What is SAP Fico? A Complete Info About SAP Fico Course

All the big brands around the world are required to keep track of their money. Imagine there is a company that is making millions of products, selling them in 30 different countries, paying hundreds of workers, and buying raw materials from various suppliers on a daily basis. Have you wondered how the brand heads know whether they are making a profit or a loss? How do they ensure that they are paying their taxes on time? For all of these daily data needs, they use specialised software to help them. Here comes the main fish, SAP FICO, in the picture. 

To know What is SAP FICO, you must read this article till the end. This article will explain to you everything that you are supposed to know about SAP FICO in simple and readable language. It will cover What is SAP FICO, what its major parts are, what you will learn in a training programme, and what its importance is in your career building.

What do you mean by SAP FICO?

Understanding SAP FICO is classified into two parts. You must break SAP FICO into 2 parts, that is, SAP FI and SAP CO. The following is the breakdown of all the important SAP FICO factors:

• It is important to start with the main factor first. SAP is further known as Systems, Applications, and Products in Data Processing. It is a big software that is used and preferred by large firms and companies to manage their everyday work. This sort of software is called an Enterprise Resource Planning(ERP) system. 
• Up next, there is FI. FI stands for Financial Accounting. This part of SAP FICO is responsible for keeping track of all that is coming into the company. It includes creating official reports for officials outside the company, such as banks, tax officers, and investors. 
• Lastly, the factor left to discuss is CO. CO stands for 'Controlling'. This part is responsible for the internal management. It helps the company’s managers to see their transactions and where they are spending money. It also allows them to see the cost of creating a single product and how they can minimise their money wastage. 

When all these factors are combined, you will get SAP FICO. It is a core software package that is known as the financial brain of a business. It groups all the information about financial transactions, organises it perfectly, and allows the brand heads to make smart business decisions.

What is the importance of SAP FICO in the business world? 

Previously, there were no modern computers invented. The companies used to keep track of accounts using paper notebooks or by creating separate computer spreadsheets. The sales team would create their separate files, and the warehouse and storage team used a different list; and the finance team had to combine and type everything in the computer manually. This practice will cause a lot of time and human effort wastage. 

SAP FICO is an integrated software setup that effortlessly connects everything in real time. 

For example, when a consumer buys a product from a store, the sales system alarms the stock room that there is now one item less in the inventory. At the same time, it also tells the SAP FI system to count the cash coming and updates the SAP CO system about the created profile. 

The smooth process between the SAP FICO system and the employees creates a secure environment for the company. It helps the brand to avoid errors, stops fraud, and saves lots of time on manual work during the month-end period. 

What are the different parts of the SAP FI module? 

SAP has the Financial Accounting module that is responsible for keeping the financial records clean, lawful, and appropriate. It has different small parts under itself. They are called sub-modules. 

The following are the main parts that you are supposed to study in an introductory syllabus:

1. General Ledger Accounting (FI-GL)

The first sub-module under SAP FI is the “General Ledger Accounting”. It is a combination of General Ledger and Accounting. The General Ledger is the head of all the financial accounts in a business. Every transaction, be it an expenditure, revenue, asset, or liability, resides here. When you are studying this, you will learn how to set up a Chart of Accounts. It is an organised, centralised list of all accounts that a brand uses. It is responsible for every debt and credit matching perfectly. 

2. Accounts Payable (FI-AP)

The next sub-module is Accounts Payable. It ensures the management of the money that the business owes to other people. The people that the business owes money to are called vendors or suppliers. Accounts payable is responsible for tracking vendor invoices, scheduling vendor payments, and helping manage the automatic payment programs. It makes sure that the company pays its bills on time and maintains a healthy relationship between the supplier and them. 

3. Accounts Receivable (FI-AR)

This sub-module works opposite to the Accounts Payable. It is responsible for tracking money that the customers owe to the business. Some companies sell their products on credit. In their system, Accounts Receivable creates an invoice and monitors the transactions that the customer has made, handles down payments, and sends reminders if a customer is late in making their payment. 

4. Asset Accounting (FI-AA)

Every brand owns expensive things such as factory buildings, delivery vehicles, office computers and laptops, and large machines. These items are known as fixed assets. Fixed assets tend to lose their worth and value over time. They get old and worn out. That loss of value is known as depreciation. Asset Accounting comes here to help a business in calculating their depreciation automatically and tracking the asset transaction, that is, when they were bought, transferred, or sold. 

5. Bank Accounting (FI-BL)

The last sub-module left here in the SAP FI is “Bank Accounting”. Every brand creates multiple bank accounts to control cash flows. Bank Accounting handles all the transactions that are done through banks. It allows the brand to compare its internal accounting records with the real bank statements. This process of matching up the bank statements and internal accounts is known as bank reconciliation. It makes sure that the brand has a completely true, authentic, and appropriate book balance. 

What are the different parts of the SAP CO module?

You have seen a detailed breakdown of the FI module of SAP. Now, it is time to discuss another breakdown of the CO module of SAP. Where FI handles and helps the management outside the company, SAP CO is responsible for the internal team. It allows the managers to access the hidden financial data of the company that they need to run the business efficiently and effectively. Knowing these sub-modules in detail is responsible to understand What is SAP FICO completely. The following are the sub-modules under SAP CO: 

1. Cost Element Accounting (CO-CEL)

Cost Element Accounting is the first sub-module of SAP CO in the list. It helps you give a clear overview of all the costs and revenues the brand is experiencing. It will be a bridge between FI and CO. It will take the cost data from the General Ledger and will transfer it into the Management Accounting side to let the managers analyse it.

2. Cost Centre Accounting (CO-CCA)

You cannot create a brand with just one department. It consists of many departments. Some of the most common departments are the Human Resource Department, Marketing Department, Production Department, and Sales Department. These departments require money to run, but they do not make money directly. They are known as cost centres. Cost Centre Accounting is responsible for tracking how much money the internal departments spend individually. This helps the departments in minimising their cost and prevents them from going over budget. 

3. Profit Centre Accounting (CO-PCA)

As the company grows, its product specifications and deliverable areas also expand. Big brands sell different types of products or have their headquarters in different regions. For example, there can be a company that sells skincare and makeup together. Profit Centre Accounting consists of Profit Centre Accounting. Profit Centre is a different section of a business that creates its own income. This sub-module helps the managers to see which product or which area of operation is creating the highest income and which one is struggling.

4. Internal Orders (CO-IO)

Brands track every cost that they have incurred. But sometimes, a company might want to track the cost of a small project rather than the entire department. For example, a company has hosted an exhibition of cars and other vehicles. It will create an Internal Order. This will track every penny that was spent on the exhibition to see if it was worth it.

5. Product Cost Controlling (CO-PC)

Product Cost Controlling is one of the most important sub-modules for manufacturing companies. It is responsible for calculating the accurate cost of creating a single product or offering a particular service. It focuses on the price of raw materials, employee wages, and firm electricity. This information helps the companies to find the accurate and appropriate selling price to remain on the profit side. 

6. Profitability Analysis (CO-PA)

Profitability Analysis is the last sub-module that you need to understand. It helps the managers to calculate the complete market success of the business. It allows them to analyse the exact profit that the company made based on specific consumer groups, types of distribution channels, or geographical areas. It is created to answer questions like, “Is the company making profit from online stores or physical stores?“ 

What are the details about the SAP FICO course? 

Many people want to work with software. Which is why lots of them search for courses for SAP FICO. By now, you must have understood What is SAP FICO, but if you are also looking to enrol yourself in a structured SAP FICO course or if you want to upgrade your general or financial career, you can enrol in the SAP FICO course and move ahead with your updated corporate career. 

 The following is the complete information about the SAP FICO course that you need:

Who can enrol in this course?

The best part of the SAP FICO course is that this course is open for all the learners who exist in this world. You are not required to be a computer or IT genius to enrol in this course. This is a functional module which focuses on business processes instead of writing codes. 

The following is the list of individual education levels with their further SAP FICO scopes:

• Non-experienced (Freshers): Any individual who is a fresher from any affiliated college can enrol. But they should be graduates with degrees in business, commerce, and finance. 
• Finance employees: Standard accountants, bookkeepers, and financial analysts who are willing to move higher in the corporate world can enrol in this course. 
• IT experts: Experts or professionals who have the will to enter the world of business consulting and ERP support. 

What is the syllabus of the SAP FICO course?

An outstanding and qualitative SAP FICO course syllabus will balance the basic theories along with firm hands-on practice. 

The following are the important concepts that you will learn with each level in this course:

Conclusion:

SAP FICO is just a software tool used to manage a company's money. It has two parts. One part is FI for reports going outside the business. Then there is CO, which tracks costs for people inside the office. This keeps every department on the same page with one live data system. It helps people stop making so many mistakes.

New grads or people in old finance jobs should think about a course. It is a smart way to get a job as a consultant or an auditor. You do not even have to learn how to code. Find a training spot and use a practice server. Once you know basic accounting, you can build a stable career that pays well. There are various other benefits of enrolling in the SAP FICO course and starting your career journey.

Frequently Asked Questions (FAQ)

1. What is SAP FICO in simple words?

SAP FICO is the core financing and accounting module in SAP ERP software.

2. What is the use of SAP FICO?

SAP FICO is used to record, analyse, and manage the financial data.

3. What is the full form of SAP?

SAP stands for Systems, Applications, and Products in data processing.

4. Is SAP FICO hard to learn?

Learning SAP FICO is generally considered to be moderate to hard.

5. What is the full form of FICO?

FICO stands for Financial Accounting and Controlling.

6. What is the SAP salary?

The average SAP salary in India is between Rs 1.34M and Rs 12.9M.

7. Is SAP better than excel?

SAP and excel cannot be compared directly, as they both serve completely different purposes.