INTRODUCTION TO SAP FICO

SAP FICO stands for Financial (FI) and Controlling (CO). It is one of the core modules in SAP ERP that helps businesses manage all their financial transactions and internal cost accounting efficiently. FI deals with external reporting like balance sheet, profit & loss statement, tax calculations, etc., while CO deals with internal cost management like tracking and controlling companies' expenses, profitability analysis, budgeting, etc.

Lets assume a company named Sunrise pvt ltd ,so money keeps coming in when they sell their products and money goes out when they met their expenses like salary, rent etc. So a very strong system is needed to have track of all these expenses and the income they earned, spend. SAP FICO is that system where we can track all these with accurate reports

Here in this case FI handles external money matters like;

• How much money comes in when we sell the products to the customers.

• how much money company pays when they met all the expenses

• It prepares reports like profit and loss Statement , Balance sheet ,tax reports

  
  

CO handles internal reporting like;

• How much is being spent on marketing, on which product, and did the product bring profit?

• On which department of the company money is more spend ,is it worth etc.

  
  

  

Green Field Implementation

In SAP FICO greenfield implementation means setting up a completely new financial and controlling system from scratch. There is no previous SAP system or legacy data to carry over. Its like starting fresh with the latest technology, processes and business requirement

Reasons

• If they want the latest SAP best practices

• when their legacy software is outdated

• when they are starting a new branch or business

• when they want clean data

  
  

These are the steps involved;

Requirement Gathering

Understand the business needs and then decides which all modules should be implemented. Project team should be assembled including sap experts and IT staffs.

Blueprint

Documentation of how the needs of the business should be aligned with SAP configurations in order to meet the client's requirements.

Configuration in SAP

Configurations are set up in the system in order to meet the business requirements. Integration with other modules is also configured here, along with testing to ensure that it's working properly.

Data Migration

Moving data from the old system into the new SAP system

Testing

All the testing, like unit testing, integration testing, and user acceptance testing, should be tested here.

Go Live and support

Should keep an eye on the performance of the system, and if any issues arise, clear them.

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