What is SAP FICO explain about the sap financial and controllingSAP FICO (Financial Accounting and Controlling) is a core module in the SAP ERP system that focuses on financial management and internal cost control within an organization?

Answer 1

SAP FICO (Financial Accounting and Controlling) is a core module in the SAP ERP system that focuses on financial management and internal cost control within an organization. It’s split into two main components:

1. Financial Accounting (FI):

Purpose: Manages financial transactions and external reporting.

Key Functions:

General Ledger Accounting: Records all financial transactions in a company's general ledger, providing a complete overview of financial status.

Accounts Payable: Manages vendor transactions, including invoice processing, payments, and vendor account management.

Accounts Receivable: Handles customer transactions, including invoice creation, payment processing, and customer account2. Controlling (CO):

Purpose: Focuses on internal cost management and decision-making.

Key Functions:

Cost Element Accounting: Categorizes and records costs associated with various activities.

management.