The functional module of SAP ERP Financials deals with finance and is known as SAP FI or SAP Finance. The other component of SAP Accounting, known as controlling (CO), deals with the cost control of the company. It usually becomes a complete module of SAP FICO when both are used together. SAP FI manages a company’s financial obligations; it is often known as the ERP system’s Finance module or SAP Financial Accounting. SAP FI is a crucial module of every organization. To get a brief knowledge of this, SAP FI Online Training can be really helpful.
What is the Actual Use of SAP FI
The leading provider of business solutions is SAP. Regardless of industry, it offers you software applications and services to answer specific company demands. With SAP ERP Financials, you may improve your financial performance by precisely managing liquidity and cash, optimizing procedures, and cutting costs. Moreover, the main features of SAP ERP Financials provide you with the essential business support you want in a few key areas.
Financial Accounting, or SAP FI (Finance), allows for the control and integration of financial data across the entire organization. Which is indeed necessary for making strategic decisions. It further complies with global accounting standards including TFRS and US GAAP. Additionally, SAP Financial Accounting complies with local legal standards in many nations. And then updates to reflect changes to the law and accounting. There are various new features available in the SAP FI section of SAP Financials. Its contemporary improvements aid in meeting today’s accounting and reporting financial and management criteria.
Sub-Modules of SAP FI
The sub-modules in SAP FI help to improve its efficiency and also user-friendliness. It can be;
New General Ledger (New G/L)
Accounts Payable (AP)
Accounts Receivable (AR)
Asset Accounting (AA)
Bank Accounting (BA)
Special Ledger (SL)
SAP FI’s New General Ledger (New GL)
Multiple ledgers no longer need to be manually kept up thanks to the SAP New General Ledger. As a single program, its functionality fully supports both administrative and financial accounting.
Through real-time, rules-based allocations between business units, New G/L enhances financial accounting and reporting. Additionally, it automates the tying together of journal entries from several components. In contrast, typical (classic) GL systems call for numerous applications to reconcile in order to meet enterprise-wide reporting requirements.
Account Payable (SAP FI-AP)
Accounting information for each of your vendors enters and manages by SAP Accounts Payable. The purchasing system includes SAP FI-AP, which automatically posts transactions in response to operational transactions.
Additionally, it provides invoice data to the Cash management application component to enhance liquidity planning. In SAP FI, you can pay your payables using a built-in payment program. Moreover, depending on the transaction, the postings made in FI-AP are simultaneously recorded in a number of G/L accounts.
Account Receivable (SAP FI-AR)
Just like FI-AP, FI-AR also maintains and even records account-relating information for every client. It is indeed crucial to effective sales management. Every posting in FI-AR is also directly enters into the GL.
You can track open items using a number of tools in SAP Accounts Receivables. By reminding your clients of their outstanding debts with the aid of a dunning program. Additionally, this program offers the information you require for efficient credit management and liquidity planning. This is due to the links it gives to cash management.
Asset Accounting in SAP FI (FI-AA)
The SAP Finance system functions to handle the fixed assets of your business. It uses a subsidiary ledger to the G/L called FI-AA (Asset Accounting in SAP FI). Irrespective of the kind of industry, you may use this at all places. It additionally integrates with other application domains. Data also travel to and from other SAP components through FI-AA. Depreciation and interest can therefore transfer straight to the FI and CO components.
Bank Accounting in SAP FI (FI-BL)
Along with handling incoming and outgoing payments, FI-BL (Bank Accounting in SAP FI) also allows for the management of cash balances and Bank Master data. You can flexibly define all nation-specific attributes with this. These consist of:
Integration with other SAP modules SAP FI is integrated with other SAP modules, such as SAP Controlling (CO), Materials Management (MM), Sales and Distribution (SD), and more, to provide a holistic view of an organization’s financial operations.
The requirements for manual and electronic payment methods, Payroll paperwork, etc.
Special Purpose Ledgers (SAP FI-SL)
You can define ledgers in SAP Financials for reporting needs using FI-SL. These vague ledgers retain as G/Ls. Alternatively, you can continue to use them as subsidiary ledgers with different account assignment objects.
All these modules under SAP FI make your account management even easier. Above all when you get SAP FI Certification you get to show the necessary qualities you have. Certainly, making a strong representation of the skills you have.