HANA Finance and Controlling
SAP FICO is a core functional component in SAP ERP Central Component that allows an organization to manage all of its financial data. The purpose of SAP FICO is to help companies generate and manage financial statements for analysis and reporting and help with effective business planning and decision-making. SAP FICO consists of two modules, SAP Finance (FI) and SAP Controlling (CO), each of which is used for specific financial processes. SAP FI deals with overall financial reporting and accounting while SAP CO focuses more narrowly on planning and monitoring costs. SAP FI and SAP CO were originally released as separate modules but are now so tightly integrated that many people refer to them as simply one module .
SAP FI modules
SAP FI enables companies to generate financial statements — such as balance sheets or profit and loss statements- for reporting and analysis. SAP FI consists of several sub-modules that handle specific accounting processes.
- General Ledger contains all of the company’s transaction data in a chart of accounts that lists all of the accounts in the system. Transactions are recorded in sub-modules that can be reconciled with the general ledger data in real time.
- Accounts Receivable
- Accounts Payable
- Asset Accounting
- Bank Ledger
- Consolidation
- Funds Management
- Special Purpose Ledger
- Travel Management
SAP CO modules
While SAP FI deals with a company’s accounting and internal and external reporting, SAP CO supports processes to plan, report on, and monitor costs from business operations. SAP CO can be instrumental in improving the company’s profitability. Like SAP FI, SAP CO is comprised of sub-modules that handle specific processes:
- Cost Elements
- Cost Centers
- Profit Centers
- Internal Orders
- Profitability Analysis
- Product Costing