Applications of SAP FI Modules

SAP FI module is the latest package specially designed for meeting all the financial and accounting needs of a business house. It is a module that helps financial heads to review the financial position of the company in real time. Thus the real time functionality of the SAP FI modules facilitates the financial manager for proper decision- making and strategic planning. This apart, the other standard feature of FI module is that it integrates with materials management, production planning, sales and distribution, plant maintenance, project systems and human resources comprising of personnel management, time management, travel management, payroll etc.

The SAP FI Module components

The SAP FI Module comprises several sub-modules as follows:

Accounts Receivables Accounts Payable Asset Accounting Bank Accounting Consolidation Funds Management General Ledger Special Purpose Ledger Travel Management

Accounts Receivables records all account postings produced as a result of Customer sales activity.

These postings are automatically modernized in the General Ledger. It is within the Accounts

Receivables Module that you can watch aging of the receivables and generated customer investigation. The Accounts Receivable Module also mixed with the General ledger, Cash Management Modules, and Sales and Distribution.

Accounts Payable records account postings produced as a result of Vendor purchasing activity. Automatic postings are makes in the General Ledger as well. Payments program within SAP enables the payment of payable documents by check, EDI, or transfers.

Asset Accounting is utilized for deal with your company's Fixed Assets. SAP allows you to classify assets and to set values for depreciation calculations in each benefit class.

Bank Accounting allows for management of bank transactions in the system comprising cash management.

Consolidation enables the unit of financial statements for multiple uniting within an association. These statements offer an overview of the financial position of the company as a whole.

Funds Management allows organization to put budgets for revenues and expenses within your corporation as well as path these to the area of responsibility.

General Ledger is completely integrated with the other SAP Modules. It is within the General Ledger that each and every one accounting postings are recorded. These postings are displayed in real-time providing up-to-date visibility of the financial accounts.

Special Purpose Ledger is utilized to define ledgers for reporting purposes. Data can be collected from internal and external applications.

Travel Management offers management of all travel activities including booking trips and handling of expenditures associated with travel.

Accounts Receivables is the recording of all account postings pertaining to sales activity. With the Accounts Receivables Module, you can monitor aging of the receivables and generate customer analysis. Accounts Payable will reflect all account postings generated as a result of supplier/ purchase activity. Payment program within SAP enables payment by check, EDI, or transfers. Asset Accounting is to help manage your company's fixed Assets. SAP allows you to categorize assets and to set values for depreciation calculations in each asset class. Bank Accounting allows for management of all bank transactions including cash flow. Consolidation facilitates the combining of financial statements for multiple entities within an organization to provide an overview of the financial position of the company.

Funds Management is to assist management to set budgets for revenues and expenses as well as track these to the area of responsibility. General Ledger is fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded. Special Purpose Ledger is for defining ledgers for reporting purposes. Data can be gathered from internal and external applications. Travel Management comprehensively covers all travel activities including journey reservation and handling of all expenses associated with travel.

With the SAP FI module, the financial manager as well as other managers within the organization can review the financial position of the company in real time as compared to earlier methods, when they required overnight updates before financial statements could be generated and presented for management review. The FI Module consists of several sub-modules like accounts receivables, accounts payable, asset accounting, Bank statements, funds management, general ledger etc. When a company decides to make use of SAP application, it is required to come up with several primary prerequisite configurations. The structure of the firm should be processed properly and the business reporting requirements are to be finalized. The highest unit in SAP system is client unit which contains master records, tables and other valid documents. A company unit is a unit where financial statements can be created assigned with many company codes.

The configuration requirements for SAP set up are chart of accounts, fiscal year variants and currencies. It is therefore better for the users to know about the SAP integration points available in the module. When generating the business transactions, the business areas are required to be entered with updated information. Document postings will be automatically posted in the year along the Fiscal Year variant set-ups based on the month, start and end dates within the given period. There are several integration points available in SAP which can be used for other application progressions. Nowadays, SAP modules fetch good demand among the business organizations. It is used to meet the total accounting and financial needs of the organization.

More FI configuration considerations

Business Area is optional and is equal to an exact area of responsibility within your concern or business segment. Business Area also permits for internal and external reporting.

Another configuration requirement for make in SAP is the Basic settings consisting of the following: Chart of Accounts(COA) Fiscal Year Variants. Currencies COA lists all General Ledger accounts that are used by the organization. It is allocated in configuration to each business code and allows for every day General Ledger postings.

General Ledger accounts are completed such data as account number, company code, a report of the account, classification of whether the account is a P & L Statement Account or a Balance Sheet Account.

Fiscal Year configuration is a must can be defined to meet your company's reporting terms whether Fiscal.

Currencies are one more basic configuration setting condition which defines your company's legal means of payment by country.

Integration points of SAP FI module

SAP is promoted as a completely integrated system, therefore knowing some of the addition points allow the Users to better understand the Modules.

Association units are not only defined in FI but also in supplementary SAP Modules. The SD (Sales & Distribution) Module need to set-up of Sales Organizations, Allocation Channels & Divisions; Purchasing requires purchasing organizations, plants, and storage locations; and CO requires a Controlling area to be defined.

To transfer data among FI & CO as well as other modules, a Company Code obliged to be assigned to each of Modules.

BA (Business Area) must be entered when making business deals if you would like visibility of those transactions impacting a positive Business Areas. You can also update your Master Records to include BA for example Cost Center.

Document postings are regularly posted in the year and terms that you make in the Fiscal Year variant set-ups based on the month, start and end dates to which postings are allowed within a given period as defined.