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What is SAP FICO вЂ“ An Introduction of FI and CO module
What is SAP FICO? вЂ“ A brief introduction of SAP FI and SAP CO module.
SAP FICO stand for вЂњFinancial AccountingвЂќ and вЂњControllingвЂќ. 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.
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 вЂ“ All the postings that are done in SAP are recorded through general ledger(G/L) accounts.
- Accounts Payable -It collects and maintain all the transactions related to vendor accounts.
- Accounts Receivable вЂ“ It records and maintains all the transactions related to customer accounts.
- Bank Accounting вЂ“ It deals with all the transactions of payments like incoming payments, outgoing payments,
- Asset Accounting вЂ“ SAP FI-AA sub-module deals with all the transactions related to assets.
- Travel Management вЂ“ It deals with all the process involved in business trip and travel expenses.
SAP CO (Controlling)
Sub-Modules of SAP CO
The important sub-modules of SAP controlling are
- Cost Centre вЂ“ 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 вЂ“ This CO sub-module is used to estimate the costs for producing a service or a product.
- Profit center вЂ“ It records and maintain all the profits of an organization.
- Profit Analysis вЂ“ 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.