The document provides an overview of SAP's financial solutions, including SAP FI (Financial Accounting) and SAP CO (Controlling). SAP FI handles accounting transactions for external reporting purposes, including general ledger, accounts receivable/payable, and asset accounting. SAP CO provides supporting information for management decision making through cost element accounting, cost center accounting, internal orders, and product cost controlling. Key features of both modules include real-time processing and integration across the SAP system.

1. Financial Solutions
Overview & Summary of
SAP Financial Solutions
Keywords: Finance is the heart for a company, which plays an important
Transparency, role for the business running inside the company. Finance also
Agility, became one of the main indicators for company performance,
Integration both for internal (owners of the business, customers, suppliers,
and employees) and external (government, society, press/media
and potential investors).
In today’s world of innovation trough Information Technology, the finance area
also can’t be separated from the IT innovation. This financial function must be
able to provide an accurate picture of corporate performance to make the right
decision; in short term the goal is to compete with competitors and in the long
term to ensure the company has been running on the right track and to make
a continuous growth.
By the growth of the business, the necessity to have information systems that
can meet the needs of internal and external use is a must, including financial
functions. The solution offered by SAP to meet this need is SAP FI/CO.
SAP itself has several layers. The Basis System is the heart of the data
operations and shouldn’t be evident to higher level or managerial users. Other
customization and implementation tools exist also. The heart of the system from
a manager’s viewpoint is the application modules. These modules may not all
be implemented in a typical company but they are all related and listed below:
SAP FINANCIAL SOLUTIONS
 SAP Financial Accounting (SAP FI)  SAP Financial Controlling (SAP CO)
Designed for automated management and Represents the company's flow of cost and revenue.
external reporting of general ledger, accounts It is a management instrument for organizational
receivable, accounts payable and other sub-ledger decisions. It too is automatically updated as events
accounts with a user defined chart of accounts. As occur.
entries are made relating to sales production and
payments journal entries are automatically posted.
This connection means that the "books" are
designed to reflect the real situation.
OTHER MODULES
PP – Production
SD – Sales and
MM – Materials
WF - Workflow
QM – Quality
Management
Management
Management
Maintenance
IS – Industry
HR – Human
PS – Project
Distribution
AM – Asset
Resources
PM – Plant
Solutions
Planning
System

2. Financial Solutions
SAP FINANCIAL SOLUTIONS IN DETAIL
SAP FI Module SAP CO Module
The SAP Financial Accounting (FI) module The SAP CO (Controlling) Module provides
provides integrated, online, real-time supporting information to Management for the
functionality for processing, recording and purpose of planning, reporting, as well as
maintaining the financial accounting monitoring the operations of their business.
transactions of the business for external Management decision-making can be achieved
reporting purposes. with the level of information provided by this
module.
The sub-modules of FI are: The sub-modules of CO are:
 General Ledger is fully integrated with the other  Cost Element Accounting provides information
SAP Modules. It is within the General Ledger which includes the costs and revenue for an
that all accounting postings are recorded. These organization. These postings are automatically
updated from FI to CO. The cost elements are
postings are displayed in real-time providing up-
the basis for cost accounting and enables the
to-date visibility of the financial accounts. User the ability to display costs for each of the
 Account Receivable records all account accounts that have been assigned to the cost
element.
postings generated as a result of Customer
sales activity. These postings are automatically  Cost Center Accounting provides information
updated in the General Ledger. on the costs incurred by your business. Within
SAP, you have the ability to assign Cost Centers
 Account Payable records account postings to departments and /or Managers responsible
generated as a result of Vendor purchasing for certain areas of the business as well as
activity. Automatic postings are generated in the functional areas within your organization.
General Ledger as well. Payment programs  Internal Orders provide a means of tracking
within SAP enables the payment of payable costs of a specific job , service, or task. Internal
documents by check, EDI, or transfers. Orders are used as a method to collect those
costs and business transactions related to the
 Fixed Assets (Asset Accounting) is utilized task.
for managing your company’s Fixed Assets.
 Activity-Based Costing (ABC) allows a better
SAP allows you to categorize assets and to set
definition of the source of costs to the process
values for depreciation calculations in each driving the cost. Activity-Based Costing
asset class. enhances Cost Center Accounting in that it
allows for a process-oriented and cross-
 Consolidation enables the combining of functional view of your cost centers. It can also
financial statements for multiple entities within be used with Product Costing and Profitability
an organization. These statements provide an Analysis.
overview of the financial position of the
 Product Cost Controlling allows management
company as a whole. the ability to analyze their product costs and to
 Special Purpose Ledger is used to define make decisions on the optimal price(s) to market
their products. It is within this module of CO that
ledgers for reporting purposes. Data can be
planned, actual and target values are analyzed.
gathered from internal and external applications.
 Profitability Analysis allows Management the
 Funds Management allows management to set ability to review information with respect to the
budgets for revenues and expenses within your company’s profit or contribution margin by
company as well as track these to the area of business segment.
responsibility.  Profit Center Accounting provides visibility of
 Travel Management provides management of an organization’s profit and losses by profit
center. The methods which can be utilized for
all travel activities including booking trips and
EC-PCA (Profit Center Accounting) are period
handling of expenses associated with travel. accounting or by the cost-of-sales approach.