Preface – This post is part of the SAP FI series.

SAP FI Subcomponents

SAP’s financial accounting is divided into submodules that reconcile with one another.

This article will focus on the SAP FI Subcomponents.

General Ledger

In SAP FI, everything is linked to General Ledger or G/L. G/L acts as the primary record to maintain all the financial transactions of the company. Example: customer transactions, internal company transactions, etc.

Account Receivable

SAP’s Accounts Receivable module ensures that businesses receive money efficiently from their customers. It manages customer accounts and transactions.

Account Payable

An account payable is a debit or credit to an external business partner, such as a supplier, or to an internal stakeholder. Accounts payable submodules are primarily used to manage our supplier accounts and pay for our suppliers’ goods and services.

Asset Accounting

Asset Accounting deals with all aspects of the company’s fixed assets, including all transactions related to fixed assets. It works closely with other SAP modules, such as SAP MM, SAP Plant Management, and EWM. Example: When a company purchases a product that can be considered an asset, details about the purchase are sent from SAP MM to Asset accounting.

Banking

Bank accounting deals with all the transactions through the bank. It manages all the incoming/outgoing transactions, balance and bank-related master data.

Travel Management

The travel management module tracks all the travel expenses of a company. The project includes all travel requests, travel planning, and expenses associated with all requested trips. Due to its integration with all the other SAP modules, it helps organizations manage travel expenses efficiently.

Fund Management

Fund management manages funds in a company. Various modules like General Ledger (G/L) and SAP AR/AP, as well as SAP Material Management, etc., interact with Fund Management to provide fund details. This covers all transactions relating to the receipt of funds, the expenditure of funds, and the future expenditure of funds. The company can use the funds in a proper manner and create a budget forecast.

Legal Consolidation

By treating multiple units of an organization as a single entity, legal consolidation allows one to view details of all the companies under that umbrella as one financial statement.

NOTE: Legal Consolidation (earlier supported in an older version of SAP ERP) module is now performed by SAP Business Process Consolidation BPC and SEM-BCS.