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SAP FICO Training Tutorial : Free SAP FICO Training and Materials

Updated on May 10, 2015

SAP System Understanding

What is SAP System ?

SAP system is a top ERP system. ERP is a short form of Enterprise Resource Planning while SAP is the short form of Systems, Applications and Products in data processing.
SAP system has many modules such as FI (Financial), CO (Controlling), SD (Sales & Distributions), MM (Material Management), and HR (Human Resources). Theses are the basic modules of SAP system.

SAP system is one of the best ERP software available for the corporations. Here I am going to discuss some of the main sub modules of SAP system. SAP Finance or SAP FI includes General Ledger (GL), Account Payable (AP), Account Receivable (AR) and Asset accounting (AA). Other then these modules, SAP also have some other sub modules or parts such as new General Ledger (New GL), Project system (PS), Financial Supply Chain Management (FSCM) and Treasury and Fund management. Moreover, SAP system is coming with many industry specific suit to give more easy and comfortable solution to different industries.SAP provides Apearal and Footwear industry solution (AFS), Reinsurance and collection (FSCD) for insurance industry, Oil and gas specific suit for Oil and gas industry, Retail suit for retail industry and finance solution for Finance industry.

SAP also introduced it's Big Data solution in SAP HANA. SAP HANA is short form of High Performance Analytic Appliances. It is still emerging to provide an in memory computing solution for SAP system.


What is the best ERP system ?

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Live Data Flow in Net Like Structure for SAP System

SAP system is a net like structure which keeps connecting all of the above areas. SAP system provides real time data flow among different departments. This means one department will get real time data from another department inside the system itself. This is very important aspects for an easy transaction for a large organization.

For example, an order to cash (OTC) cycle is combination of both sales, distribution as well finances integration. To run this cycle effectively, one need both sales and finance integration for data. In addition, we can always link up third party tool such as vertax, sabrix and other software.

Modules in SAP System

SAP system has many sub modules such as Finance Accounting (FI), Controlling (CO), Project System (PS), Financial Supply Chain Management (FSCM), Sales and Distribution (SD), Material Management (MM), Production Planning (PP), Customer Relation Management (CRM), Human Resources (HR), Warehouse etc.

SAP system also provides many other industry specific sub modules. There are many other industry specific modules for SAP such as SAP Travel, SAP security, SAP appear and footwear SAP AFS and many more. SAP provides modules for each and every business domain.

On top of these modules, there are many integration points such as Order to cash (OTC) and Procure to Pay (PTP), FI-HR integration etc.There are many third party solutions such as Third party tax ware, Third party analytic solution such as Run book to make SAP system enhanced.

Basics of SAP Finance (SAP FI)

Here are some basic settings for SAP FI modules.

SAP Financials have two major modules:

1) Finance (FI) and

2) Controlling that is CO

SAP FI module uses for outside reporting purpose like the IRS and other accounting entries. SAP CO module uses mostly for internal reporting purposes. FI and CO both together knows as SAP FICO. Some other important modules related to FICO are Project System (PS) and Financial Supply Chain Management (FSCM).

General Ledger (GL), Account Payable (AP), Account Receivable (AR) and Asset Accounting (AA) are main four sub modules in FI. Moreover, Integration points with SD and MM that is Order to Cash (OTC) and Procure to Pay (PTP) cycles respectively are also very important when considering SAP FICO. Also there are other integration points to consider such as FI-CO, FI-PS, and FI-HR.

Here are some outline and some most important topics in some top sub modules in FI. Although this material is strictly based on my understanding and knowledge and also it is very high level concept.

General Ledger (GL): General Ledger consists of General ledger accounts, Charts of account (COA), Retained earning account, Fiscal year variant, posting period variant, Posting/parking and blocking of a document.

SAP Account Payable (AP): It includes vendor master data, invoice posting, outgoing payment, residual/partial payment and automatic payment program (APP).

SAP Account Receivable (AR): It includes Customer master data, invoice posting, house bank configuration, lockbox, electronic bank statement (EBS) and dunning.

SAP Asset Accounting (AA): It includes asset master data, charts of depreciation, asset types, asset classes and depreciation methods.

SAP New General Ledger (SAP new GL)

New General Ledge is new functionality of SAP ECC 6.0. It is basically the same General Ledger (GL) but with some additional new functionality. Here are those new functionality.

  • Parallel Ledger
  • Document splitting
  • Segments


Reporting in SAP can be done at various levels. Reporting can be done at General Ledger (GL), Account Payable (AP), Account Receivable (AR) and at FI levels also. Financial Statement Version can be drawn down at various levels as below.

  • Financial statement version
  • General Ledger
  • Accounts Payable
  • Accounts Receivable
  • Assets Reports


Overall, SAP is a great ERP tool but it is complicated if you try to look all modules at once. Try to understand the big picture if you are new to SAP. If you are experienced in one of the module, you can slowly get introduced with another related modules if you want.


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    • profile image

      Lara Coxson 3 months ago

      I'm interested in studying SAP software. What is the duration of study. Any center of learning in Newark New Jersey and the course fee.

    • ktnptl profile image

      ktnptl 2 years ago from Atlanta, GA

      Thanks Joey

    • profile image

      joeyparkker 2 years ago

      Great article!

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      Hotten 2 years ago

      A user in SAP does not even have to manually post a docnmeut / line item. SAP can be configured for automatic posting though an option is available for manual posting as well. Filed Under: Web Tagged With: SAP

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      Abhishek Pandey 3 years ago

      I wont to do SAP so please give me all information about SAP like duration, fee structure, syllabus & opportunity after completing this program.