SAP Financial Accounting

SAP FINANCIAL ACCOUNTING -- SAP Financial Accounting (FI) is an important core module where in real-time, the financial processing transactions are all captured to provide the basis via which data is drawn for external reporting. SAP FI ( Financial Accounting ) is one the functional module in SAP software. This SAP FI Module is integrated with many parallel modules that enable a company to unify processes that may have needed the utilization of many software packages.

Other Modules of SAP that commonly find a role of integration with FI are (but not limited to) Material Management (MM), Sales & Distribution (SD), Human Resources (HR), Production Planning (PP), Controlling (CO), etc. Amongst these CO – Controlling is another major focus for those coming from the Finance / Accounting / Auditing / Budgeting and Financial Reporting / Analysis Backgrounds Professions.

Company-wide control and integration of financial information is essential to strategic decision making, SAP ERP Financials enables you to centrally track financial accounting data within an international framework of multiple companies, languages, currencies, and charts of accounts.SAP FI module mainly deals with.

SAP FI (Financial Accounting) is accountable for tracking the flow of financial data across the organization in a controlled manner and integrating all the information for effective strategic decision-making.

SAP FI module mainly deals with
1. Fixed asset
2. accrual
3. bank
4.cash journal
5. inventory
6.  tax accounting
7. General ledger,
8.  Accounts receivable
9.  accounts payable
10.   AR/AP
11.   Fast close functions
12. Financial statements
13.Parallel valuations
14.Master data governance.

Activities Involved in SAP FI

1. Creation of Organizational Structure (Defining Company, Company Codes, business Areas, Functional Areas, Credit Control, Assignment of Company Codes to Credit Controls)
2. Financial Accounting Global Settings (Maintenance of Fiscal Year, Posting Periods, defining Document types, posting keys, Number ranges for documents)
3. General Ledger Accounting (Creation of Chart of Accounts, Account groups, defining data transfer rules, creation of General Ledger Account)
4.Tax Configuration & Creation and Maintenance of House of Banks
5. Account Payables (Creation of Vendor Master data and vendor-related finance attributes like account groups and payment terms)
6. Account Receivables (Creation of Customer Master data and customer-related finance attributes like account groups and payment terms
7. Asset Accounting
8. Integration with SD and MM