SAP FICO

SAP FICO Quick Guide

SAP FI Overview

SAP FI stands for Financial Accounting and it is one of important modules of SAP ERP. It is used to store the financial data of an organization. SAP FI helps to analyze the financial conditions of a company in the market. It can integrate with other SAP modules like SAP SD, SAP PP, SAP MM, SAP SCM, etc.

SAP FI comprises of the following sub-components −

  • Finance Accounting General Ledger.
  • Finance Accounting Accounts Receivable and Payable.
  • Finance Accounting Asset Accounting.
  • Finance Accounting Bank Accounting.
  • Finance Accounting Travel Management.
  • Finance Accounting Fund Management.
  • Finance Accounting Legal Consolidation.

Where Do We Use SAP FI ?

SAP FI module enables you to manage financial accounting data within an international framework of multiple companies, currencies, and languages. SAP FI module mainly deals 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 mainly responsible for implementing Financial Accounting and Cost Accounting with SAP ERP Financials.

SAP FI  Submodules

SAP FI has a collection of sub modules, as depicted in the following screenshot :

SAP FICO Overview

Finance Accounting – General Ledger

A General Ledger contains all the transaction details of a company. It acts as the primary record to maintain all accounting details. Common general ledger entries are customer transactions, purchases from vendors, and internal company transactions.

Common T-codes that are used to maintain G/L accounting −

  • F-06
  • F-07
  • FBCJ
  • FB50
  • FB02

Finance Accounting – Accounts Receivable and Payable (AR / AP)

It includes the details of amount that is paid by the customer and the amount that is paid by company to the vendors. In other words, AP includes all the vendor transactions and AR includes all the customer transactions.

Common SAP AR T-codes

  • FD11
  • FD10
  • FRCA
  • VD01

Common SAP AR Tables −

  • KNA1
  • KNVV
  • BSIW

Common SAP AP T-codes

  • XK01
  • MK01
  • MK02
  • FCHU

Common SAP AP Tables −

  • LFA1
  • LFM2
  • LFBK

Finance Accounting Asset Accounting

Asset Accounting deals with all the fixed asset of the company and provides all the transaction details about fixed assets. The asset accounting module of Finance Accounting works closely with other modules like SAP MM, SAP Plant Management, EWM, etc.

Common T-codes used for Asset Accounting −

  • AT01
  • AT03
  • AUN0
  • ASEM

Example − When a company purchases an item that can be considered as an asset, the details will be passed to Asset accounting module from the SAP MM module.

Finance Accounting Bank Accounting

It deals with all the transactions done through bank. It includes all the incoming and outgoing transactions performed, balance management and bank transaction master data.

You can create and process any type of bank transactions using the Bank accounting component.

Common Bank Accounting module tables that are used for this are −

  • LFBK
  • BNKA
  • KNBK

Common T-codes with bank accounting −

  • FIBLAROP
  • OBEBGEN
  • FI13
  • FF_6
  • RVND

Finance Accounting Travel Management

This module is used to manage all the travel expenses of a company. It involves all the travels request, their planning and expenses involved in all the requested trips.

It helps an organization to manage travel expenses in an efficient manner, as it provides integration with all the other modules of SAP.

Common Travel Management T-codes

  • PR05
  • PRTS
  • TRIP
  • PR00

Common Travel Management tables −

  • TA22B
  • PTRV_HEAD
  • FTPT_PLAN
  • FTPT_ITEM

Finance Accounting Fund Management

This module is used to manage funds in a company. Fund Management module interacts with other modules like Bank accounting, General Ledger (G/L, SAP AR/AP, and SAP Material Management, etc. to get fund details.

It involves all the transactions for fund receiving, fund expenditure, and future expenses. It helps a company to create budget forecasting and to use the funds in a proper way.

Common tables that store Funds management data −

  • FMFCTR
  • FMIFIIT
  • FMIT

Common SAP Funds Management T-codes

  • FM5I
  • FMWA
  • FMEQ

Finance Accounting Legal Consolidation

It helps an organization to treat its multiple units as a single company, hence it enables to view all the details as a single financial statement for all the companies under that group. An organization can get a clear idea of its financial conditions as a single entity.

Common tables in FI Legal Consolidation module −

  • FILCP
  • MCDX
  • GLT3
  • T000K

Note − FI-Legal Consolidation module was supported in older versions of SAP ERP implementation. This work is performed by SAP Business Process Consolidation BPC and SEM-BCS now.

SAP FI Company Basics

A company is defined as the smallest unit for which financial statements can be created in accordance with commercial legal regulations.

In SAP FI, a company can comprise of multiple codes, however it acts as a single unit for which financial statements are available. All the company codes must use the same chart of accounts list and fiscal year, however each code can have a different local currency.

A chart of accounts list consists of all the chart of accounts that can be used and each code must have one chart of account.

A fiscal year normally consists of twelve months’ time period where company creates the financial statements.

SAP FI – Create Company

Login to SAP FICO

Use T-code SPRO → click on SAP Reference IMG → New window will open.

SAP FICO Overview

Expand SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Company → click on Execute (see the pointer in the screenshot).

SAP FICO Overview

A new window will open → click on New Entries → New Entries: Details of added entry

SAP FICO Overview

You need to provide the following details to create a new company −

  • Enter the company code to represents group of company.
  • Enter the company name.
  • Enter the full address-street, PO Box, postal code, city.
  • Enter the Country.
  • Enter the Language key.
  • Enter the currency

SAP FICO Overview

The next step is to save the company details → CTRL+S or as shown in the above screenshot.

SAP FI – Create Company Code

In SAP FI, a company can comprise of multiple codes, however it acts as a single unit for which financial statements are available. Company code is the smallest unit in an organization for which financial statements (profit-loss statement, etc.) can be generated.

Create, edit, delete a company code

Let us discuss how to create, edit, and delete a company code. Take a look at the following screenshot.

SAP FICO Overview

Expand Enterprise Structure as mentioned in the previous topic → Definition → Financial Accounting → Edit, Copy, Delete, check company code → Execute using click on the watch image → New window will open → You can create a new company code by selecting both the options.

SAP FICO Overview

Select Edit, Copy, Delete, and Check Company Code. It allows you to copy all the configurations and tables automatically.

If you select Edit company code, you will get the following window → click on New Entries and update the code details.

SAP FICO Overview

SAP FICO Overview

You can click on the Address button and update the following fields. Once the Address field is updated, click the Save button.

SAP FICO Overview

SAP FI – Define Business Area

Business Areas are used to differentiate transactions that come from different lines of business in a company.

Example

There is a big company XYZ which runs multiple businesses. Let us assume it has three different domains like manufacturing, marketing, and sales.

Now you have two options −

  • First is to create different company codes.
  • And the other better option is to create each of these business lines into the business areas.

The benefits of using Business Areas in this case are as follows −

  • You can use these business areas if other company codes require the same areas.
  • It is easy to configure if you use a Business Area, as you just need to attach to the company code and the other details in that business area will get attached automatically.
  • By using Business Areas in controlling, you can create Profit and Loss statement, Balance Sheet, etc. for business areas. Hence it is used for management accounting in a few companies.

Note − Business areas are used more in Controlling as compared to Finance Accounting.

How to create a new Business Area in SAP FI?

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

SAP FICO Overview

SAP FICO Overview

Enter the 4 digit Business Area code and save the configuration.

SAP FICO Overview

SAP FI – Define Functional Area

Function Areas in finance accounting are used to define the expenses in a company according to individual function units. The most common Functional Areas are −

  • Manufacturing
  • Sales and Distribution
  • Production
  • Administration

How to Define a Functional area in SAP FI?

You can define a Functional Area using the T-code FM_FUNCTION (Earlier it was OKBD, but this is obsolete). It will open a new window.

Click on Create Functional Area as shown below and a new window will open.

SAP FICO Overview

Enter the following details −

  • Name of Functional Area.
  • Description
  • Validity to and from date
  • Expiration date and Authorization.

Once all the details are provided, click the Save button at the top. Once you click Save, you will see a message at the bottom that a new functional area has been created.

SAP FICO Overview

Functional Areas are used to create Profit and Loss statements using the cost of sales accounting and they are also used to analyze the cost of sales accounting. For this, you need to activate the cost of sales accounting as follows −

Go to SPRO → SAP Reference IMG → Financial Accounting → FI Global Settings → Company Code → Cost of Sales Accounting → Activate cost of sales accounting for preparation.

SAP FICO Overview

SAP FI – Define Credit Control

Credit Control in FI is used to check the credit limit for the customer and it can use one or more codes. It is used for credit management in Application components such as Account Receivable (AR) and Sales and Distribution.

The credit control area is determined in the following sequence −

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

How to define a Credit Control Area?

A Credit Control Area is defined in accordance with the areas of responsibility for credit monitoring. Use the T-code SPRO → click SAP Reference IMG. It will open a new window.

SAP FICO Overview

Expand SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Credit Control Area → Execute.

SAP FICO Overview

Click Execute → New entries → Enter the below details → Save. Now you have successfully configured the Credit Control Area.

SAP FICO Overview

Once you create the Credit Control Area, the next step is to assign a company code to the credit control area.

Expand Enterprise structure → Assignment → Finance Accounting → Assign company code to credit control area → Execute.

SAP FICO Overview

A new window will open → click Position → it will open another new window. Enter the company code and click Continue.

SAP FICO Overview

Enter the Credit Control Area in CCAR and save the details.

SAP FICO Overview

SAP FI – General Ledger

The General Ledger is used to record all the business transactions in a software system.

SAP FI – Chart of Accounts

The FI chart of accounts represents the list of GL accounts that are used to meet the daily needs and the operating country’s legal requirement in a company. The master chart of accounts must be assigned to each company code.

Chart of accounts (COA) can be divided into the following types −

  • Operating Chart of Accounts − It contains all the General Ledger accounts that are used to meet the daily needs in a company. The operating chart of accounts has to be assigned to a company code.
  • Country Chart of Accounts − It contains a list of all General Ledger accounts that are required to meet the operating country’s legal requirements. You can also assign a company chart of account to the company code.
  • Chart of Accounts Group − This COA group contains a list of all the G/L accounts that are used by the entire company.

How to create a new Chart of Accounts?

You can create a new Chart of Accounts by using the T-code OB 13 or by going to Finance Accounting → G/L accounts.

Type the T-code OB13 in SAP Easy Access and it will take you to the following screen :

SAP FICO Overview

This window can also be opened by following the path

T-code SPRO → SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L accounts → master data → Preparations → Edit Chart of Account Lists → Execute → New Entries to create a new charts of account.

SAP FICO Overview

You can choose Controlling Integration as manual creation of cost elements or automatic creation of cost elements. (Recommended to use manual creation).

SAP FICO Overview

Group Chart of Accounts is used for report consolidation. Uncheck the Blocked checkbox under the status tab and click the Save option.

SAP FI – COA Group

You can create a SAP FI chart of accounts group as per your requirement. To effectively manage and control a large number of G/L accounts, you should use COA groups.

How to define Chart of Accounts Group?

There are two ways you can create a new COA group. The first method is to use the T-code OBD4.

SAP FICO Overview

You can also reach to this screen by following the path −

T-code SPRO → SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L Accounts → Preparations → Define Account Group → Execute → New window will open → New Entries.

SAP FICO Overview

SAP FICO Overview

Populate the following fields in the COA group: Chart of Account Key, Acct Group, Name, From Acct. and To Account details.

SAP FICO Overview

After providing the required details, click the Save Configuration option to create the COA group.

SAP FI – Retained Earnings Account

Retained Earnings Account is used to carry forward the balance from one fiscal year to the next fiscal year. You can assign a Retained Earning Account to each P&L account in the chart of accounts (COA). To automatically carry forward the balance to the next fiscal year, you can define P&L statements as per COA and assign them to the retained earning accounts.

How to define Retained Earnings Account?

There are two ways to define a Retained Earnings Account. You can either use the T-code OB53 or by T-code SPRO. Go to SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L Accounts → Preparations → Define Retained Earnings Account → Execute.

SAP FICO Overview

Enter the Chart of Accounts to define the Retained Earning Account for COA and press Enter.SAP FICO Overview

Provide the P&L Account statement account type and account → Press Enter and save the configuration.

SAP FI – G/L Account

General Ledger (G/L) accounts are used to provide a picture of external accounting and accounts and to record all the business transactions in a SAP system. This software system is fully integrated with all the other operational areas of a company and ensures that the accounting data is always complete and accurate.

How to Create a New G / L Account?

You can use the T-code FS00 to centrally define a G/L account. Refer the following screenshot.

SAP FICO Overview

SAP FICO Overview

You can also use the following path −

In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally.

SAP FICO Overview

In the field G/L Account, enter the account number of G/L account and the company code key and click the Create icon as shown in the following screenshot :

SAP FICO Overview

The next step is to enter the details in the Charts of Account.

Account Group

Account Group determines the group for which the G/L account must be created, for example, Administrative Expenses, etc.

SAP FICO Overview

P&L Statement Acct

If the G/L account is to be used for P&L Statement Account, then select this option, otherwise use Balance Sheet Account.

Under description, provide a short text or G/L account long text.

SAP FICO Overview

The next step is to click the Control Data and provide data for Account Currency and other fields such as Balance in local currency, Exchange rate difference key, Tax category, posting without tax allowed, Recon account for acct type, alternative account number, Tolerance group, etc. as shown in the following screenshot.

SAP FICO Overview

Click Create / bank interest and provide data in the following fields :

SAP FICO Overview

Once the details are entered, click the Save button to create a G/L account.

Posting to General Ledger

After you complete the payroll run, the next step is to add results to the GL accounts and this includes cost centers. GL posting includes the following steps −

  • Groups together posting-relevant information from the payroll results.
  • Creates summarized documents.
  • Performs the relevant postings to appropriate GL accounts and cost centers.

How Posting is Evaluated?

Each employee’s payroll result contains different wage types that are relevant to accounting −

  • Wage types such as standard salary, bonuses, and overtime represent expenses for the company, which are posted to a corresponding expense account.
  • Wage types such as bank transfer, employment tax, employee’s contribution to social insurance, etc. are the employer’s payables to the employee, the tax office, etc. and are posted as credits to a corresponding payables or financial account.
  • In addition, there are wage types such as the employer’s health insurance contribution, which represents an expense for the enterprise and, at the same time, a payable to the social insurance agency. For this reason, such wage types are posted to two accounts − once debited as an expense, and once credited as a payable.

Other types of wage types also exist, for example, accruals, provisions, etc. These wage types are usually posted to two accounts, once debited as an expense and once credited as a provision.

SAP FI – Block G/L Account

In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally.

SAP FICO Overview

In G/L Account, provide the account number of G/L account and the company code key. Click the Block button as shown in the following screenshot.

SAP FICO Overview

Once you click the Block button, you will get different blocking options such as :

  • Block in Chart of accounts.
    • Blocked for creation
    • Blocked for Posting
    • Blocked for Planning
  • Block in Company Code
    • Blocked in posting

SAP FI – Deleting G/L Accounts

In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally.

SAP FICO Overview

In the G/L Account, provide the account number of G/L account and the company code key. To delete a G/L account, click the Delete button as shown below.

SAP FICO Overview

The next step is to select deletion options for the G/L account −

  • Deletion flag COA
  • Deletion flag in company code.
  • Select the correct check box and click the Save configuration.

SAP FI – Modify a G/L Account

To modify a G/L account, click the Change option. Refer the following screenshot.

SAP FICO Overview

The next step is to select the changed field −

Select the Changed Field

Click the Save button to effect the changes.

SAP FI – Financial Statement Version

General Ledger accounts can be used as per legal regulations to generate the final statements. Financial statement versions are used to create the financial statements, to run account balance reports and for General Ledger accounting planning.

You can also define multiple financial statement versions to generate financial statements in different formats. Follow the steps given below to create financial statement versions −

T-code SPRO → SAP Reference IMG → Financial Accounting → General Ledger Accounting → Business Transactions → Closing → Document → Define Financial Statement Versions → Execute.

SAP FICO Overview

Click the button New Entries as shown below :

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Provide the following details −

  • Enter the Fin. Stmt. Version.
  • Enter the Description of the financial statement version.
  • Maint. Language − Enter the language key in which you display texts, enter texts, and print statement.
  • Item Keys auto − It tells keys of financial statement items are assigned manually or automatically when the financial statement versions are defined.
  • Charts of Accounts − All accounts from this chart of accounts COA can be assigned when you define the financial statement. If you do not specify a chart of accounts, accounts from several charts of accounts can be assigned when you define the financial statement.
  • Group Account Number − Enter this Indicator that specifies that the group account numbers should be assigned instead of the account numbers when you define the financial statement version.
  • Fun. Area Parameter − This indicator is used to make it possible to assign functional areas or accounts in the financial statement version. Once the above fields are defined, you can click on the save configuration and to generate change request number. To edit this Financial Statement version, click on Fin. Statement items → you can maintain nodes in version.

SAP FICO Overview

SAP FICO Overview

SAP FI – Journal Entry Posting

The use of Journal Entry (JE) posting in SAP FI is to take a batch, validate it for consistency, and create FI documents and post those entries in various line item accounts needed for subsequent business processing.

JE Posting is a process that, with a few exceptions, runs “behind the scenes” and is the heart of Journal Entry. It receives journal entry data (representing financial transactions) from the PRA modules (Valuation, Revenue Distribution, etc.), and summarizes them in batches and posts them to the PRA JE line item tables and to SAP FI.

Journal Entry Posting is the link between the journal entries coming from PRA applications and the FI documents and JE line item table items that are created.

How to post a journal Entry in SAP FI?

Use T-code FB50 → Provide the Company code.

SAP FICO Overview

Enter the document date as shown below :

SAP FICO Overview

The next step is to provide the following details −

  • G/L Account − Enter the account to be credited.
  • Short Text − Description of amount.
  • Amount in Doc Currency − Enter the amount to be credited.

Similarly, for the Debit, provide data in the following fields :

SAP FICO Overview

Click the Save button and you will get the document number to be posted for the company code.

SAP FI – Fiscal Year Variant

Fiscal year variant contains the number of posting periods in a fiscal year and the number of special periods. You can define up to 16 posting periods in a fiscal year in the controlling component CO.

You need to specify the fiscal year variant for each company code. When you create a controlling area, you also need to specify the fiscal year variant.

The fiscal year variants of the company code and controlling area may only differ in the number of special periods used. You need to ensure that the fiscal year variants match. In other words, they may not have a time conflict.

How to create a Fiscal year variant?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Fiscal Years → Maintain Fiscal year variant → Execute.

SAP FICO Overview

It will open the following window.

SAP FICO Overview

Click New Entries and it will open a new window as shown below.

SAP FICO Overview

Provide the following details −

  • FV − Enter 2-digit Fiscal year.
  • Description − Enter a description of the Fiscal year variant.
  • Year Dependent − If the start and the end date of the fiscal year changes between year, then check this box.
  • Calendar Year − If the fiscal year is same as the calendar year Jan-Dec, then check this option.
  • Number of Postings − Enter the number of posting periods for a Fiscal year.
  • Number of special postings − Enter the number of special posting periods for a fiscal year.

The next step is to save the details. Enter the customizing request number that a new fiscal year variant is created.

SAP FICO Overview

You can maintain the posting period by using the Period option under the Fiscal year variant.

SAP FI – Posting Period Variant

SAP FI Posting period variant is used to maintain accounting periods that are open for posting and all closed period are balanced. This is used for opening and closing period in the fiscal year for posting purpose.

You can assign these posting periods to one or more company codes.

How to create posting period variants in SAP FI?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Document → Posting Periods → Define Variant for open Posting Periods → Execute.

SAP FICO Overview

It will open a new window. Now, click New Entries.

SAP FICO Overview

It will open another window, as shown below. Enter the 4-digit Posting Period Variant and name of the field. Click the Save icon to save this variant.

SAP FICO Overview

Open and Close Posting Periods

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Document → Posting Periods → Open and Close Posting Periods → Execute.

SAP FICO Overview

Click the button New Entries, as shown in the following screenshot.

SAP FICO Overview

Now, you need to provide the following details :

  • Var. = Enter 4-digit Variant code.
  • Select Account Type −
    • +=Valid for all account type (masking)
    • A = Asset
    • D = Customers
    • K = Vendors
    • M = Materials
    • S = General Ledger Account
  • From Per.1 = Enter Starting Period
  • Year = Enter Year
  • To Period = Enter Ending Period
  • Year = Enter Year
  • From Period2 = Enter First Special Period
  • Year = Enter Year
  • To Period = Enter Period
  • Year = Enter Year
  • Authorization Group = It is used to open a period for particular users

Once all the details are provided, click the Save button to save the open and closing posting periods.

SAP FI – Field Status Variant

Field Status Variant is used to define the fields which are used for input like cost center, profit center, plant, etc., which are entry fields, and hidden fields. Field status Variant is a tool which is provided by SAP to assign the same set of properties to more than one object.

Example − We define fiscal year variant and it can be assigned to more than one company code. If a field status variant is assigned to more than one company code, the same set of screen field will be displayed while posting those company fields.

Difference between field status variant and field status group

Field status variant will have field status groups. Field status group is maintained in GL account and it defines the fields while posting to the GL.

How to create Field Status Variant?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Document → Line Item → Controls → Define Field Status Variant → Execute.

SAP FICO Overview

It will open a new window. Select field status variants 0001 by clicking the box before 0001→ click the Copy icon as shown below.

SAP FICO Overview

It will open another window. Enter the new Field status variant code and the name of field name variant for the company. The target key must be different from the source key. Press the Enter Key and click the Copy All option.

SAP FICO Overview

SAP FICO Overview

You will get a confirming message, something like: “Number of dependent entries copied: 41”. Click the Save button.

SAP FICO Overview

SAP FI – Field Status Group

Field status group is assigned to GL account. Through field status group, one can define a field as optional, suppressed, or mandatory. According to the field status groups, respective fields will be displayed are mandatory or suppressed when the postings are made to that GL account.

All these field status groups are clubbed to a field status variant and the Field status variant is assigned to a company code. With this, field’s status groups from fields status variant can only be assigned when a General Ledger account is created for a company code.

  • Suppress − The field is hidden on the screen.
  • Optional − The field is available on the screen, you can keep it blank or fill it.
  • Require − The field is available on the screen, and you have to fill it.
  • Display − The field is available on the screen, but it’s grayed out, you cannot fill anything in here.

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