Online Tutorials & Training Materials | STechies.com
Register Login

SAP FICO (Financial Accounting & Controlling)

Definition or Meaning - What is SAP FICO?

Full form or SAP FICO stands for FI (Financial Accounting) and CO (Controlling), SAP FI CO is the best configuration for internal as well as external accounting processes. It is an important core module of ERP processes, wherein real time financial transactions are integrated with various parallel SAP modules for best results.

Well suited for professionals desirous of excelling in the fields of accounting and finance; SAP Financial Accounting (FI) offers highly sophisticated means of financial transaction reporting and better handling of accounts. The external reports generated with the help of SAP FI CO are being increasingly utilized by banks, administrators, Tax Authorities, stock holders and managers, in line with their specific requirements. SAP FI is responsible for integrating diverse modules and generating a single system for the entire organization. In a nutshell, it draws data for external reporting procedures while its SAP Controlling Module (CO) lays emphasis on data for internal users.

 

Sub-components of SAP FI

  • SAP FI General Ledger accounting
  • Asset Accounting
  • Funds Management
  • Accounts Receivables
  • Accounts Payable
  • Special Purpose Ledger
  • Consolidation
  • Travel Management
  • Bank Accounting

SAP Controlling is vital for management decision making processes and is often used for internal reporting purposes. The Controlling area is typically a smartly conceived organization unit that is useful for representing the controlling and accounting activities of profit centers, product costing, profitability and so forth. CO, the controlling module, aptly complements the value created by the FI reports and utilizes the many features of the vastly used SAP FI components. The SAP Controlling Module (CO) further helps the management by organizing profit centers, Cost Centers, contribution margins and so forth. Once the transactions are posted in FI, they are transferred to CO for further processing, Cost Accounting, analytical reporting and audit-control.

Sub Components of SAP CO

  • Cost Element Accounting
  • Profit Center Accounting
  • Cost Center Accounting
  • Internal Orders
  • Profitability Analysis
  • Product Cost Controlling

Some important features and benefits of using SAP FI CO are:

  • SAO FI offers some of the most important components for diverse SAP implementations.
  • SAP FI (Financial Accounting) is an effective tool for reliable, accurate and time based external reporting in the form of Profit and Loss statements, Balance Sheets and so forth.
  • Other SAP modules like SAP SD (Sales and Distribution), MM (Materials Management), PS (Project Systems), PM (Plant Maintenance) and SAP PP (Production Planning) integrate well with SAP FICO and provide it with postings in a consistent way. These benefits of SAP FI CO are being utilized by applications in most organizations, globally.
  • All accounts-relevant transactions are generated in Logistics (LO) and are posted in real-time to Financial Accounting modules through automatic account determination techniques. All this data is also capable of being passed on to Controlling (CO).

Read Next:


Tutorials

  • Accounting Entries
    1.1 All the Inventory transactions will look for the valuation class and the corresponding G.L. Accounts and post the values in the G.L accounts.For Example: During Goods ReceiptStock Account   & ...

  • General setting for SAP system, Date Time, Currency and Number formatGeneral setting for SAP system, Date Time, Currency and Number format
    General setting for your SAP system, Date Time, Currency and Number format You can do the general setting for currency, date time, number format Through T-Code SU01 in general setting tab SPR ...

  • SAP FICO Career, Scope and become Certified ConsultantSAP FICO Career, Scope and become Certified Consultant
    Scope and Opportunity of a Career in SAP FICO In depth knowledge of essential ERP Systems is a must for those wanting to get their hands on the implementation of the entire SAP Life Cycle and get e ...

  • SAP FICO Training Material with Screen ShotsSAP FICO Training Material with Screen Shots
    s This tutorial contains the Complete list of SAP FICO Training Material with Screen Shorts Create a Company Code (OX02) T-code (OX02) Path Enterprise Structure   Definition   Fin ...

  • SAP FI (Financial Accounting) ModuleSAP FI (Financial Accounting) Module
    SAP FI (Financial Accounting) IntroductionThe SAP FI CO (Financial Accounting & Controlling) Module has the capability of meeting all the accounting and financial needs of an organization. It is w ...

  • SAP FICO Certification Fee and Course Duration in IndiaSAP FICO Certification Fee and Course Duration in India
    The SAP FI/CO course begins with a business analysis by defining business environment, procedures and planning methodologies. Then financial accounting, asset accounting is understood and la ...

  • ASSET ACCOUNTING Configuration StepsASSET ACCOUNTING Configuration Steps
    How to Configure ASSET ACCOUNTING in SAP FICO?Step 1 – COPY CHART DEPRECIATIONEC08 – IMG>Financial Accounting > Asset Accounting > FI-AA Implementation Guide (Simplified Version) ...

  • Withholding Tax in SAPWithholding Tax in SAP
    Detail information about Withholding Tax1. Types of withholding Tax a. Standard Withholding Tax provides the following features:i. Withholding tax for accounts payableii. Withholding tax calculat ...

  • Create New Tax code in SAPCreate New Tax code in SAP
    T.code FTXP is used to create Tax code.All the Taxes are divided into two categories. Input tax: All taxes related to purchase are considered as Input tax. Output tax: All taxes on sales come under th ...

  • Indian Tax Procedure Migration from TAXINJ to TAXINN.Indian Tax Procedure Migration from TAXINJ to TAXINN.
    Tax Migration as a prequisition to legal change GST.1. The TAXINJ tax procedure is currently in use. What are the prerequisite changes that need to be done for GST?Ans: For GST regime solution adoptio ...

  • Define Chart of AccountsDefine Chart of Accounts
    What is Chart of Accounts?  A Chart of Accounts in SAP represents the combined list of GL Accounts and master data record used in one or more company codes. All the GL Accounts in Chart of Acc ...

  • Create GL Account for Cash JournalCreate GL Account for Cash Journal
    How to Create GL Account for Cash Journal?Create GL Account for Cash Journal T-code (FS00) Financial Accounting General Ledger Accounting Bank Accounting Business Transactions Cash Journal Create GL A ...

  • Configure the Electronic Bank and Manual Bank StatementConfigure the Electronic Bank and Manual Bank Statement
    Electronic bank statement – It is an electronic document sent by the bank which gives details of the transactions done by the account holder. The electronic document can be remitted by the bank ...

  • Transactions FBL1N/ FBL3N/ FBL5N or as of ERP2004 FAGLL03: Defining Special FieldsTransactions FBL1N/ FBL3N/ FBL5N or as of ERP2004 FAGLL03: Defining Special Fields
    How to define Special Fields for the Line Item Transactions FBL1N/ FBL3N/ FBL5N or as of ERP2004 FAGLL03?I. Basic information1. Depending on your release, you can define the special fields for the lin ...

  • TAX and Pricing Procedure Configuration for GSTTAX and Pricing Procedure Configuration for GST
    Tax Procedure Configuration for GST 1) Create Condition Table These condition table combinations are for user reference with the help of these and you create your own condition table as per your ...

  • Configuration of Foreign ExchangeConfiguration of Foreign Exchange
    Foreign Currency Valuation Configuration  Step-I: Define standard quotation for exchange rate Path: General Setting> Currencies> Define Standard quotation for exchange rate Click o ...

  • Define Document Number RangeDefine Document Number Range
    T-code(FBN1)PathFinancial Accounting -> Financial Accounting Global Setting -> Documents -> Document Number Ranges -> Define/Copy (co code or Fiscal Year)In this activity, you create numbe ...

  • Asset Accounting (FI/AA) Create viewAsset Accounting (FI/AA) Create view
    Organizational Structure:Check- Country Specific SettingsMaximum LVA amount for posting: Here we define the maximum amount for checking posting to low-value assets.Net book value for changeover of dep ...

  • SAP FICO Tree MenuSAP FICO Tree Menu
    Sap tree_ficoSAP standard menu||-- Office|-- Logistics|-- Accounting| || |-- Financial accounting| | || | |-- General ledger| | | || | | |-- Document entry| | | | || | | | |-----G/L account posting F- ...

  • Leading ledger vs Non-leading ledger in ECC 6.0Leading ledger vs Non-leading ledger in ECC 6.0
    Difference between Leading ledger and Non- leading ledger New General Ledger has all functions of the Classic General Ledger but has been enhanced with special ledger functions to create greater ...

Advertisement
Advertisement