SAP FICO is the Financial and Controlling module of SAP that covers all the accounting side of the company and the reports generated by it play vital role to the management. In SAP FICO, FI covers all the financial parts like the economy involved in it and revenue generated and CO covers all the costing procedures and profit related data.
This Finance module of SAP helps in integrating accounting side of the business that deals with all the financial sections like account receivable, accounts payable, general ledger, tax etc. that are incorporated into SAP. All the financial entries regarding payment and sold product are maintained in real time system.
On the other hand, Controlling represents the flow of costs within the company which is used for the tracking purpose to internal costs. CO is actually the management tool that helps company to analyse that how well it is doing. Cost accounting, profitability and product costing are the different segments that Controlling takes care of.
SAP FICO comprises of R/3 architecture where R stands for Real Time and 3 Stands for the three tier architecture. It has three important below mentioned layers:
Presentation Layer: It is used to input data
Application Layer: It converts data into computer system language
Database Layer: It holds data in it
For this it is makes itself portable with three types of environment
- Development Environment
- Quality Environment
- Production Environment
SAP FI is an important core module where real time financial procedures are being captured that provides data for external reporting. SAP FI Module is integrated with various parallel modules that are very much helpful to manage the software packages. The sub-modules specialize the financial modules are assets accounting, account payable, account receivable, bank accounting, funds management, general ledger accounting, legal consolidates, travel management etc.
SAP CO refers to the managerial accounting that deals with various organizational areas such as operating concern, controlling area and cost centers. The sub module that CO comprises of are cost element accounting, cost controlling, cost center accounting, internal orders, activity based costing, product costing, profitability analysis, profit center accounting etc.
- SAP Knowledge
- Sound Domain (Banking and Telecommunication) Knowledge
As SAP FICO is the pillar support for the accounting and managerial behaviour of companies, hence there are various opportunity as SAP FICO consultant to its different sub modules. The certification programs even make it more proficient in terms of establishing good career.