SAP FICO has two important core modules in SAP ERP that are SAP FI (Financial Accounting) and SAP CO (Controlling). They are firmly coordinated with one another and help the business organizations to maintain and generate financial statements for effective decision making and reporting.
SAP FI is a module utilized for detailing both externally and internally. The goal is to record all financial transactions that are posted by an entity and produce financial statements which are precise toward the end of the trading period. SAP FI comes with a complete package that helps organizations in handling financial needs and accounting activities. The major Components of SAP FI module are
- General Ledger Accounting: General ledger accounts that are utilized by organizations is called a chart of accounts. These are fundamentally those accounts that are used to prepare financial statements. In this module, transactions are recorded in sub modules and are done through general ledgers in real-time.
- Accounts Receivable: This sub module in SAP FI manages client transactions and can be utilized to manage customer accounts. Customer accounts are maintained independently when transactions are posted in merchant accounts. In this sub module transactions include invoice posting, credit memo posting, down payments, etc.
- Accounts Payable: This sub module manages vendor transactions and can be utilized to oversee vendor accounts. Vendor accounts are maintained independently when transactions are posted in customer accounts, and reconciliation accounts in the general ledger. In this sub module of SAP FI transactions include invoice posting, credit memo posting, down payments, etc.
- Asset Accounting: Asset Accounting is used to manage transactions which are related to assets of an entity for an organization. Reconciliation accounts in the general ledger are updated in real time when transactions are updated in asset accounts. In this sub module of SAP FI transactions include asset acquisition, asset sale, asset transfer, asset retirement, asset revaluation, and asset depreciation.
- Bank Accounting: This SAP FI module manages transactions with banks. Reconciliation is done to consolidate transactions on bank statements. This sun module deals with all the transactions of payments like incoming payments, outgoing payments.
SAP CO is one of the most significant modules in SAP which includes SAP CO configuration and SAP CO user details. It contains master data, configuration and reporting. When implemented, SAP CO permits clients to view data of internal costs. SAP CO also helps users to manage records and make efficient informed decision making. Moreover, organizations can manage reporting and information databases according to their necessities.
The major sub-modules that contain SAP CO are
- Cost Element Accounting: Cost and Revenue Element Accounting permits users to control costs and revenues that happen in their organization. This sub module computes those costs which are individual expenses in Financial Accounting.
- Cost Centre Accounting is generally utilized for managing cost purposes at an internal level inside organizations.
- Activity-based Accounting is used to analyse changes in cross-departmental business operations.
- Internal Orders is used to gather and monitor employment that are assigned internally. Budgets can be alloted for these occupations, and this module can be used to ensure that costs don’t exceed allocated budgets.
- Product Cost Controlling is used to calculate the cost of manufacturing products or providing services. Likewise, the specific expense for profitability marketing can be assessed using this sub-module.
- Profitability Analysis is utilized to analyze the profit or loss of organizations by defragmenting market segments to individual units. Informed decision making is fuelled by this sub-module.
- Profit Center Accounting is utilized to assess the profit and loss of individuals and autonomous and independent areas within organizations.
NISHITHA SOFTWARE SOLUTIONS SAP FICO Course will prepare you to learn all the all the start to finish implementation steps to configure SAP FI and CO modules. The course additionally features the essential documentation and technique which are utilized in SAP FICO execution ventures.
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