SAP FICO Online Training is an integral part of the SAP ERP Central Component that allows an organization to manage all of its financial data. SAP FICO allows an organization to maintain a complete version of its financial transaction data. Specifically, the purpose of SAP FICO is to assist companies to produce and manage financial statements for analysis and reporting, as well as to assist in effective business planning and decision-making.
SAP ERP Central Component (SAP ECC) is an on-premise enterprise resource planning (ERP) program – commonly referred to as “SAP ERP.” SAP FICO assists the ECC in accounting and management activities.
SAP FICO Training in Delhi has two divisions, SAP Finance (FI) and SAP Controlling (CO). Each of them is used for a specific financial process. SAP FI deals with all financial reporting and accounting, while SAP CO focuses on lesson planning and monitoring systems. SAP FI and SAP CO were originally released as separate modules but are now so closely integrated that many people refer to them as just one module.
SAP FICO also integrates with other SAP Logistics modules, including Marketing and Distribution (SD), Production Planning (PP), Plant Care (PM), Quality Management (QM), and Behavioral Materials
SAP FI Modules
SAP FI enables organizations to compile financial statements for reporting and analysis. Types of financial statements can include balance sheets or profit and loss statements. SAP FI contains a few sub-modules that handle specific calculation processes:
- Gen Ledger contains all company activity data in the account chart. This counts all accounts in the system. Activity is recorded in small modules that can be recorded in real-time with standard ledger data.
- Acquired accounts record customer activity and manage customer accounts. Activities include invoice submission, credit memo delivery, down payment, invoice payments, or custom reporting.
- Pedient Accounts include all merchant transactions and managed merchant accounts. Activities may include invoice submission, credit memo delivery, down payment, invoice payments, automatic payment system, and merchant reporting.
- Asset Accounting manages all activities related to the company’s fixed assets, such as location, buildings, and heavy equipment. Functions include asset acquisition, retirement, sale, transfer, revaluation, and depreciation.
- Bank Ledger handles all company bank account transactions and data. It can synchronize all transactions recorded in bank statements and compare them with the activities of the system.
- The integration enables a company to compile financial statements for multiple entities, providing a comprehensive overview of the company’s overall financial position.
- Financial Management manages the company’s revenue and expenditure budget.
- Special Purpose Ledger defines levers in SAP FI for reporting purposes.
- Travel Management manages all aspects of travel processes, including travel booking and handling travel-related expenses.
SAP CO. Modules
While SAP FI is responsible for corporate accounting and internal and external reporting, SAP CO supports planning, reporting, and cost monitoring processes from business operations. SAP CO can contribute to the company’s profitability. Similar to SAP FI, SAP CO has small modules that handle certain processes:
- Cost Elements, which provides a summary of all company expenses and revenue based on profit and loss statements – also known as income statements. Cost element accounting defines the source of costs. Cost components represent the specific costs a company incurs.
- Cost Institutions relate to costs associated with the internal divisions of a company or department, such as sales, production, marketing, or human resources. Cost Centers include only costs, not revenue.
- Profit institutions handle all expense data related to the company’s business lines. It covers both costs and revenue – unlike Cost Centers, which only works at cost.
- Internal orders are used to manage the cost of small internal projects or unallocated assets – such as a limited-time marketing campaign, for example.
- Profitability Analysis empowers a company to evaluate the profitability of its products. For example, Profit Analysis can be useful in making decisions on issues such as product price, distribution channels, and target market segments. It also allows data levels to measure profitability, such as region or country, product types and distribution channels, or customer revenue.
- Product costs control the data about the costs required to produce the company’s goods and services. Product cost analysis can help manage production costs and improve efficiency.
Benefits of SAP FICO
The most useful benefits of using SAP FICO are:
- Produces all business accounting data in one financial management area
- Other SAP modules such as asset management and production planning can be integrated with this SAP FICO key decision making
- All transactions generated in the Department of Transportation can be sent in real-time to the Financial Accounting modules. This helps to manage the accounts better and to maintain these functions properly
- The SAP FI module can be used to automate credit and debt management
- SAP FI enhances paid accounts and account receivables by providing simple invoice payments
- Companies can manage their company’s finances in all countries using SAP FI
- With SAP CO, planning, monitoring, and reporting costs are easy
- SAP CO provides procedures for the analysis and monitoring of overheads required in financial reporting
- SAP FICO software assists companies in improving financial performance
SAP FICO Certificate and Scope of Activities
Having a strong base in SAP FICO helps employees better manage reporting and accounting. It is important to learn about business location, financial planning, and inventory calculations. There are a number of training options available –
- SAP S / 4HANA Financial Accounting
- SAP ERP Management Accounting
- SAP S / 4HANA Management Accounting
- SAP ERP Financial Accounting
- Financial Management
- Financial Management
Some institutions also offer comprehensive SAP FICO courses. This usually takes 6 months.
Anyone with extensive knowledge of SAP FICO and its sub-modules can be hired as the SAP FICO Coordinator. Having 2 to 3 years of experience working with SAP FICO modules will help them become an effective SAP FICO coordinator.
