One of the crucial functional modules of SAP ERP parts, SAP FICO assists the company in managing all of its financial data. SAP FICO's main goal is to aid the organization in producing and managing all financial statements for analysis and reporting, as well as to enable efficient business planning and decision-making. Each of SAP FICO's two modules, SAP Finance (FI) and SAP Controlling (CO), is utilized to carry out particular financial procedures. While SAP CO emphases cost planning and monitoring, SAP FI focuses on comprehensive financial reporting and accounting. Although SAP FI and SAP CO were initially published as independent modules, they are now so tightly interwoven that the majority of individuals are:

Now, let’s try to understand SAP FI Submodules in details:

General Ledger Accounting: A general ledger is a record of all a company's transactions. It serves as the main record for keeping track of all accounting information. Customer transactions, vendor purchases, and internal corporate transactions are examples of common general ledger entries.

Accounts Receivable: The Accounts Receivable module is in charge of recording all customer transactions and overseeing their accounts. Separate customer accounts will be kept in this module, and when transactions are transferred to the customer's accounts, the general ledger's reconciliation accounts will be updated. Account receivables cover a range of transactions, including posting of invoices, posting of credit memos, down payments, payment of invoices, etc.

Accounts Payable: The account payables module is in charge of recording all vendor transactions and managing vendor accounts. Different vendor accounts are reserved, and the general ledger's reconciliation accounts are updated when transactions are delivered to customer accounts. Account payables transactions include posting of invoices, posting of credit memos, posting of down payments, paying of invoices, automatic payments, etc.

Asset Accounting: Asset Accounting manages all the company's fixed assets and provides all transaction information regarding fixed assets. The Finance Accounting asset accounting module collaborates closely with several other modules, including SAP MM, SAP Plant Management, EWM, etc.

Accounting for Bank Transactions: This topic covers all banking-related transactions. It includes master data for all completed bank transactions, balance management, and all incoming and outgoing transactions. By using the Bank accounting component, you may create and handle any type of bank transaction.

The management of a company's travel expenses is handled by the travel management module. It covers all aspects of the travel request, including the planning and costs associated with each trip. Due to its connectivity with all other SAP modules, it aids businesses in effectively managing their travel expenses.

Fund Management: A corporation manages its funds using this module. To obtain fund details, the Fund Management module communicates with other modules such Bank Accounting, General Ledger (G/L, SAP AR/AP, and SAP Material Management, etc. It includes all the financial transactions for present and upcoming expenses. It aids in the development of budget forecasts and efficient financial management.

Another significant SAP module a company may offer is SAP Controlling (CO). It helps an organization's processes be coordinated, monitored, and optimized. Internal orders, cost and profit centers, as well as other cost aspects and functional domains, are covered by SAP CO's master data management and configuration.

SAP CO: This module helps every organization monitor, defend, and plan business processes. The CO module is directly related to financial accounting; it organizes the associated expenses into one view and can be utilized as one view. Additionally, it is utilized to maintain and set up master data, which records details about internal orders, profit centers, cost aspects, and many other things. Step-by-step management of the process is used for organizing, chasing, carrying out, and reporting. This module allows us to track expense heads and plan accordingly. 

The SAP CO module helps with process pricing by basing it on activities. It oversees cost management, product revisions, and costing. Additionally, elements linked to cost center accounting, internal order accounting, profitability analysis, and overhead

Cost Element Accounting − Cost and Revenue Element Accounting delivers you with an overview of the costs and revenues that occur in an organization. Most of the values are moved automatically from Financial Accounting to Controlling. Cost and Revenue Element Accounting only calculates costs, which either do not have another expense or only one expense in Financial Accounting.

Cost Center Accounting − Cost Center Accounting is used for controlling purposes within your organization.

Cross-departmental business processes are analyzed using activity-based accounting.

Internal Orders: In SAP CO, internal orders are utilized for collection and control based on the work they were incurred for. To ensure that the set budgets are not exceeded, you can assign these tasks with system-monitored budgets.

Controlling Product Costs: This process determines how much it will cost to produce a good or deliver a service. It enables you to figure out the price at which you can sell it for a profit.

Analysis of profitability is used to determine how much money a business makes or loses in each specific market sector. A foundation for decision-making is provided by profitability analysis. Examples include determining the price, client conditioning, distribution route, and market segment.

Profit Center Accounting − It is used to evaluate profit or loss of individual, independent areas within an organization. These areas are responsible for their costs and revenues.

SAP CO Integration with Financial Accounting:

In a SAP system, the SAP CO and SAP FI modules are each separate modules. These parts frequently exchange data with one another. Data that is relevant to costs flows from financial accounting to controlling. The system assigns costs and revenues to several CO account assignment objects at the same time, including cost centers, business processes, projects, and orders.

Benefits of SAP FICO

The most useful benefits of using SAP FICO are –

• It produces all of a company's accounting data in one location for managing finances.
• For making crucial decisions, this SAP FICO Training in Noida module can be connected with other SAP modules like Material management and Production planning.
• The Financial Accounting modules can post any transaction made in the logistics division in real time. This facilitates better account management and accurate recording of these transactions.
• Credit management and collections may be efficiently automated with the SAP FI module.
• By providing simple invoice payments, SAP FI improves the accounts payable and accounts receivable procedures.
• SAP FI enables businesses to manage their funds across borders.
• Cost planning, monitoring, and reporting are made simpler with SAP CO.
• SAP CO provides methods for examining and monitoring necessary overheads.

SAP FICO Salary 

How much salary an SAP FICO consultant can expect?

Many factors contribute to guessing a salary package for an SAP FICO consultant. These factors could be:

• Your Qualification and academic performance
• Secondly, your prior experience (if any) in ERP or non-ERP domain
• Also, how to perform during the interview
• Likewise, the percentage of questions answered correctly during the interview
• Any additional skill you possess (that may interest the employer)
• The SAP FICO Certification (if you have)
• All these factors contribute to guessing an expected salary, however on average an SAP FICO consultant, who is a beginner, may get a salary within a range of 3 Lacs – 5 Lacks per annum.

Also Read, SAP FICO Training in Delhi