SAP FICO stands for FI (Financial Accounting) and CO (Controlling). SAP FICO is considered as the most important module of SAP ERP. Also, both, FI and CO modules store the financial transaction data
The sub-modules in SAP Finance are:
SAP is used to help companies generate and manage financial statements for analysis and reporting. Also, it helps with effective business planning and decision-making.
The business area is a separate area of operations of organizational units of financial accounting that can be used as internal and external reporting.
A Chart Of Accounts or COA is a structure which contains the General Ledger accounts used by one or more company codes.
Posting Key in SAP is a two-digit numeric key determined to control the entry of document line items in an FI Transaction. Posting Key in SAP further specifies whether the item is debit or credit entry, account type that can be posted and the screen arrangement of line items.
A General Ledger in financial accounting is used to record all business transactions in a software system.
In SAP, Fiscal Year Variant (FYV) is an alternative which controls parameters for a financial year, such as managing financial accounting year and posting period modifications to open and close posting periods.
In SAP, Posting Period Variant or PPV is used to manage accounting periods that are open for posting and all closed period that are balanced. It is used during the opening and closing period in the fiscal year for posting purpose.
A. Independent FYV: A type of fiscal year that uses the same number of the period for each financial year. And the posting year always starts and ends on the same day of the year is called Independent FYV. It can be further classified as:
B. Dependent FYV: Dependent FYV or Specific FYV is a type of fiscal year whos period varies from one fiscal year to another fiscal year that means that the start and end date of the FYV is different from the dates of another fiscal year. Shortened Fiscal Year is a variant of Dependent FYV.
Field Status Variant is used to determine the fields that are used for input like a cost center, profit center, plant, etc., which can either be entry or hidden fields. It is basically a tool used to assign the same set of properties to more than one object.
Field status groups are assigned to the General Ledger account. You can define a field as optional, mandatory or suppressed through the field status groups.
Document Type Key is used to differentiate between different business transactions and to classify the accounting documents. It is used to determine the number range for documents and account types such as material, asset, etc for posting
A Controlling Area is the basic organizational unit in Management Accounting. It is a closed entity which used for cost accounting. You can allocate costs only within a controlling area. These allocations cannot affect objects in other controlling areas.
If you carry out interim or final billing for a case in live mode, the system creates a document for every invoice in Sales and Distribution (SD). This document is posted on to FI, providing you made the appropriate settings in Customizing for IS-H.
Follow the following steps to block/unblock a customer:
Incoming and outgoing payments are posted in Accounts Receivable Accounting or Accounts Payable Accounting for advance payments, down payment requests, invoices, corrections and final invoices. All the payments are accounted in the down payment chain transactions and this displayed in the posting data.
A partial payment is posted to an account without any open items being removed. This partial payment is assigned to an open item. When you post the partial payment, the system marks the document number of the original open item in the line item for the partial payment. The original open item and the partial payment remain open.
The organizational elements in SAP FI are:
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