SAP FICO Enterprise Structure by Chanu Sk

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Chanu Sk's YouTube channel

There are a variety of methods for learning SAP FICO. One of the best ways to learn the system is to watch videos. Chanu Sk’s YouTube channel is an excellent source for SAP FICO training. Her videos include hundreds of Success Stories and Placements. If you’re looking for training videos that are quick and easy to understand, she’s your best bet!

[youtube https://www.youtube.com/watch?v=oBbwYgQ8yZY]

Business area

SAP FICO is a management application that is used to manage the organization of the financial data. The software includes two parts: SAP (FI) and SAP Controlling (CO). SAP FI deals with the overall financial reporting and SAP CO deals with the cost planning. These two modules were originally released separately, but are now integrated into the FICO application. The CO component is also integrated with other modules in SAP Logistics.

The software comes with the necessary tools for managing financial data for a company. For example, it allows users to define an enterprise in terms of different segments. Each segment represents a division of the company that generates revenue. SAP FI helps companies to identify these segments and create the financial statements required to comply with GAAP and IFRS.

Company code

Creating a Company code in SAP is crucial for the creation of general and external statements. This code must be assigned to each Company ID in a company’s file. There are several ways to create a Company code. The first method is to copy the configuration, tables, and assignments. The second method involves updating the Address and Additional Data tables. Once this has been done, a prompt will appear to customise the number.

The Company code is a unique identification number that uniquely identifies a company. It can be used for financial reporting purposes and can be used to represent a legally dependent operating unit abroad. This code is also used for segment reporting.

Segmentation

SAP FICO provides a solution for segment reporting. This feature allows companies to create financial statements at the segment level and meet the segment reporting requirements of US GAAP and IFRS. Segments are a subset of activities within a company and can be assigned to more than one profit center. The solution supports both derived and manual segmentation.

SAP FICO is divided into two main sections: SAP Finance (FI) and SAP Controlling (CO). SAP FI and CO were originally separate modules but are now tightly integrated and referred to as one. They are also interrelated with other modules within the SAP Logistics suite.

Consolidation

In SAP FICO Enterprise Structure refers to the different divisions of the company. For example, a company may have multiple sales representatives, or its purchase department might have several groups. The purchasing department procures raw materials from a vendor, and then stores them in storage. Another group might be responsible for finishing goods, which are stored in a specific location before being dispatched. The group company may also have several affiliates, and the finance department needs to consolidate financial information from each affiliate.

The SAP system also recognizes different types of companies as one. This means that a company can have multiple codes that are used for different business units. However, the company should have the same Chart of Accounts and Fiscal Year as its parent company.

[youtube https://www.youtube.com/watch?v=bPP2GT9Gqjo]

Credit control

The credit control area in the FI module is used to manage the credit limits for customers. There are a variety of codes available to manage this area. The area is defined based on the areas of responsibility for credit monitoring. To configure the area, use the T-code SPRO. This will open the SAP Reference IMG implementation guide. Select the desired area. Then, add new entries for the area.

An enterprise structure is a critical component of the SAP FICO solution. It allows you to consolidate the accounts of multiple companies. This approach streamlines the process of credit control. You can also use a separate company code (FS) for each entity within the company.