SAP FI (Financial Accounting) Module and Concepts
SAP FI (Financial Accounting) Module and Concepts
SAP FI (Financial Accounting) deals with external and institutional accounting, while SAP Controlling is a module responsible for internal accounting. Data generated in other SAP modules are aggregated into FI modules; they are sometimes referred to as core modules. Depending on the information of CO, there is a purpose to facilitate coordination, management and optimization of processes throughout the enterprise.
SAP FI module deals with activities of finance department. By using SAP ERP software organization can reduce manual error and challenges occurring while recording of transaction. Most activities in SAP FICO are manual and they are automated. There is more accuracy in data as less manual action is required. SAP ERP also provides facility like integration with other departments.
SAP enables organization to generate various financial reports for an effective comparison.
Company Code
Company code is an organization created under SAP ERP or which financial statements are to be carried out. Trial Balance, Profit & Loss, Balance sheet etc can be created as per the requirement to measure and compare performances.
Business Area
In SAP FI business area business area is an organizational unit and is used for external and internal reporting.
Chart of Accounts (CoA)
CoA is a list of general ledger accounts created under each company code for a particular organization. One company code will have only one Chart of Accounts.
There are three types of CoA
- Country specific CoA
- Operating CoA
- Group CoA
Fiscal Year Variant
Fiscal year is assigned as a variant In SAP. One can define 16 posting periods in this variant. Out of this 12 are regular and 4 are special period which is used at the time of tax adjustments and auditing.
Field Status Variants (FSV)
FSV are fields used for entering profit centre, cost centre, plant, etc. SAP provides this tool to assign same kind of properties to more than object. Same FSV can be assigned to more than one company code and it will show the same properties to more than one object.
SAP Enterprise Structure
When organizations opt for SAP ERP and implement it an enterprise structure has been created. This enterprise structure is planned according to nature of business and its requirement.
Significance of Tolerance Group
Tolerance group is used for residual item and payment variances arising at the time of payment. With help of these groups one can give permission, authority and limit to the user for posting a document.
Posting Keys
Posting keys are used while posting an accounting transaction in SAP. These keys are used for specific business transaction and are of double digits. SAP ERP has many predefined posting keys.
Posting Period Variant (PPV)
PPV controls the posting of an accounting transaction in a particular accounting period. By activating this option we can open and close the periods for recording transactions.
SAP is an ERP package which is made by SAP AG. ERP package is a software package for comprehensively managing mission-critical operations not for each division, in order to make effective use of corporate management resources and make management relationship more efficient.
Retained Earning
For retained earnings a general ledger master is created under SAP FI. This is a balance sheet item and part of shareholders’ equity. This account created under balance sheet and is linked with ev.ery profit & loss account.
| SAP Finance Important Transaction Codes | |
| FBKP | Accounting maintenance |
| FBN1 | Accounting Document->Number Ranges |
| FBZP | Payment Program Configuration |
| FI12 | Change House Banks / Bank Accounts |
| OB05 | Accounting clerks T001S |
| OB13 | Chart of accounts T004 |
| OB29 | Fiscal Year Variants |
| OB37 | CC -> Fiscal Year Variant |
| OB32 | Assign Co.Code -> Credit Control Area |
| OB52 | Posting periods T001B |
| OB57 | User ->Tolerance group T043 |
| OB62 | CC->chart of accounts T001 |
| OBA3 | Tolerances Vendor / Customer |
| OBA4 | Tolerance groups T043T |
| OBA7 | Document types T003 |
| OBAS | Vendor acc. gr.->Number Range T077K |
| OBBO | Posting periods: variants T010O |
| OBBP | CC->Posting periods var. T001 |
| OBC4 | Field Status Variant T004V |
| OBC5 | CC -> Field Status Variant T001 |
| OBD 3 | Account groups: Vendor T077K |
| OBD4 | Accounts -> Account groups T077S |
| OBY6 | CC global data T001 |
| OX02 | Company Code |
| OX06 | Controlling area |
| OX16 | Assign Company Code -> Company ID |
| OY 04 | Decimal Places for Currencies |
| OY 07 | Countries: Global Parameters |
| OY17 | Countries: Field Checks |
| OB08 | Exchange Rate (TCURR) |
| OB07 | Exchange Rate Types (TCURV) |
