different modules and generating a single system for the entire organization.
SAP FICO is in fact made of two modules. The Financial Accounting (FI) offers highly sophisticated ways of financial transaction. SAP FI is responsible for integrating various modules and generating a single system for the entire organization. In a nutshell, it draws data for external reporting procedures while its SAP Controlling Module (CO) emphasizes data for internal users.
Some of the Sub-components of SAP FI include:
- SAP FI General Ledger accounting
- Asset Accounting
- Funds Management
- Special Purpose Ledger
- Bank Accounting
- Accounts Receivables
- Accounts Payable
- Travel Management
SAP Controlling is vital for management decision making processes and is often used for internal reporting purposes. The Controlling Area is generally an intelligently conceived organization unit that is useful for representing the controlling and accounting activities of profit centres, product costing, profitability and so forth. CO, the controlling module, aptly complements the value created by the FI reports and utilizes the many features of the vastly used SAP FI components. The SAP Controlling Module (CO) further helps the management by organizing profit centres, Cost Centres, contribution margins and so forth. Once the transactions are posted in FI, they are transferred to CO for further processing, Cost Accounting, analytical reporting, and audit control.
Some of the Sub Components of SAP CO includes:
- Cost Element Accounting
- Cost Centre Accounting
- Profit Centre Accounting
- Internal Orders
- Product Cost Controlling
- Profitability Analysis
Some notable features and benefits of using SAP FICO are:
- SAP FI (Financial Accounting) is a highly useful tool for reliable and accurate time based external reporting. The report can be obtained in the form of Profit and Loss statements, Balance Sheets, etc.
- SAO FI offers some of the essential components for different SAP implementations.
- Other SAP modules like SD (Sales and Distribution), PS (Project Systems), MM (Materials Management), PP (Production Planning), and PM (Plant Maintenance) integrate well with SAP FICO. They also provide it with postings in a consistent way. Applications in most organizations, globally are utilizing these benefits of SAP FICO.
- Most accounts relevant transactions are generated by Logistics (LO) and are posted in real-time to Financial Accounting Modules. Certain automatic accounts determination techniques are used. All the data can be easily passed on to the Controlling Module (CO).
To pursue a career in SAP FICO taking lessons in basic finance and accounting principles is highly recommended for a person without a background in finance and accounting. It will help one learn and understand FI/CO concepts more thoroughly and will be instrumental for success as a consultant. Signing up with a sap fico training tutorial is among the best ways to gain insight into the world of this new age finance management.