SAP Financials (FICO)

Its Business Relevance, Cost Benefit and Superiority

Outline
SAP Financials Overview
SAP Financials Features
Business Relevance
Cost Benefit
Superiority
SAP Financials Overview

General
 GeneralLedger
Ledger

Asset Management Accounts


AccountsReceivable
Receivable

FI
Controlling
Accounts

AccountsPayable
Payable
SAP Financials Features
Financial Accounting is designed to collect all of the
data that is needed to support the preparation of
Financial Statements for external users.

Management Accounting is designed to collect data

for the preparation and analysis of reports for use by
internal users
Financial Accounting
External Accounting
Financial Position
Profit & Loss Bankers, Lenders
Balance Sheet
Stockholders

External Auditors
IRS, Taxing
SEC
Authority
Controlling
Internal Accounting
Departmental Expense
Report
Salaries 10,000
Overhead 8,000
Executives Other 5,000 Controllers
Total 23,000

Department Senior Management

Managers
 Financial Sub-Modules
General Ledger
Account Receivable
Account payable
Fixed Asset Accounting
Bank Accounting
Cash Journal
Tax Accounting
Financial Statement Reporting
Controlling Sub-Modules
Cost Center Accounting
Profit Center Accounting
Internal Order Accounting
Profitablity Ananlysis
Planning and Budgeting for Cost Elements
Business Benefits of General Ledger
• Provides comprehensive picture for External
accounting for all stakeholders

• Fully integrated with other sub-Modules to enable

Automatic update of Ledger

• Online Real time generation of Financial Statements

• Ability to report is multiple Ledgers (N-GAAP and

IFRS)
Business Benefits of Account Receivable

Account receivable is fully integrated with Sales and

Distribution Module in SAP

Management of Customer Invoice and payment

Online and Real-time generation of Customer invoice

outstanding
Business Benefits of Account Payable

Account Payable is fully integrated with Procurement

Module in SAP

Management of Supplier Invoice processing and

payment

Generation of Account payable Report –Outstanding

Invoice to be paid, Invoice Due for payment ,Ageing
Analysis etc
Business Benefits of Asset Accounting

Asset Accounting manages the life cycle of an Asset

from Acquisition,Transfer,Depreciation, Retirement,
Disposal .
Online generation of Fixed Asset register
Automatic depreciation of Fixed Asset
Automatic posting of Fixed Asset Accounting posting
 Processing of all Bank related Transactions
Business Benefits of Bank & Cash Submodule

Multiple Vendor payment using Automatic payment

run Functionality
Control around payment only against inputted invoice
Eliminate overpayment of invoices amount to Vendors
Generation Bank Reconciliation statement
Business Benefits of Controlling Module
Profit Centre Accounting-Assigns cost and Revenue to
internal Areas of responsibility for purpose of segment
reporting and reporting by department responsible for
sales .
Cost Centre Accounting-Records cost incurred during
the company operations by assigning to cost centre
Internal order Accounting-used in Plan ,collect cost of
internal project and settlement to cost centre
Ability to Plan by cost and revenue by strategic business
units and report on Plan VS Actual for periods
Business Benefits of Profitability Analysis
Reporting of Cost and Revenue and evaluation of
profit based on
- Products
- Products Groups
- Customers
- Customer Groups
- Strategic Business units
Cost-Benefit
Reduced IT complexity
• Economies of scale in support
• Economies of scale in infrastructure
• Fewer integration points
Lower Costs of Operation
• Lower maintenance costs
• Lower upgrade frequency
• Lower integration costs through NetWeaver
SAP’s Superiority
Market leadership
Customer value
Industry depth
Quality
Customer satisfaction
Superior technology
Stability