SAP FICO BASICS

INTRODUCTION TO SAP FI/CO:

Let’s get started. First we will go through a bit of introduction about
the SAP Finance Module before we grind in further: -------------

SAP FI (Financial Accounting) is the basic Module and very important

module in SAP. SAP FI Module receives postings from various other
modules such as MM (Material Management), SD (Sales &
Distribution) and HR (Human Resource) through various Integration
points. All the postings from the aforesaid modules are posted in real
time to FI-module. FI modules feeds in data to CO modules such as
Cost centre accounting, Profit centre accounting and the Profitability
analysis module. SAP FI module is geared for external reporting i.e. -
Ledger Reporting, Tax reporting.

Let’s also touch base on some other organizational structures,

which are important:

A. The plants created in the logistics (General) Module must be

assigned to Company Code. That means all Transactions taking
place in the plants are posted to the attached Company Code in
SAP FI.
B. The Purchasing organization created in MM Module is attached
to the Company Code.
C. The Sales organization created in SD module is attached to the
Company Code.
D. A company code created is assigned to the controlling area.
 SAP FICO BASICS
FI/CO SUBMODULES:

FI CO
ENTERPRISE STRUCTURE COST CENTRE
GLOBAL SETTINGS COST ELEMENT
GENERAL LEDGER PROFIT CENTRE
ACCOUNTS RECEIVABLE
ACCOUNTS PAYABLE
ASSET ACCOUNTING
BANK ACCOUNT
TAX
FINANCIAL REPORTING
FI-MM INTEGRATION
FI-SD INTEGRATION

What is SAP?
“Customizable, Scalable, and Portable” Software that covers
virtually every aspects of businesses on a global scale. SAP is fully
integrated and offers true compatibility across business functions.

FI: -- used for external reporting i.e. - Balance Sheet, P&L statements,
receives posting from various other modules such as MM, SD, HR &
integration.

CO: -- used for internal reporting purpose controlling area is the

organizational units used to represents the controlling activities of
Cost Centres Accounting, Profit Centre Accounting, Product Costing
and Profitability.
 SAP FICO BASICS
What is ERP?
ERP stands for Enterprise Resource Planning all functions are
integrated into one system.

Enterprise: Large Organization

Resource: Manpower, Material, Machinery, Money etc.

Planning: Proper Utilization of resources

Purchase Dept. Sales Dept.

(MM) (SD)

ERP
Account Dept. Human Resource (HR)

(FICO)

Organization

 Purchase
 Sales
 Production
 Account
 HR
 Admin

ERP Advantages

 There will be number of departments in organization. ERP

integrate all the functions into one system. It will facilitate free
flow of data among the departments.
 SAP FICO BASICS
 It Provide the correct information on time to take the business
decision.
 ERP Provide on time delivery and customer satisfaction.

ERP Packages

 JD Edwards : Account Software

 People Soft : HR
 Siebel : CRM
 Oracle : Finance
 SAP : All modules
 SAP ERP- Stands for System Application Product in Data
Processing
 SAP AG (Ltd.)
 In 1972, SAP R/2 System
 In 1992, SAP R/3 System
SAP Implementation Overview
 Normally when a Company intends to start SAP in its Company,
it purchase SAP software from SAP
 Price of SAP software based on the Number of Users.
 Once Company purchased the software, it appoints another
Company (ex. WIPRO, TCS, IBM) for implementation purpose.
 Both the purchaser and implementer will delegate its employee
for implementation of SAP. They are called as Core Team
Members. Structure of Core Team will be like:
Company Module want to Consultant Company
implement
 Costing Head CO Module CO
Consultant
 SAP FICO BASICS
 Purchase Head MM Module MM
Consultant
 Account Head FI Module FI
Consultant
 Sales Head SD Module SD
Consultant
 IT Head etc Implementation ABAP/BASIS

SAP PROJECT LIFECYCLE

1. Evaluations
2. Project Preparation
3. Business Blueprint
4. Realisation
5. Testing
6. Final Preparation
7. GO- Live
8. Sustain/Support

Evaluation:

Evaluation may be a decision to choose between different

software vendors or selection of products from a single
vendor.

Project Preparation:
 SAP FICO BASICS
Since a SAP Implementation intends to map the organization
processes to the ones defined by SAP, the implementation
needs to have on-board people with complete knowledge of
the organization business processes. The project preparation
phase, amongst the things aims to identify this team.

Business Blueprint

A business blueprint includes what modules of a SAP product

would be used and the mapping of the existing business
processes to the processes provided by SAP.

Realization

The actual work of customizing the SAP Software to be sync

with the organizations business processes is done in this
phase. It includes customization of existing SAP package and
solution along with the development of new objects based
on requirement.

Testing

The changes made in the realization phase need to be tested

in isolation as well as in a consolidated manner using real
time data. This is done in the testing phase.

Final Preparation

The Production system is prepared using the changes from

the realization and testing phases. Certain activities need to
be done directly in the production system as well. These
activities take place during the final preparation phase.

GO- Live
 SAP FICO BASICS
In this stage, the final product is realized to the end- users.
The go live may be done in Big Bang (all modules at one go)
or in a phase – by- phase manner.

Sustain/Support

The product now moves into the “sustain” and support

phase where the end-users issues would be resolved and
ongoing maintenance of the system would take care of.

SAP Landscape

DEVELOPMENT Quality Testing

Production
Client 800 Client 700 Client 400

Server 1(192.168.1.100) Server2 (192.168.1.101) Server 1(192.168.1.102

Enable Disable Disable
Customizing Purpose Testing Purpose Live Data