What is SAP FICO?

SAP FICO, which includes financial recording, analyzing, monitoring and controlling improvisation techniques, is considered one of the best ERP modules. For business managers, having access to an accurate source of information is an obligation. Taking part in an effective strategic planning and decision making process will not be possible without that. Top mangers designated in finance and accounting division gets training in this module to streamline the accounting and financial controlling processes and better manage the crucial aspects.

What is SAP FICO? 

As you know already, SAP ERP courses are generally offered as different modules. Each of them addresses a distinct function of a business. The SAP FICO modules take care of the finance and accounting process. The finance and accounting division of a business might have dozens of internal and external sub processes. Keeping a track of all these sub processes and monitoring the accurate entry of data is unquestionably a hard job. SAP Finance and Controlling modules simplify the business process and reduce chances of errors or fraud, which is quite common in finance and accounting processes.

Big organizations that have huge financial data and multiple accounting processes to maintain are its biggest users. SAP FICO is actually an excellent integration of crucial business processes and leading edge technology. One of the major functional components of FICO is Finance, which includes general ledger, accounts receivable, accounts payable and fixed assets maintenance. The other component is Controlling, which covers product costing, internal orders, cost centre accounting and profitability analysis. The different sub-modules included in the ERP system keeps track of minute financial data and helps in centralized information distribution.

In most of the cases, commerce and business graduates take training in the SAP module. If we break the SAP finance module into different sub-divisions, first will come the general ledger accounting process. You might have to learn the account maintenance, journal entry, balance sheet and debit, credit and process of recording of other business transactions in this module.

SAP FI module also helps to categorize and maintain the important business assets. You’ll learn to calculate and set the depreciation value of the assets, prepare and compile the financial statements. The fund management sub-module of SAP FI will help in calculation of revenue and expenses of the business, you’ll learn how to prepare the special purpose ledgers and manage different other areas of the responsibility assigned to you.

Next comes the SAP CO module. What this module includes? It includes accounting and cost controlling. This module provides information to business managers to help in planning, reporting and controlling the most important operations of a business. The sub processes included in this module greatly influence the manager’s decision making process. You can say the managerial accounting is referred to as controlling in SAP. All these entries recorded in the SAP FI module are finally delivered to SAP CO module for the cost accounting process, auditing and analytical reporting process.

There is definitely a lot to learn. What’s more appealing is the better monitoring and controlling feasibility. If you already have an education background of finance and accounting, getting a hold of this technology and concept integration will be easier when you learn SAP FICO.
 

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Marissa Hart is the Lead Author & Editor ShareMe. ShareMe is a blog focused on SharePoint Online. SharePoint Online delivers the powerful features of SharePoint without the associated overhead of managing the infrastructure.