SAP FICO is a core functional module in SAP ERP used for Financial Accounting (FI) and Controlling (CO). It helps organizations manage financial transactions, reporting, and internal cost control.

SAP FI (Financial Accounting) covers:

• General Ledger (G/L)

• Accounts Payable (AP)

• Accounts Receivable (AR)

• Asset Accounting (AA)

• Bank Accounting

• Financial Statements and Reporting

SAP CO (Controlling) focuses on internal cost management and includes:

• Cost Center Accounting

• Internal Orders

• Profit Center Accounting

• Product Costing

• Profitability Analysis (CO-PA)

• SAP FI deals with external financial reporting and statutory requirements.

• SAP CO deals with internal reporting, cost control, and decision-making.

Both modules are tightly integrated.

A Company Code is the smallest organizational unit in SAP for which a complete set of financial statements (Balance Sheet & P&L) can be generated.

A Chart of Accounts (COA) is a list of all General Ledger (G/L) accounts used by one or more company codes.

A Fiscal Year Variant defines the accounting periods and special periods used by a company code.