Know Everything about SAP FICO

Enterprise Resource Planning has had SAP as its biggest contributor in recent times. SAP was founded in 1972 to launch business processes aimed at organizing processes in enterprises. While multiple modules were developed in SAP for different processes, SAP Finance and Controlling (FICO) is one of the most broadly used SAP modules. SAP FICO is an abbreviation of two SAP modules FI and CO. It goes without saying that, having knowledge of these two modules is vital, but since these modules are interconnected with other modules, one at least should have an overview of the other modules as well. SAP FICO is a combination of the SAP FI and CO configurations, and SAP FI and CO users. Professionals looking to start a career as an SAP FICO consultant will need to build a strong foundation covering all features of SAP FI and CO modules.

SAP FI Module and its Application:

Finance Management in Businesses is upgraded by SAP Financial Accounting. Finance is a critical component of every enterprise and has to be perfectly managed to ensure a sizeable bottom line. Allocating resources to manage Financial Accounting of a corporation as a whole can be a daunting task on many levels. In many enterprises, the SAP FI module has turned out to be popular and has been implemented widely in businesses. The SAP financial accounting module is composed of a package that aids enterprises manage complex financial needs and accounting activities. Using this tool, concerned professionals can review the financial status of a company in real-time. The most vital components of the FI module are:

• General Ledgers
• Asset Accounting
• Account Consolidation
• Accounts Receivable
• Accounts Payable

Implementation of SAP FI includes SAP FI configuration. The Finance Manager or the Business Manager can configure SAP FI user after setting up minimal primary configurations. The configurations are made in order to collate with client needs, enterprise and business area configurations and more. Post this task, everything from financial statements to Master Data can be migrated to the SAP FI system for obtaining a highly optimized, organized and efficient Financial Management System. SAP FI configuration requires fiscal year variants, currencies and chart of accounts. After completion of the configuration, the document posting is automatically posted. This will enable enterprises to view their real-time financial status aiding in businesses being able to keep track of all financial transactions in turn supporting finance reporting at the end of the fiscal year.

SAP Controlling Module and its Application:

Another equally essential module in SAP is SAP CO. This includes SAP CO user and SAP CO configuration which in turn is composed of configuration and reporting and master data. Cost centers, internal orders, statistical key figures, cost elements, functional area, and activity types are just some of the types of master data available. In terms of cost elements there exist all the cost centers, profit centers including every departmental unit that handles cost and profit of the business, cost and revenue accounts, and internal orders consisting of every critical event in the enterprise and a whole lot more. Implementation of SAP CO lets anyone examine the data of costs involved within the internal management of the enterprise. This module helps organizations manage and handle the information database and reporting as dictated by the business needs helping these corporations to make mission-critical business decisions.

What’s more, this module enables enterprises to manage reporting and information according to business needs. The most pronounced benefits of SAP implementation within enterprises are as follows:

• The ability to track cost heads and make future plans as needed
• The cost tracking capability for specialized enterprise events and being able to assign them to appropriate departments within the organization
• The ability to access activity based on costing across business processes
• Management of variances, product costing and production costs
• Build reports on sales and profitability ensured through product or internal measurement

Sub-Components of SAP CO Module include:

• SAP-CO-OM-ABC or Activity Based Costing
• SAP-CO-PCA or Profit Center Accounting
• SAP CO-OM or Overhead Management
• SAP-CO-OM-CEL or Cost Element Accounting
• SAP-CO-PA or Profitability Analysis
• SAP CO-OM-CCA or Cost Center Accounting
• SAP-CO-OM-OPA or Internal Order Accounting
• SAP-CO-PC or Product Costing

Becoming a success as a FICO consultant depends upon the individual possessing a comprehensive overview of SAP FICO. Financial accounting and Controlling are inter-related aiding one to manage better business processes towards highly optimized Finance Accounting and Data Management.

SAP implementation requires a systematic and disciplined approach due to its complex nature and needs an adequate amount of training. Even though it is not compulsory to take up SAP FICO training, success as an SAP FICO consultant is virtually guaranteed if an individual picks the right kind of training for the same. Experts and finance industry veterans recommend in no uncertain terms taking up SAP FICO training to improve the professional’s understanding in the application and take the most essential step towards highly optimized management of reporting and finance accounting in organizations

Educational background:

While it is not always mandatory, it certainly helps to possess domain appropriate university education and will catalyze the process of becoming an SAP FICO consultant greatly. A Bachelor’s or master’s degree from a suitable college should serve as the first step in this process. The Trainee should take up courses or classes in Financial Management or Accounting along with general management.

Official Training & Certification:

Official training from SAP is regarded as the best across the world without exception and will add a whole lot of weight to one’s CV, enhancing the chances of standing out from the competition. You can augment this training by accessing the SAP Community Network or SCN, and other self-study links and forums. While augmentation is well and good, there is simply no replacement for being trained by an authorized SAP institute. The following is a list of important areas of training relevant for FI/CO consultants offered by SAP:

TERP10 This refers to the Integration and consolidation of business processes which includes introduction to SAP NetWeaver and SAP ERP and organizational processes of such fields as Financial and Management Accounting, Material Planning, Purchase to Pay, Manufacturing, Order to Cash, Enterprise Asset Management, Inventory, Customer Service, Lifecycle Data Management, HCM (Human capital management), and Program and Project Management.

TFIN50 – Financial Accounting I

TFIN52 – Financial accounting II along with a case study

TERP21 – E-learning of business processes in financial accounting

TFIN20 – Management accounting I

TFIN22 – Management accounting II including a case study

Post completion of TERP10 you will have a conceptual grasp of SAP ERP and its business processes. In order to become a successful SAP FICO professional, you will need an adequate hands-on experience which will start as soon as you take up one of the SAP FICO certifications.

The SAP courses TFIN50, TFIN52, TERP21, TFIN20, and TFIN22 will help you to master your SAP FICO knowledge. Post completion of any of these courses, companies will actively seek you out for employment, ensuring job security.

SCN/ SAP Community Network

SCN is also known as the SAP Community Network where you can find valuable educational material, discussions chat forums on relevant SAP topics, modules, and breakthroughs in relevant technologies. It is highly advisable to actively participate in SCN and build your reputation in the community. This can help you greatly in procuring SAP FICO job offers and recognition from organizations and personnel.

Conclusion:

With the right mix of authorized SAP module training, on-going learning by the Trainers themselves and the needed degree of interaction with SAP industry veterans, it is relatively easy to become a massive success as an SAP FICO consultant.