SAP FICO (Finance and Controlling)

SAP FICO (Finance and Controlling) is an important and widely implemented module in SAP ERP where FI stands for Financial Accounting and CO stands for Controlling. SAP FICO module is very robust and covers almost all business process encountered in various industries.

SAP FI is a module used for reporting both externally and internally. The objective is to record all financial transactions that are posted by an entity and produce financial statements which are accurate at the end of the trading period. This tutorial is going to explain the major functionalities with SAP FI module. All the sub modules are interlinked and integrate in real time. A trial balance can be extracted at an time and it will always balance because all the sub modules are connected.

SAP FI is made up of sub modules. The sub-modules that are often used are accounts receivables, accounts payables, asset accounting, general ledger Accounting and bank accounting. SAP FI, as the term suggests, deals in managing financial transactions within enterprises. This financial accounting module helps employees to manage data involved in any financial and business transactions in a unified system. This module functions very well for reporting requirements. The SAP FI module is very flexible and functions well in any type of economic situation. Be it a smaller organization or a larger organization; SAP implementation helps in consolidating data for diverse business transactions and legal requirements. Financial Accounting module helps one to get the real-time financial position of an enterprise in the market. SAP FI incorporates with other SAP modules such as SAP SD, SAP MM, SAP PP, Payroll, and more for better work results.

SAP CO module is an important SAP sub-module under SAP FICO module offered to enterprises. The controlling module supports the process works of planning, reporting, and monitoring operations of businesses. It involves methods to view and organize costs that are required for financial reporting. The controlling module enables one to plan, track, perform, and report about costs. Controlling includes managing and configuring master data that covers cost elements, cost centers, profit centers, internal orders, and functional area, and so on.