Difference Between SAP FICO and S4 HANA Finance

What is SAP FICO?

SAP FICO stands for SAP Financial Accounting and Controlling. It covers the entire business process of finance accounting and management accounting. SAP FICO is one of the prime module in SAP ERP and it can be integrated with other SAP modules like SAP MM, SAP SD, SAP PP etc.

Sub-components of SAP FI

  • SAP FI General Ledger accounting
  • Asset Accounting
  • Funds Management
  • Accounts Receivables
  • Accounts Payable
  • Special Purpose Ledger
  • Consolidation
  • Travel Management
  • Bank Accounting

Sub Components of SAP CO

  • Cost Element Accounting
  • Profit Center Accounting
  • Cost Center Accounting
  • Internal Orders
  • Profitability Analysis
  • Product Cost Controlling

What is SAP S4 HANA Finance?

Previously known as Simple Finance, S/4 HANA Finance was the first component of SAP’s Business suite to be rewritten to run on in-memory HANA database. SAP S/4 HANA Finance is the combination of New GL with different category Extension Ledgers and complete Management Accounting solutions. It is used for real-time business intelligence.

Difference Between SAP FICO and S4 HANA Finance

SAP FICOSAP S/4 HANA Finance
SAP FICO works on ECC model.SAP S/4 HANA Finance model is based on in-memory HANA database and works on cloud platform.
SAP FICO is the Finance and Cost controlling module in SAP ERP where FI stands for Financial Accounting and CO stands for Controlling. SAP FICO module is very robust and covers almost all business process encountered in various industries. It is one of the essential and widely implemented modules in SAP.SAP Simple Finance was the former name of SAP S/4 HANA Finance.
SAP S/4 HANA Finance is the area of the S/4 HANA suit dealing specifically with Finance Management solutions.
SAP FI submodules:
General Ledger
Account payableAccount receivable
Banking etc.
It enables:

  • A consistent view of financial data across the company reduces reconciliation efforts.
  • Universal Journal for financial/controlling data.
  • Central Finance to consolidate multiple back end data sources.
No option to create CDS ViewsData is calculated on the fly with cds views.

 

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