What is SAP FI – An Introduction of SAP Financial Accounting
SAP FI (Financial Accounting) module and its importance in SAP systems will be discussed in this article. In SAP FICO, SAP FI stands for Financial Accounting and CO stands for Controlling. SAP FI is a backbone of SAP that helps to record, collect and process various financial transactional information on real-time time. With SAP Financial Accounting you can extract the necessary data for external reporting.
SAP FI module can be tightly integrated with other SAP Modules like SAP Controlling (CO), Material Management (MM), Sales and Distribution (SD), Human Resources (HR), Production Planning, and various ERP modules.
SAP FI Module Components
The SAP Financial Accounting Application consists of the following sub-components.
General Ledger (FI-GL) – The statements of the Balance Sheet and Profit & Loss accounting are extracted based on the general ledger accounting. The data that has been entered into SAP system is posted immediately to the GL and SAP CO system.
Accounts Payable: – The SAP Accounts Payable sub-module manages all the activities of Vendor transactions. FI-AP module links with SAP MM Module, Asset Accounting (AA), Travel Management, etc. In the Accounting module, you can create a payment program for processing payments to vendors from time to time.
Accounts Receivable: – The SAP Accounts Receivable (FI-AR) sub-module manages all the activities of customers transactions. FI-AR module links with SAP SD module. In Accounts Receivable you can create “Dunning Program” for managements of credit functionalities.
Bank Accounting: – SAP Bank Accounting (FI-BA) sub-module manages the bank transactions and cash management. It can be integrated with Accounts Payable, Accounts Receivable, travel management, MM, SD, etc.
Asset Accounting: – SAP Asset Accounting (FI-AA) sub-modules manages all the actives of organisational assets like depreciation, Insurance, etc. FI-AA module can be integrated with other modules and sub-modules of SAP like General Ledger, Accounts Receivable, Controlling, MM module, PP module, etc. So asset accounting manages financial activities from procurement of assets to its final scrapping or sales.
Travel Management: – SAP Travel Management (FI-TM) sub-module manages all actives of business trips of the organization. It can be integrated with Accounts Payable, SAP HCM, SAP controlling, etc. In FI-TM you can manage travel request, travel planning, and travel expenses.
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