SAP FI stands for Financial Accounting and it is one of important modules of SAP ERP. It is used to store the financial data of an organization. SAP FI helps to analyse the financial conditions of a company in the market. It can integrate with other SAP modules like SAP SD, SAP PP, SAP MM, SAP SCM, etc.

SAP FI comprises of the following sub-components 

• General Ledger (GL)

A General Ledger contains all the transaction details of a company. It acts as the primary record to maintain all accounting details. Common general ledger entries are customer transactions, purchases from vendors, and internal company transactions.

• Accounts Receivable (AR) and Payable (AP)

It includes the details of the amount that is paid by the customer and the amount that is paid by company to the vendors. In other words, AP includes all the vendor transactions and AR includes all the customer transactions.

• Asset Accounting (AA)

Asset Accounting deals with all the fixed asset of the company and provides all the transaction details about fixed assets. The asset accounting module of Finance Accounting works closely with other modules like SAP MM (Material Management=, SAP Plant Management, EWM (Extended Warehouse Management) , etc.

• Bank Accounting (BL)

It deals with all the transactions done through bank. It includes all the incoming and outgoing transactions performed, balance management and bank transaction master data. You can create and process any type of bank transactions using the Bank accounting component.

SAP (CO) Controlling 

SAP Controlling (CO) is another important SAP module offered to an organization. It is an essential module for any organization to facilitate management decisions to improve the company’s profitability. It facilitates coordination, monitoring and optimization of all processes in an organization. SAP Controlling Module consists of various sub-modules. We have an experienced team for implementation of below SAP CO submodules;

• Cost Element Accounting
• Cost Center Accounting 
• Internal Orders
• Product Cost Controlling
• Profitability Analysis
• Profit Centre Accounting

 

Cost Element Accounting CO-OM-CEL

Cost and Revenue Element Accounting provides you to track the costs and revenues that occur in an organization. Cost elements represent their matching cost and revenue element accounts in the General Ledger component of the FI module.

Cost Center Accounting (CO-OM-CCA)

Cost Center Accounting lets you analyse the overhead costs according to where they were incurred within the organization. Cost centre master data represents a clearly delimited location where costs occur. It also provides data flow for valuating semi-finished and finished products in Product Cost Controlling (CO-PC), and calculates contribution margins in Profitability Analysis (CO-PA).

Internal Orders (CO-OM-OPA)

Internal orders are used to plan/budget, collect, and settle the costs of internal jobs and services. It provides a more detailed cost analysis than cost centre such as fair cost, advertising cost, gsm cost etc. Internal orders also allow to monitor ongoing investment.

 

Product Cost Controlling (CO-PC)

Product Cost Controlling calculates the plan/actual costs that occur during manufacture of a product, or a service. It enables you to calculate the minimum price at which a product/service can be profitably marketed. You can analysis the cost of goods manufactured and the Cost of Goods Sold (COGS) for a material on the basis of cost items/components ( raw material, labor, depreciation, energy and the other production cost) by using this functionality. Material Ledger (ML) Functionality enable to calculate actual cost on the basis of product/ batch, sales order/project stock. 

Profitability Analysis (CO-PA)

Profitability Analysis analyses the profit or loss of an organization by any market segments. The transaction data from the Financial Accounting (FI), Sales & Distribution (SD), Materials Management (MM), and Production Planning (PP) flows to the COPA to generate the profitability reports on the basis of any market segment like Material, Customer Material Groups, Sales Area, Customer Groups, Customer Hierarchy etc.

Profit Centre Accounting (EC-PCA)

Profit Centre Accounting evaluates the profit or loss of individual areas within an organization. Dividing your company up into profit centres allows you to analyse areas of responsibility.

By assigning asset portfolio, payables and receivables, material stocks to profit centre, balance sheet and income statement can be reported by profit centre.

Goods movements between profit centres can be valuated either at external prices, group internal prices or specially defined transfer price.

Parallel Valuation Approaches/Transfer Prices functionality enables to evaluate the good movements between profit centres at external prices.