SAP FICO: What is, Introduction, Full Form & FICO Module
What is SAP FICO?
SAP FICO is a module of SAP ERP which is utilized for monetary detailing both remotely and inside. The goal is to record all monetary exchanges that are posted by a substance and produce fiscal summaries that are precise toward the finish of the exchanging time frame. The SAP FICO full structure is FI (Financial Accounting) and CO (Controlling).This SAP FICO nuts and bolts instructional exercise will make sense of SAP FICO outline and the significant functionalities of the SAP FICO moduleSAP FI is comprised of SAP FICO sub modules. The sub-modules that are frequently utilized are accounts receivables, accounts payables, resource bookkeeping, general record Accounting and bank bookkeeping.All the sub modules are interlinked and coordinate progressively. A preliminary equilibrium can be extricated at a time and it will constantly adjust in light of the fact that all the sub modules are associated. The chart underneath shows the coordination between FICO SAP modules.SAP FICO stands for Financial Accounting (FI) and Controlling (CO), and it is one of the most crucial modules within the SAP ERP system. It integrates financial accounting and management accounting processes, enabling organizations to manage their financial data effectively, make informed business decisions, and ensure regulatory compliance. SAP FICO plays a vital role in financial reporting, budgeting, cost management, and financial analysis, making it an essential tool for businesses of all sizes and industries.
Full Form of SAP FICO:
The full form of SAP FICO is derived from the combination of
its two main components:
- Financial Accounting: This module focuses on recording financial transactions
and generating financial statements. It helps in managing general ledger,
accounts payable, accounts receivable, asset accounting, bank accounting, and
other financial processes.
- Controlling: The controlling module complements financial accounting by
providing tools for cost accounting, internal order accounting, profitability
analysis, product costing, and budgeting. It enables organizations to track
costs, analyze profitability, and support decision-making processes.
SAP FICO Module:
Accounting (FI) Module: The Financial Accounting module within SAP FICO is
responsible for managing financial transactions and producing financial
reports. Some key functionalities of the FI module include:
a. General Ledger (GL): The GL is the central component that
captures all financial transactions, allowing organizations to record and track
business activities in a structured manner.
b. Accounts Payable (AP): AP manages the company's payable
invoices to vendors and suppliers, including invoice processing, payment runs,
and managing outstanding balances.
c. Accounts Receivable (AR): AR handles customer invoicing,
receipts, and managing outstanding customer balances. It ensures efficient cash
d. Asset Accounting: This component tracks the acquisition,
depreciation, and disposal of fixed assets, enabling accurate reporting of
asset values and useful life.
e. Bank Accounting: Bank Accounting integrates with the GL
to manage bank-related transactions, bank statement processing, and bank
(CO) Module: The Controlling module complements financial accounting by
providing tools to control and monitor costs, perform internal reporting, and
support decision-making. Key components of the CO module include:
a. Cost Element Accounting: This aspect focuses on
categorizing costs incurred during business operations, helping in expense
analysis and allocation.
b. Cost Center Accounting: Cost centers represent
departments or functional areas within an organization, allowing cost
allocation and analysis to evaluate each department's performance.
c. Profit Center Accounting: Profit centers enable
organizations to analyze the profitability of individual business units or
d. Internal Order Accounting: Internal orders are used to
track and manage specific projects, events, or activities with defined budgets
and cost allocations.
e. Product Costing: This component determines the cost of
manufactured products, taking into account direct and indirect costs,
overheads, and other cost factors.
f. Profitability Analysis (CO-PA): CO-PA enables businesses to analyze the profitability of products, customers, and market segments.
General record bookkeeping
All broad record accounts that are utilized for announcing are overseen through broad record bookkeeping. In SAP a bunch of all broad record accounts utilized by an organization or a gathering of organizations is known as a diagram of records. These are the records that will be utilized for the arrangement of fiscal reports. The vast majority of the exchanges are kept in sub modules and they are accommodated with the overall records continuously. Exchanges that should be possible in direct overall record Accounting incorporate diary vouchers which are presented on change or right exchanges. Inversions should likewise be possible from general record bookkeeping. Balances overall record records can be shown and preliminary adjusts removed from the framework.
Accounts receivables in FICO SAP is a sub module that catches all exchanges with clients and oversees client accounts. Separate client records will be kept up with and when exchanges are posted in client accounts, compromise accounts overall record are refreshed with the figures progressively. Exchanges in accounts receivables incorporate receipt posting, credit notice posting, initial installments, receipt installment, dunning and executing client reports.
Accounts payables is a sub module that catches all exchanges with merchants and oversees seller accounts. Separate seller accounts are kept up with and when exchanges are posted in client accounts, compromise accounts overall record are refreshed with the figures continuously. Exchanges in accounts payables incorporate receipt posting, credit update posting, initial investments, receipt installment, programmed installment program and executing seller reports.
Resource bookkeeping in SAP FICO deals with all exchanges connected with resources for an element. At the point when exchanges are posted in resource accounts, compromise accounts overall record are refreshed progressively. Exchanges in resource bookkeeping incorporate resource procurement, resource retirement, resource deal, resource move, resource revaluation and resource devaluation.
Bank bookkeeping catches all exchanges with the banks. Bank compromise is finished to accommodate all exchanges kept on bank articulations contrasting them with exchanges in the framework. All SAP FI sub-modules are coordinated and exchanges are refreshed progressively which implies exact budget summaries can be removed from the framework whenever.
SAP FICO presentation: SAP FICO module is a module of SAP ERP which is utilized for monetary detailing both remotely and inside.
SAP FICO significance: SAP Financial Accounting (FI) and Controlling (CO)
All broad record accounts that are utilized for detailing are overseen through broad record bookkeeping. In SAP a bunch of all broad record accounts utilized by an organization or a gathering of organizations is known as a diagram of records.
Accounts receivables is a sub module that catches all exchanges with clients and oversees client accounts.
Accounts payables is a sub module that catches all exchanges with sellers and oversees merchant accounts.
Resource bookkeeping deals with all exchanges connected with resources for an element.
Bank bookkeeping catches all exchanges with the banks.
SAP FICO, comprising Financial Accounting (FI) and Controlling (CO) modules, is a vital part of the SAP ERP system. It provides organizations with a comprehensive solution for financial management, cost control, and decision support. By integrating key financial processes and facilitating real-time reporting and analysis, SAP FICO empowers businesses to achieve better financial transparency, compliance, and profitability. Its significance lies in its ability to streamline financial operations, optimize costs, and aid in strategic planning for sustainable growth and success in today's competitive business landscape.