SAP FI is the financial and accounting module which keeps the records of the statutory data and the finance related rules and regulations, of a company. The accounting related information and the financial needs of the organization are mentioned in the module. The management can review the financial records and compare it to the legacy system.
It is the core module which automates the processes of financial calculations and reporting. The modules included in FI are General Ledger, Accounts Receivables, Accounts Payable, Bank Accounting, Asset Accounting, Consolidation, Funds Management, Special Purpose Ledger, Travel Management, Sub-Ledgers and User-defined chart of account.
There are other modules which handle financial data in the software and these modules are integrated to FI such as CO (controlling), TR (Treasury), IM (Investment management), EC (Enterprise Controlling), RE (Real Estate) and Project System (PS).
Five types of Accounts can be defined in the module such as Vendor, Customer, Material, G/L Accounts, Assets, and these five accounts can be used to define the vendor account, and also the financial period to open and close the account.
General Ledger: The general ledger keeps the records of all the accounting transactions. One account may contain multiple entries at one time and the details of transactions can be viewed through the sub- ledgers.
Accounts Payable: It stores the data of accounting related transactions and it can be used to handle the records of the suppliers. The data for the accounts payable comes from the material management and various other integrated modules. The accounts payable handles and maintains the data of the vendors, and it is also integrated to the sales management. Accounts Payable includes generation of AP invoices, Automatic Payment Program, Payment Terms, Post and Make Payment.
Accounts Receivable: The accounting data related to the customers can be entered into the Accounts Receivable section and much of the data in accounts receivable is taken from the sales and distribution modules.
Asset Management: The asset accounting takes in records related to the fixed assets and it includes depreciation and tax calculations. The asset accounting includes Asset period closing, leased process, asset disposal/scraping, Period closing steps, and Asset transfer, Construction, Disposal, Acquisition and Maintenance of fixed assets.
Consolidation: In consolidation the financial statements of the various cost centers and entities of the organizations are maintained. The statements provide the general financial position of the company.
Special Purpose Ledger: The special purpose ledgers are used to define ledgers which are used for reporting. The data is taken from internal and external applications to design the ledger.
Funds Management: The module allows the company's management to set up a budget, to get revenues and expenses of the company at one place, and to track the various expenses.
Travel Management: The travel management function calculates the travel cost and helps to make a travel plan. The travel expenses are managed in travel management and the bank ledger takes in the entries from the cash flow.