SAP ERP Financial Accounting and Controlling-FI/CO Training in Pakistan

SAP ERP Financial Accounting and Controlling-FI/CO

What is SAP FICO? 

SAP FICO is a module of SAP ERP which is utilized for monetary announcing both remotely and inside. The goal is to record all monetary exchanges that are posted by an element and produce fiscal reports that are exact toward the finish of the exchanging time frame. The SAP FICO full structure is FI (Financial Accounting) and CO(Controlling).

SAP FI is comprised of SAP FICO sub modules. The sub-modules that are frequently utilized are accounts receivables, accounts payables, asset accounting, general ledger accounting and bank accounting. 

General ledger accounting

All broad record accounts that are utilized for detailing are overseen through general ledger accounting. In SAP a bunch of all broad record accounts utilized by an organization or a gathering of organizations is known as a graph of records. These are the records that will be utilized for the arrangement of fiscal summaries. The majority of the exchanges are recorded in sub modules and they are accommodated with the overall records progressively. Exchanges that should be possible in direct overall record Accounting incorporate diary vouchers which are presented on change or right exchanges. Inversions should likewise be possible from general record bookkeeping. Equilibriums overall record records can be shown and preliminary adjusts separated from the framework.

Account receivables 

Account receivables in FICO SAP is a sub module that catches all exchanges with clients and oversees client accounts. Separate client records will be kept up and when exchanges are posted in client accounts, compromise accounts overall record are refreshed with the figures continuously. Exchanges in accounts receivables incorporate receipt posting, credit update posting, up front installments, receipt installment, dunning and executing client reports.

Account payables 

Account payables is a sub module that catches all exchanges with merchants and oversees seller accounts. Separate seller accounts are kept up and when exchanges are posted in client accounts, compromise accounts overall record are refreshed with the figures continuously. Exchanges in accounts payables incorporate receipt posting, credit reminder posting, initial installments, receipt installment, programmed installment program and executing merchant reports.

Asset Accounting

Asset Accounting in SAP FICO deals with all exchanges identified with resources for an element. At the point when exchanges are posted in resource accounts, compromise accounts overall record are refreshed continuously. Exchanges in resource bookkeeping incorporate resource procurement, resource retirement, resource deal, resource move, resource revaluation and resource deterioration.

Bank Accounting

Bank Accounting catches all exchanges with the banks. Bank compromise is done to accommodate all exchanges recorded on bank articulations contrasting them with exchanges in the framework. 

All SAP FI sub-modules are coordinated and exchanges are refreshed continuously which implies exact budget reports can be removed from the framework whenever.

Instructions to Create a Company in SAP 

Characterize Company

Stage 1) Enter Transaction code SPRO in the order field 

Stage 2) In the following level Select SAP reference IMG 

Stage 3) In next level Display IMG follow the menu way 

SAP Customizing Implementation Guide - > Enterprise Structure - > Definition-> Financial Accounting - > Define Company 

Stage 4) In the following Screen 

1) Press New Entries 

Stage 5) In the following level Enter the Company Details : 

• Enter an extraordinary Company Id for the Company inside your corporate gathering 
• Enter the Company Name 
• In the Detailed Information Section Enter the Company Address subtleties like Street , PO Box, Postal Code, City 
• Select Country code for country the organization is set up 

• Select Default language for the Company for Print structures and Default Texts 

• Select a Local Currency for the Company 

Step 6)After finishing all the necessary data ,press save Enter your recording demand number, your organization is made.

Create Chart of Accounts in SAP

What is a Chart of Account?

In SAP, the Chart of Accounts (COA) is defined at the client level and assigned to each company code. It is a list of General Ledger account’s master data that fall under different account groups of a company code. This grouping mechanism helps to develop better financial reports.

Kinds of Chart of Accounts 

There are three kinds of Chart of Accounts, viz 

• Working diagram of records: They are utilized to post day by day expenses. The records in Operating Chart of Accounts could be either cost or income accounts, and the data is shared by Finance just as Controlling modules. 

• Gathering Chart of Accounts: These are accounts utilized by the whole corporate gathering. They help in creating reports at the corporate. 

• Country-explicit graph of records: This Chart Of Accounts help meet country-explicit legitimate prerequisites.

Step by step instructions to Create Chart of Accounts in SAP

Stage 1) Enter Transaction code SPRO in the order field 

Stage 2) In the following level Select SAP reference IMG  

Stage 3) In next level-"Show IMG" explore the accompanying menu way : SAP Customizing Implementation Guide - > Financial Accounting - > General Ledger Accounting - > G/L Accounts - > Master Data - > Preparations - > Edit Chart of Accounts List 

Stage 4) In the following level, select New Entries 

Stage 5) In the following level, Enter Following Data : 

• Enter a remarkable Chart of Accounts Code , greatest length is four 
• Enter a Description for the Chart of Accounts 
• Enter Language in which the Chart of Accounts is created. All accounts have a portrayal in this language. Master Data must be shown or kept up in this language 
• Enter the greatest length for G/L Accounts number, it very well may be most extreme to ten digits on the off chance that number is short, it will prefix zero preceding it to make it to the greatest length 
• Enter the sort of mix between G/L records and cost components 
• Enter Chart of Accounts which is utilized in the corporate gathering 

Stage 6) After you complete entering this data Press Save. In the following level, Enter your Change Request number. 

You have successfully created a new Chart of Accounts in SAP.

Create Retained Earnings Account in SAP 

• Enter Transaction code SPRO in the order field  
• In the next level Select SAP reference IMG 
• In next level-"Show IMG" explore the accompanying menu way : 

SAP Customizing - Implementation Guide-Financial Accounting - General Ledger Accounting - G/L Accounts - Master Data-Preparations-Define Retained Earnings Account  

• In the next level, Enter the Chart of Accounts to keep up the Retained Earnings Account 
• In the next level, select New Entries from the Application Menu  
• In the next level, Enter the accompanying data 

1. Enter the P&L articulation account type, to decide the held profit represent each P&L account. If you are making a P&L account, you should make a section here. 
2. Enter the G/L Account which will be considered as Retained Earnings account 

• You can keep up the posting key for this record by choosing posting key in the Application Menu 
• After this you can allot posting key for Debit and Credit 
• In the wake of keeping up totally required data , press save and Enter your change demand number 

You have successfully created a new Retained Earning Account in SAP.

General Ledger (G/L) Posting in SAP: 

General Ledger posting is the way toward presenting the Payroll results on the suitable GL accounts including the expense places Posting finance results to Accounting is one of the ensuing exercises performed after an effective finance run. It generally happens once every finance period, just as after each off-cycle finance run. GL posting does the accompanying 

• Gatherings together posting-important data from the finance results. 
• Makes summed up records. 
• Plays out the important postings to proper GL records and cost focuses

How posting is evaluated? 

Every representative's finance result contains distinctive compensation types that are pertinent to accounting: 

• Compensation types like standard compensation, rewards, and extra time address costs for the organization, which are presented on a relating business ledger. 
• Compensation types, for example, bank move, business charge, worker's commitment to social protection, and so on are the business' payables to the representative, the duty office, and so forth also, are presented as credits on a relating payables or monetary record. 
• Furthermore, there are wage types, for example, the business' medical coverage commitment, which addresses a cost for the endeavor and, simultaneously, a payable to the social protection office. Consequently, such compensation types are presented on two records - when charged as a cost, and once credited as a payable. 
• Different kinds of compensation types additionally exist, for instance gatherings, arrangements, and so on These sorts of compensation types are typically presented on two records, when charged as a cost and once credited as an arrangement.

Presenting on General Ledger is a 2 STEP measure :- 

Stage 1) Create a Posting Run 

Transaction: PC00_M99_CIPE 

Outline: 

• This progression makes a posting run dependent on the finance results, with a "particular number", a "run type PP", and the going with posting records. 
• The posting run guarantees that finance results for a worker are just posted once 
• Handled finance results for a representative are hailed 
• In the event that the posting run is effective, it gets the status "Reports Created". 
• In the event that the posting run is ineffective, it gets the status "Mistaken Documents". Applicable mistake messages will show up in the Output Log.

Stage 2) Editing a Posting Run 

Transaction: PCP0 

Outline: 

• This progression gives an outline of ALL records made during the posting run. 
• On the other hand, you can likewise get to the archive outline from the Create Posting Run log by picking the Document Overview button or by double tapping on the Document Creation line. 
• You can penetrate down through these reports to distinguish the explanations behind which blunders have happened for ineffective posting run (i.e., with an "Wrong" status).

A posting run can be executed in 3 Modes: 

• A trial without archives (T) 
• A reenactment run with reproduction archives (S) 
• A profitable run (P) 

Test (T) 

In a trial, the framework checks just whether the equilibrium of costs and payables is zero, as it ought to be. 

Reenactment (S) 

In both reproduction and profitable runs, the framework checks all HR and RT tables and the posting data in ace information to decide if they exist and whether they are steady. 

Profitable Run (P) 

At the point when you pick Execute Run for a beneficial run, the framework plays out the accompanying advances:

• Chooses the workers and their finance results for the assessment 
• Makes a posting run 
• Makes posting archives

Posting Run Status 

• At first the posting run status ought to be Documents made. 
• On the off chance that status is No records made and you were anticipating archives, return to the past Create a Posting Run step and retry. 
• On the off chance that there are Incorrect archives survey the blunder message and resolve. 
• Whenever Error are settled and status is Document Created , Select Release Document Button and status will change to All Document Released.
• Next click Post reports button , Status will change to Documents Posted.

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