SAP FICO stands for “Financial Accounting” and “Controlling”. SAP FI and CO are core modules in SAP deeply integrated with each other. The goal is to help business enterprises to maintain and generate accurate financial statements to aid in effective decision making and strategic purposes. SAP FI deals with external accounting whereas SAP CO deals with internal accounting.
SAP FINANCIAL ACCOUNTING(FI)
SAP Fi module records and maintains financial transaction of a company/organization in real time on a daily basis and generates financial statements like balance sheets, Profit & Loss Accounts(P&L) for external reporting.
SAP FI is made up of sub modules which are Account Receivables, Account Payables, Asset Accounting, General ledger Accounting and Bank Accounting. All these sub modules are interlinked and integrated with each other. At any point of time, you can extract a trial balance which would always be balanced because of the integration of each module with one another. Let us understand each of the sub modules.
General Ledger Accounting
All the postings that are done in SAP are recorded through general ledger accounts. A set of all the general ledger accounts used by a company is called a chart of accounts. These accounts are used for preparation of financial statements.
Account Receivables
A sub module which manages all customer accounts and captures every single transaction with the customers. Separate accounts are maintained for each customer and when transactions take place, reconciliation accounts in general ledger are updated with the figures in real time.Transactions in accounts receivables include invoice posting, credit memo posting, down payments, invoice payment, dunning and executing customer reports.
Account Payables
Account Payables is a sub module for the vendors. It captures all transactions with the vendors and manages vendor accounts. Separate vendor accounts are maintained and when a transaction is posted in a customer account, reconciliation accounts in general ledger are updated with the figures in real time.Transactions in accounts payables include invoice posting, credit memo posting, down payments, invoice payment, automatic payment program and executing vendor reports.
Asset Accounting
Asset accounting manages all transactions realted to assets for an entity. When transactions are posted in asset accounts ,reconciliation accounts in general ledger are updated in real time. Transactions in asset accounting include asset acquisition, asset retirement, asset sale, asset transfer, asset revaluation and asset depreciation.
Bank Accounting
Bank accounting captures all transactions with the banks. Bank reconciliation is done to reconcile all transactions recorded on bank statements comparing them to transactions in the system. SAP
SAP FICO stands for “Financial Accounting” and “Controlling”. SAP FI and CO are core modules in SAP deeply integrated with each other. The goal is to help business enterprises to maintain and generate accurate financial statements to aid in effective decision making and strategic purposes. SAP FI deals with external accounting whereas SAP CO deals with internal accounting.
SAP FINANCIAL ACCOUNTING(FI)
SAP Fi module records and maintains financial transaction of a company/organization in real time on a daily basis and generates financial statements like balance sheets, Profit & Loss Accounts(P&L) for external reporting.
SAP FI is made up of sub modules which are Account Receivables, Account Payables, Asset Accounting, General ledger Accounting and Bank Accounting. All these sub modules are interlinked and integrated with each other. At any point of time, you can extract a trial balance which would always be balanced because of the integration of each module with one another. Let us understand each of the sub modules.
General Ledger Accounting
All the postings that are done in SAP are recorded through general ledger accounts. A set of all the general ledger accounts used by a company is called a chart of accounts. These accounts are used for preparation of financial statements.
Account Receivables
A sub module which manages all customer accounts and captures every single transaction with the customers. Separate accounts are maintained for each customer and when transactions take place, reconciliation accounts in general ledger are updated with the figures in real time.Transactions in accounts receivables include invoice posting, credit memo posting, down payments, invoice payment, dunning and executing customer reports.
Account Payables
Account Payables is a sub module for the vendors. It captures all transactions with the vendors and
manages vendor accounts. Separate vendor accounts are maintained and when a transaction is posted in
a customer account, reconciliation accounts in general ledger are updated with the figures in real
time.Transactions in accounts payables include invoice posting, credit memo posting, down payments,
invoice payment, automatic payment program and executing vendor reports.
Asset Accounting
Asset accounting manages all transactions realted to assets for an entity. When transactions are posted in
asset accounts ,reconciliation accounts in general ledger are updated in real time. Transactions in asset
accounting include asset acquisition, asset retirement, asset sale, asset transfer, asset revaluation and
asset depreciation.
Bank Accounting
Bank accounting captures all transactions with the banks. Bank reconciliation is done to reconcile all
transactions recorded on bank statements comparing them to transactions in the system.
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