Introduction to SAP FICO:
SAP FICO enables all kinds of businesses to reach self-defined success. It ensures that every decision or reports made by the users are accurate and contains appropriate data. As an SAP beginner, you need some basic understanding of business processes. The SAP Alliance business program includes a mandatory ERP (Enterprise Resource Planning) course. Before stumbling through SAP transactions, a common business frameworks process is provided. SAP FICO is the combination of SAP FI (Financial Accounting) and SAP CO (Controlling).
SAP FI is a module used to prepare external reports. The main aim is to record financial transactions that are posted by any entity and generate financial statements which are accurate. FI is considered to be the base module. It covers modules such as :
General Ledger (GL): it is considered as the core of FI, providing the basic financial reports such as balance sheets, P&L statements or data for VAT returns. Since it is considered important in the whole financial reporting structure, General settings shared by all sub modules like organisation structure, document types are described under this particular heading.
Account payable (AP): It generates a result of vendor purchasing activity and records account posting.
The account receivable (AR): Financial relation with the customers is recorded.
Asset Accounting (AA): SAP allows you to categorise the company’s assets and sets values for each asset class. Basically, it is used to manage a company’s fixed assets.
SAP CO is mainly used for generating internal reports and internal controlling. It represents the flue of cost and revenue that takes place within a company’s transactions. The sub modules are:
Cost centre accounting: The purpose of Cost centre accounting is to control purposes within the organisation to review its profit of individual functional areas. It allows you to examine the overhead costs according to where the cost was incurred within the organisation.
Internal order: It is a method to pool those costs and business transaction related to particular activity. It is a virtual place for collecting the costs.
Profitability analysis: The business purpose of PA is to generate information on the profitability of an organisation’s market segment.
Product cost planning: This section is used to calculate the non-related cost of goods manufactured as well as the cost of the goods sold. It also calculates the values added up for each product at each step of production.
Profit centre accounting: PCC lets you determine the loss and profits by using either cost of sales approach or period accounting.
STechies helps you master in SAP FICO which can lead you to work with SAP HANA, SAP FIORI and SAP BASIS and eventually with everything else with the word “SAP” attached. As the technology keeps changing every day, it gets added up with some new functionality that requires you to cover and learn.
Due to its simple and compatible nature, SAP FICO application is more popular when compared to other financial software applications. Enterprises that require simplicity choose SAP FICO, simple to configure and had compatible host.