Explore topic-wise InterviewSolutions in .

Currencies in SAP FICO are a method for expressing any transaction in monetary values for a company. There are BASICALLY TWO currency types USED in SAP FICO:

• Company Code Currency
• Group and HARD Currency

Here are the USES of Business Areas in SAP FICO:

• They are used for EXTERNAL segment reporting (above company codes), based on vital areas of business operations of a company.
• Properly defined business areas help in managing the TRANSACTION figures of the G/L accounts SEPARATELY to be used in the internal evaluation purposes. This can, therefore, help in creating internal financial records.

Here are the FOLLOWING steps for creating a FISCAL Year Variant in SAP FICO:

• Step 1: Start by entering the SAP Transaction code SPRO in the command field and press Enter.
• Step 2: Now, on the next screen, please select the SAP Reference IMG button.

• Step 3: It shall navigate you towards the following PATH:

           Financial Accounting -> Financial Accounting Global Settings->Fiscal Years ->

           Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year )

• Step 4: Now select on the "New Entries" section from the Application toolbar.
• Step 5: Now that you have entered all the required data, press on the save icon on the Application Toolbar
• Step 6: Enter the customizing request number. Now, you have created a new Fiscal year Variant.
• Step 7: You should now maintain the periods for the Fiscal year in ascending order.
• Step 8: Finally, just press the "Save" button in SAP Standard Toolbar

In SAP FICO, posting keys are assigned at the client level and then assigned int the company code while entering particular line items into the SAP System. Here are essential factors for posting keys in SAP FICO:

• DEBIT or Credit Posting for defining the type of transaction INVOLVED in the business.
• Managing Field Status
• They are determining the Type of Account to be entered.
• They are defining whether line items are connected to a payment transaction.

The SAP FICO is required by ay company for the followings:

• They are ENABLING control and financial ACCOUNTING for business functions smoothly.
• We are making the platforms quicker, reliable while producing important information and achieving different external reporting priorities vital to the company.
• They are making competent and instant ALTERATIONS to business changes within the departments.
• They are providing easy monitoring of data and information relevant to cost and benefit centers globally through a single platform.
• We are helping in seamless administration CHOICES with real-time processing of financial reports.

In SAP FICO, the Asset Accounting or FI-AA sub-module is used for the OVERALL management and supervision of fixed assets within the SAP System of any organization. In SAP's Financial Accounting, Asset Accounting serves as a SUBSIDIARY ledger for General Ledger by providing detailed information on EVERY transaction involving fixed assets of the company.

SAP FICO consists of two critical sections, FI and CO, where each of them contains MODULES and further sub-modules.
SAP FI Modules

• FM: Funds Management
• MM : Materials Management
• PP: Product Planning
• PM: Product Maintenance
• PS: Product Systems
• SD: SALES & Distribution
• QM: Quality Management

SAP CO Modules

• Cost Elements
• Cost Centers
• Profit Centers
• Internal Orders
• Profitability Analysis
• Product COSTING

The SAP FICO is divided into two modules, namely, SAP FI and SAP CO. The FI and CO are further divided into sub-modules which look after the Financial and Controlling aspects of any company. All the sub-modules within each module are integrated in real-time. Any changes happening at any sub-module will AFFECT the other sub-modules and the SAP FICO as a whole. The MAIN FOCUS of the FICO is financial reporting for both internal and external INSTANCES of any company by recording all the financial transitions produced by an entity and maintaining the records.