This tutorial gives you an overview and talks about the fundamentals of SAP FICO.

Overview of SAP FICO

Defining an Organization structure is the very first configuration to be done during any SAP implementation. Because a company is an organizational unit for which individual financial statements can be drawn according to the relevant commercial law. Therefore SAP FICO training starts with defining the Org Structure.

A company can comprise one or more company codes. A company has local currencies in which the transactions occurred are recorded. All company codes within a company must use the same transaction chart of accounts and the same Fiscal year. Creation of company in SAP is optional.

A Fiscal year is divided into a number of posting periods and each posting period in an accounting period is defined by a start date and end date.

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The fiscal year in SAP FICO training can be defined as ‘Dependent Year’ or ‘Independent Year’.

In SAP FICO training presents with two TAX calculation procedures: TAXIN(Condition Based) and TAXINJ(Formula Based).

The TAXINN is condition based, so we have to maintain condition records for each condition type, whereas TAXINJ is formula based, so we have to maintain tax code by using FTXP.

Controlling Area is a central organization structure in the CO module of SAP FICO online training and is used in cost accounting. Cost center and product hierarchy and profit centers/profitability segments are used to classify the controlling area.

Primary cost elements are available in the standard system through a chart of accounts ADAR. The primary cost elements are based on accounts in FI module of SAP FICO online training and may be allocated to multiple cost element groups.

Frequently Asked SAP FICO Interview Questions

Secondary cost elements are posted exclusively in CO module of SAP FICO online training and are not contained in the FI General Ledger. Secondary cost elements are like factory overheads, Administration overheads, power, diesel, oil etc.