Update on 01 Mar, 23
5 minutes read
SAP FICO is one of the core functional components in SAP ECC that leverages companies to manage all of its finance-related information. SAP FICO helps enterprises in generating and managing financial documents and creating reports to help with effective business planning and decision-making.
SAP FI is one of the most important modules in SAP ERP as using SAP FI you can generate external reports like Balance Sheet, Profit, and Loss Statements. Also, it can be integrated with other SAPS modules like SAP SD, PM, MM, PS, etc.
Note: It receives postings from various other SAP modules like MM, SD, and HR through integration.
So, the transactions that you make in Logistics which are accounting-specific are posted in real-time to Financial Accounting by automatic account determination. The data in FI can be passed on to Controlling for optimizing the cost.
➢ General Ledger Accounting:
It represents the record-keeping system of a company's financial data with debit and credit accounts. It provides a record of each financial transaction that takes place during the lifetime of an operating company. Common transactional data is segregated by type into accounts for assets, liabilities, owner's equity, revenues, and expenses.
➢ Account Receivable:
Account receivable records and manages all accounting data related to customers. In this sub-module, separate customer accounts will be maintained, and when transactions are forwarded to the customer's accounts, the reconciliation accounts in the general ledger will be updated. Account receipts include various transactions such as invoice posting, credit memo posting, down payments, etc.
➢ Account Payable:
Accounts payable records and manages all accounting data related to vendors. Different vendor accounts are reserved and when transactions are sent to customer accounts, reconciliation accounts in general ledger get updated. Various transactions of account payables are invoice posting, credit memos, posting, down payments, invoice payment, automatic payment, etc.
➢ Asset Accounting:
Asset Accounting handles all the fixed assets of the organization and offers with all the transaction details about fixed assets. This sub-module can be integrated with other SAP modules like SAP MM, SAP Plant Management, EWM, etc.
➢ Travel Management:
Travel Management provides management of all travel expenses of a company. It involves the entire travel request, planning, and expenses involved in all those trips that are managed efficiently as it allows integration with various other SAP modules.
➢ Bank Accounting:
It deals with all the sales done through the bank. This includes all incoming and outgoing transactions executed, balance management and bank transaction master data. You can plan and process all bank transactions using the bank accounting component.
Note: With that, we understood what SAP FI is all about, now we will move ahead and understand what SAP CO is all about!
SAP CO, one of the most important modules in SAP, involves SAP CO configuration and user specifications. This module contains master data, configuration, and reporting. When we say master data, we essentially anticipate cost elements, cost centers, profit centers, functional areas, statistical figures, and activity types. When implemented, SAP CO allows users to see data for internal costs. Apart from helping users get a complete view of financial reporting, SAP CO helps them manage their records and make valuable informed decision making. Further, businesses can manage reporting and information databases as per their needs.
SAP CO module helps with the costing across all business processes. It manages product modifications, costs and it's costing. There are various components of SAP CO, let us look at some of them in detail:
➢ Cost Element Accounting:
Cost and Revenue Element Accounting equips users to control the costs and profits that an organization incurs. This sub-module estimates those expenses which are individual expenses in Finance based accounting or have no additional associated expenses.
➢ Cost Centre Accounting:
Cost Center Accounting is used for managing cost purposes within organizations internally.
➢ Activity-Based Accounting:
Activity-Based Accounting is used to analyze alterations in cross-departmental enterprise processes.
➢ Internal Orders:
Internal Orders are used to manage and control jobs that are allocated internally. Budgets can be specified for these jobs, and this module is further used to ensure that prices do not exceed projected budgets.
➢ Product Cost Controlling:
Product Cost Controlling helps assess the cost of manufacturing commodities or catering services. Also, the precise cost for profitability retailing can be estimated using this sub-module.
➢ Profitability Analysis:
Profitability Analysis helps to examine the profit or loss that an organization incurs by defragmenting business segments into singular units. Profitability Analysis services informed decision making.
➢ Profit Centre Accounting:
Profit Centre Accounting is used to evaluate the profit and loss of units and independent areas in companies. Being independent modules, the SAP CO and SAP FI modules enable a steady and stable dataflow when combined. This dataflow is related to cost flows. Concurrently, the SAP system assigns costs and revenues to the projects or orders, cost centers, business processes.
Now that we know what SAP FICO, and its modules SAP FI and SAP CO is, let us now talk about the GUI that SAP FICO component uses for performing various functionalities.
SAP GUI is abbreviated as “Graphical User Interface”. It is an important SAP ERP tool that leverages SAP end-users to use many software applications by providing simple Graphical Interface. It is multi-OS compatible and can run Operating Systems like MS Windows, Apple Macintosh, UNIX, etc. This SAP ERP tool controls a major share of the topmost global business and provides secure access to the application, functionalities, and features of SAP applications. IT provides end-users to remotely access the SAP Central Server of an enterprise, over the internet.
Note: Now that we know all about SAP FICO, let us discuss where you should learn SAP FICO from to grab the lucrative job opportunities in the SAP FICO domain.
Presently, SAP FICO has become a significant segment for securing employment with a wonderful pay package. Most of the competitors are seeking an SAP FICO profession. So, to become an SAP FICO advisor, it is expected for the candidates to take the SAP FICO training. This training will support them to get more job opportunities in this domain.
With the increasing competition among the companies, most of the companies are now consolidating their business processes with SAP. With the implementation of SAP, various business companies can exercise major financial decisions and can employ possible resources to maximize productivity and optimize the cost involved in the company. If a candidate takes SAP FICO training from an acknowledged SAP coaching institute, it'll make their career path more attainable.
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