what is sap fico Introduction, definition & Module

sap fico and SAP co are used to generate financial statements for any business and help to take any effective session for business.

what is sap fico

SAP FI module records, maintains, and updates financial transactions for an organization on a daily basis. It also generates financial statements (Balance sheets and Profit & Loss accounts) for external reporting.

Sub-Modules for SAP FI

• General Ledger Accounting: All postings in SAP are tracked through general ledger (G/L) accounts.

• Accounts payable Collects and maintains all transactions related to vendor accounts.

• Accounts Receivable – It records and maintains all transactions related to customer accounts.

• Bank Accounting - This is the accounting of all payments. It handles incoming and outgoing payments.

• Asset Accounting- The SAP FI-AA submodule deals in all transactions related to assets.

• Travel Management - This covers all aspects of business trips and travel expenses.

What is SAP CO

SAP CO is an important module in SAP system. It provides operational information to management, which can be used to improve decision-making. It handles all reporting requirements.

Sub-Modules for SAP CO

These are the most important modules of SAP controlling

• Cost Center - This is an organizational element that records all expenses within an organization. E.g.

• Product Pricing This CO sub-module can be used to estimate the cost of producing a product or service.

• Profit Center - This records and maintains all profits for an organization.

• Profit Analysis This module allows an organization to track and analyze.

SAP FICO Integration

Integration of SAP FICO and other modules allows for automatic updating transactions to other modules. The postings are made in SAP Fico module. It can also be integrated with SAP modules such as Sales & Distribution, Material management, Human Resource Management and Production planning.