Financial Accounting

SAP Financial Accounting (FI)

SAP Financial Accounting
SAP Financial Accounting

SAP FI module like the term suggests transactions in managing financial transactions within companies. This financial accounting module assists employees in managing the data involved in all financial and business transactions in one unified system. This module works perfectly for reporting requirements. The SAP FI module is very versatile and works well in any kind of economic situation. Whether a small or large organization, SAP implementation helps consolidate data for various business transactions and legal requirements. The FI module helps to obtain the real-time financial situation of a business in the marketplace. SAP FI integrates with other SAP add-ons like SAP SD, SAP MM, SAP PP, Payroll, and more for better work results.

The components of the SAP FI module meet all the requirements of an organization’s financial accounting department.

SAP Financial Accounting Overview and Features

The major features of SAP FI are:

  • The SAP FI records all business transactions with uninterrupted audit testing from financial statements to individual records.
  • Postings to the sub-ledger accounts always generate postings to a corresponding GL account.
  • Data is available in real time and financial accounting data can be accessed through the organization.
  • All transactions processed in logistics are recorded in the financial accounting module by the automatic determination of accounts. It is therefore important to ensure that the value of goods and services is accurately reflected in the accounting.
  • Prepares operational information and makes effective business decisions.

You May Also Like : Meaning of SAP: Understanding What is SAP !

How are we using SAP FI?

The SAP FI module allows you to manage financial accounting information in the international framework of several companies, currencies and languages. The SAP FI module is primarily concerned with the following financial components:

  • Fixed asset
  • Accrual
  • Cash journal
  • Accounts receivable and payable
  • Inventory
  • Tax accounting
  • General ledger
  • Fast close functions
  • Financial statements
  • Parallel valuations
  • Master data governance

SAP FI consultants are primarily responsible for implementing financial accounting and cost accounting through SAP ERP Financials.

How do I create a new line of business on SAP FI?

Expand Enterprise Structure as mentioned in the previous topic → Definition → Financial Accounting → Define Business Area → Execute → Go to New Entries.

You May also Like:

 SAP Controlling ( SAP CO)
SAP Sales and Distribution (SD)
 SAP Production Planning (PP)
SAP Materials Management (MM)

SAP FI – Define Functional Area

The functional sectors of finance, accounting are used to define expenditures in an enterprise, according to the individual functional units. Typical functional areas are:

  • Manufacturing
  • Sales and Distribution
  • Production
  • Administration

SAP FI – Define Credit Control

Credit control in the FI is used to verify the client’s credit limit and may use one or more codes. It is used for credit management in application components like Accounts Receivable (AR) and Sales and Distribution.

The credit control area is determined in the order below.

  • User exit
  • Distribution channel
  • Customer master
  • Company code for the sales organization

Sub Modules of SAP Financial Accounting

SAP FI consists of submodules. The sub-modules that are commonly used are accounts receivable, accounts payable, asset accounting, general ledger and bank accounting. All sub-modules are linked to one another and integrate in real time.

Sub modules

  • Accounts payable (FI-AP)
  • Accounts receivable (FI-AR)
  • Asset Accounting (FI-AA)
  • Bank Accounting (FI-BA)
  • Funds Management (FI-FM)
  • General ledger (FI-GL)
  • Special purpose ledger (FI-SL)
  • Travel ledger (FI-TV)