SAP FICO OVERVIEW
Aditya
aditya@jhsoftech.com
JH SOFTECH

FI Overview
FI
AP
ARAM
GL
CON
Special
Ledger

G/L Reporting
Legal or external
reporting
• Balance sheet
• Income Statement
• Statement of
Financial Position
Financial Accounting

Stockholders
Bankers, Lenders
IRS, Taxing Authority
External Auditors
SEC
Financial Accounting
External Accounting
Balance Sheet
Profit & Loss
Financial Position

CO/EC Overview
COMPONENT
Cost Center Acctg - CO-CCA
Internal Orders CO-OPA
Projects - PS
Product Costing - CO-PC
Activity Based Costing
Profitability Analysis-CO-PA
Profit Center Acctg-EC-PCA
Executive Info. System-EC-EIS
VIEW
Costs
Costs
Costs
Costs
Costs
Profits
Profits
Any data
ROLE
Cost Tracking
Small Projects
Large Projects
Product Costing
Cost Management
Margin by multi-cuts
Profit & Loss Repsons.
Cross-module reports

Internal management reporting
Reports by cost centers or other
cost “objects” and cost elements
Cost centers
Orders and Projects
Budget/plan
Actual vs. plan
CO Reporting
Controlling

Controlling
Internal Accounting
Departmental Expense
Report
Salaries 10,000
Overhead 8,000
Other 5,000
Total 23,000
Department
Managers
ControllersExecutives
Senior Management

FI and CO comparison
COFI
Legal or external reporting
Reports by accounts
Balance Sheet
Income Statement
Internal management
reporting
Reports by cost centers and
cost elements
Cost Center Reports

FI/CO Organizational Structures
• Client
• Company
• Chart of Accounts
• Company Code
• Business Area
• Credit Control Area
• Controlling Area

CLIENT

Client
• Highest hierarchical level in an SAP system
• A complete database containing all the tables
necessary for creating a fully integrated
system
• Master records are created at the client level

CLIENT
COMPANY

Company
• Consolidated financial statements are
created at the company level
• A company can include one or more
company codes
– All company codes must use the same chart of
accounts and fiscal year

CLIENT
COMPANY
CHART OF ACCOUNTS

Chart of Accounts
• A listing of the accounts
• A chart of accounts must be assigned to every
company code
• Several company codes can use the same
chart of accounts
– A different chart of accounts can be used if a
different grouping of the chart of accounts is
required

Co code
1000
Co code
2000
Co code
3000
Co code
4000
Co code
5000
US CHART OF
ACCOUNTS
GERMAN
CHART OF
ACCOUNTS
CLIENT

CLIENT
COMPANY COMPANY
CHART OF
ACCOUNTS
CHART OF
ACCOUNTS
COMPANY CODE COMPANY CODE COMPANY CODE

Company Code
• A required structure
• A legally independent entity
• The smallest organizational unit for which
accounting can be carried out
• The level where business transactions are processed
• The level where accounts are managed
• The level where legal individual financial statements, such as
the balance sheet and the profit and loss statement, are
created
A BALANCED SET OF BOOKS

CLIENT
CHART OF
ACCOUNTS
CHART OF
ACCOUNTS
COMPANY
CODE
COMPANY
CODE
COMPANY
CODE
COMPANY COMPANY
CREDIT CONTROL
AREA
CREDIT CONTROL
AREA

Credit Control Area
• An organizational unit or area of responsibility
created to control customer credit limits
• A company code is assigned to one and only
one credit control area
• Multiple company codes can be assigned to
one credit control area

CLIENT
CHART OF
ACCOUNTS
CHART OF
ACCOUNTS
COMPANY
CODE
COMPANY
CODE
COMPANY
CODE
COMPANY COMPANY
CONTROLLING
AREA
CONTROLLING
AREA

Controlling Area
• An organizational unit defining the company's cost/
managerial accounting operations
• A company code is assigned to one and only one
controlling area
• A controlling area can have multiple company codes
assigned to it
– This allows cross company cost allocations and reporting

1 2 3 4 5 6 7
JANUARY
FEBRUARY
DECEMBER
Fiscal Year Variant
•Determines the fiscal year
•Calendar year or
non-calendar year
•Allows the use of special
periods to aid year-end
closing
•Is assigned to a company
code