What Are the Important Topics in SAP FICO? SAP FICO Course

Introduction

SAP, or Systems Application and Products, is a popular Enterprise Resource Planning (ERP) framework that offers different enterprise solutions like human capital management, finance management, sales, etc., to streamline various business processes and increase business productivity. This ERP framework offers different modules like Human Resource Management (SAP HRM), Human Capital Management (SAP HCM), Financial Supply Chain Management (SAP FSCM), Production Planning (SAP PP), Financial Accounting and Controlling (SAP FICO), Material Management (SAP MM), etc. that support the operations within an enterprise to enable the businesses generate greater productivity and profits.

Among the different SAP modules, SAP FICO is one of the most popular. Enterprises use this module to manage and maintain their records and operations related to finances. SAP FICO is one of the most used SAP modules, and various organizations increasingly hire SAP FICO professionals. Therefore, aspiring IT professionals must consider getting trained in SAP FICO as this field has huge scope. One can contact the training institutes to know the SAP FICO Course details, prerequisites, and other information.

This blog covers important topics related to SAP FICO Course. Read on to know more.

SAP FICO Components

SAP FICO consists of two SAP modules, the SAP Finance (FI) module and the SAP Controlling (CO) module. Both the SAP FI and SPA CO modules have sub-modules that cater to the different functions related to an organization’s finances.

Let us look at the components of SAP FICO in detail.

SAP Finance (FI) Module

The Finance (FI) module of SAP FICO focuses on implementing various tasks related to financial reporting and accounting. Moreover, This module is divided into various sub-modules that include General Ledger, Accounts Receivable, Accounts Payable, Asset Accounting, Bank Ledger, Consolidation, Funds Management, Special Purpose Ledger, and Travel Management.

  • General Ledger: It comprises of an organization’s transaction data in the chart of the accounts.
  • Accounts Receivable: It focuses on capturing customer transactions and managing the accounts of different customers.
  • Accounts Payable: It consists of all transactions carried out between the vendors and the vendor accounts.
  • Asset Accounting: This sub-module manages transactions related to an organization’s fixed assets, like land, heavy equipment, and so on.
  • Bank Ledger: This sub-module is used to manage and maintain a company’s bank account transactions and related data.
  • Consolidation: Consolidation combines financial statements for the entities and provides an overview of the company’s financial position.
  • Funds Management: The Funds Management sub-module of SAP FI manages the budgets of a company’s other revenues and expenses.
  • Special Purpose Ledger: It defines the ledgers present in SAP FI for reporting purposes.

SAP Controlling (CO) Module

The SAP Controlling (CO) module emphasises planning and monitoring the costs incurred by an organization.  Add on, This module is divided into various sub-modules that include Cost Elements, Cost Centres, Profit Centres, Internal Orders, Profitability Analysis, and Product Costing.

  • Cost Elements: It offers an overview of a company’s costs and revenues based on the profit and loss statement.
  • Cost Centres: It is used to deal with the costs of an enterprise’s internal divisions.
  • Profit Centres: These manage the cost data related to an organization’s revenues and expenses.
  • Internal Orders: This sub-module is used to manage the costs for small-scale internal projects or non-fixed assets in an organisation.
  • Profitability Analysis: It is used to allow companies to analyse their profitability.
  • Product Costing: This sub-module manages the data related to the costs required to develop the company’s products.

Benefits Of SAP FICO

Let us look at the major benefits of SAP FICO that make this SAP so popular among enterprises.

  1. SAP FICO can generate all accounting data of an organization in a single place to manage the business finances.
  2. SAP FICO can be easily integrated with other SAP modules like Production Planning (SAP PP) and Material Management (SAP MM) for effective decision-making.
  3. Different transactions generated in the logistics department of SAP can be posted to the Financial Accounting modules of SAP FICO to handle the accounts better and to store the transactions effectively.
  4. SAP FI is used to automate credit management and collections in an organization.
  5. SAP FI can be used to enhance the Accounts Payable and Accounts Receivable functions through invoice payments.
  6. Companies use SAP FI to handle their cash across countries.
  7. The SAP CO modules make planning, monitoring, and reporting costs easier.
  8. The SAP CO module analyses and observes the overheads necessary for financial reporting.

SAP FICO Consultants

The SAP FICO Consultants are one of the most important SAP FICO professionals in the industry. These professionals configure and implement SAP FICO modules based on the requirements of an organization. The SAP FICO Consultants are of two types: External SAP FICO Consultants and Internal SAP FICO Consultants.

In Addition, The SAP FICO Consultants execute SAP Business Warehouse (BW) in the business projects and guide other consultants from the SAP platform’s PS, PP, PM, and MM modules. In addition, the SAP FICO Consultants train new team members or the application’s end users, support the testing processes and use every opportunity to improve the business.

Conclusion

To summarise, SAP FICO has two components: SAP Finance (FI), which focuses on implementing various tasks related to financial reporting and accounting; and SAP Controlling (CO), which focuses on planning and monitoring the costs incurred by an enterprise. The Finance (FI) module of SAP FICO is divided into various sub-modules that include General Ledger, Accounts Receivable, Accounts Payable, Asset Accounting, Bank Ledger, Consolidation, Funds Management, Special Purpose Ledger, and Travel Management.

The SAP Controlling (CO) module is divided into various sub-modules that include Cost Elements, Cost Centres, Profit Centres, Internal Orders, Profitability Analysis, and Product Costing. Furthermore, Being a widely used SAP module, SAP FICO professionals are in high demand. Therefore, many training institutes offer the SAP FICO Online Course to help aspiring IT professionals build a secure career in SAP FICO. The SAP FICO Consultants are one of the most important SAP FICO professionals in the industry who configure and implement SAP FICO Courses based on the requirements of an organization and use every opportunity to improve the business.