SAP FICO is SAP ERP which is used for financial reporting both externally and internally. Meaning of SAP FICO is Financial Accounting (FI) and controlling (CO). The objective is to record all financial transactions that post an accurate entity and pro due financial statement at the end of the trading period. The most frequently used sub modules in SAP FICO are Accounts Receivables, Accounts Payables, Asset Accounting, General Ledge Accounting and Bank Accounting.
All general ledger accounts that are used for reporting are managed through general ledger accounting. In SAP a set of all general ledger accounts used by a company or a group of companies is called a chart of accounts.
Accounts Receivables is a sub-module that captures all transactions with customers and manages customer accounts.
Accounts payables is a sub module that captures all transactions with vendors and manages vendor accounts.
Asset accounting deals with all transactions related to an entity's assets. All transactions involving assets for an entity are managed by asset accounting in SAP FICO. Reconciliation accounts in the general ledger are immediately updated when transactions are posted to asset accounts. Acquisition, retirement, sale, transfer, revaluation, and depreciation are all examples of asset accounting transactions.
Bank accounting captures all transactions with banks. Bank reconciliation compares all of the transactions listed on bank statements to those recorded in the system.
Professionals skilled in SAP FICO are in more demand every day. They also have good lives. The process of becoming a FICO Coordinator is quick. Additionally, SAP FICO aids in effectively structuring financial management systems, which enhances record keeping and facilitates decision-making. It is no simple to manage changes, product costs, and production expenses. There is greater activity-based costing across processes.
The management of a better business process in order to improve financial accounting and data management is made possible by the inter relationships between financial accounting and controlling. The SAP FICO software aids in the integration of distribution, sales, material management, purchasing and enables the customer to record unique transactions, including those involving purchases, sales orders, and material movements. The major advantage of SAP is system integration.
For a career in this profitable industry, students from Any Graduate or Post Graduate, non-technical and technical backgrounds can choose SAP FICO classes or SAP FICO online training. Students with expertise in accounting and finance can certainly become proficient with SAP FICO and change the direction of their careers.