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SAP FICO Introduction

In SAP FICO, SAP FI stands for Financial Accounting and CO stand for Controlling. SAP FI is a backbone of SAP that helps to records, collects 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 with various ERP modules.

SAP FI Modules Includes the below sub-modules

SAP CO Module Comprises of the below sub-modules

SAP FICO is a module of SAP ERP which is used for financial reporting both externally and internally. The objective is to record all financial transactions that are posted by an entity and produce financial statements that are accurate at the end of the trading period. The SAP FICO full form is FI (Financial Accounting) and CO (Controlling).

This SAP FICO basics tutorial is going to explain SAP FICO overview and the major functionalities of the SAP FICO module.

SAP FI is made up of SAP FICO sub modules. The sub-modules that are often used are accounts receivables, accounts payables, asset accounting, general ledger Accounting and bank accounting.

All the sub modules are interlinked and integrate in real time. A trial balance can be extracted at an time and it will always balance because all the sub modules are connected.

General ledger accounting

All general ledger accounts that are used for reporting are managed through general ledger accounting. In SAP a set of all general ledger accounts used by a company or a group of companies is called a chart of accounts. These are the accounts that will be used for the preparation of financial statements. Most of the transactions are recorded in sub modules and they are reconciled with the general ledgers in real time. Transactions that can be done in direct in general ledger Accounting include journal vouchers which are posted to adjust or correct transactions. Reversals can also be done from general ledger accounting. Balances in general ledger accounts can be displayed and trial balances extracted from the system.

Accounts receivables

Accounts receivables in FICO SAP is a sub module that captures all transactions with customers and manages customer accounts. Separate customer accounts will be maintained and when transactions are posted in customer accounts, reconciliation accounts in general ledger are updated with the figures in real time. Transactions in accounts receivables include invoice posting, credit memo posting, down payments, invoice payment, dunning and executing customer reports.

Accounts payables

Accounts payables is a sub module that captures all transactions with vendors and manages vendor accounts. Separate vendor accounts are maintained and when transactions are posted in customer accounts, reconciliation accounts in general ledger are updated with the figures in real time. Transactions in accounts payables include invoice posting, credit memo posting, down payments, invoice payment, automatic payment program and executing vendor reports.

Asset accounting

Asset accounting in SAP FICO manages all transactions related to assets for an entity. When transactions are posted in asset accounts, reconciliation accounts in general ledger are updated in real time. Transactions in asset accounting include asset acquisition, asset retirement, asset sale, asset transfer, asset revaluation and asset depreciation.

Bank accounting

Bank accounting captures all transactions with the banks. Bank reconciliation is done to reconcile all transactions recorded on bank statements comparing them to transactions in the system.

All SAP FI sub-modules are integrated and transactions are updated in real time which means accurate financial statements can be extracted from the system at any time.

SAP FICO Online Training Course Content

  • Components of Financial Accounting (FI)
  • 1 ) Organizational Elements/ basic settings
  • 2 ) GeneralLedger (FI/GL)
  • 3 ) Accounts Receivable (FI/AR)
  • - sap fico online training
  • 4 ) Accounts payable (FI/AP)
  • 5 ) Asset Accounting (FI/AA)
  • 6 ) Special Purpose Ledger (FI-SL)
  • Enterprise Structure
  • Define Company
  • Define Company Code - sap fico online training
  • Assign Company Code to Company
  • Define Business Area
  • Financial Accounting Global Settings
  • Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year)
  • Assign Company Code to a Fiscal Year Variant
  • Define Variants for Open Posting Periods
  • Assign Variants to Company Code
  • Open and Close Posting Periods
  • Define Document Types - sap fico online training
  • Define Document Number Ranges
  • Define Posting Keys
  • Maintain Field Status Variants
  • Assign Company Code to Field Status Variants
  • Enter Global Parameters
  • General Ledger Accounting
  • Define Chart of Accounts List
  • Assign Company Code to Chart of Accounts
  • Define Account Group
  • Define Retained Earnings Account
  • Define Tolerance Groups for G/L Accounts
  • Define Tolerance Groups for Employees
  • Creation of G/L Masters
  • G/L Account Document Postings
  • Parked Document - sap fico online training
  • Hold Document
  • Sample Document
  • Accrual/Deferral Document
  • Recurring Entries
  • Define Run Schedules
  • Enter run dates
  • Posting transactions - sap fico online training
  • Execute run schedule
  • Create Batch input Session
  • Reversal Documents
  • Open Item Management
  • Interest Calculations - sap fico online training
  • Foreign Currency Valuations
  • Accounts Receivable and Accounts Payable
  • Creation of Vendor Groups
  • Creation of Vendor Number ranges
  • Assign Vendor Number ranges to Vendor Groups
  • Creation of Vendor Masters
  • Creation of Vendor Documents and Number ranges
  • Vendor Documents Postings (Purchase Invoice)
  • Advance Payment Postings - sap fico online training
  • Automatic Payment Program
  • Creation of Customer Groups
  • Creation of Customer Number ranges
  • Assign Customer Number ranges to Customer Groups
  • Creation of Customer Masters
  • Creation of Customer Documents and Number ranges
  • Customer Document Postings (Sales Invoice)
  • Advance Payment Postings
  • Dunning Program - sap fico online training
  • Bills of Exchange
  • Creation of Payment Terms
  • Creation of Credit Memo
  • Customer/Vendor Statements
  • Bank Settings
  • House Bank Creation
  • Check Lot Creation
  • Creation of Bank Accounts
  • Issued Check Cancellation - sap fico online training
  • Manual Check Updating
  • Bank Reconciliation Statement
  • Tax Settings
Withholding Tax and Extended Withholding Tax Configuration
  • Basic Settings for W/Tax
  • Defining the Calculation Procedure for W/Tax Types and W/Tax Codes
  • Assign W/Tax Procedure to Vendor Posting - sap fico online training
  • Asset Accounting
  • Copy Reference Chart of Depreciation/Depreciation Areas
  • Assign Chart of Depreciation to Company Code
  • Specifying Account Determination
  • Create Screen Layout Rules
  • Define Number Range Interval
  • Define Asset Classes
  • Assign G/L Accounts - sap fico online training
  • Specify Document Type for Posting of Depreciation
  • Specify Intervals and Posting Rules
  • Specify Rounding of Net Book Value and/or Depreciation
  • Define Base Methods
  • Define Declining-Balance Methods
  • Define Maximum Amount Methods
  • Define Multi-Level Methods
  • Maintain Period Control Methods
  • Maintain Depreciation Key
  • Define Screen Layout for Asset Master Data
  • Define Screen Layout for Asset Depreciation Areas
  • Creation of Asset Master
  • Asset Acquisitions
  • Asset Retirements
  • Asset Transfers - sap fico online training
  • Asset Transfers
  • Asset Reports
  • Depreciation Running
  • Integration
  • FI integration with MM
  • FI integration with SD

Components of Controlling (CO)

  • Cost Element Accounting (CO-OM-CEL)
    • Cost Center Accounting (CO-OM-CCA)
    • Internal Orders (CO-OM-OPA)
    • Profit Center Accounting (EC-PCA)
    • General Controlling
  • Maintain Controlling Area
  • Maintain Versions - sap fico online training
  • Maintain Number Ranges for Controlling Documents
  • Cost Element Accounting
  • Manual Creation of Primary and Secondary Cost Elements
  • Automatic Creation of Primary and Secondary Cost Elements
  • Create Cost Element Groups
  • Planning of Cost Elements wise Cost
  • Cost Center Accounting
  • Create Cost Centers
  • Define Cost Center Categories
  • Document Postings to Cost Centers
  • Define Cost Center Groups
  • CC Allocations: - sap fico online training
  • Creation Assessment and Distribution Cycles
  • Creation Assessment and Distribution Cycles
  • Splitting
  • Activity price calculation (plan &actual)
  • Cost Center Wise Variance Reports
  • Repost CO Line-items
  • Repost Cost
  • Profit Center Accounting
  • Maintain Controlling Area Settings
  • Create Dummy Profit Center
  • Profit Centre Maintenance
  • Profit Centre Groups Maintenance - sap fico online training
  • Define Number Ranges for Local Documents
  • Choose Additional Balance Sheet and P&L Accounts
  • COPA:
  • SD COPA mapping
  • IO/CC COPA settlement
  • Prod order variance COPA settlement
  • Sales order COPA settlement
  • COPA Valuations(Valuation using Condition types ,valuation using Mat cost estimates , Periodic valuation)
  • Top-down distribution of actual data
  • Characteristic derivations
  • COPA summarization levels,reports (segment level/line item reports)...etc.
  • COPA Planning(COPA planning in SAP


  • PP Module Overview
  • BOM, Routing
  • Production order types, Order type dependent parameters
  • Prod order creation, Prod order confirmation - sap fico online training
  • WIP / Variance calculation Prod order settlements
  • Product Cost planning
  • Multilevel costing with multiple plants , Transfer Control ,Special Procurement Types
  • Moving Average Price/Standard price
  • Automatic and Unit Cost Estimate
  • Reference and Simualtion Costing
  • Creating a cost estimate w/o quantity structure
  • Creating a cost estimate with quantity structure
  • Mixed costing with Procurement alterantives and Mixing Ratios
  • PP : BOM /Routing ,Internal/External activities
  • Origin Groups - sap fico online training
  • Cost component structure,costing valuation variants etc..
  • Creating and releasing std cost etimates/ modified std cost estimates(CK40N)
  • Product costing by prod order:
  • Muti-level costing / MTS
  • Activty allocations / price calculations
  • Material consumptions
  • PP: Prod order creation/confirmation/Settlement
  • Revaluation at Actual prices
  • Overhead Calculation - sap fico online training
  • RA: WIP Posting \ reversal
  • Variance calcualtion (Target cost versions , Scrap variance ,Variance categories )
  • Variance settlement to FI ,COPA
  • Reports for Product Cost by Order
  • Line items for Variances
  • Line items for WIP/Result Analysis
  • Prod Order Cost Analysis
  • Display CO-PA line items
  • Define Order Types
  • Maintain Number Ranges for Orders
  • Creation of Internal Orders
  • Creation of Internal Order Groups
  • Internal Order Settlements:
  • Internal Order Settlements:
  • IO to CC settlement - sap fico online training
  • IO to COPA settlement
  • Year-end Closing Activities
  • Financial Statement Version
  • Balances Carry forward to Next year

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