The SAP FI Module has the capability of meeting all the accounting and financial needs of an organization. It is within this module that Financial Managers as well as other Managers within your business can review the financial position of the company in real time as compared to legacy systems which often times require overnight updates before financial statements can be generated and run for management review.
The real-time functionality of the SAP modules allows for better decision making and strategic planning. The SAP FI CO (Financial Accounting) Module integrates with other SAP Modules such as MM (Materials Management), PP (Production Planning), SD(Sales and Distribution), PM (Plant Maintenance),and PS (Project Systems). The SAP FI CO Module also integrates with HR(Human Resources) which includes PM(Personnel Management), Time Management, Travel Management, Payroll.Document transactions occurring within the specific modules generate account postings via account determination tables.
Components in SAP FI CO Module
- Accounts Receivables: Accounts Receivables records all account postings generated as a result of Customer sales activity
- Accounts Payable: Accounts Payable records account postings generated as a result of Vendor purchasing activity
- Asset Accounting: Asset Accounting is utilized for managing your company’s Fixed Assets.
- Special Purpose Ledger: Special Purpose Ledger is used to define ledgers for reporting purposes.
- Travel Management: Travel Management provides management of all travel activities including booking trips and handling of expenses associated with travel
- Bank Accounting: Bank Accounting allows for management of bank transactions in the system including cash management.
- Consolidation: Consolidation enables the combining of financial statements for multiple entities within an organization.
- Funds Management: Funds Management allows management to set budgets for revenues and expenses within your company as well as track these to the area of responsibility.
- General Ledger: General Ledger is fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded.
Why and when to use business area? What are the easy and fast ways to create company codes? Changes in company code currency? Understand the usage of different currencies? What is valuation area and valuation class? This document on SAP FI CO answers a lots of questions.
photo credit: Common Pixels