SAP FICO Stands for FI (Financial Accounting) and CO (Controlling). SAP FICO is the important module of ERP and both FI and CO modules stores the complete financial transaction data of an organization.

What is SAP FICO Module?

What exactly SAP FICO module is

  • SAP FI  is an important module of all SAP implementations
  • SAP FI ( Financial Accounting ) is used for external reporting and reports like Balance sheets and profit and Loss statements can be generated for reporting purposes.
  • SAP FICO Module integrates with various other SAP Modules such as MM (Materials Management), SD(Sales and Distribution),  PP (Production Planning), PM (Plant Maintenance), and PS (Project Systems).
  • SAP FI (Financial Accounting) Module receives postings from various other modules such as Materials Management, Sales and Distribution, Human Resource) through integration.
  • All accounting-relevant transactions that are made in Logistics (LO) are posted in real-time to the FICO module through automatic account determination. This data can also be passed on to Controlling (CO). 
  • At least one company code must be created in SAP to implement the FI module.

what is sap fico

SAP FI Sub Modules

SAP FI Modules contains the following sub-modules

The SAP Financial Accounting module is further divided into several sub-modules, such as

General Ledger Accounting:-

General ledger accounting is to provide a complete report for external and internal accounting i.e Accounts, Journals, Monthly debits and Credit, Balance sheet, and Recording all business transactions.

Accounts Payable:- 

The Accounts Payable records and manages all accounting data related to vendors 

Accounts Receivable:-  

The Accounts receivable  records and manages all accounting data related to Customers

Asset Accounting:-

Asset Accounting is utilized for managing your company’s  Assets. SAP allows you to categorize assets and set values for depreciation calculations in each asset class.

Bank Accounting:-

Bank accounting is used to manage the bank transactions in the system including cash management.

Consolidation: –

Consolidation enables the combining of financial statements for multiple entities within an organization. These financial statements provide an overview of the financial position of the company as a whole.

Funds Management:-

Funds Management manages budgets for revenues and expenses within your company as well as tracks these in the area of responsibility.

Special Purpose Ledger:-

A special purpose ledger is used to define ledgers for reporting purposes.

Travel Management:-

Travel Management provides management of all travel activities including booking trips and handling of expenses associated with travel.

SAP CO Module:-

SAP Controlling plays an important role in management decision making and the CO Module is used for internal reporting purposes. The  Controlling Area is the organizational unit used to represent the controlling activities of Cost Center Accounting, Profit Center Accounting, Product Costing, Profitability, etc.

SAP CO Module contains the following sub-modules:-

  • Cost Element Accounting
  • Cost Center Accounting
  • Profit Center Accounting
  • Internal Orders
  • Product Cost Controlling
  • Profitability Analysis.