The Financial Accounting (SAP FI) module in SAP is designed to capture organizations business transactions in a manner that will satisfy external reporting requirements. Local legal considerations are delivered with the system. The ability to manage and report on multiple companies in multiple countries with multiple currencies is part of standard functionality. Integration with Sales and Distribution, Purchasing, and Materials Management allows for the ability to select any financial transaction and drill down to the originating transaction –  whether it’s a purchase order, sales order, or material movement.

Financial Accounting includes the following sub-modules:

  • General Ledger (FI-GL)
  • Accounts Payable (FI-AP)
  • Accounts Receivable (FI-AR)
  • Bank Accounting (FI-BL)
  • Asset Accounting (FI-AA)
  • Funds Management (FI-FM)
  • Travel Management (FI-TV)
  • Special Purpose Ledger (FI-SL) (I am not sure this is really considered a module anymore)

The flexibility of the Finance modules organizational structure gives the module the ability to handle any economic situation. Whether a smaller organization with a single legal entity or a large organization with numerous companies, consolidations, and varying legal requirements, the FI module can support and automate most financial postings and reporting. Below is a listing of the main organizational elements in the Finance module:

  • Company Code – Represents a legal reporting entity. There can be numerous company codes within an organization. Each has its own balanced books and reports itself as a single economic entity.
  • Credit Control Area – If credit management is being used, this sets the general parameters for how credit is managed. The credit control area can control credit for a single company code representing a decentralized credit management approach or multiple company codes representing a more centralized credit management approach.
  • Chart of Accounts – The system supports single or multiple charts of accounts providing the ability to record transactions and report financially in many different regulatory environments. A chart of accounts can support multiple Company Codes if necessary.

SAP Financial Accounting (SAP FI)