SAP FICO which is the acronym for SAP Financial Accounting And Control is an SAP software module that is used as a reporting tool both externally and internally. The main objective of SAP FICO is to keep a record of all financial transactions that are released by an entity or organization and to produce a financial statement that is very accurate at the end of the business trading period. This course is going to teach you about the major functionalities with the SAP FICO module.
SAP FICO consists of various sub-modules. The sub-modules that are used most of the time are the accounts receivables module, the modules in charge of account payables, the sub-modules responsible for income accounting, complete ledger Accounting, and the banking accounts.
All the submodules are integrated and interlinked together to the SAP FICO software in real-time. A trial balance can be gotten at any time and it will always be correct because all the submodules are connected together and work as a whole rather than as an individual.
The following are submodules of FI:
1. Consolidation: This helps organizations compare performances to get an overview of their financial position. They can combine different financial statements with Consolidation.
2. Travel Management: This deals with travel-related activities and records all transactions involved in the travel process.
3. Special Purpose Ledger: This is used for reporting purposes and one can define the ledgers required for reporting.
4. Bank Ledgers: Bank Accounting deals with all bank and contra entries transactions. It can also perform bank reconciliation.
5. Accounts Payable: This is related to managing vendors and vendor accounts. Transactions include posting of invoices, hire and purchase system, posting of credit memo, payment of invoices, automatic payments program (APP) and reports relating to executing vendor.
6. Accounts Receivable: This deals with managing customers and transactions related to customer accounts. Transactions include posting invoices, posting of credit memo, hire purchase systems, payments of invoices, execution of customer reports and dunning.
7. General Ledger Accounting: In this one can perform legal and internal management reporting together, and also transactions related to the chart of accounts(COA).
8. Funds Management: This deals with budgets and helps in managing the expenses and revenues of a company.
Submodules in CO are as follows:
1. Profit Center Accounting: This deals with both revenues and expenses, dissimilar to Cost Centers, which deals with costs.
2. Profitability Analysis: This empowers the organization to break down the profitability of its products.
3. Internal Orders: It is used for managing non-fixed assets and other smaller inward undertakings.
4. Cost Center Accounting: Cost Centers manages the expenses related to the organization’s inward divisions or offices. Cost Centers include just costs, not incomes.
5. Cost Element Accounting: Cost Elements gives a review of all the organization’s expenses and incomes in light of benefit and misfortune explanations, which are otherwise called wage articulations.
1. Financial Accounting: The Financial Accounting feature of SAP FICO is used to generate external reports like the organization balance sheet, profit and loss statements, etc.
2. SAP FICO has the ability to be included in other modules of the SAP system such as Sales and Distribution (SD), Project Systems (PS), Production Planning (PD), Plant Maintenance (PM) and Materials Management (MM ). This makes it more accountable and totally able to handle large processes and complex organizational workflows.
3. SAP FICO can receive postings from different modules and sub-modules such as SD, MM, and Human Resource through an integrated software network.
4. SAP FICO allows organizations to carry out Real-time posting of their Logistics accounting.
5. The SAP FICO enterprise solution is singularly built for different financial issues since it helps in implementing correct and specific strategies and in resolving complex issues with ease and accuracy.
6. With SAP FICO, Finance Managers can sum together the entire financial condition of a Business in a real-time base.
7. With the calculated results that are presented by SAP FICO, the Finance Managers can clearly draw out strategic business decisions for future projections and targets with a logical and more simplified approach.
8. Organizations and businesses can look forward to developing their entire financial structure by integrating SAP FICO into several distinct Business aspects like Sales, HR, Production Planning and in the department that is responsible for the Management of Materials.
9. The Integration of sub-modules into the SAP FICO software is an added benefit that is not seen in other Financial Management ERP business solutions. These sub-modules lets the organization to implement the all-in-one software application for structuring and managing an entire financial and accounting structure in an organization.
There are many benefits of using the SAP FICO software and some of them are:
1. It can be easily integrated with the sales, distribution, and material management departments in an organization.
2. SAP FICO Makes managing the workflow of a business easier.
3. SAP FICO helps to track and produce reports on different companies in different countries with their different currencies.
1. The demand for SAP FICO professionals is not restricted to major cities it is shared across the globe. Besides SCM experts, LE, and SAP BASIS the SAP FICO module is the most sought after SAP module.
2. SAP FICO is cited as an enterprise finance and control system. It is made up of real-time functions. If a new event occurs in the organization, the module would be automatically updated with it so it is a very essential software to study.
3. Hiring managers are always looking for Consultants who possess deeper knowledge in the functional area. To stand out of the crowd it is best to go for SAP FICO certification.
4. Job Opportunity and Career Advancement.
5. Entrepreneurship Opportunity and Consultancy.
Introduction to SAP FICO
Create a Company
Create a Company and assign to Company Code
How to Create Chart of Accounts in SAP
Create Retained Earnings Account
GL Account in SAP Tutorial: Create, Display, Block & Delete FS00
Posting to General Ledger
Create a Financial Statement Version
How to perform a Journal Entry Posting FB50 in SAP
Create Fiscal Year Variant & Assign to Company Code in SAP: Complete Tutorial
Define Posting Period Variant
Opening And Closing Posting Periods
How to Define Field Status Variant & Field Status Group in SAP
Document Type And Number Ranges
Exams And Certification
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