FI-CO Overview

http://academic.scranton.edu/faculty/gramborw/sap/ficover.htm

FI-CO OVERVIEW
SAP R/3 Organizational elements for Financials Reporting and Analysis
OBJECTIVES Define the SAP R/3 organizational elements for Financial reporting and control Identify financial integration points with the logistics chain Execute financial and management reports in the SAP R/3 system

Financial Accounting is broken down into the following submodules: General Ledger accounting Accounts Receivable Accounts Payable

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FI-CO Overview

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Legal Consolidations Special Purpose ledger Asset Accounting Controlling is broken down into the following submodules: Overhead Cost Controlling Product Cost Controlling Sales and Profitability Analysis Activity Based Costing

Views of the the company's financial situation and performance

Enterprise controlling (EC) Treasury (TR) an enterprise-wide view of financial reporting control of cash, banking, securities, and funds management management accounting for tracking overhead and profitability as well as production process control

Financial Accounting (FI) core financial accounting integrated with subledgers Controlling (CO)

Investment Management capital investment management such as construction projects or capitalization of (IM) assets

Summary of Organizational Units in SAP Financial Accounting

Chart of accounts Contains all account numbers Group Company Consolidation of company codes Company Code Business Area Independent balancing unit used for legal reporting Used to create internal balance sheets

Controlling
Controlling area Cost center Profit center Organizational unit for cost accounting Organizational unit for cost control Organizational unit for internal profit analysis

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SAP R/3 Organizational elements for Financials Reporting and Analysis

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External accounting is directed "outwards" and is regulated strictly by tradition and law to ensure comparability. Principles of double entry bookkeeping Profit and loss system Period based accounting Internal accounting is purely for internal use and serves to control and manage the organization. It is constructed along the lines set by management and must be flexible.

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The Audit Trail Every transaction in the system is represented by a document A document records a business transaction Documents are accessible in real time and are stored centrally Data resulting from transactions posted to the system can be viewed at every level of detail from the original document to the final report. The system provides an audit trail of the reporting information through the drill down capabilities.

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General Ledger and its Subledgers Transactions that affect financials update the General Ledger via subledgers that are directly integrated. Subledgers reduce the number of General Ledger accounts shown on the Financial Statement. The balances of subledger accounts are automatically updated in the General Ledger through a Reconciliation Account.

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