SAP FI

The Financial Accounting (SAP FI) module in SAP is designed to capture organizations' business transactions in a manner that will satisfy both the local and external statutory reporting requirements. Local legal considerations are pre-delivered with the SAP system and it has the ability to manage and report on multiple legal entities in multiple countries.

FI (Financial Accounting)

The Financial Accounting (SAP FI) module in SAP is designed to capture organizations' business transactions in a manner that will satisfy both the local and external statutory reporting requirements. Local legal considerations are pre-delivered with the SAP system and it has the ability to manage and report on multiple legal entities in multiple countries with multiple currencies and is out of box functionality. Integration with other modules such as Sales and Distribution, Purchasing, and Materials Management allows for the ability to select any financial transaction and "Drill Down" to the originating transaction whether it is a purchase Order, Sales Order, or material movement.

Financial Accounting includes the following sub-modules:

1. General Ledger Accounting (FI - GL)
2. Special Ledger (FI - SL)
3. Extended Ledger
4. Accounts Payable (FI- AP)
5. Accounts Receivable (FI - AR)
6. Asset Accounting (FI - AA)
7. Bank Accounting
8. Funds Management (FI - FM)
9. Travel Management (FI-TM)
10. Consolidation

The flexibility of the Finance modules' organizational structure gives the module the ability to handle any economic environment in which the company might be operating. Whether a smaller organization with a single legal entity or multinational corporations having branches and different legal entities across the globe having requirements for multiple local reporting, multi-currency, consolidations, and varying legal requirements, the SAP FI module can support and automate most financial postings and reporting.

Given below are the main organizational elements in the Finance module:

Company Code:

Represents a legal reporting entity where the books are balanced that is you can take out a balanced trial balance. There can be numerous company codes within an organization. Each has its own balanced books and reports itself as a single economic entity.

Credit Control Area:

If credit management is being used, this sets the general parameters for how credit is managed. The credit-control area can control credit for a single company code representing a decentralized credit management approach or multiple company codes representing a more centralized credit management approach.

Chart of Accounts

The system supports single or multiple charts of accounts providing the ability to record transactions and report financially in many different regulatory environments. A chart of accounts can support multiple Company Codes if necessary.