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

What is SAP FI ?

SAP Financial Accounting (FI) is the core module where  all the financial processing transactions are captured. This is the module that is used to create statutory Financials Statements for external reporting purposes.

Functions in SAP FI can primarily be divided into General Ledger Accounting (G/L), Accounts Receivable and Accounts Payable(AR/AP) processing, and Fixed Asset Accounting(AA).

What What is SAP CO ?

SAP Controlling module helps provide operational information to the management of a company to support business analysis and decision-making.  CO represents the internal accounting viewpoint of an organisation. It provide information to managers to help  manage costs and operations of the organization.

SAP refers External Accounting as “Financial Accounting”(SAP-FI) while Internal Accounting is referred as Managerial Accounting(SAP-CO).

what is Account Payable?

When a company orders and receives goods or services in advance of paying for them, we say that the company is purchasing the goods on account or on credit. The supplier or vendor of the goods on credit is also referred to as a creditor. If the company receiving the goods does not sign a promissory note, the vendor's bill or invoice will be recorded by the company in its liability account Accounts Payable or Trade Payables.

As is expected for a liability account, Accounts Payable will normally have a credit balance. Hence, when a vendor invoice is recorded, Accounts Payable will be credited and another account must be debited as required by double-entry accounting. When an account payable is paid, Accounts Payable will be debited and Cash will be credited. Therefore, the credit balance in Accounts Payable should be equal to the amount of vendor invoices that have been recorded but have not yet been paid.

What is a vendor?

A vendor is a person or business that supplies goods or services to a company. Another term for vendor is supplier.

In many situations a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms. Generally, when the vendor delivers the goods or services it will also send an invoice to the company. The company should then match the vendor's invoice with its purchase order and receiving report. If the three documents are in agreement, the company can than arrange for payment to the vendor.

What is Vendor Reconciliation?

Vendor registration is the process of collecting key information from outside suppliers of goods and services and entering that information into a system to manage the relationship. The registration system used is typically electronic or Internet-based, but can be handled through a paper process. Registration is used as a threshold requirement to separate vendors who are eligible suppliers and those who are not.

What is Chart of Accounts?

A chart of accounts is a created list of the accounts used by an organization to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.

What is Document Type Definition?

A Document Type Definition is a specific document defining and constraining definition or set of statements that follow the rules of the Standard Generalized Markup Language or of the Extensible Markup Language, a subset of SGML. A DTD is a specification that accompanies a document and identifies what the funny little codes are that, in the case of a text document, separate paragraphs, identify topic headings, and so forth and how each is to be processed. By mailing a DTD with a document, any location that has a DTD "reader" will be able to process the document and display or print it as intended. This means that a single standard SGML compiler can serve many different kinds of documents that use a range of different markup codes and related meanings. The compiler looks at the DTD and then prints or displays the document accordingly.

What is Field Status Variant?

Field status group is a group configured in FSV to maintain field status for G/L accounts, it controls the fields of the document posted to a particular G/L Account where the group is assigned to, eg - If G/L Account 1000 is created and document is posted to that particular account the fields of that account will appear as specified in the FSV.

What us Document Reversal?

Document reversal is useful if some transaction gets posted wrongly. In SAP we cant go back and change the transaction but to offset a wrong posted transaction we can save a different transaction with revert debit/credit entries. We don’t need to keep posting date if its in same posting period, but if its different period we have to give posting date.Important to note is Reversal of a reversed document is not possible in SAP FICO system.

What is the document of tolerance?

Tolerance document verification compares the balance of all the documents related to the posterior distributions based distribution requisition a tolerance related to a specific Chart field. Chart field background code is generally used in the process of document verification tolerance. For example, a $ 100 application has a distributing fund code 100 having a tolerance of 10 percent. If two orders against the distribution of applications, one for $ 50 and $ 75 for a second were introduced, the first purchase order spend tolerance checking documents, but the second failure would be a purchase order. In this case, the total distribution of requests against 125 USD would tolerance exceeding 10 percent. If you have the proper authority, you can replace the document control tolerance and continue processing the order.

What is Opening and Closing Period?

Open and close accounting periods to control journal entry and journal posting, as well as compute period- and year-end actual and budget account balances for reporting, accounting periods can have one of the following statuses:
Open-      Journal entry and posting allowed.
Closed-   Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed.

What is Reference Document?

A type of document that outlines past procedures, actions or strategies as they relate to a particular activity. For example, an employee could create a reference document to outline the procedures undertaken during an infrequent activity to avoid missing steps the next time that the activity is performed.

What is Document Using BAPI?

This document explains the various steps involved to post a FI document using BAPI. This is helpful to SAP Technical consultants as it gives the details of all the required parameters and data in document posting and validation to check if the GL account in which we are posting amounts is present in SAP database. Transaction code for FI documents are FB01/FB50(Create), FB02(Change) and FB03(Display). In one document, more than 999 line item cannot be posted because BAPI can post up to 999 lines in one document. The file should be balanced for the document to be posted i.e. credit amount and debit amount should be equal. In FI, header table for document data is BKPF and line item table is BSEG.


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