What is SAP FICO Module ?
This is not a question that an interviewer would ask to any SAP FICO job aspirant. Obviously, you should be updated about SAP FICO module while applying for a job in this domain. Still it is never too late to revise the terms.
SAP FICO module refers to the Finance(FI) and Controlling(CO) modules of SAP ERP system. FI and CO are the core modules of SAP. They are tightly integrated with Sales and Distribution Module ( SD) and Materials management (MM) module.
The above diagram appropriately shows how SAP FI and CO modules are places in the overall SAP architecture.
What is SAP FI ?
SAP Financial Accounting (FI) is the core module where all the financial processing transactions are captured. This is the module that is used to create statutory Financials Statements for external reporting purposes.
Functions in SAP FI can primarily be divided into General Ledger Accounting (G/L), Accounts Receivable and Accounts Payable(AR/AP) processing, and Fixed Asset Accounting(AA). We will pick up details of SAP FI module in another blog post.
What What is SAP CO ?
SAP Controlling module helps provide operational information to the management of a company to support business analysis and decision-making. CO represents the internal accounting viewpoint of an organisation. It provide information to managers to help manage costs and operations of the organization.
SAP refers External Accounting as “Financial Accounting”(SAP-FI) while Internal Accounting is referred as Managerial Accounting(SAP-CO).