SAP FICO is a common SAP module. It is generally in use by companies for handling their financial data. Basically, it consists of two modules: SAP FI and SAP CO. As business operations are taking place daily,
it generate a lot of financial data. Additionally, it comprises sales orders, transactions, and purchases. For a better understanding of this module, you can opt for the SAP FICO Online Course for easy and convenient learning.
The SAP FI module works in the area of financial accounting and reporting. Further, the CO module works with monitoring costs and financial planning.
Additionally, the software’s main goal is to assist companies to make the process of financial planning and analysis easier.
SAP FI (Finance)
SAP FI can combine different modules into a single system for the company. This software hosts all the features for handling financial transactions and accounts.
Indeed, these reports coming from SAP FICO are used widely by banks, managers, tax authorities, and stakeholders. Moreover, the software also develops financial statements.
SAP FI comprises sub-modules that have specific functionalities –
i) General Ledger – This is useful in providing a complete report for internal/ external accounting. It comprises the company’s transaction data and lists all the accounts.
ii) Accounts Receivable – These records are useful for managing all customer accounting data. It manages customer accounts and transactions. Certainly, it comprises of invoice payments, down payments, invoice posting, and customer reports.
iii) Accounts Payable – It holds vendor accounting data. Additionally, it maintains data for vendor transactions and vendor accounts.
iv) Asset Accounting – This sub-module manages the company’s assets. This includes all fixed assets like heavy equipment, land, and buildings.
v) Bank Ledger – This keeps all the bank account transaction data. Additionally, it merges and compares transaction data on bank statements.
vi) Consolidation – This sub-module combines all financial statements from multiple entities.
vii) Funds Management– It is useful in managing the budgets for revenues and expenses.
viii) Special Purpose Ledger– This defines the SAP FI ledgers for financial reporting.
ix) Travel Management– This manages all transactions regarding travel processes.
Implementation of SAP FI
To implement SAP FI, it needs configuration. The Business Manager needs to make the primary configurations.
Further, these configurations come from client needs, business requirements, and other configurations. Moving further, all financial statements and Master Data migrate to SAP FI.
After the process is over, the document posting is done automatically. Additionally, this ensures companies observe their financial status in real-time.
Further, enabling the company to track all their financial transactions, to report at the end of their financial year.
SAP CO (Controlling)
This module supports the controlling, monitoring, and optimization of business processes. It includes facilities for managing master data.
The main purpose of introducing this module is to plan and also compare their planned data and actual business data to analyze the variances.
The different sub-modules of SAP CO are as follows;
i) Cost Elements – This provides you with updates on the costs and revenues of the company. It comes from income statements.
ii) Cost Centers Accounting – This sub-module is in use for controlling activities including only expenses and not revenues.
iii) Profit Centers – These consist of all the cost data about the company’s business lines. This module hosts expenses and revenues.
iv) Internal Orders – The module is in use for managing all expenses of smaller internal projects/ non-fixed assets.
v) Profitability Analysis – Companies manage their profit and losses using this sub-module.
vi) Product Costing – This module deals with costs coming from the company’s goods and services.
Implementation of SAP CO
The implementation of SAP CO is important for any company to analyze cost data of internal management processes. Thus, SAP CO implementation helps companies handle the database of business information.
The SAP FICO software set is becoming the foundation of finance and control for modern organizations. It is successfully enhancing the financial operations of many companies.
Thus, many more companies are adopting it. However, with more companies adopting it, it generates higher demand for SAP FICO professionals.
Further, you can take professional training from SAP FICO Training in Delhi for beneficial results. Moreover career-wise, it is a great opportunity for employees in finance or human resource looking to take their career to the next level.