Introduction:
SAP FI is one of the significant modules of SAP ERP systems and it stands for Financial Accounting. It is capable of integrating with other SAP modules and helps in analyzing a company’s financial condition in the market. All the business transactions are recorded in SAP FI and the postings of sub-ledger accounts regularly generate postings in the G/L account. In addition, it stores financial accounting data in real-time therefore a user can access it throughout the organization. Many institutions provide SAP FI Training in Gurgaon. In addition, it posts the processed transactions in logistics in the financial accounting module with the help of automatic account determination. It results in reflecting the value of goods & services in accounting.
Modules Of SAP FI:
- General Ledger- General Ledger makes sure to post the data in it and the SAP CO system. In addition, it is responsible for providing a comprehensive picture of external accounting. General Ledger Accounting facilitates parallel accounting by managing parallel ledgers. It further supports segment reports and enables a user to perform a cost of sales accounting.
- Accounts Payable- This sub-module of SAP FI is responsible for managing and recording accountable data. In addition, it also helps in managing the invoices and recording all the transactions related to the vendor. It further integrates with the SAP-MM module, Asset Accounting (AA), and Travel Management. Moreover, it simultaneously reflects the postings made in it in the general ledger.
- Accounts Receivable- This module of SAP FI manages the activities related to customer transactions. In addition, it also allows a user to create a dunning program for credit management. It handles customer accounting data such as customer invoices, approvals, payments. Etc. This module facilitates invoice processing and credit management along with analyzing the accounts and generating reports.
- Bank Accounting- SAP (FI-BA) is responsible for managing bank transactions and cash management. In addition, this module helps in managing incoming and outgoing payments for cash balance management.
- Asset Accounting- Asset Accounting manages the assets like depreciation, Insurance. Etc. In addition, it supervises the financial assets of a company and manages them from purchasing them to their final scrapping.
- Travel Management- SAP travel management manages the activities related to official business travels. In addition, it allows a user to manage travel requests, travel planning, and travel expense.
Important Terms Related To SAP FI:
Chart Of Accounts- This can be termed as the structure that contains G/L accounts for one or more company codes. In addition, it represents each of their G/L accounts by an account number, the account name, and information. That helps in determining account functions and controlling their creation in the controlling area. This chart of accounts is useful for postings in the controlling area if the cost and revenue accounting is active. However, a user needs to assign a chart of accounts to each company code.
Currencies- Currencies are required to record any financial transactions in SAP FI. As each country has a particular currency, SAP ensures existing currencies as per ISO standard. It provides different types of currencies that are company code currency, document currency, and group currency. Given below are the types of currencies in SAP.
- Company code currency: This currency configures a company’s code.
- Group Currency: It is assigned at the client level.
- Hard currency: It is assigned at the country level.
- Index-based currency: SAP FI assigns this currency to countries in times of high inflation.
- Global company currency: A company or an internal trading partner is assigned with this currency.
Fiscal Year- Fiscal year or financial year in SAP consists of 16 posting periods and 12 of them are normal posting periods while 4 are special posting periods. SAP fiscal year is classified as the following
- Year Dependent
- Year Independent
- Calendar Year
- Shortened Fiscal Year
Conclusion:
SAP FI stands for financial accounting and it is an important module in SAP ERP. It stores financial accounting data in real-time and consists of a few modules useful for different purposes. Each of the SAP FI modules serves a purpose and makes sure that the task is operated efficiently. In conclusion, there are many educational organizations that provide SAP FI Course in Noida. SAP FI has worldwide uses as it provides info about a company’s financial condition.
