Introduction to SAP FICO

SAP FICO

SAP FI stands for Financial Accounting and it is one of the important modules of SAP ERP. It is used to store and compute the financial data of an organization. 

SAP FI enhances to analyse the financial conditions of a company in the market bsaed on data. This is used for external reporting for Government requirement for taxation purpose, public for investment purpose etc.

SAP Finance and Controlling

SAP founded in 1972 and it’s headquartered at Germany. Although there are multiple modules developed in SAP for different processes, SAP Finance is one of the most broadly used SAP modules.

FI stands for Financial Accounting (for external reporting) and 

CO stands for Controlling (for internal/managerial reporting). 

SAP prevents any data loss and also does varification.

        SAP FI is made up of sub modules. The sub-modules that are often used are General Ledger Accounting (GL), Accounts Receivables (AR), Accounts Payables (AP), Asset Accounting (AA), and Bank Accounting (BA).

        Check below topics covered in SAP FICO syllabus. Select them one by one to understand and learn in a systematic way.

SAP FICO Basic

    SAP FI - Sub-Modules

            GL (General Ledger)

            AP (Accounts Payable)

            AR (Accounts Receivable)

            AA (Asset Accounting)

    SAP CO - Sub-Modules

            OM (Overhead Management)

                    CE     (Cost Element Accounting)

                    CCA   (Cost Center Accounting)

                    IO     (Internal Order)

            PC         (Product Costing)

            COPA     (Controlling Profitability Analysis)

            PCA         Profit Center Accounting (Classical)

    Enterprise Structure

•     Define Company
•     Define Company Code
•     Assign Company to Company Code
•     Define Business Area
•     Define Functional Area
•     Define Credit Control Area (CCA)
•     Assign Company Code to Credit Control Area (CCA)

    

    Global Settings

•     Maintain Fiscal Year Variant (FYV)
•     Assign Company Code to Fiscal Year Variant (FYV)
•     Define Chart of Accounts (COA)
•         a) Group COA
•         b) Country COA
•         c) Operating COA    
•     Assign Company Code to Chart of Accounts
•     Define Account Groups
•     Define Retained Earning Accounts

•     Define Posting Period Variant (PPV)
•     Assign Posting Period Variant (PPV) to Company Code 
•     Open and Close Posting Periods

    

    

Related questions:

•     What is SAP ?
•     What is ERP ?
•     Importance of SAP FICO module ?
•     What are types of SAP Projects ?

Introduction to SAP

SAP stands for System Applications and Products in Data processing.

This is an ERP application package that provides services to all departments of an organization.

ERP stands for Enterprise Resource Planning where all functions of organization are integrated into one system. This enhances easy flow of data among departments in Organisations.

Enterprise (Organization)

Resource (Money, Man, Materials, Machine)

Planning (Utilization)


SAP is a Software which helps an Organization to do optimum utilization of it’s resources (Money, Men, Materials, Machines). 

It is founded in 1972, and headquartered in Walldorf, Germany.

SAP established the global standard for Enterprise Resource Planning (ERP) software.

SAP software assists to do multiple business functions with a single application by centralising data management. This helps companies to manage complex business activities by giving employees of different departments easy access to real-time insights across the enterprise.


Departments in an Organization

• Purchase Department
• Sales Department
• Accounting & Finance Department
• Human Resource Department

SAP modules

Functional-

    1) FI - Finance & Accounting

    2) CO- Controlling

    3) MM- Material Management

    4) SD- Sales & Distribution

    5) HR- Human resource

Technical-

    1) ABAP - Advance Business Application Programming

    2) Basis - Access management and Infrastructure

SAP Project

Project is an assignment or Task to be completed.

1. Implementation project - First time installation of SAP in any organization Ex. Tally >> SAP.

2. Rollout project - A Company already having SAP for one subsidiary and now want set-up for another subsidiary.

3. Upgrade project - Shifting from one version of SAP to another. Always upgrading from lower version to higher.

4. Support Project - Post implementation, all SAP related issues/ maintenance/ errors activities come under support project. Consultants receives tickets, solves them and respond to clients.