SAP FICO


SAP FICO: An Overview and Key Considerations 

What Is SAP FICO?

SAP FICO is SAP’s core functional module consisting of the tightly integrated Financial Accounting (FI) and Cost Controlling (CO) modules, designed to enable the recording of financial transactions across parent and subsidiary entities, the production of financial statements, and support both internal and external reporting, at the end of every period.

The SAP Financial Accounting (FI) module supports accurate financial accounting and financial reporting, while the SAP Cost Controlling (CO) module facilitates cost planning and cost monitoring.

Key sub-modules for SAP FICO:

  • Financial Accounting (FI)
  • Asset Accounting
  • Accounts Payables
  • Accounts Receivable
  • Bank Accounting
  • Fund Management
  • General Ledger Accounting
  • Travel Management
  • Cost Controlling (CO)
  • Activity-based Costing
  • Cost Center Accounting
  • Cost Element Accounting
  • Internal Orders
  • Product Costing
  • Profit Center Accounting
  • Profitability Analysis.

The primary objectives of SAP FICO are to provide financial transparency, improve data consistency, and enable business process integration within the organization. Organizations can leverage the inter-connected sub-modules and real-time data streaming to produce trial balances that accurately reflect most business processes from various industries. SAP FICO is an end-to-end solution that combines industry best practices with application expertise, deep-process knowledge, and technical innovation.

Key Considerations for SAPinsiders

SAP FICO: An Overview and Key Considerations 

What Is SAP FICO?

SAP FICO is SAP’s core functional module consisting of the tightly integrated Financial Accounting (FI) and Cost Controlling (CO) modules, designed to enable the recording of financial transactions across parent and subsidiary entities, the production of financial statements, and support both internal and external reporting, at the end of every period.

The SAP Financial Accounting (FI) module supports accurate financial accounting and financial reporting, while the SAP Cost Controlling (CO) module facilitates cost planning and cost monitoring.

Key sub-modules for SAP FICO:

  • Financial Accounting (FI)
  • Asset Accounting
  • Accounts Payables
  • Accounts Receivable
  • Bank Accounting
  • Fund Management
  • General Ledger Accounting
  • Travel Management
  • Cost Controlling (CO)
  • Activity-based Costing
  • Cost Center Accounting
  • Cost Element Accounting
  • Internal Orders
  • Product Costing
  • Profit Center Accounting
  • Profitability Analysis.

The primary objectives of SAP FICO are to provide financial transparency, improve data consistency, and enable business process integration within the organization. Organizations can leverage the inter-connected sub-modules and real-time data streaming to produce trial balances that accurately reflect most business processes from various industries. SAP FICO is an end-to-end solution that combines industry best practices with application expertise, deep-process knowledge, and technical innovation.

Key Considerations for SAPinsiders

Leverage SAP FICO to generate timely insights within current processes. Organizations typically modernize ERP financial landscapes in phases and not all at once. As a result, finance and accounting managers must incorporate processes across multiple technologies, including legacy or manual solutions, to deliver business benefits. The flexibility of SAP FICO supports this option, as Mark Pockl, insightsoftware’s Solution Engineer, specializing in SAP and Orace EBS reporting solutions, provides best practices for leveraging SAP FICO inside Excel.

SAP FICO automation can enable the standardization of financial processes. With SAP FICO, finance teams are equipped with standard solutions capable of supporting automation across many manual processes related to financial transactions and reporting. This helps finance teams, including the finance departments at Kellogg Company and Newell Brands, effectively manage financial data within SAP ERP systems, including generating reports that different departments require for decision-making.

Economic disruptions increase the need for financial visibility across organizations. SAP FICO is designed to support multiple views of your organization in real time, providing visibility for finance managers at the most critical junctures. In addition, by accurately and quickly managing cost planning and cost monitoring requirements consistently across the business units, organizations can generate ad-hoc reporting from costing and profitability insights.

36 results

  1. FICO is a Flash: Live Costing and Profit Insights on the Fly

    May 25, 2021

    This last year has been challenging for companies across multiple industries. Managing costs and tracking revenues have been critical over this timeframe. As the market recovers, organizations need to be able to quickly and accurately assess these areas to track business performance, identify growth opportunities, and ultimately invest wisely. However, accessing the correct data in…
  2. Prepare Your Landscape for the Migration to SAP S/4HANA Finance

    Reading time: 35 mins

    Whether you are already implementing SAP S/4HANA Finance or you are still in the evaluation stage, you need to learn about the architecture considerations before making the move to better prepare your current SAP ERP system for the migration. Sonam Pawar, A speaker at the upcoming SAP Financials 2016 conference in Singapore, answered questions on…...…
  3. Members Who Inspire | Dr. Srinivas Bandi

    Reading time: 2 mins

    Name:  Dr. Srinivas Bandi Job Position: Vice-President and Global Head SAP Practice Company: Kellton Tech LinkedIn: https://www.linkedin.com/in/dr-srinivas-bandi-4195444/  Twitter: https://twitter.com/SRINUBANDI How did you first hear about SAPinsider? Two decades ago, when I started my career as an SAP FICO Consultant, I was vividly following SAPinsider and SAP FICO Expert Articles to gain knowledge from fellow consultants…
  4. Improving the Fit of the Standard FI/CO System to Your Site’s Specific Business Requirements with User Exits, Enhancements, and Events

    Reading time: 9 mins

    The author describes three ways to make enhancements to features without modifying the standard code. This provides a great deal of added flexibility to the FI/CO modules. In almost every R/3 implementation, a company asks repeatedly: “How can we enhance this feature or that feature without making a modification to the standard code?”1 This is…...…
  5. Use Your Program Variants More Effectively with the Help of TVARV Variables

    Reading time: 111 mins

    Instead of manually changing the selections in a program variant, you can make the system change the variant values automatically. This saves time, especially if you are running hundreds of reports. Key Concept Selection variables fall into three categories: Date variables (D): Say that you run a daily sales analysis report, with the date parameter…...…
  6. Transition to SAP S/4HANA Finance

    Reading time: 11 mins

    There are myriad options associated with a transition to SAP S/4HANA Finance, and navigating all the choices can be challenging. It’s important to make sure that you chart your optimal road map to SAP S/4HANA Finance based on the specific needs of your organization. Read the Q&A transcript with Quality Systems & Software’s Mitresh Kundalia…...…
  7. 3 Ways to Get the Most Out of Your SAP Financial Reporting

    Reading time: 4 mins

    Management teams and boards of directors often require frequent updates and analyses from their chief financial officer in order to make informed decisions. This often means requests for daily or weekly reports, on top of the typical monthly, quarterly and annual cadence – upping the pressure on finance teams. When an organization’s finance data spans…
  8. Explore the Payment Currency Option in Accounts Payable

    Reading time: 8 mins

    Learn how to use the payment currency function to pay vendors and customers who submit invoices in foreign currencies. Key Concept In an SAP environment you might have used currencies such as local currency, company code currency, or group currency. In addition to these currencies, SAP provides another currency called payment currency, which is little…...…
  9. How to Use the Extension Ledger Functionality in SAP S/4HANA Finance

    Reading time: 14 mins

    Learn how to configure and implement the new Extension Ledger functionality in SAP S/4HANA Finance. Find out how to deactivate a ledger in a company code. Key Concept The Extension Ledger, which is only available in SAP S/4HANA Finance, helps you to save space in the database. You can use it to avoid duplication of…...…
  10. Accelerate Your Financial Closing with New Line Item Transaction Codes in SAP S/4HANA Finance

    Reading time: 13 mins

    Learn about the new line item browser report transaction codes in SAP S/4HANA Finance and how useful they are compared with the current line item report transactions codes. Key Concept Line item browser report transaction codes are available in SAP S/4HANA Finance only. These codes are not even part of the regular SAP system menu…....…