SAP FICO

SAP FICO is the finance and cost controlling module in SAP ERP where FI stands for Financial Accounting and CO stands for Controlling. SAP FICO module is very robust and covers almost all business process encountered in various industries.It is one of the very important and widely implemented modules in SAP. This software has discovered at Germany in 1972.

SAP FI is a module used for reporting both externally and internally. The objective is to record all financial transactions that are posted by an entity and produce financial statement which are accurate at the end of the trading period.

SAP FI is made up of sub modules. The sub-modules that are often used are General Ledger Accounting, Accounts Payable , Accounts Receivable, Asset Accounting and Bank Accounting.

General Ledger Accounting : All general Ledger accounts that are used for reporting are managed through GL Accounting. In SAP a set of all general ledger accounts used by company or a group of companies is called a Chart of Account. These are the accounts that will be used for the preparation of Financial Statements. Most of the transactions are recorded in sub-module s and they are reconciled with the general ledger in real time.

Transaction that can be done in direct in general ledger accounting include journal vouchers which are posted to adjust or correct transactions.

Suppose by mistakenely one entry did wrong , we can rectified by the reversals. For example — while invoice posting we gave wrong document date we can do reversal this entry by FB03 OR FB08.

Configuration Steps of General Ledger :

A) Create Company- First step how to create company in SAP

Following steps are given below:

Step 1) Enter Transaction code SPRO in the command field .

Step 2)In the next screen select SAP reference IMG .

Step 3)In next screen Display IMG follow the menu path.

SAP Customizing implementation Guide — Enterprise Structure — Defination — Financial Accounting — Define Company OR we can use TCode — OX15

Step 4)

In the next Screen Press New Entries

Step 5) In the next screen Enter the company details :

I) Enter a unique Company ID for the company within your corporate group.

II) Enter the Company Name.

III) In the Detailed Information Section Enter the Company Address details such as Street, PO Box, Postal Code, City.

IV) Select Country code for country the company is established.

V) Select Default language for the company for print forms and Default texts.

VI) Select a Local Currency for the company.

Step 6) After completing all the required information , press SAVE Enter your customizing request number and your company is created.