SAP - FI

Overview of SAP Financial Accounting Module

The Financial Accounting application component of SAP satisfies the requirement of the accounting department of your organization. Each Company is required to provide and submit financial statements to the government who has jurisdiction over the company's operation. The financial statements is a result of all financial transactions recorded by the company. The Financial Accounting component of SAP greatly helps the accounting department of your company to generate reliable, relevant and accurate financial information.

Components of SAP Financial Accounting Module

General Ledger

• This serves as complete records of all business transactions;
• This gives users free choice of level of financial reporting;
• Reconciliation G/L account with subsidiary accounts are simultaneously and updated;
• General ledger and cost accounting areas are simultaneously updated; and
• There is a real-time evaluation of and reporting on current accounting data.

Accounts Receivable

• This submodule records and manages all accounting data and transactions for customers;
• Postings to customers (subsidiary account) are simultaneously posted to Accounts Receivable g/l accounts. No month-end reconciliation is needed;
• There is an online open item (outstanding balance) processing;
  Individual customer accounts can be monitored online;
• Dunning procedures is available;
• Seamless integration with the Treasury; and
• It supports credit management for customers and liquidity planning for cash management.

Accounts Payable

• This records and manages accounting data for all vendors;
• Postings to vendors (subsidiary account) are simultaneously posted to Accounts Payable g/l accounts. No month-end reconciliation is needed;
• There is a seamless integration of Accounting with Purchasing (MM) through Invoice Verification (could be the 2 way or the 3 way match);
• There is a management of One-time accounts (one-time vendors);
  There is an online processing of payment proposals;
• It supports liquidity planning for Cash Management; and
• There is a downpayment processing (via FI direct postings or with reference to PO).

Bank Accounting

• This submodule manages accounting transactions processed with banks;
• Posting to bank subsidiary accounts are posted directly and simultaneously;
• Supports posting of cash flows such as incoming and outgoing payments;
• There is the functionality of Bill of exchange (Post-dated checks); and
• There is a cash journal (Petty cash fund).

Asset Accounting

• This module records and handles fixed assets (Property, plant and equipment);
• Postings to fixed asset subsidiary are simultaneously posted to Asset g/l accounts;
  There is an integration with the Purchasing (MM);
• There is an online calculation and posting of depreciation. Depreciation postings are transferred automatically to Controlling component; and
• Leased assets and asset under construction (AUC) are handled.

Travel Management

• This handles the request, the planning and the booking of trips, also the settlement of travel expenses and the transfer of settlement results ot other business functions ares; and
• IT has 3 sub-components: Travel request, Travel planning, and Travel expenses.

by Allan Eduardo Favaron

SAP FI Consultant