Why is SAP FICO consultant a profitable role?Category: SAP FICO Posted:Jul 30, 2018 By: Ashley Morrison
Nowadays, SAP has turned out to be one of the most significant suppliers of the enterprise software application towards enterprise resource planning. SAP has actualized more than 9 out of 10 Fortune 500 organizations. SAP stands for Systems, Applications, and Product in the data processing. It was established in the year 1972 and had launched various business solutions that assistance to arrange the organization’s procedure. There are different SAP modules which are developed to carry out various business processes. SAP FICO is one of the essential and most widely used SAP modules. SAP FICO module comprises of SAP FI configuration, SAP CO configuration, SAP UI user and SAP CO user. The SAP FICO module is developed to represent the organization’s business transactions in such a way that it fulfilled the external reporting requirements. The SAP FICO software helps in the merging of distribution, sales, material management, and purchasing and helps the customer to get down the unique transactions, whether it is a purchase or a sales order or movement of material. System integration is one of the biggest benefits of SAP. SAP has provided numerous contributions which have enhanced the career vision of an SAP FICO consultant. The individual who wants to start their career as an SAP FICO consultant requires having a strong knowledge of all the features of SAP FI and CO module. Let us have an overview of the FI and CO module.
SAP FI Module: SAP’s external accounting is referred to as the Financial Accounting (SAP-FI). Finance is the most crucial part of any business which requires to be managed seamlessly. Sometimes it becomes multifaceted to maintain the complete financial activities by the workforce, and thus SAP FI is evolving as a most popular module and implemented successfully in many organizations. It accompanies a bundle utilizing which an organization can carry out the financial and accounting activities effectively. The SAP FICO module can be further divided into the following sub-modules:
- General Ledger (FI-GL)
- Accounts Payable (FI-AP)
- Accounts Receivable (FI-AR)
- Bank Accounting (FI-BL)
- Asset Accounting (FI-AA)
- Funds Management (FI-FM)
- Travel Management (FI-TV)
Advantages of SAP FI module:
There are various benefits of using the SAP-FI module:
1. SAP FI provides a complete universal solution for financial management. With the help of the FI module, an organization can enhance its corporate performance.
2. SAP FI module helps to assess, read and respond quickly, to the changing business requirements and thus provides effective solutions.
3. The SAP also delivers a better attachment to the accounting standards, federal regulations, and offers an upgraded administration of the internal controls.
4. With the help of SAP-FI module, it is possible to automate the collections and credit management and the arguments if any.
5. SAP systems allow better transparency across the departments and increase corporate governance.
6. The SAP FI module also offers invoice generation and electronic bills and payments, which enhances the accounts receivable and the account payable functions.
7. SAP FI can handle the cash across locations, countries and the continents.
8. SAP provides a competitive cost of finance and helps in the process revolutionized, teaming up with partners across the supply chain, and starting the service operations collectively through world-wide.
9. SAP provides the flexibility to report performance as per the organization, business unit or cost centre and also improves the integration of finance procedures, including the improvement of managerial and the financial reporting.
10. SAP FI can manage an inclusive variety of governance and compliance issues, for example, compliance with Sarbanes-Oxley standards, duties separation, and devotion to the Basel II rules and regulations and IFRS.
SAP CO Module: Another major module of SAP is the SAP controlling, i.e. SAP CO; it is helpful to carry out the internal process of decision making that provides several benefits to the organization. SAP CO is the component that works quickly and smartly for controlling representation and various accounting activities associating with the costing, profitability, analysis etc. It also helps to manage and regulate the profit and cost centres. When the financial accounting data arrives, it is diverted towards the controlling part to compute and manage the reporting and auditing. The SAP CO module contains the following sub-modules:
- Cost element accounting
- Profit center accounting
- Cost center accounting
- Internal orders
- Product cost controlling
- Profitability analysis
The Advantage of SAP CO Module:
1. The SAP CO module includes the procedures to unite and observe the overheads needed for financial reporting.
2. With the help of the CO module, it is possible to plan, perform, monitor and report the costs.
3. It is also capable of storing the works of reporting, planning, and following the organization’s operations.
4. This module also includes handling and arranging the master data that covers the cost components, cost centers, functional area, internal orders, etc.
SAP FICO consultant is a profitable role:
Now SAP FICO has become an important segment for getting a job with an excellent salary package. Most of the candidates are looking for an SAP FICO career. Thus, to become an SAP FICO consultant, it is required for the candidates to acquire the SAP FICO training. This training will help them to get, the more job opportunity in this particular domain. To get the SAP FICO certification it is required to know the eligibility criteria, well, there is no such dedicated criterion to undergo with this training, however, it needs to have at least two years of domain knowledge. On the other hand, having an SAP working experience would be an added advantage. With all these benefits it is easy to become an SAP consultant.
With the increasing competitions with other industries, most of the organizations are now combining their business operations with SAP. With the help of SAP, various business organizations can take important financial decisions and can utilize the available resources to maximize the productivity of their business. If a candidate takes SAP FICO training from a reputed SAP training institute, it will make their career path more accessible. SAP FICO is a profitable role, and there are several benefits of making a career in SAP FICO. Let us explore some of the benefits:
1. The SAP FICO module can be utilized in the Finance department of any organization.
2. The finance department is the crucial department of any organization as most of the important decisions are taken in this department only.
3. The accounting records are vital, and it should be effective, timely and precise.
4. The important peoples of the organizations are based in the financial department, and they are responsible for carrying out the financial task.
5. The SAP consultant can get a chance to work with the chief people of the organization.
6. The requirement of an experienced SAP FICO consultant is higher in the industries as compared to the other SAP modules.
Go through our SAP FICO Interview Questions to crack the Interviews
The utilization of SAP is increasing day by day in the industries, and thus it offers superior job opportunities for the people who own this added professional qualification. The SAP FI module provides the most important elements to perform various SAP implementations. It is considered to be the essential point of an integrated SAP system. SAP financial accounting is a useful tool for reliable, precise and time based external reporting in the form of profit and loss statement. The other modules such as SAP SD (Sales and Distribution), MM (Material Management), and PP (Production Planning) can be integrated easily with the SAP FICO module. With these benefits, the SAP FICO module can be utilized in various applications in most of the organizations, worldwide. The SAP FICO module is the most demanding module between the accounting experts for good career growth. Even it is a highly paid job module for the accounting experts.
Check out this insightful video on SAP FICO Tutorial for Beginners: