SAP Financial Accounting and Controlling

The modules SAP FICO, SAP FInancial Accounting and SAP COntrolling, are important instruments and elementary components of the corporate management level.

It is critical that the financial situation of each commercial enterprise can be portrayed without errors and, if possible, without excessive expense or effort.

Individual components in SAP FI (SAP Financial Accounting)

SAP Financial Accounting (SAP FI) enables mapping of all the transactions in financial accounting. This module contains the following individual components:

  • General Ledger Accounting (FI-GL)
  • Accounts Payable (FI-AP)
  • Accounts Receivable (FI-AR)
  • Bank Accounting (FI-BL)
  • Asset Accounting (FI-AA)
  • Funds Management (FI-FM)
  • Travel Management (FI-TV)
  • Special Purpose Ledger (FI-SL)

SAP FI features

The SAP FI module has the following primary characteristics: 

  • Real-time integration
    The real-time integration with subsequent modules enables better corporate strategic decisions and planning:
    • SAP MM (Materials Management)
    • SAP SD (Sales and Distribution)
    • SAP PP (Production Planning)
    • SAP PM (Plant Maintenance)
    • SAP PS (Project System)
  • Management and display of accounting data
  • All business transactions are recorded according to the document principle and they enable an unbroken audit trail from the balance sheet to the individual document
  • Open integrated data flow
  • The data flow between SAP Financial Accounting and the other components of the SAP system is ensured by automatic updates
  • Data is available in real time within SAP Financial Accounting. Postings made in the subledgers always generate a corresponding posting in the general ledger
  • Preparation of operational information to assist strategic decision-making within the organization

All cost-relevant data flows automatically from SAP Financial Accounting (SAP FI) into SAP Controlling (SAP CO)

All cost-relevant data flows automatically from Financial Accounting into Controlling. The system assigns the costs and revenues to different CO account assignment objects, such as cost centers, business processes, projects or orders. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements.

This enables you to compare and reconcile the values from Controlling and Financial Accounting.
SAP Controlling (SAP CO) is a very important module for management as it provides information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in a company. This involves recording both the consumption of production factors and the services provided by the company.

Main tasks of SAP Controlling (SAP CO)

The main task of Controlling is planning and documentation of actual events. Actual and plan data is compared and variances are determined. Based on such variance determinations, management can intervene in the operational processes to make corrections.

SAP CO (SAP Controlling) is not only closely integrated with SAP FI (SAP Financial Accounting) but also with the SAP Logistics modules, so that all the data that is relevant for cost accounting can flow automatically into that area. The most important SAP Controlling components are:

  • Overhead Cost Controlling (CO-OM)
  • Product Cost Controlling (CO-PC)
  • Profitability Analysis (CO-PA)
  • Profit Center Accounting (EC-PCA)

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