SAP FI stands for Financial Accounting and it is one of the important modules of SAP ERP. It is used to store the financial data of an organization. SAP FI helps to analyze 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 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 the 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 assets 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 the 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 transaction 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 the implementation of the 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 analyze the overhead costs according to where they were incurred within the organization. Cost center 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 the cost center such as fair cost, advertising cost, gsm cost, etc. Internal orders also allow monitoring of ongoing investment.

 

Product Cost Controlling (CO-PC)

Product Cost Controlling calculates the plan/actual costs that occur during the 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 analyze the cost of goods manufactured and the Cost of Goods Sold (COGS) for 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 enables to calculate of 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 segment. 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 centers allows you to analyze areas of responsibility.

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

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

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