SAP FICO Introduction

In SAP FICO, SAP FI stands for Financial Accounting and CO stand for Controlling. SAP FI is a backbone of SAP that helps to records, collects and process various financial transactional information on real time time. With SAP Financial Accounting you can extract the necessary data for external reporting. SAP FI module can be tightly integrated with other SAP Modules like SAP Controlling (CO), Material Management (MM), Sales and Distribution (SD), Human Resources (HR), Production Planning and with various ERP modules.

SAP FI Modules Includes the below sub-modules

General Ledger Accounting
Accounts Payable
Accounts Receivable
Assets Accounting - sap fico online training
Bank Accounting
Consolidation
Fund Management
Special Purpose Ledger
Travel management

SAP CO Module Comprises of the below sub-modules

Cost Element Accounting
Cost Center Accounting
Profit center Accounting
Internal order Accounting
Product Costing - sap fico online training
Profitability Analysis

SAP FICO is a module of SAP ERP which is used for financial reporting both externally and internally. The objective is to record all financial transactions that are posted by an entity and produce financial statements that are accurate at the end of the trading period. The SAP FICO full form is FI (Financial Accounting) and CO (Controlling).

This SAP FICO basics tutorial is going to explain SAP FICO overview and the major functionalities of the SAP FICO module.

SAP FI is made up of SAP FICO sub modules. The sub-modules that are often used are accounts receivables, accounts payables, asset accounting, general ledger Accounting and bank accounting.

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.

General ledger accounting

All general ledger accounts that are used for reporting are managed through general ledger accounting. In SAP a set of all general ledger accounts used by a company or a group of companies is called a chart of accounts. These are the accounts that will be used for the preparation of financial statements. Most of the transactions are recorded in sub modules and they are reconciled with the general ledgers in real time. Transactions that can be done in direct in general ledger Accounting include journal vouchers which are posted to adjust or correct transactions. Reversals can also be done from general ledger accounting. Balances in general ledger accounts can be displayed and trial balances extracted from the system.

Accounts receivables

Accounts receivables in FICO SAP is a sub module that captures all transactions with customers and manages customer accounts. Separate customer accounts will be maintained and when transactions are posted in customer accounts, reconciliation accounts in general ledger are updated with the figures in real time. Transactions in accounts receivables include invoice posting, credit memo posting, down payments, invoice payment, dunning and executing customer reports.

Accounts payables

Accounts payables is a sub module that captures all transactions with vendors and manages vendor accounts. Separate vendor accounts are maintained and when transactions are posted in customer accounts, reconciliation accounts in general ledger are updated with the figures in real time. Transactions in accounts payables include invoice posting, credit memo posting, down payments, invoice payment, automatic payment program and executing vendor reports.

Asset accounting

Asset accounting in SAP FICO manages all transactions related to assets for an entity. When transactions are posted in asset accounts, reconciliation accounts in general ledger are updated in real time. Transactions in asset accounting include asset acquisition, asset retirement, asset sale, asset transfer, asset revaluation and asset depreciation.

Bank accounting

Bank accounting captures all transactions with the banks. Bank reconciliation is done to reconcile all transactions recorded on bank statements comparing them to transactions in the system.

All SAP FI sub-modules are integrated and transactions are updated in real time which means accurate financial statements can be extracted from the system at any time.

SAP FICO Online Training Course Content

Components of Financial Accounting (FI)

1 ) Organizational Elements/ basic settings

2 ) GeneralLedger (FI/GL)

3 ) Accounts Receivable (FI/AR)
- sap fico online training

4 ) Accounts payable (FI/AP)

5 ) Asset Accounting (FI/AA)

6 ) Special Purpose Ledger (FI-SL)

Enterprise Structure

Define Company
Define Company Code - sap fico online training
Assign Company Code to Company
Define Business Area

Financial Accounting Global Settings

Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year)
Assign Company Code to a Fiscal Year Variant
Define Variants for Open Posting Periods
Assign Variants to Company Code
Open and Close Posting Periods
Define Document Types - sap fico online training
Define Document Number Ranges
Define Posting Keys
Maintain Field Status Variants
Assign Company Code to Field Status Variants
Enter Global Parameters

General Ledger Accounting

Define Chart of Accounts List
Assign Company Code to Chart of Accounts
Define Account Group
Define Retained Earnings Account
Define Tolerance Groups for G/L Accounts
Define Tolerance Groups for Employees
Creation of G/L Masters
G/L Account Document Postings
Parked Document - sap fico online training
Hold Document
Sample Document
Accrual/Deferral Document

Recurring Entries

Define Run Schedules
Enter run dates
Posting transactions - sap fico online training
Execute run schedule
Create Batch input Session

Reversal Documents

Open Item Management

Interest Calculations - sap fico online training
Foreign Currency Valuations

Accounts Receivable and Accounts Payable

Creation of Vendor Groups
Creation of Vendor Number ranges
Assign Vendor Number ranges to Vendor Groups
Creation of Vendor Masters
Creation of Vendor Documents and Number ranges
Vendor Documents Postings (Purchase Invoice)
Advance Payment Postings - sap fico online training
Automatic Payment Program

Creation of Customer Groups

Creation of Customer Number ranges
Assign Customer Number ranges to Customer Groups
Creation of Customer Masters
Creation of Customer Documents and Number ranges
Customer Document Postings (Sales Invoice)
Advance Payment Postings
Dunning Program - sap fico online training
Bills of Exchange
Creation of Payment Terms
Creation of Credit Memo
Customer/Vendor Statements

Bank Settings

House Bank Creation
Check Lot Creation
Creation of Bank Accounts
Issued Check Cancellation - sap fico online training
Manual Check Updating
Bank Reconciliation Statement

Tax Settings

Withholding Tax and Extended Withholding Tax Configuration

Basic Settings for W/Tax
Defining the Calculation Procedure for W/Tax Types and W/Tax Codes
Assign W/Tax Procedure to Vendor Posting - sap fico online training

Asset Accounting

Copy Reference Chart of Depreciation/Depreciation Areas
Assign Chart of Depreciation to Company Code
Specifying Account Determination
Create Screen Layout Rules
Define Number Range Interval
Define Asset Classes
Assign G/L Accounts - sap fico online training
Specify Document Type for Posting of Depreciation
Specify Intervals and Posting Rules
Specify Rounding of Net Book Value and/or Depreciation
Define Base Methods
Define Declining-Balance Methods
Define Maximum Amount Methods
Define Multi-Level Methods
Maintain Period Control Methods
Maintain Depreciation Key
Define Screen Layout for Asset Master Data
Define Screen Layout for Asset Depreciation Areas
Creation of Asset Master
Asset Acquisitions
Asset Retirements
Asset Transfers - sap fico online training
Asset Transfers
Asset Reports
Depreciation Running

Integration

FI integration with MM
FI integration with SD

Components of Controlling (CO)

Cost Element Accounting (CO-OM-CEL)

Cost Center Accounting (CO-OM-CCA)

Internal Orders (CO-OM-OPA)

Profit Center Accounting (EC-PCA)

General Controlling

Maintain Controlling Area
Maintain Versions - sap fico online training
Maintain Number Ranges for Controlling Documents

Cost Element Accounting

Manual Creation of Primary and Secondary Cost Elements
Automatic Creation of Primary and Secondary Cost Elements
Create Cost Element Groups
Planning of Cost Elements wise Cost

Cost Center Accounting

Create Cost Centers
Define Cost Center Categories
Document Postings to Cost Centers
Define Cost Center Groups
CC Allocations: - sap fico online training
Creation Assessment and Distribution Cycles
Creation Assessment and Distribution Cycles
Splitting
Activity price calculation (plan &actual)
Cost Center Wise Variance Reports
Repost CO Line-items
Repost Cost

Profit Center Accounting

Maintain Controlling Area Settings
Create Dummy Profit Center
Profit Centre Maintenance
Profit Centre Groups Maintenance - sap fico online training
Define Number Ranges for Local Documents
Choose Additional Balance Sheet and P&L Accounts

COPA:

SD COPA mapping
IO/CC COPA settlement
Prod order variance COPA settlement
Sales order COPA settlement
COPA Valuations(Valuation using Condition types ,valuation using Mat cost estimates , Periodic valuation)
Top-down distribution of actual data
Characteristic derivations
COPA summarization levels,reports (segment level/line item reports)...etc.
COPA Planning(COPA planning in SAP

PRODUCT COSTING

PP Module Overview

BOM, Routing
Production order types, Order type dependent parameters
Prod order creation, Prod order confirmation - sap fico online training
WIP / Variance calculation Prod order settlements

Product Cost planning

Multilevel costing with multiple plants , Transfer Control ,Special Procurement Types
Moving Average Price/Standard price
Automatic and Unit Cost Estimate
Reference and Simualtion Costing
Creating a cost estimate w/o quantity structure
Creating a cost estimate with quantity structure
Mixed costing with Procurement alterantives and Mixing Ratios
PP : BOM /Routing ,Internal/External activities
Origin Groups - sap fico online training
Cost component structure,costing valuation variants etc..
Creating and releasing std cost etimates/ modified std cost estimates(CK40N)

Product costing by prod order:

Muti-level costing / MTS
Activty allocations / price calculations
Material consumptions
PP: Prod order creation/confirmation/Settlement
Revaluation at Actual prices
Overhead Calculation - sap fico online training
RA: WIP Posting \ reversal
Variance calcualtion (Target cost versions , Scrap variance ,Variance categories )
Variance settlement to FI ,COPA
Reports for Product Cost by Order
Line items for Variances
Line items for WIP/Result Analysis
Prod Order Cost Analysis
Display CO-PA line items

INTERNAL ORDERS

Define Order Types
Maintain Number Ranges for Orders
Creation of Internal Orders
Creation of Internal Order Groups
Internal Order Settlements:
Internal Order Settlements:
IO to CC settlement - sap fico online training
IO to COPA settlement

Year-end Closing Activities

Financial Statement Version

Balances Carry forward to Next year

SAP FICO Introduction

SAP FICO Online Training Course Content

Components of Controlling (CO)

PRODUCT COSTING

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