This presentation covers the basic modules of Financial accouting of SAP FICO module.This is for presentation purpose and doesn't serve as a full fledged presentation on SAP FI

1. SAP Financial Accounting

2. What is Finance?
• The management of large amounts of money, especially by
governments or large companies.
• The science of the management of money and other assets.
• The management of money, banking, investments, and credit.
• The supplying of funds or capital.

3. A/F
Customer HR
SCM M/S
Payments
Legal requirements
and job information,
payroll and benefit
expense data
Invoices and
credit memos
Sales data and
manufacturing
cost analysis
Production plans,
materials, and
inventory data
Sales order data
Cost/profit
analysis
Hiring needs and
personnel
information

4. What are the I/o ?
• Input for A/F include:
• Payments from customers
• Account receivable data
• Account payable data
• Sales data
• Production and inventory data
• Payroll and expense data
• Output for A/F include:
• Payments to suppliers
• Financial reports
• Customer credit data

8. SAP FICO Module
• SAP FI is the important module of all SAP implementations
• SAP FI ( Financial Accounting ) is used for external reporting i.e
Balance sheet, Profit and Loss statements
• SAP FICO Module integrates with various other SAP Modules such as
MM (Materials Management), SD(Sales and Distribution), PP
(Production Planning), PM (Plant Maintenance),and PS (Project
Systems).
• SAP FI (Financial Accounting) Module receives postings from various
other modules such as Materials Management, Sales and Distribution,
Human Resource) through integration.
• All accounting-relevant transactions which are made in Logistics (LO)
are posted real-time to Financial Accounting by automatic account
determination. This data can also be passed on to Controlling (CO).

9. General Ledger Accounting
• The general ledger accounting is to provide a complete report for
external and internal accounting i.e Account, Journals, Monthly
debits and Credit, Balance sheet
• Recording all business transactions.

10. Example of GL

12. Accounts Payable & Account Receivables
• The Accounts Payable records and manages all accounting data
related to vendors
• The AR and AP acts as a sub ledger to FI-GL for managing the
balances of Customers and Vendors. The AR and AP components
store all the information and balance details for each customer and
vendor.

13. • Customer Accounts
• Master Records
• Define account groups
• Accounting clerk identification code
• Industries
• Customer Accounts
• Vendor Accounts
• Master Records
• Define Account Groups
• Define screen layout
• Accounting Clerks
• Vendor Accounts
• Business Transactions
• Incoming invoices/Credit Memos
• Outgoing Payments

15. Accounts Receivable
• The Accounts receivable records and manages all accounting data
related to customers.

17. Asset Accounting
• Asset Accounting is utilized for managing your company’s Assets.
• SAP allow you to categorize assets and to set values for depreciation
calculations in each asset class.

19. Bank Accounting
• Bank accounting is used to manage the bank transactions in the
system including cash management

20. Consolidation
• Consolidation enables the combining of financial statements for
entities within an organization.
• These financial statements provide an overview of the financial positi
on of the company as a whole.

22. Funds Management
• Funds Management manages budgets for revenues and expenses
within your company as well as track these in the area of
responsibility.
• Monitor future funds movement in light of budget available and
prevent budget overruns.

23. Special Purpose Ledger
• Special purpose ledger is used to define ledgers for reporting
purposes.
• Internal Reporting Purposes (Management Reports), External
Reporting Purpose ( Tax, Statutory Reporting)

25. SAP ERP financial business benefits
• Improve financial and managerial reporting:
• SAP ERP Financials gives you the flexibility to report performance by business
unit, organization, or cost center.
• Improve corporate performance:
• SAP ERP Financials provides the foundation to quickly read, evaluate, and
respond to changing business conditions with accurate, reconciled and timely
financial data.
• Achieve faster closes:
• With SAP ERP Financials, you can streamline accounting, consolidation,
process scheduling, workflow, and collaboration.
• Improve corporate governance and transparency:
• SAP ERP Financials provides broader support of accounting standards, federal
regulations, and improved administration of internal controls.

26. SAP ERP financial business benefits
• Improve cash flow and liquidity:
• SAP ERP Financials automates dispute, credit, and collections management –
and offers electronic invoicing and payment capabilities that supplement
traditional accounts receivable and accounts payable functions to accelerate
and manage cash flow.
• Optimize global cash management:
• With SAP ERP Financials, you can report, analyze, and allocate cash in real
time, and establish in-house banks or payment center.
• Improve process integration between finance and treasury:
• With SAP ERP Financials, you can integrate risk and treasury transactions
with core accounting and financial reporting processes.
• Reduce overall finance costs:
• SAP ERP Financials helps you operate effective shared-services, collaborate
with customers or suppliers, and streamline operations to reduce costs and
resource demands.

27. Characteristics or Features of Finance