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    What Is SAP Finance ?what Business Requirement Is Fulfilled in This Module?

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    Ananthakumar A
    SAP FI fulfills the finance department's responsibilities of bookkeeping, generating financial reports, and recording accounting entries for business transactions. It automates many manual tasks like recording entries, which reduces inaccuracies and allows real-time coordination between departments. This helps generate financial reports like balance sheets faster. SAP FI is composed of sub-modules that handle specific activities and their accounting, like general ledger, accounts receivable, accounts payable, asset accounting, and bank accounting. It overcomes challenges of coordinating departments that are spread across geographies.

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    What Is SAP Finance ?what Business Requirement Is Fulfilled in This Module?

    Uploaded by

    Ananthakumar A
    31 views4 pages
    SAP FI fulfills the finance department's responsibilities of bookkeeping, generating financial reports, and recording accounting entries for business transactions. It automates many manual tasks like recording entries, which reduces inaccuracies and allows real-time coordination between departments. This helps generate financial reports like balance sheets faster. SAP FI is composed of sub-modules that handle specific activities and their accounting, like general ledger, accounts receivable, accounts payable, asset accounting, and bank accounting. It overcomes challenges of coordinating departments that are spread across geographies.

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    SAP FICO

    Original Title

    SAP Finance

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    SAP FI fulfills the finance department's responsibilities of bookkeeping, generating financial reports, and recording accounting entries for business transactions. It automates many manual tasks like recording entries, which reduces inaccuracies and allows real-time coordination between departments. This helps generate financial reports like balance sheets faster. SAP FI is composed of sub-modules that handle specific activities and their accounting, like general ledger, accounts receivable, accounts payable, asset accounting, and bank accounting. It overcomes challenges of coordinating departments that are spread across geographies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views4 pages

    What Is SAP Finance ?what Business Requirement Is Fulfilled in This Module?

    Uploaded by

    Ananthakumar A
    SAP FI fulfills the finance department's responsibilities of bookkeeping, generating financial reports, and recording accounting entries for business transactions. It automates many manual tasks like recording entries, which reduces inaccuracies and allows real-time coordination between departments. This helps generate financial reports like balance sheets faster. SAP FI is composed of sub-modules that handle specific activities and their accounting, like general ledger, accounts receivable, accounts payable, asset accounting, and bank accounting. It overcomes challenges of coordinating departments that are spread across geographies.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    What is SAP Finance ?

    What business
    requirement is fulfilled in this module?

    SAP FI stands for sap finance. Before understanding sap fi we need to understand the duties and responsibility
    of finance department in an organization.
    Duties of finance department are:

    Book keeping/ recording accounting entry for day to day business transactions

    Generating balance sheet and profit & loss statement

    Generating financial reports for legal/ statutory purposes e.g. tax reporting to government, reports for
    auditors etc.)

    Now lets understand what is meant by day to day activities in a business.


    In order to understand activities in a business, we need to understand operations of a business. Every business
    will have customers to whom it will sell either services or product. Product/services may be purchased from
    outside or produced in-house. Purchase department has to purchase and supply to production department for
    production of finished goods. Distribution department has to deliver finished goods to customer.
    Supplier/ vendor have to be paid.
    Money from customer has to be collected.
    Employees need to be paid.
    Assets (machine/ vehicle/ building/ land etc.) need to be purchased or produced in-house. Depreciation of
    assets needs to be recorded.
    Above picture depicts business activities generate accounting entry in finance.

    Assume no IT system is used in organization, keeping track of activities and recording corresponding
    accounting entry becomes challenging. This challenge increases many folds by the fact that people are spread
    across geography. Improper and slow coordination between departments lead to slow business cycle. Manual
    recording of accounting entries increases the chances of in-accurate data being recorded.

    Sap finance module deals with all the activities of finance department. At the same time overcomes the
    challenges of departments coordination and manual recording of accounting entry.
    Most of the manual activities are automated. Less manual intervention ensures more accurate data. Real time
    coordination between departments (sap finance module with other modules) ensures all affected parties are
    updated simultaneously.
    Sap finance helps in generating faster financial reports e.g. balance sheet/ profit & loss statement/ tax reports
    for tax authority/ reports for auditors etc.
    Above picture depicts coordination between various modules and FI module.
    Sap finance module is composed to several sub modules. Each sub-module is designed to handle specific
    business activity and corresponding accounting entry.
    -General ledger accounting
    -Account receivable
    -Accounts payable
    -Asset accounting
    -Bank accounting

    Sap CO stands for sap controlling.


    Sap finance & sap controlling modules are placed close and overlapping (as shown in above picture) because
    sap finance and controlling modules are very closely integrated. A business activity often generates accounting
    entry in finance and corresponding entry in controlling as well.

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