SAP FICO

MODULE

VENKAT
PRESENTATION PATH
• Introduction to ERP
• Introduction to SAP
• Configuration Aspects - SAP FI Module.
• Configuration Aspects - SAP CO Module
Career Planning in SAP.

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 Introduction to ERP
• What is ERP?
• ERP is Enterprise Resource Planning
• ERP automates the tasks involved in
performing a business process.
• ERP enables planning of all the resources
(Men, Machine, Materials and Money) in an
organization
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 Introduction to ERP
ERP products available in the Market are –
1. SAP
2. ORACLE APPLICATIONS
3. JDEDWARDS
4. BAAN
5. PEOPLE SOFT etc.
SAP is having a market share of over 65%.
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Introduction to SAP
• SAP is a leading ERP Package.
• SAP enables an enterprise to undertake its day to day
and long term activities in an effective and efficient
way.
• Use of this package makes it possible to track and
manage, in real-time, sales, production, finance
accounting and human resource activities in an
enterprise.

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Introduction to SAP
• SAP –Systems Applications and Products in Data
Processing.
• Brief History:
Found in the year 1972 by Wellenreuther, Hopp,
Hector, Plattner and Tschira
Renamed in 1977.
Before 1977 : Systems Analysis and Program
Development .

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Introduction to SAP
Sales Finance
accounts

Inventory NON-SAP Purchasing

Production
Planning

Let us take the example of a transaction like purchase of raw material taking place in
purchase department. In a NON SAP environment the transaction first gets recorded
in the purchase department and the same will be updated manually in the finance
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department i.e two individuals will be working for a for this transaction 7
Introduction to SAP
Sales Finance
accounts

Inventory SAP Purchasing

Production
Planning

Since all the modules are integrated in SAP data automatically gets
updated. 8

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Introduction to SAP
SAP Conceptual Areas

Basis Area Development Area

Application Area (The technical
(1. A developer’s
(Initiate and execute workbench
administration of
SAP transactions) 2. Create & Test
the system)
ABAP/4 programs)
(Functional)
(Authorizations/Ids/etc)
(Technical)

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Introduction to SAP
SAP Application Modules
•Financial accounting (FI)
•Controlling (CO)
•Materials management (MM)
•Sales and Distribution (SD)
•Production Planning (PP)
•Plant maintenance (PM) & Customer Service (CS)
•Human resources (HR)
•People with respective domains will enter in to the respective
functional or application areas
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INTRODUCTION TO FI MODULE
Key elements Of FI Module –
• General ledger
• Accounts payable – Sub ledger
• Accounts receivable – Sub ledger
• Asset Management – Sub ledger
• Tax on sales and purchases.
• Tax deducted at source ( TDS)
• Cash transactions.
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• Bank Transactions.
INTRODUCTION TO FI MODULE
FI Module is needed to generate P&L A/C and Balance sheet
of a firm.

FINANCIAL
ACCOUNTING

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INTRODUCTION TO FI MODULE
In order to generate the financial statements
transactions are recorded in the general ledger
GENERAL LEDGER
•All the activities needed to post a transaction are undertaken.
•Preparation of Chart of Accounts.
•Creation of General Ledger Accounts.
•Posting of a transaction.
•Generation of reports.

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INTRODUCTION TO FI MODULE
ACCOUNTS PAYABLES:
•Activities related to purchase of Raw Materials and purchase
of other items on credit are recorded in this module.
•Accounts payable in SAP is treated as a sub-ledger.
•A G/L account Sundry creditors is maintained at the G/L
Level.
•At the Sub- ledger level a record “Vendor Master” is created.
•All transactions are posted to sub-ledger.
•Transactions posted to the sub-ledger are maintained at two
levels- one in the sub-ledger and the same data gets
transferred to the General ledger .
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ACCOUNTS PAYABLE

SUB LEDGER
Accounts
payable

VENDOR MASTER

VENDOR X VENDOR Y

GENERAL
LEDGER

SUNDRY CREDITORS RAW

MATERIAL

Consolidation
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Introduction to Accounts Receivables
• Activities related to sale of finished goods and sale of
other items on credit are recorded in this module.
• Accounts Receivable in SAP is treated as a sub-ledger.
• A G/L account Sundry debtors is maintained at the G/L
Level.
• At the Sub- ledger level a record “Customer Master” is
created.
• All transactions are posted to sub-ledger.
• Transactions posted to the sub-ledger are maintained at
two levels- one in the sub-ledger and the same data gets
transferred to the General ledger .
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Accounts Receivables
Accounts
SUB LEDGER
RECEIVABLE

CUSTOMER MASTER

CUSTOMER X CUSTOMER Y

GENERAL
LEDGER

SUNDRY DEBTORS SALES

Consolidation
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Introduction to FI Module –
Asset Accounting.
• Activities related to purchase ,sale, transfer and scraping of
fixed assets are undertaken in this module.
• Lifecycle of a fixed asset becomes a part of Asset accounting.
• Asset Accounting is treated as a sub-ledger in SAP.
• At the Sub-ledger level “Asset Master” is created to record
every asset separately.
• Asset class is created to know the total value of the assets.
• Asset Master is linked to the Asset class.
• All transactions are posted to the Asset master.18
ASSET ACCOUNTING

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Module CO – Controlling
• Data flow in Controlling will be from FI
• The module is needed for Internal management reporting
• CO Reporting
• Reports by cost centers.
• Orders and Projects.
• Budget/plan.
• Actual vs. plan.
• Reporting the variances.
• Taking corrective action.
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Module CO – Controlling
• Represents the flow of cost and revenue
• Instrument for organizational decisions
• Key elements of the CO application module include :
• Cost center accounting - provides information on the
costs incurred by the business cost center wise . E.g
Salaries paid to finance or HR department’s employees,
Travelling expenses paid to particular department’s
employee. 21
Module CO – Controlling
• Internal Orders - Provide a means of tracking costs of a
specific job, service, or task. E.g Marketing department
wants to find out the cost incurred for conducting an
advertising campaign.
• Profit center accounting - A profit center will have
revenues as well as costs. For a profit center we will be
booking the revenues as well as costs and do the result
analysis for the respective profit center. 22
 Module CO – Controlling
 Profitability analysis It will enable A Grp to analyze the
profitability of market segments according to the following
characteristics:
 Products
 Customers
 Sales Districts (i.e. USA West, USA East, Saudi Arabia etc.)
 Others.
 E.g Sale of a product in specific area for a specific time
period.
FI-MM AND FI-SD INTEGRATION 23
How Can a Career be Planned?

After completing the course, one can be-

1. Functional Consultant.
2. Support Consultant
3. End User

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ROLE OF FUNCTIONAL CONSULTANT

• Functional Consultant in an End To End

Implementation Project

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ROLE OF FUNCTIONAL CONSULTANT IN END
TO END IMPLEMENTATION

1. Functional consultant is expected to have knowledge

about the current business process.
2. He is expected to design current business flows into
SAP .
3. His main task will be to customize the respective
business processes.

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 ROLE OF SUPPORT CONSULTANTS

1. The main job of the support consultant is to provide

assistance to the customer or the organization where
SAP is already implemented
2. Primarily responsible for solving the problems of
end users.
3. When a problem arises the support consultant has to
diagnose, analyze and solve the issue

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ROLE OF END USER

1. End user will be using the ERP Software

implemented in the Organization.
2. His role is restricted to data entry.
3. He undertakes activities like passing the JV’s,
entering the data related to invoices etc.

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Thank You!