The SAP FI module fulfills financial needs of the any organization completely and gives finance managers the required information in consolidated form and with analytical tools to make decisions in real time which was not possible previously. With the legacy system organizations have to wait for updates and consolidation of the data before analyzing the financial status of the company, but with SAP FI even large business organizations can look into their financial status as and when required and can manage their growth more efficiently.
SAP FI module is integrated with other SAP modules like MM or material management, SD or sales and distribution, PM or plant management, PS or plant systems and PP or production and planning. Though SAP FI is integrated with other modules too and basically with every activity wherever transaction of money is involved or any commitment related to money is made, this integration helps the FI module to provide updated information related to finance, gathered from across the organization. SAP FI also integrates HR including personnel management, travel management, time management, payroll and expense management.
SAP FI module contains various sub modules like accounts receivables, accounts payables, asset accounting, bank accounting, fund management, consolidation, general ledger, special purpose ledger and travel expense management.
SAP FI general ledger has been refined and fine tuned for the latest style of working of organizations and it comes with the features like combined internal and external reporting which means that normally general ledgers required reconciliation for various applications SAP FI general ledger provides unified structure for individual ledgers like cost of sales ledger, profit center accounting and consolidation staging ledger which speeds up reconciliation and ensures transparency. It also provides facilities for parallel accounting and online splitting function of the entries which provides balancing of books by any dimension and also improves scalability, flexibility and data quality. This also speeds up the process of account closing by executing processes like foreign currency calculation online.
SAP FI has sub module of accounts receivables and payables, receivables is integrated with general ledger, sales and distribution and cash management and it records all the customers related activities, provides customer analysis in terms of payment performance and payment ageing. Payables module records purchasing activities with vendor and is integrated with general ledger, it also provides facilities of making online payments and payments through check by using other SAP modules.
Consolidation is another sub module of SAP FI which provide special feature like creation of business areas. Any organization working in different roles for e.g. as manufacturer, distributor and service provider need not have three different company codes, in SAP FI module they can refer these as business areas which helps reconciliation and consolidation with much ease and without confusion. Asset management helps in managing fixed assets according to their category and also provides facility of independent depreciation calculation for every asset class. Bank accounting provides all the features related to bank transactions and cash management. Funds management allows set budgets for revenues and expenses with in the organization as well as for external projects.