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SAP Basics | SAP FICO Basics | SAP FICO BasicsTraining

SAP FICO Basics 

1. Organizational Elements 
2. Variant Principle
3. GL Master Data and Account Groups
4. Accounts Payable
5. Accounts Receiveble
6. Controlling
7. FI-SD Integration
8. FI-MM Integration

 1. Organizational Elements:- Organisational Elements SAP FI 

  • Company Code
  • Business Area
  • Chart of Account
  • Functional Area

Company code in SAP :- 

Company code is a Smallest Organization unit for which independent financial statements can be carried out. Balance sheets and profit & loss statements, can be created at the company code level  as per  required by law. Business transactions are processed at each company code level

Business Area in SAP :- 

Business area is a separate area of operations or responsibilities of organizational units with in a company code and used for internal and external reporting . Different divisions of each business with in a legal entity are created as Business areas for reporting of each operational areas.

Chart of Accounts in SAP :-

The chart of accounts ( COA ) is a list of GL accounts master record that are used by the organisation. A chart of accounts must be assigned to each company code

Types of Chart of Accounts :-
  • Operating chart of Accounts
  •  Country Specific chart of Accounts
  • Group Chart of Accounts
Operating chart of Accounts :- 
The operating chart of accounts contains the G/L accounts that  uses for posting in company code for daily activities and used in both financial accounting and cost accounting
 
Country Specific chart of Accounts
The country-specific chart of accounts contains the G/L accounts needed to meet the country’s legal requirements
 
Group Chart of Accounts :-
The Group chart of accounts contains the G/L accounts that are used by the entire corporate group and this COA is used to consolidate the reports for the entire corporate group 

Functional Area

Functional Area is a organisational unit in accounting that classifies the expenses of an organisation by functions. the functional area is use to create P&L A/C in Financial Accounting using cost of sales accounting. e.g of functional area are

  • Administration
  • sales and distribution
  • Manufacture
  • Production
  • Research and development