What is SAP FI – 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 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 Module Components
The SAP Financial Accounting Application consists the following sub-components.
General Ledger (FI-GL) – The statements of Balance Sheet and Profit & Loss accounting are extracted based on the general ledger accounting. The data that has been entered in SAP system is posted immediately to the GL and SAP CO system.
Accounts Payable: – 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 Accounting module you can create payment program for processing payments to vendors from time to time.
Accounts Receivable: – 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 organization. It can be integrated with Accounts Payable, SAP HCM, SAP controlling, etc. In FI-TM you can manages travel request, travel planning and travel expenses.
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