What is SAP FICO? Explained everything about SAP FICO module.
What is SAP FICO? – A brief introduction of SAP FI and SAP CO module.
SAP FICO stand for “Financial Accounting” and “Controlling”. SAP FI and SAP CO are the important core modules in SAP that are tightly integrated each other and helps the business organizations to maintain and generate financial statements for effective decision making and reporting. FI & CO are different set of books, where the SAP FI deals with external accounting and SAP CO deals with internal accounting.
>> Read our free SAP FICO training tutorials with real time scenarios.
SAP Financial Accounting (FI)
SAP FI module records and maintains financial transactions of an organization in real-time on daily basis and generates financial statements (Balance sheets, Profit & Loss accounts, etc) for external reporting.
Sub-Modules of SAP FI
- General Ledger Accounting – All the postings that are done in SAP are recorded through general ledger(G/L) accounts.
- Accounts Payable – Accounts payable collects and maintain all the transactions related to vendor accounts.
- Accounts Receivable – It records and maintains all the transactions related to customer accounts.
- Bank Accounting – It deals with all the transactions of payments like incoming payments, outgoing payments,
- Asset Accounting – SAP FI-AA sub-module deals with all the transactions related to assets.
- Travel Management – It deals with all the process involved in business trip and travel expenses.
SAP CO (Controlling)
SAP CO is one of the important module of SAP system as it provides the operational information to management for better decision making process. So it take cares all the requirements for reporting.
Sub-Modules of SAP CO
The important sub-modules of SAP controlling are
- Cost Centre – It is an organizational elements which is responsible for recording all the expenses that are occurred within an organization. E.g. of cost centers are department, work center.
- Product Costing – This CO sub-module is used to estimate the costs for producing a service or a product.
- Profit center – It records and maintain all the profits of an organization.
- Profit Analysis – This sub-module helps an organization to track and analysis .
SAP FICO Integration
The integration of SAP FICO with other modules enables in automatic updating transaction to other modules that the postings are done in SAP Fico module. It can be integrated with other SAP modules of Sales & distribution, Material management, Human Resource Management, Production planning, SAP CRM and so on.