3,718 total views, 3 views today
- SAP FICO stands for SAP FI (Financial Accounting) and SAP CO (Controlling).
- SAP FICO helps the companies in generating and managing financial statements for effective decision-making.
- Both the FI and CO modules store the financial transactions data.
SAP FICO is actually a part of SAP ECC accounting function which integrates SAP Logistics, including production planning, sales and distribution, material management, quality management, etc. It stands for SAP FI (Financial Accounting) and SAP CO (Controlling). The purpose of this module is to help the companies in generating and managing financial statements for effective business planning and decision-making. Nevertheless, both the FI and CO modules store the financial transactions data. Today we will be talking about the modules of SAP FI (Financial Accounting) and SAP CO (Controlling). Get SAP FICO training in Noida to learn the functions of these modules!
The modules of SAP Financial Accounting
Funds Management: Funds Management is a useful module that helps the enterprises in managing revenues and expenses.
Special Purpose Ledger: Special Purpose Ledger is another module which is used to define the ledgers in SAP FI for reporting purposes.
General Ledger: General Ledger is the module if we want to see the company’s transaction in a chart of accounts that lists all of the accounts in the system. In this module, the transactions are recorded in sub-modules that can be reconciled with the general ledger data in real-time.
Accounts Receivable & Accounts Payable: It is used to maintain credit memo posting, invoice posting, down payments, dunning, invoice payments, and executing customer reports. With its use, you will be able to manage the accounts and transactions of your customers. However, the Accounts Payable is used to manage vendor accounts and transactions. The range of operations includes credit memo posting, invoice posting, invoice payments, automatic payments program, down payments, and executing vendor reports.
The modules of SAP Controlling
Product Costing: It is a module that manages data related to the expenses done for the development and modifications of products/services. This SAP Controlling module helps the companies in managing product manufacturing and service development expenses. Hence, it is designed to help the companies in increasing efficiencies.
Profitability Analysis: Profitability analysis enables the enterprises in defining product pricing, deciding distribution channels, and identifying the target market segments; hence, it helps in analyzing their products and services.
Cost Elements: Cost Elements is an SAP CO module that represents specific costs that the organization incurs. It gives you an overview of costs and revenues your company is associated with. Hence, it helps in calculating income statements, including profit and loss statements.
Cost Centers & Profit Centers: Cost Centers is designed to involve the expenses, not revenues. If you want to make improvements in company’s internal departments like production, sales, marketing or human resources, however, the Profit Centers handles all data, including expenses and revenues, related to the company’s business expenses.
About the Author: Having seven years of work experience in corporate and industrial training sector, Rajib Kar, a technical content writer at Multisoft, loves to write about the recent developments of the training industry.