Business and financial accounting processes consume a lot of time and resources in preparing statements, reports, forecasts, charts and other important data on a day-to-day basis. The SAP ERP software has redefined the way businesses are conducted, making them highly efficient and profitable.
SAP FICO is the Financial Accounting and Controlling Module of the SAP software that helps you conduct all the financial transactions, accounting and reporting activities in a smooth fashion (if you’re new to SAP, this introductory SAP course is a good place to start) Its easy configuration tools, compatibility with other accounting software and user friendly features, make SAP FICO very popular in organizations across industry domains. Whether you belong to the manufacturing sector, banking or finance company, healthcare or media services etc., handling and managing financial accounts is the most important part of your business. SAP FICO enables you to work efficiently with highly accurate data and fast processes to reach your organizational goals.
What is SAP FICO?
The FICO in SAP FICO stands for Financial Accounting (FI) and Controlling (CO). These modules of your ERP solution that has been designed to meet all accounting and reporting requirements. With just a click of a button, you can gather information, analyze, prepare financial statements, reports and generate charts that can be presented to the management with greater accuracy and relevance. It is the go-to buddy that helps you carry out all the accounting and controlling responsibilities in a timely manner. Both the FI and CO modules store large amounts of financial data and the required tools that assist you in performing the various transactions, generate helpful reports and maintain a highly reliable financial system. If you are an accountant or finance manager, aspiring to master the SAP FICO application, skip right ahead to our course on SAP FICO system.
Features of the FI (Financial) Module
SAP Financial Accounting (FI) is the core module than manages all financial transactions, for internal as well as external auditing purposes. It’s core components are General Ledger Accounting (G/L), Accounts Receivable and Accounts Payable(AR/AP) processing, and Fixed Asset Accounting(AA). SAP Financial Accounting (FI) also includes Bank Accounting, Funds Management, Legal Consolidations, Special Purpose Ledger, Travel Management etc. Let’s take a look at the major components.
- The Accounts Receivable records maintains and manages all transactions with customers and clients. This specially tailored Accounts Receivable course can help you learn how to manage incoming cash flows with SAP FICO
- The Account Payables record tracks and manages all money payable to vendors or suppliers. You may want to check out this Accounts Payables course to learn more details about how to manage this.
- The General Ledger Accounting enables a real-time reconciliation between financial accounting and management accounting thereby paving the way for parallel accounting concepts in SAP. You can learn more about the General Ledger module in this specialized course.
The SAP FI module allows for real-time financial processing on the basis of which you can derive data for reporting. The FI module is usually integrated with modules such as Material Management, Sales and Distribution, Human Resources, Production Planning etc. among others
Features of the CO (Controlling) Module
The Controlling module is used to provide operational insights and key decision making information to the management of the company. It’s the internal accounting viewpoint. It basically sums up all the operating costs and and expenses of the organization, enabling management to make essential business decisions. The CO module focuses primarily on the managerial accounting aspects such as contribution margins, profitability, data on profit centers, cost centers etc. that are related to the internal users
The CO (Controlling) module has components like Cost Element Accounting, Cost Controlling, Cost Center Accounting, Internal Orders, Activity Based Costing, Product Cost Controlling, Profitability Analysis, Profit Center Accounting etc.
The FI and CO modules work hand in hand to provide end-to-end financial accounting and controlling functions to its users, thereby helping management in further decision making.
How SAP FICO Module can Help Your Business
The SAP FICO application is more popular as compared to other financial software based on platforms like Oracle, BAAN etc. because of its easy compatibility with other systems and quick configuration features. Also, because of its integration with other important modules like Production, Inventory or HR etc., SAP FICO helps save a lot of your employees’ productive time.
With the many technological advancements and software revolutions, it is imperative for an organization to accelerate its business growth with the help of efficient business solutions such as the SAP ERP Software. If you are constantly pressed for time with the huge amounts of accounting and controlling tasks and are looking for an efficient software system, SAP FICO is the answer to all your accounting problems. We will look at some of the important advantages that the implementation of SAP FICO will bring to your organization:
- Enables smooth financial accounting and controlling functions
- Provides quick, reliable and relevant data in order to meet the external reporting tasks such as Balance Sheet, Profit and Loss Statements, and Profitability Analysis etc.
- Helps you to track and monitor data of different cost and profit centers situated across the globe from one single platform
- Real-time financial processing enables quicker management decisions
- Respond to changing business requirements effectively in timely manner
- Improves corporate performance and business strategy formation
- Simplifies processes such as scheduling, financial consolidation, reporting, collaboration with other departments and brings about transparency across the organization
- Better management of cash-flow, receivables and payables, credit management, collections, finance and treasury functions etc.
- Enables better practices in following accounting standards, government regulations, regulation of internal processes etc. Analytical reporting, audit-controlling, profitability analysis, budgeting etc. are just some of the important features that make the software truly versatile.
Benefits of SAP FICO Training
If you work in the field of financial and managerial accounting or looking to get ahead in your career by assuming higher management roles, then you should equip yourself with skills in SAP FICO. This step by step training on SAP FICO can help you get there. SAP FI/CO training not only enhances your professional capabilities but also gives you a wider picture of business operations and strategic processes. There are several certification programs and training modules that will help you master the SAP FICO application in a short duration of time. Here are some of the major benefits of undergoing training in the SAP FICO module:
- Increases your knowledge on the latest trends in the financial world
- Equips you with the latest software tools to manage financial activities in your organization
- Helps you improve the financial processes in your company thereby increasing value-addition
- Better coordination between various functions across the workplace leading to smoother business operations
- Enhances professional growth and gives you better job opportunities
These are just a few of the advantages that the SAP FICO training will bring about along the way. Note that SAP FICO is closely linked with other modules like SAP SD (Sale and Distribution). To get a holistic picture, you may want to check out this SAP SD training as well.
There is a whole new world of possibilities with SAP software wherein you and your organization can reap the benefits from this application almost immediately. For a systematic and efficient approach to financial accounting and controlling in your organization, implement the SAP FICO module today!