SAP FI (Financial Accounting) Module Training

The SAP FI module (Financial Accounting) is designed to capture organizations business transactions in a manner that will satisfy external reporting requirements. Local legal considerations are pre-delivered with the system and the ability to manage and report on multiple companies in multiple countries with multiple currencies is part of standard functionality. Integration with Sales and Distribution, Purchasing and Materials Management allows for the ability to select any financial transaction and “Drill Down” to the originating transaction whether it is a purchase Order, Sales Order or material movement.

SAP FI Module (Financial Accounting) includes following sub-modules:

  • General Ledger (FI-GL)
  • Accounts Payable (FI-AP)
  • Accounts Receivable (FI-AR)
  • Bank Accounting (FI-BL)
  • Asset Accounting (FI-AA)
  • Funds Management (FI-FM)
  • Travel Management (FI-TV)
  • Special Purpose Ledger (FI-SL) (I am not sure this is really considered a module anymore)

The flexibility of the SAP FI modules organizational structure gives the module the ability to handle any economic situation. Whether a smaller organization with a single legal entity or a large organization with numerous companies, consolidations and varying legal requirements, the FI module can support and automate most financial postings and reporting. Below is a listing of the main organizational elements in the SAP FI module:

  • Company Code – Represents a legal reporting entity. There can be numerous company codes within an organization. Each has its own balanced books and reports itself as a single economic entity.
  • Credit Control Area – If credit management is being used, this sets the general parameters for how credit is managed. The credit control area can control credit for a single company code representing a decentralized credit management approach or multiple company codes representing a more centralized credit management approach.
  • Chart of Accounts – The system supports single or multiple charts of accounts providing the ability to record transactions and report financially in many different regulatory environments. A chart of accounts can support multiple Company Codes if necessary.

Business process associated with the SAP FI module

SAP FI (Financial Accounting) Module

The SAP FI Module (Finance) is designed to record financial transactions in a manner consistent with external reporting. External reporting must be in compliance with a country’s accounting principles and is required for public entities, regulatory agencies and information required by banks and other lenders. This SAP FI module also handles legal consolidations, receivables, payables, fixed assets as well as banking functions if required.

Also See: SAP FICO Interview Questions

Recommended Reading For You

  • General Ledger Master Data in SAP FICOGeneral Ledger Master Data in SAP FICOGeneral Ledger Master Data in SAP FICO: In SAP, the basic element of the master data structure in the General Ledger is the chart of accounts, which is assigned to a company code and […]
  • What is Partner Functions in SAP SD?What is Partner Functions in SAP SD?Partner functions is two-character identification key that describes the people and organization with whom you do the business, and who are therefore involved in transaction. Here is some […]
  • SAP FI-APSAP FI-APAccounts Payable AR & AP are sub ledgers of GL for managing customer & vendor balances. Most of AR comes from SD modules & AP data from MM module. Define Acct group with […]
  • Profitability Analysis (COPA) – SAP Help PortalProfitability Analysis (COPA) – SAP Help PortalProfitability Analysis (CO-PA) enables you to evaluate market segments, which can be classified according to products, customers, orders or any combination of these, or strategic business […]
  • SAP Modules Overview and SAP Modules ListSAP Modules Overview and SAP Modules ListEveryone wants to learn SAP but choosing the sap module is very tough task since there are many sap module list. The some of the SAP modules made popular which includes SAP MM. SAP FICO, […]

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: