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SAP FI CO: Guide to the SAP Finance and Controlling module

Written by FocusTribes | Aug 6, 2024 1:49:33 PM

SAP's FI (Financial Accounting) and CO (Controlling) modules are crucial to financial management and controlling in any company. The FI module focuses on accounting compliance and external financial reporting, while the CO module is dedicated to internal cost analysis and strategic decision-making. Together, they provide an overview of the company's financial health and optimize operational performance. You can also find a list of other SAP modules here.

 

 

 

Perfect synergy between FI and CO

 

The FI and CO modules work in tandem to provide a complete picture of the company's financial situation and internal performance.

 

External requirements : The FI module ensures compliance with accounting standards and legal obligations. It ensures the accuracy, reliability and compliance of financial reports, which are essential for investors, tax authorities and auditors.

 

• Internal requirements : The CO module focuses on cost control and strategic decision-making. It enables managers to optimize operations, improve overall efficiency and base their decisions on accurate data.

 

 

Focus on the FI module

 

SAP's FI (Financial Accounting) module is designed for accountants and financiers, facilitating the management of financial transactions and the production of reports in line with international and local standards. Its main tools include :

 

Balance sheet : Generates financial statements detailing the company's financial situation at a given point in time, including assets, liabilities and shareholders' equity.

 

Cash flow : Tracking cash flows to assess the company's ability to generate liquidity.

 

Income statement : Details revenues and expenses over a given period, making it possible to assess financial performance.

 

 

SAP FI-GL (comptabilité générale)

 

The SAP FI-GL sub-module centralizes all financial transactions, facilitating the production of compliant financial reports. It offers :

 

• Chart of accounts : Structure accounts for organized general accounting.

• Accounting : Ensures that all transactions are correctly recorded.

• Financial reporting : Offer detailed balance sheets, income statements and cash flow statements.

• Integration with other modules : Ensures consistent management with CO, MM and SD.

• Profit segments and cost centers: Detailed financial performance monitoring.

 

 

SAP FI-AP (Accounts Payable)

 

The SAP FI-AP sub-module manages accounts payable, centralizing transactions and facilitating the management of payments, invoices and credits. Features include :

 

• Invoice management : Registration, verification and processing of supplier invoices.

• Automated payments : Optimizing the payment process.

• Payment schedule : Track and manage due dates to avoid delays.

• Financial reporting : Detailed reports on debts and payments.

• Integration with other modules : Consistency with MM and FI-GL.

• Supplier credit management : Follow-up and management of credits received.

 

 

SAP FI-AR (Accounts Receivable)

 

The SAP FI-AR sub-module manages customer accounts, centralizing transactions for efficient management of invoices, payments and receivables. Its main functions are :

 

• Customer invoice management : Invoice registration and follow-up.

• Automated collections : Optimize payment collection.

• Customer payment schedule : Monitoring due dates to minimize delays.

• Financial reporting : Detailed reports on receivables and payments.

• Integration with other modules : Consistency with SD and FI-GL.

• Customer credit management : Monitoring of credit granted.

 

 

SAP FI-BL (Bank Accounting)

 

The SAP FI-BL sub-module centralizes banking transactions, facilitating cash management. Features include :

 

• Bank account management : Track balances and transactions.

• Banking transactions : Processing of deposits, withdrawals and transfers.

• Bank reconciliation : Verification of bank transactions.

• Financial reporting : Reports on banking activities.

• Integration with other modules : Consistency with FI-GL and FI-AP.

• Cash flow management : Monitoring liquidity.

 

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Focus on the CO

 

SAP's CO (Controlling) module focuses on controlling and internal cost analysis. It enables strategic decision-making based on accurate data. Its main tools include :

 

Reports by cost center : Track and analyze costs to optimize spending.

 

Sales and profit analysis : Understanding performance by product and service.

 

 

SAP CO-CEL (Cost Element Accounting)

 

The SAP CO-CEL sub-module manages cost items, providing a structured view of cost transactions. Its functionalities include :

 

• Cost classification : Organization of direct and indirect costs.

• Cost recording : Precise accounting of transactions.

• Cost analysis : Identify trends to optimize costs.

• Financial reporting : Detailed reports by cost center.

• Integration with other modules : Consistency with FI, CO-OM and CO-PC.

• Budget monitoring : Efficient resource management.

 

 

SAP CO-OM-ABC (Activity-Based Costing)

 

The SAP CO-OM-ABC sub-module allocates costs to products based on activities. Its functionalities include :

 

• Identifying activities : Organizing costs by activity.

• Cost recording and calculation : Precise cost allocation.

• Activity-based cost analysis : Optimizing operating costs.

• Financial reporting : Cost reports by product and process.

• Integration with other modules : Consistency with FI, CO-OM and CO-PC.

• Budget tracking by activity : Resource management.

 

 

SAP CO-CCA (Cost Center Accounting)

 

The SAP CO-CCA sub-module allocates costs to cost centers, making it easy to monitor and optimize internal costs. Features include :

 

• Definition of cost centers : Organization by units.

• Recording and allocation of costs : Precise allocation of transactions.

• Analyze costs by center : Identify variances.

• Financial reporting : Detailed reports by cost center.

• Integration with other modules : Consistency with FI, CO-OM and CO-PC.

• Budget monitoring : Efficient resource management.

 

 

SAP EC-PCA (Profit Center Accounting)

 

The SAP EC-PCA sub-module allocates revenues and costs to profit centers, facilitating analysis of financial performance. Features include :

 

• Definition of profit centers : Organization by units or products.

• Transaction recording : Precise allocation of revenues and costs.

• Performance analysis : Revenue optimization and cost reduction.

• Financial reporting : Detailed reports by profit center.

• Integration with other modules : Consistency with FI, CO and MM.

• Budget monitoring : Management of financial resources.

 

 

SAP CO-OM-OPA (Order and Project Accounting)

 

The SAP CO-OM-OPA sub-module allocates costs to orders and projects, making it easy to track and optimize specific costs. Features include:

 

• Definition of orders and projects : Structured organization.

• Recording costs : Precise allocation of transactions.

• Monitoring orders and projects : Identifying discrepancies.

• Cost analysis : Optimizing operating costs.

• Financial reporting : Detailed reports by order and project.

• Integration with other modules : Consistency with FI, CO and PS.

• Budget monitoring : Effective management of financial resources allocated to orders and projects.

 

 

SAP CO-PC (Product Cost Controlling)

 

The SAP CO-PC sub-module is dedicated to the precise allocation and control of production costs, facilitating detailed monitoring and analysis. Its functionalities include

 

• Calculation of production costs : Definition and calculation of costs per product.

• Production order tracking : Precise recording and monitoring of costs.

• Production cost analysis : Tools to identify trends and deviations, optimize processes and reduce costs.

• Financial reporting : Detailed cost reports, including product cost, variance and margin reports.

• Integration with other modules : Consistency with FI, MM, and PP.

• Inventory management : Monitoring and management of finished goods and raw materials inventories.

 

 

SAP CO-PA (Profitability Analysis)

 

The SAP CO-PA sub-module focuses on managing and analyzing company profitability, making it easier to monitor and optimize financial performance. Its functionalities include :

 

• Market segment definition : Organization of market segments according to business needs, such as products, customers, geographical areas or distribution channels.

• Recording revenues and costs : Precise allocation of transactions to market segments.

• Profitability analysis : Analytical tools to identify trends and gaps in profitability by market segment, helping to optimize revenues and reduce costs.

• Financial reporting : Generate financial reports on profitability, such as margin reports by product, profitability reports by customer, and variance reports.

• Integration with other modules : Consistency with FI, SD, and MM.

• Budget management by market segment : Track and manage budgets allocated to different market segments.

 

FocusTribes supports your FICO project

 

Whether you're a company looking to improve your financial management and controlling, or an SAP consultant, FocusTribes is here for you. We help companies implement and manage SAP's FI (Financial Accounting) and CO (Controlling) modules, giving them a clear view of their financial situation. In addition, we help SAP consultants find assignments that match their skills.

 

 

 

Discover the Presentation of Other SAP Modules

 

To deepen your knowledge of various SAP modules and optimize your business processes, discover our detailed guides :

 

SAP MM (Materials Management)

SAP PP (Production Planning)

SAP SD (Sales and Distribution)

SAP PS (Project System)

SAP WM (Warehouse Management)

SAP QM (Quality Management)

SAP PM (Plant Maintenance)

SAP CS (Customer Service)