SAP is the largest provider of enterprise software application towards better enterprise resource planning. SAP stands for Systems, Applications, and Products in Data Processing. Back in 1972, SAP was found launching business solutions that help organize processes in enterprises. Over the years, different modules in SAP were developed for different processes. SAP Finance and Controlling (FICO) is one of the most widely used SAP modules. SAP FICO module includes SAP FI configuration, SAP CO configuration, SAP FI user and SAP CO user. Anyone looking forward to begin their career as an SAP FICO consultant needs to build a strong base covering all these aspects of SAP FI module and SAP CO module. Let’s have an overview of SAP FI and SAP CO module.
SAP FI Module and its Application
SAP Financial Accounting upgrades financial management in enterprises. Finance is the most critical part of every business and this aims at the perfect management of finance. It becomes stressful and complex to manage the entire financial accounting part by man-power. Therefore, SAP FI module has emerged as a popular module successfully implemented in organizations. SAP financial accounting module comes with a package that helps organizations in handling financial needs and accounting activities. It allows one to review the financial status of an organization in real time market. Popular components that comprise the FI module are:
- Accounts Receivable
- Accounts Payable
- Asset Accounting
- Account Consolidation
- General Ledgers
SAP FI implementation involves SAP FI configuration. The business manager can configure SAP FI user after setting up few primary configurations. These configurations are usually done by the business manager aligning with client, company, business area configurations and more. Thereafter, right from master data to financial statements can be migrated to the SAP FI system for driving the best out of organized financial management system. The requirements for SAP FI configuration are chart of accounts, fiscal year variants and currencies. Once the configuration is completed, the document posting will automatically be posted thereafter. Enterprises will be able to view its real-time financial status. This enables enterprises to keep a track of every financial transaction and helps in finance reporting at the end of fiscal year.
SAP Controlling Module and its Application
SAP CO is another important module in SAP. SAP controlling includes SAP CO configuration and SAP CO user and consists of master data, configuration and reporting. Master data mentioned here can be cost elements, cost centers, profit centers, internal orders, functional area, statistical key figures and activity types. Cost elements include all the cost and revenue accounts, cost centers and profit centers include all the departmental units that handle cost and profit of an enterprise, internal orders include all the important events and so on. SAP CO implementation allows one to view the data of costs involved within internal management. This module helps you get a better view of finance reporting and helps you manage records and take various decisions related to the organization. Also, this module enables organizations to manage reporting and information database as per the requirement for their business. Some of the most advantageous facts about SAP implementation in organizations are:
- Track cost heads and make future plans accordingly
- Keep a track of costs for specialized events and assign them to appropriate departments
- Avail activity based costing across processes
- Manage product costing, production costs and variances
- Build reports on sales and profitability ensured through a product or an internal measurement
Sub-Components of SAP CO Module:
- SAP CO-OM: Overhead Management
- SAP CO-OM-CCA: Cost Center Accounting
- SAP-CO-OM-OPA: Internal Order Accounting
- SAP-CO-OM-CEL: Cost Element Accounting
- SAP-CO-OM-ABC: Activity Based Costing
- SAP-CO-PCA: Profit Center Accounting
- SAP-CO-PA: Profitability Analysis
- SAP-CO-PC: Product Costing
Professionals need to have a complete overview of SAP FICO in order to become successful FICO consultant. Financial Accounting and Controlling is inter-related and helps one to manage a better business process towards better finance accounting and data management. SAP implementation is complex and requires adequate training. Though it is not mandatory to take up SAP FI consultant training and SAP CO consultant training, it is widely recommended by experts to attend SAP FICO training to enhance one’s understanding and build expert hands on using SAP FICO module towards better management of finance accounting and reporting in enterprises.
