In this article, we will discuss the Company code, the Asset accounting module, the Credit control area configurations, and the FI-SD integration. We’ll also cover how to define a country code for external reporting. This article is written for people who are new to the SAP FICO platform but would like to learn more about the system.
SAP Financial Accounting’s Company Code is a critical part of an organization’s structure. It allows for a consolidated set of financial statements. Company code is the first step to creating a company in SAP. This scenario will help you learn about this fundamental concept.
Once you have determined how many company codes your company has, you need to assign them to the correct organizational units. A company can have a single code, multiple codes, or a FS (for single units). The SAP FICO team will discuss the different aspects of each.
The company code is necessary for external accounting systems and general statements. The company ID is six characters long. The company ID may contain an alias. The company ID must also have the address information for each location. In the example above, BS Consumer Products has BS1000 company ID. It is best practice to include a postal code. Moreover, the country field is required.
Asset accounting module
The SAP Asset accounting module is one of the most important sub-modules in SAP financial accounting. It helps you manage and supervise fixed assets in your business and extract their exact value. Fixed assets are assets that are used to run a business enterprise, either permanently or on lease for a year or more. They also have depreciation value which is calculated at the end of the accounting period.
SAP FICO is a comprehensive ERP system that includes two key modules: Financial Accounting and Controlling. These modules help businesses analyze and plan their financial transactions, and improve their overall business management. They can be used in combination with other SAP modules, such as SD, PP, MM, and SCM, to optimize financial reporting.
Credit control area configurations
When you implement SAP FICO, you need to know how to set up the Credit control area configurations. This is a process that allows you to define a credit control area for each company code. This area then controls the updates for open orders, deliveries, and billing documents. Sales orders, for example, increase the value of open orders in the relevant schedule line, while billing documents decrease the value of open deliveries.
To set up a credit control area, you must first define the company code, sales area, and payer. Once you have defined these three areas, you must assign a CCAr for each. In addition, you must define the type of delivery and credit master data in Transaction VOV7. You must also make sure to set the credit limit check dynamically.
There are two basic FI-SD integration processes: the Billing process and the Sales process. In the former, the organization sends a bill to the customer. The latter is more complicated. Both processes will generate two bills, which will be posted in the FI Module. The bill will contain information on the quantity and value of finished goods. The FI module will also store data on the customer’s G/L and the Standard Price of Material.
FI-SD integration is the most frequently asked question during an interview and a lack of knowledge in this area can result in rejection. A thorough understanding of FI-SD integration is essential in implementation, support, and rollout. If you want to get an edge in your next interview, you must master FI-SD integration. This document is for finance consultants. It does not cover the entire process, but gives a basic outline.