SAP FICO: Allow Smoother and Efficient Accounting Processes

Developing a good financial procedure and plans is an essential part of running a business successfully. Moreover, these financial procedures are required by all sizes of companies that work smoothly and lower the risk, no matters whether they are small, big, or medium size. The business and financial accounting processes involve the preparation of statements, reports, charts, and other vital data on a daily basis; however, these activities consume a huge amount of time and resources. To overcome this issue, SAP ERP software has redefined the various methods in which businesses are conducted, to make them more fruitful, productive, and profitable.

SAP Software has offered a module for Financial Accounting and Controlling, i.e., SAP FICO, with the help of this software, it is easy to conduct all the financial transactions, controlling and reporting activities. Due to its various features like easy configuration, user-friendliness, and compatibility with other accounting software, SAP FICO is the most popular in organizations across industry domains. Well, handling and managing the financial account is the most vital activity in almost all types of industry; it does not matter whether it is finance or banking company, the manufacturing sector, healthcare or media services, etc. With SAP FICO you can work efficiently with precise data and quick procedures to meet your organizational objectives.

But what is the SAP FICO exactly? Well, SAP FICO is the integration of the two modules, i.e., Financial Accounting (FI) and CO (Controlling). These two modules are responsible for managing the financial transaction for internal and external auditing. These modules are designed to meet all the accounting and reporting requirements. With the usage of SAP FICO, it is easy to collect the information, analyze, and prepare financial statements, reports and generate charts that are presented to the administration with great correctness and significance. It helps to perform all the accounting and controlling responsibilities within a particular timeframe. Both FI and CO can store a massive amount of financial data and the tools which help you to carry out various transactions, generate reports, and maintain a reliable financial system. Though there are multiple financial software available such as Oracle and BAAN, the SAP FICO application is the most popular one due to its different features such as easy compatibility with other systems and fast configurations. Therefore, nowadays there is a huge demand for SAP FICO modules and it is gradually increasing.

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All the accounting and financial requirements are satisfied by using the SAP FICO’s single integrated suite. It has a custom workflow that allows you to achieve different, composite tasks with a single click. The SAP FICO works in the following manner:

• Collect the correct information.
• Perform advanced trend analysis
• Prepare financial statements
• Deliver comprehensive reports and
• Create insightful charts

Financial Accounting (FI) Features:

SAP Financial Accounting (FI) is the main module that is utilized to manage financial transactions, both for external and internal auditing purposes. It involves various components such as General Ledger accounting, i.e., G/L, account receivable and account payable i.e., AR/AP processing, and fixed assets accounting, i.e. AA. It also consists of bank accounting, fund management, legal consolidation,  etc. Let us now explore the functions of these components:

1. The Account payable record is responsible for tracking and managing the entire amount which is owed to the vendors or the suppliers.

2. The General Ledger accounting component allows a real-time understanding between the financial and management accounting and thus tiling the technique for parallel accounting concepts in SAP.

3. The Account receivable records are responsible for managing and maintaining all transactions with the customers.

With the help of the SAP FI module, real-time financial processing can be carried out, based on which you can derive data for reporting. Integration of the financial accounting module other SAP modules such as MM, PP, SD, and HR also offers incentives like:

• Special purpose ledgers
• Legal Consolidation
• Fund management
• Bank Accounting
• Travel Expenditure Management, etc.

Features of Controlling (CO) Module:

This module is typically designed to deliver operational insights and important decision-making information to enterprise management. It is the internal accounting perspective. It adds up all the operating costs and expenses of the organizations, which allow the administration to take the important business decisions which primarily emphasize the managerial accounting aspects such as contribution margin, profitability, data on profit center, and cost center, etc. associated with the internal clients. It consists of various elements like cost element accounting, Cost Controlling, and Cost Center Accounting, internal orders, activity-based costing, and product cost controlling profitability analysis, and profit center accounting.

Both FI and CO modules work together to deliver the end-to-end financial accounting and controlling functions to its users; this helps management to take further decisions regarding their business processes.

Role of SAP FICO module in your Business:

We know that the SAP FICO application is more popular as compared to other financial software, due to its easy compatibility with other modules and faster configuration features. It is easy to integrate the SAP FICO module with the other significant modules such as production, inventory or HR, etc. Also with the help of SAP FICO, a massive amount of employee’s productive time can be saved. As the technology is advancing very rapidly, thus it is essential for an organization to speed up its business procedures for achieving higher business growth, by utilizing various efficient business solutions such as SAP ERP software. If anyone is continuously compelled for time with a large amount of accounting and controlling tasks and at the same time looking for an efficient and reliable software, SAP FICO has proved itself as a good solution for various accounting problems.

Let us explore a few points which prove that the SAP FICO implementation is beneficial for the organization:

1. With the help of SAP FICO, it is possible to ease the financial accounting and controlling functions.

2. It helps you in tracking and monitoring data of different cost and profit centers located all across the world from a single platform.

3. To achieve the external reporting tasks like Balance sheet, profit, and loss statements, and profit analysis, it provides fast, reliable, and appropriate data.

4. Concerning the varying business requirements, SAP FICO responds effectively on time.

5. The real-time financial processing technique allows for faster management decisions.

6. It enhances corporate performance and business strategy development.

7. It streamlines different processes such as scheduling, financial consolidation, reporting, association with other departments and brings about transparency across the organization.

8. With the help of SAP FICO, it is easy to manage the cash-flow, receivables, and payable, credit management, collections, finance, and treasury functions, etc.

9. It also allows for enhanced practices in following accounting standards, government rules, instruction of internal processes, etc. The different features such as analytical reporting, audit-controlling, profitability analysis, budgeting, etc. make the software adaptable

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Conclusion:

In this frequently evolving technological world, SAP FICO is a crucial tool. Business is intended to move further. With the help of SAP FICO modules, you can drive yourself into the future with SAP ERP. It is relatively exciting to be prepared with our skills in the various aspects of Finance and Control as it extremely enhances the employability of an individual. The SAP training is updating continuously with the modern technology and techniques of operating various aspects of Business. It is also required by a person to experience the sporadic training and at the same time update his knowledge as well.

These are the related articles that you can check

1. SAP FICO: Is it Right for me?
2. Top Four Reasons to Learn SAP FICO
3. Importance of an SAP FICO Consultant in Finance Industry
4. Career Opportunities for SAP FICO Certified Professionals
5. C_TFIN52_67 SAP Certified Application Associate – Financial Accounting with SAP ERP 6.0 EhP7 – Certification Made Easy!!