SAP FICO module stands for Financial accounting and controlling Module in SAP.
These modules are independent but integrated to provide the necessary indicators to manage the increase in value of a company and guide it towards profit.
SAP FI: It helps for the external reporting purpose like legal requirements by allowing the generation and supervision of financial statements.
The different tools that are used in reporting are as follows.
Balance Sheet which summarizes the company’s assets, liabilities and capital over a given period
Cash-Flow for forecasting liquidity to cover payment obligations
Income Statement to analyze expenditure and income over a given period
Different Sub – module of SAP FI.
FI-GL for the General ledger sub-module
FI-AP for the Accounts Payable sub-module
FI-AR for the Accounts Receivable sub-module
FI-Banking for the Bank Accounting sub-module
FI-AA for the Asset Accounting sub-module
SAP CO: Controlling module supports coordination, monitoring, and optimization of all the processes in an organization. SAP CO involves recording both the consumption of production factors and the services provided by an organization
Cost center reports: It gives insight of the income and expense with the help of cost center booking during the business transaction.
Sales & profit analysis for profitability analysis by segment, market or department.
The below are sub-module in SAP controlling.
Cost Element Accounting− Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization.
Cost Center Accounting− Cost Center Accounting is used for controlling purposes within your organization.
Activity-Based-Accounting − It is used to analyze cross-departmental business processes.
Internal Orders− Internal orders in SAP CO are used to collect and control according to the job that incurred them.
Profit Center Accounting− It is used to evaluate profit or loss of individual, independent areas within an organization.
Product Cost Controlling− It calculates the cost for manufacture a product, or to provide a service
The below figure gives over-view of SAP FI and SAP CO sub modules.