Sap module for financial concerns

By: Jacob Christopher
Submitted: 2008-06-25 13:38:22
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SAP FI module is the new package which is introduced specifically for the financial concerns. It is a special package which comes up with ability of meeting all accounting and financial needs of the organization. It is an element where financial managers could review the financial position of the company in real time. The SAP FI modules real time functionality will allow the financial manager to take better decision making and strategic planning for the organization. The other typical features of FI module is that it integrates with materials management, sales and distribution, plant maintenance, project systems and human resources modules.

Some of the components and fundamentals comprised are accounts receivable, accounts payable, consolidation, asset accounting, general ledgers and more. As a company decides to make use of SAP, it is compulsory to come up with several primary precondition configurations. The structure of the firm must be processed correctly by the managers and it is the primary step which should be set up for business reporting requirements. The structure must be formed along with client, company and business area configurations. The peak unit in SAP system is client unit that contains master records, tables and valid records. The data entered at this level are valid for all company rules data and clerical structures allowing for data constancy. User access and authorizations are assigned to every client created. Users should state which client they are working in at the tip of logon to the SAP system.

A company is the part to which your financial statements are created and can have one to many company codes assigned to it. A company is equal to your legal business association. Consolidated financial statements are based on the company’s financial statements. Companies are defined in design and assigned to company codes. Every company code must use the same COA (Chart of Accounts) and Fiscal Year. Also note that the local currency for the company could be different.

Company Codes are the least unit within your organizational structure and is used for internal and external reporting purposes. These codes are not optional within SAP and are necessary to be defined. Financial dealings are viewed at the company code level. Company Codes could be created for any business organization whether national or international. It is suggested that once a company code has been defined in configuration with all the necessary settings then other corporation codes later created should be copied from the existing company code. You could then make changes as required. This reduces recurring input of information that does not vary from company code to company code as well as get rid of the possibility of missed data input.

Currencies are another basic configuration setting requirement, which define your company’s legal means of payment by the country.
•    It is suggested that all currency set-ups in SAP follow the ISO standards.
•    The ISO Standards ensure global agreement across businesses globally utilizing SAP.

SAP is marketed as a completely integrated system, therefore knowing some of the integration points enable the users to better understand the modules.

Article source: Expert Articles