SAP FICO: Is it Right for me?Category: SAP FICO Posted:Nov 13, 2017 By: Ashley Morrison
SAP is one of the global leaders in providing Enterprise software applications for enhanced ERP solutions. With innumerable modules in SAP being available to Businesses across various domains, SAP FICO or Finance and Controlling is one such widely used SAP module. The module consists of SAP FI and CO configurations, along with SAP FI and CO users. To check if the SAP FICO module is right for you as an individual or an organization, then you will need a thorough overview of the SAP FICO module in a holistic manner.
SAP FI Module and its Application
As the name implies, SAP Financial Accounting is meant to enhance Finance Management in organizations on various levels. The most important component of any Enterprise is Finance and this module focuses on this aspect and aims to perfect Finance Management. Finance is so crucial and complex in itself that it tends to become stressful to handle the Management of Finance in a comprehensive manner using manual methods alone. This is the main reason why SAP FI as a module has transformed into a highly popular tool to be implemented in Enterprises worldwide. This is said to come in a package that enables Enterprises to handle widespread financial requirements coupled with accounting processes and activities. It enables one to review enterprise financial status in a real-time market scenario. The most essential components of the FI module are as given below.
- Asset Accounting
- Account Consolidation
- General Ledgers
- Accounts Receivable
- Accounts Payable
The implementation of SAP FI will obviously include SAP FI configuration, with the Business Manager being able to configure the SAP FI user post setting up the given primary configurations. Such configuration is generally executed by the Business Manager by coordinating a collating with the enterprise, client, enterprise area configurations, and a whole lot more.
After this, everything ranging from the master data to the detailed financial statements can be migrated to SAP FI systems for extracting the optimum results from enterprise financial management systems. The needs for SAP FI configuration consist of Fiscal year variants, chart of accounts, and currencies. Post completion of the configuration, document posting is done in an automatic manner. Through this organizations can view their financial status on a real-time basis. This allows organizations to keep track of all financial transactions and also aid in Finance reporting at the fiscal year-end.
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SAP Controlling Module and its Application
This is another essential module in SAP that includes SAP CO configuration and SAP CO user which includes master data, configuration, and reporting. The master data referred to here can refer to activity types, statistical key figures, functional area, internal orders, profit centers, cost centers, and cost elements. Internal orders include all the essential events, profit centers, and cost centers consist of all the departments that handle the cost and profit of an organization, cost elements consist of all the cost and revenue accounts.
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The implementation of SAP CO enables one to view cost data associated with internal management. This module also enables one to obtain an enhanced view of Finance reporting while also helping one to manage records and make multiple decisions related to the Enterprise. Management of reporting and information database according to the Business needs of the Enterprise is also made possible by this module. Some particular advantages of implementing this module include:
- Track cost heads and make detailed plans according to the cost head for the future
- Build reports on sales and profitability ensured through a product or internal measurements
- Keep track of costs for custom events and assign them to associated departments
- Manage production costs, product costing, along with variances access activity-based cos.
Sub-Components of SAP CO Module:
- Overhead Management
- Internal Order Accounting
- Cost Element Accounting
- Cost Center Accounting
- Activity-Based Costing
- Product Costing
- Profit Center Accounting
- Profitability Analysis
One needs a comprehensive understanding of SAP FICO to check its necessity for an individual. This module is interrelated and aids one in the management of business processes leading to highly optimized Finance Accounting and Data Management. This kind of in-depth SAP implementation is highly complex and needs a sufficient amount of training. It is recommended for people to take up training in the SAP FICO module to enable them to understand the module and its functionalities better, thus enabling them to decide whether the product is right for them to meet their financial reporting and accounting needs.
These are the related articles that you can check
- Introduction to SAP FICO
- How to Become a SAP FICO Consultant?
- Our trainer Sagar for SAP FICO was recently invited as a Guest Speaker for SAP User Group at University of Texas, Dallas, School of Management this past Wednesday
- Before you join SAP FICO training, ask these questions
- Benefits of Choosing SAP HANA for Application Development
That’s all for today. If you’re interested to read more articles on this topic, feel free to visit ZaranTech Blog.