Hello, future financial analysts! In this fast-moving business world, the best financial management is critical. It plays a vital role in the success of an organization. Nowadays, SAP FICO is becoming a more popular business management software.
Students and finance professionals must know about SAP FICO. The tools it offers will provide real-time data and accurate financial reports. It also helps with good planning and effective decision-making. Let’s understand the key features and modules of SAP FICO.
Table of Contents:
What is SAP FICO?
What are the Features of SAP FI?
SAP FI – Sub Modules
What are the Features of SAP CO?
SAP CO – Sub Modules
What is SAP FICO?
SAP FICO is the cornerstone of the ERP (Enterprise Resource Planning) system. This software is used by many of the top companies in the world. It helps businesses in managing their financial data and preparing financial statements. Additionally, it aids in analyzing reports and creating awareness of their financial status.
It is comprising of two core modules:
SAP FI (Financial Accounting)
SAP CO (Controlling)
Here is detailed information about these two core modules.
What are the Features of SAP FI?
SAP FI (Financial Accounting) is an important module in the SAP system. It allows businesses to store and arrange their financial data effectively. Ensuring that they can easily assess the current state of their financial processes.
It connects with other modules like;
SAP SD (sales and distribution)
SAP FI – Sub Modules:
Accounts Payable: They involve all transactions with vendors and their accounts. It includes Invoice posting, Invoice payments, down payments, etc.
Accounts Receivable: This module manages and stores all customer transactions. These add credit memo postings, automatic payments, and so on.
General Ledger: It includes all the financial data of the company that is organized in a chart of accounts. Each activity is recorded in real-time within various sub-modules.
Bank Ledger: Deals with the company’s bank account transactions and data. It can reconcile all activities recorded on bank statements. They ensure that everything is accurate in the system.
Asset Accounting: This manages all dealings related to fixed assets. Namely, land, buildings, and heavy equipment.
Travel Management: Handles all travel activities, from booking trips to managing travel expenses.
What are the Features of SAP CO?
SAP Controlling focuses on planning, reporting, and tracking costs from business operations. To put it simply, it acts instrumental in improving the company’s profitability. SAP CO connects with Production Planning, Quality Control, and Materials Management.
SAP CO – Sub Modules
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Cost Element: Deals with cost and revenues of the company. It is based on the profit and loss statements. Also known as income statements. It describes the origin of costs and specific costs of business.
Cost Centers: Deals with the costs associated with the company’s internal departments. Such as., Sales, Production, Marketing, and Human Resources. It is noted that cost involves only expenses.
Profit Centers: Helps handle all the cost data related to the organization’s profit lines. It covers both expenses and revenues.
Internal Orders: Used to manage the costs for smaller internal projects. Also called non-fixed assets, like a limited-time marketing campaign.
Profitability Analysis: This enables the company to analyze the profitability of its products. For example, it helps in deciding product pricing and choosing distribution channels.
Product Costing: Tracks the costs needed to produce the company’s goods and services. Its analysis can help us to manage manufacturing costs.
Conclusion:
India is experiencing growth in many organizations, from large enterprises to small businesses. They are adopting SAP FICO software for their industrial growth. FICO skills are in high demand in industries like manufacturing, retail, and healthcare. By becoming an expert in the SAP FICO course, you can explore various career paths. The professions include SAP FICO Consultant, Financial Analyst, and SAP Implementation Specialist. Additionally, the demand for SAP FICO skills is growing globally. It is creating more opportunities for career advancement.
Do you want to become a master in SAP FICO? Take the first step toward a successful career by signing up with Teks Academy. As the Best SAP training institute in Hyderabad, Teks offers excellent training for SAP FICO. Why late? Kickstart your SAP FICO journey today!
