SAP FICO is an important core functional module in SAP ERP that is useful in storing the financial data of an organization. It facilitates financial reporting and is capable of integrating with other SAP modules.
Modules of SAP FI
SAP FI is a financial accounting module of SAP that is useful in storing the financial data of an organization. In addition, it is useful in analyzing the financial conditions of a company in the market. It is capable of integrating with other SAP modules like SAP SD, SAP PP, SAP MM, SAP SCM, etc. To further know about it, one can visit SAP FICO Training Institute in Delhi. Given below are some of the sub-modules of SAP FI.
- General Ledger- It consists of all company’s transaction data in a chart of accounts. In addition, it records transactions in sub-modules that can be recorded in real-time with general ledger data.
- Accounts Receivable- This sub-module is responsible for capturing customer transactions along with managing customer accounts. Furthermore, it includes transactions like invoice posting, credit memo posting, down payments, invoice payments, or executing customer reports.
- Accounts Payable- It includes all the transactions with vendors and managed vendor accounts. In addition, these transactions can consist of invoice posting, credit memo posting, down payments, invoice payments, automatic payments programs, and executing vendor reports.
- Asset Accounting- As its name suggests, this sub-module is responsible for managing all of the transactions related to the company’s fixed assets like land and building. In addition, these transactions include asset acquisitions, retirement, sales, transfers, revaluations, and depreciation.
- Bank Ledger- They need to deal with all of the company’s bank account transactions and data. In addition, they can reconcile all transactions recorded on bank statements and compare them with the transactions in the system.
- Consolidation- These are useful in combining the financial statements for multiple entities. Furthermore, this approach results in providing an overview of the company’s financial position as a whole.
Modules of SAP CO
SAP CO is one of the significant modules of the SAP ERP. It is useful for supporting processes to plan, report on, and monitor costs from business operations. In addition, it helps in improving the company’s profitability and it consists of various sub-modules that handle specific processes. Given below are some of the sub-modules of SAP CO.
- Cost Elements- This sub-module is responsible for providing an overview of all the company’s costs and revenues. In addition, it provides reports on the basis of profit and loss statements, also known as income statements. It describes the origin of the cost and represents specific costs that the company incurs.
- Cost Centers- This manages the costs related to the company’s internal divisions or departments like sales, production, marketing, or human resources. In addition, it includes only expenses, not revenues.
- Profit Centers- This sub-module handles all of the cost data related to the company’s business lines. Furthermore, unlike cost centers, it deals with both expenses and revenues of a company.
- Internal Orders- They manage the costs for smaller internal projects or non-fixed assets. Such as limited-time marketing campaigns, for example.
- Profitability Analysis– It allows the company to analyze the profitability of its products. In addition, it is useful in making decisions on matters like product pricing, distribution channels, and target market segments. Furthermore, it facilitates details in analyzing profitability, such as for each region or country, and product type.
- Product Costing- This is responsible for managing the data about the costs required to produce the company’s goods and services. In addition, analyzing this sub-module can help in managing manufacturing costs and optimizing efficiencies.
Benefits of Using SAP FICO
SAP FICO is easy to use and understand and it allows you to easily alter records in any required manner. It is reliable and stores data in the database in a much more secure manner. In addition, it provides great reporting features and allows you to get an efficient report from SAP FICO. There are many SAP FICO Training Institute in Noida and one can enroll in them to start a career in it. Given below are some of the benefits of using SAP FICO.
- It facilitates efficient financial accounting and controlling operations.
- Allows you to meet the need of the reporting jobs such as balance sheets, profit and loss statements, and profitability analysis.
- It helps in tracking and monitoring data from various cost and profit centers located all around the world.
- Facilitates faster management decisions through real-time financial processing.
- Allows a business to effectively and promptly adapt to changing business requirements.
- It improves corporate performance and the development of business strategies.
- Helps in streamlining procedures including scheduling, financial consolidation, and reporting. Etc.
- Results in improving transparency across the entire organization.
- It improves control over cash flow, payables, receivables, credit management, collections, Etc.
- Improves compliance with government rules, internal process regulation, and accounting standards.
Conclusion
SAP FICO is an important core functional module in SAP ERP that is useful in storing the financial data of an organization. It facilitates financial reporting and is capable of integrating with other SAP modules. It consists of two modules which are SAP FI and SAP CO. SAP FI is a financial accounting module, useful in storing the financial data of an organization. SAP CO is one of the significant modules of the SAP ERP that helps in improving the company’s profitability. In conclusion, SAP FICO facilitates efficient financial accounting and controlling operations. It allows you to meet the need of the reporting jobs such as balance sheets, profit and loss statements, and profitability analysis.
