SAP FICO stand for “Financial Accounting” and “Controlling”. SAP FI and SAP CO are the important core modules in SAP that are tightly integrated each other and helps the business organizations to maintain and generate financial statements for effective decision making and reporting. FI & CO are different set of books, where the SAP FI deals with external accounting and SAP CO deals with internal accounting.
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SAP Financial Accounting (FI)
SAP FI module records and maintains financial transactions of an organization in real-time on daily basis and generates financial statements (Balance sheets, Profit & Loss accounts, etc) for external reporting.
Sub-Modules of SAP FI
- General Ledger Accounting – All the postings that are done in SAP are recorded through general ledger(G/L) accounts.
- Accounts Payable – Accounts payable collects and maintain all the transactions related to vendor accounts.
- Accounts Receivable – It records and maintains all the transactions related to customer accounts.
- Bank Accounting – It deals with all the transactions of payments like incoming payments, outgoing payments,
- Asset Accounting – SAP FI-AA sub-module deals with all the transactions related to assets.
- Travel Management – It deals with all the process involved in business trip and travel expenses.