Introduction to SAP FI (Financial
Accounting)
• Understanding SAP FI and its role in enterprise
financial management.
What is SAP FI?
• SAP FI (Financial Accounting) is a module used
for external reporting like Balance Sheet,
Profit & Loss statements. It records financial
transactions of a company.
Core Functions of SAP FI
• - General Ledger Accounting
• - Accounts Payable
• - Accounts Receivable
• - Asset Accounting
• - Bank Accounting
Integration with Other Modules
• SAP FI integrates with:
• - MM (Materials Management)
• - SD (Sales & Distribution)
• - CO (Controlling)
SAP FI Organizational Structure
• - Company Code: Smallest organizational unit
for which a complete set of accounts can be
drawn.
• - Business Area: Separate area for financial
reporting.
• - Chart of Accounts: List of all G/L accounts
used by one or more company codes.
General Ledger Accounting
• Maintains all business transactions in a
software system.
• Features:
• - Real-time updates
• - Customizable chart of accounts
• - Use of document types and posting keys
Accounts Payable and Receivable
• - AP: Manages vendor transactions.
• - AR: Manages customer transactions.
• Processes include invoice posting, payment,
and reporting.
Asset and Bank Accounting
• - Asset Accounting: Manages company’s fixed
assets with tracking and depreciation.
• - Bank Accounting: Deals with bank
transactions and reconciliation.
Reporting in SAP FI
• - Financial Statements
• - Balance Sheets
• - P&L Statements
• - Real-time and standard reporting tools
available
Benefits of SAP FI
• - Accuracy in financial transactions
• - Integration across modules
• - Compliance with international standards
• - Increased operational efficiency
Conclusion
• SAP FI is essential for managing a company’s
financial data. It supports effective decision-
making, compliance, and financial
transparency.