SAP FICO Online Training

SAP FICO Online Training by real time experts. Professional level SAP FICO online training available along with SAP server access at economy fee structure.


                                                                     SAP FICO Online Demo by K.Lakshmana Swamy


One of the foremost and spicy modules of SAP is (FICO) or Financials and controlling module. Lots of users value more highly to dive into the venture for obtaining SAP FICO online training completely. This is often splendidly accepted as an awfully hot and spicy section of SAP and many learners value more highly to endure its technical training. It covers the best technical aspects i.e. Book keeping and management of your business. Lots of organizations are conducting crash SAP FICO training courses to coach their staff. Moreover, the IT department has lots of superlative FICO connected jobs for all those of us who grasp ins and outs of FICO.                                                    

Chart of accounts is the list of general ledger accounts used by the organization. It is compulsory to define the chart of accounts before creating the general ledger master record. There are three types of chart of accounts.

OPERATIONAL CHART OF ACCOUNTS: It is the list of the general ledger accounts used by the company code in to which all the daily business transactions are posted. From this chart of accounts the financial statements are prepared. It is compulsory every company code should be assigned with one operational chart of accounts.

COUNTRY SPRECIFIC CHART OF ACCOUNTS: It is the list of general ledger accounts used to meet the country specific legal requirements.

GROUP CHART OF ACCOUNTS: It is the list of general ledger accounts used by the entire corporate group to prepare the consolidated financial statements. The definition of the group chart of accounts is optional.

The chart of accounts contains the data for every general ledger account such as name of the account, number of the account, account group and maintenance language etc.

A chart of accounts can be used by the one or more company codes. In this case the name of the account, account number and account group is same in all company codes. This is possible when all the company codes are lying in the same country.

A company code can be assigned with two types of chart of accounts. I.e. operational chart of accounts and country specific chart of accounts.

Notes on  FI organizational units


Company represents the group. It contains up to 6 characters. It is alpha numeric. The definition of company is optional. A company can have any number of company codes


It is the organizational unit in the financial accounting for which a complete set   of books of accounts are maintained for external legal reporting i.e. to prepare the legal financial statements.  It is four-character id. It is alphanumeric. If the boundaries of the particular country are crossed we have to create the company code. The definition of the company code is mandatory. It is always required to report  the financial statements  legally at the company code level.


The information given in this field is called the home country of the company code and every other country is considered by the system as foreign country.


The currency entered in this field is called ‘company code local currency’. Every other currency is treated by the system as foreign currency. This information is used by the system in identifying the foreign currency. The financial statements are prepared in the company code local currency.


The language entered in this field determines the language in  which the books of accounts are maintained, the checks and correspondence documents are printed.


It is the organizational unit in the financial accounting which structures the organization according the geographical area of operations or the line of activity to which the business transactions can be posted.  The branches of the organization can be taken as the business area. The purpose of the business areas is to prepare the financial statements for the internal management analysis purpose. The definition of the business areas is optional. The system identifies the expenses and incomes with the business areas by specifying the business area while entering the business transactions in the documents. The business areas are not assigned to any company code. The business areas are created at client level. This enables any company code can use the same business area.


      Introduction to SAP FICO

SAP stands for Systems, Applications and Products in Data Processing. It is also called ERP software or ERP package.
ERP stands for Enterprise Resources Planning. It is the process of planning for the effective utilizations of the available resources of the company to maximize the profits. Every company will have the following resources.
1.      Men
2.      Materials
3.      Machines
4.      Money.
These are the natural resources and they are not available to the companies plenty. So with the limited resources they want to maximize the profits. For this purpose the company has to plan the utilizations of these resources   in such a way that the profits are maximized. So  the concept of  ERP covers the techniques and procedures which help the business organization to maximize the profits by enabling them to utilize the available resources in the most effective manner.
1.      It eliminates the data redundancy (it eliminates the data duplication)
2.      All the data is available in the common or central data base
3.      Data is updated and available in real time
4.      One point entry of data: when the data is entered in one department of the organization , then it will update the relevant data   in other departments of the organization.
5.      Best business practices .
6.      Modular system:  the separate software are available  within same  ERP product to manage different departments in the organization.
7.      Can be implemented only in the required functions or depart ments
8.      Others modules can be integrated later.
9.      Mangers can utilize their time in analysis and spend less time in co-ordination effort.
10.  It improves the customer satisfaction and quality of the customer service
11.  It reduces the idle time
12.  We can deal with the multiple languages and currencies.

List of ERP softwares:

1.      SAP
2.      ORACLE
3.      BAAN
4.      JD EDWORD
The ORACLE is specialized in the management of finance department. BAAN is specialized in the management of production department.  JD EDWARD is specialized I n the management of sales and distribution department. PEOPLESOFT is specialized in the management of HR department.  But SAP provides the effective solutions for the management of all most all the departments in the company. It is very user friendly and can be integrated with any other third party soft wares.  With the  SAP software, we can achieve the high level of integration among the departments in the company. Because of these  reasons SAP  is the  largest used  ERP soft ware in the world.

                                            SAP PRODUCT DEVELOPMENT

The sap software was developed  by  a German company SAP.AG. it was established in the year 1972.  Its head quarters are at Waldorf, Germany.
·         In 1972 the company has developed the product called SAP R/1 SUITE
·         In 1988 the company has developed the product called SAP R/2 SUITE
·         In 1995 the company has developed the product called SAP R/3 SUITE.
“R” stands for the real time data processing.  Real time data processing means, when we  process  the data elements, the related data base is instantly updated.
“3” stands for three tier architecture. It refers to the levels of hardware set up we require to  use the  SAP ERP software. Under the three tier architecture  the following three layers are available.
1.      Data base server layer
2.      Application server layer
3.      Cient/ presentation server layer.
Data base server layer: it is the computer system in which the data base is organized or hosted. The data base is managed on the principles of Related Data Base Management systems. Ex: ORACLE, SQL SERVER ETC.
Application server layer. it is the server   in which the sap application is hosted . it contains the programming code or processing  logic necessary to process the business transaction.
Client/ presentation server layer: all the client systems, used by the employees of the company together  is called client or presentation server layer.
Now a days we are suing  only the three ties architecture. The advantage  or the reason  is that we can increase of decrease the size of any layer without disturbing the size of  other layers.

The current version sap software is ECC 6.0 EHP 6.
ECC stands for ERP Central component
EHP stands for enhancement package.
There are two types of modules in SAP R/3 SUITE.
1.      Functional modules: these  include
a.       FICO (financial accounting and controlling)
b.      MM   (materials management)
c.       SD     (sales and distribution)
d.      HR     (human resources management)
e.       PPC    (production planning and controlling)
f.       PM     (plant maintenance)
g.      PS       (project systems)
h.      REM   (rear estate management)
i.        WF     (work flow)
j.        FSCM(financial supply chain  management)
k.      TRM (treasury and risk management) etc.
2.      Technical modules: these include
a.       ABAP (advances business application  programming language)
b.      BASIS (business application  software integrated systems)

FI stands for financial accounting. Using the financial accounting component we can prepare the financial statements according to the legal requirements of the country in which the company is registered and doing the business. The following are the sub modules in the financial accounting component.
1.      General ledger accounting
2.      Accounts payables
3.      Accounts receivables
4.      Asset accounting.
Co stands for controlling (Cost accounting). Using this component we can provide the information to the middle level management (to analyze the performance) and to the top level management ( to  assist  in the strategic decision making). The following are the sub modules in controlling component.
1.      Cost  element accounting
2.      Cost center accounting
3.      Internal order accounting
4.      Profit center accounting
5.      Profitability analysis
6.      Product costing.
SAP FICO Online Training