SAP FI is a module which is in more demand in the market. Because every business want to make profit by maintaining proper ledger balance. At the end of the financial year all the financial transactions related to finance should be recorded very accurately. SAP FI has a huge functionality to achieve the proper financial recording.
SAP FI is made of many sub modules. SAP FICO has sub-modules that are used to maintain the accounts. Important modules that we need to know are
- General Ledger.
- Asset Accounting.
- Accounts Receivable and Payable.
- Bank Accounting.
- Travel Management.
- Legal Consolidation.
- Fund Management.
All the modules and sub modules will be interlinked in SAP. They need to be integrated so that it is easy to handle the real time business. If a manager want to know the business status at any point of the day or month, he will able to do it without any hesitation because all the modules are interconnected with each other.
General Ledger Accounting (FI GL)
It is central part of accounting. In SAP Chart of accounts is used to define the general ledge accounts which is used by a company or a group of companies. Preparation of the financial statements will depend on the accounts used by the company. General ledge accounting will also allow Reversals. Trial balances can be displayed from the system and balances in general ledger accounts can be displayed.
Accounts Recievables (FI AR)
Account recievables are all the money that is recievable from the customers for the service or goods that is provided for them. Accounts receivables is a sub module that will record all the transactions which are related to the customers and manages customer details..Each customer will have separate accounts and whenever a new transaction happens it will be recorded in customer accounts and it will be reconciliation will happen by updating the numbers in real time.Some of the transactions which are included in the accounts receivables are
- down payments,
- credit memo posting.
- invoice posting
- invoice payment and
- executing customer reports.
Accounts Payables (FI AP)
Account payables are all the money that is payable to the vendors from the company.Accounts payables is a sub-module which will record the transactions with vendors. It will manage all the records related to the vendors. Separate accounts will be maintained.
When new transactions are recorded in vendor account, reconciliation will happen in the general ledge in real time. Transactions in accounts payables include invoice payment, automatic payment, down payments,credit memo posting and executing vendor reports.
Asset Accounting (AA)
All the transaction which are related to the assets will be maintained in the Asset accounting. When new transactions are recorded in the asset accounts, reconciliation of accounts will happen in the general ledge in real time. Some of the transactions which are there in asset accounting are asset acquisition, asset retirement, asset transfer, asset revaluation, asset depreciation.
Bank Accounting will record all the transactions related to the banks. Bank reconciliation is used to reconcile the transactions which are recorded on the bank statements. It will be checked and compared with the transactions in the system.
All SAP FI sub-modules are inter related and integrated. Updation of the transactions will be done in the real time in a accurate way. Anytime the financial statement can be extracted from the system since it is integrated.