SAP FICO Module

SAP FICO Stands for FI (Financial Accounting) and CO (Controlling). SAP FICO
is the important module of ERP and both FI and CO modules stores the financial
transactions data.
SAP FICO training materials teaches you in a easy method with screen shots step
by step.

SAP FI Organization Structure

Define Company
Define Company Code
Create new companies by copying existing company code
Assign Company Code to Company
Define Business Area
Define Functional Area
Define Credit Control
Assign Company Code to Credit Control

SAP FI Financial Accounting Global Settings

1. Maintain Fiscal Year Variant
2. Assign Company Code to Fiscal Year Variant
3. Define variants for Open Posting Periods
4. Open and Close Posting Periods
5. Assign Posting Period Variant to Company Code
6. Define Field Status Variants
7. Assign Company Code to Field Status Variants
8. Define Posting Keys
9. Define Document Types
10.
Define Document Number Ranges
11.
Define Tolerance Group for Employees
12.
Define Tolerance Group for G/L Accounts
13.
Assign Users to Tolerance Group
14.
Global Parameters for Company Code
15.
Define Additional Local Currencies for Company code

SAP FI Organization Structure

1.How to Create a Company in SAP | Define

Company in SAP FICO
The following tutorial guides you how to define or create a company in SAP step
by step with screen shots. Let us discuss briefly about company.

Define Company in SAP

About Company in SAP:- Company is the organizational unit for which

individual financial statements can be drawn according to the relevant commercial
law. A company can comprise of one or more company codes. A Company has
local currencies in which its transactions 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.
Path to Define Company in SAP :SAP IMG Path: SPRO > Implementation Guide for R/3 Customizing (IMG) >
Enterprise Structure > Definition > Financial Accounting > Define
Company
Transaction code to Define Company in SAP :- OX15

Steps for creation of a Company:

Step 1 :- Enter Transaction Code SPRO in the commend field and press enter on
the Keyboard

Step 2 :- Next Customizing execute project screen select SAP Reference IMG

Step 3 :- After Selecting SAP Reference IMG, a new screen IMG Path will be
displayed. Select Define company execute icon for creating a company

Next Screen will be displayed after selecting the define company execute icon

Step 4:- Now Select New entries icon to create a new company and enter the company details

The following details are to be entered for creating a new company

Enter 6 character alphanumeric code key that represents the group of

company
Enter name of your company.
In the Detailed information update the address Street name, PO Box#,
Postal code, City.
Enter Country Code of the company
Enter language key
Enter local currency for the company (also known as Company code
currency)
Click on Save icon or CTRL+S after updating the required information

Thus new Company ADARSH is created in SAP.

2.How to Create Company Code in SAP |

Define Company Code in FICO
The following tutorial guides you how to define company code in SAP FI step by step with screen
shots. After configuring company, next step is to configure the company code. Let us discuss
briefly about company code.
Define Company Code
About Company Code :- Company Code in SAP is the smallest organizational unit of Financial
Accounting for which you draw individual financial statements like Balance Sheet and Profit &
Loss Account for purpose of external reporting. The Creation of company code in sap is
mandatory.
PATH :- IMG Reference > Enterprise Structure > Definition > Financial Accounting
> Edit, Copy, Delete Company Code
Transaction code to Define company Code :- OX02
Steps to Define Company Code: Step 1 :- Enter Transaction Code SPRO in the commend field and press enter

Steps 2 :- In customizing execute project screen select SAP Reference IMG

Step 3 :- In next screen select Edit, Copy, Delete check Company Code

Step 4 :- The below screen displays after selecting Edit, Copy, Delete Company Code ( Define
Company Code )

We can create company code by selecting above two options. By selecting first option copy,
Delete, company code all the configuration and tables get copied automatically along with
assignments.
Here we are creating company code manually configure all the assignments by selecting second
option Edit Company Code Data . Double click on Edit Company Code Data

Step 5 :- Click on New Entries and update the following details

1. Update new Company code key AD06

2. Give the company name Adarsh Technologies for identifying the company code key
3. In Additional Data update the details of City, Country, local Currency of company, Language.
Click on Address and Update the following fields

After updating Address enter Click on Save icon Thus the company code AD06 is created in
SAP.

3.Create New companies by copying Existing

Company code
Creating new companies by copying existing company code SAP
The following training tutorials guides how to create new company by coping existing company
code in SAP step by step. In our previous training tutorials we have learn how to create new
company code by using transaction code. In our previous configuration we configured company
code AD06.
Now we are going to configure company codes AD61, AD62, AD63, AD64 and AD65, this
company codes are configuring by copying existing company code AD06. Let check how to
configured new company codes.
You can define new company by copying existing company code by using one of the following
navigation method.
SAP IMG Path: SPRO >> IMG (F5) >> Definition >> Financial Accounting >>> Edit,
copy, delete, check company code >> copy, delete, check company code.
Transaction code: EC01.
Step 1: -Enter transaction code EC01 in SAP command field and press enter.

Step 2: On organizational object company code screen, click on copy as icon to copy from
existing company code.

Step 3: - A pop up box opens to enter the details, update the following details.
16.

From company code: - Update the company code that you want to copy from

17.

To company code: - Update the new company code that you want to create.

After updating the details, press enter. This transaction copies all the general and global
settings of existing company code AD06 to new company code. Press enter to continue.

Step 4: - Next step is to update company name and its address. Enter transaction code OX02
in SAP command field and enter.

Double click on company code AD61

Now change your company code name and additional data.

Click on address button (shift+f5) to update the address details. After updating the company
code address details, click on save button, Successfully new company code AD61is created by
coping existing company code AD06

4.How to Assign Company Code to Company

in SAP
Assign Company Code to Company
Menu Path :SPRO > IMG Reference > Enterprise Structure > Assignment > Financial Accounting >
Assign Company Code To Company
Transaction Code :- OX16
The following are the steps to Assign the Company Code to Company in SAP FICO
Step 1 :- Enter the T-Code SPRO in the commend field

Step 2 :- Click SAP Reference IMG

Step 3 :- Follow the Path as per below screen shot

Step 4 :- Click Position

Update company code for which you wants to assign and Enter

Step 5 :- Update Company ID in Company field and click on save icon

Thus company code AD06 was assigned to Company ADARSH.

5.Define Business Area in SAP FICO | How to

Create Business Area in SAP
Define Business Area in SAP

Definition of Business area :- Business area is a separate area of operations or

responsibilities of organizational units of financial accounting that is used for internal and
external reporting . Different divisions of each business with in a legal entity are created as
Business areas for reporting of each operational areas. So Financial statements can be created
for each business area and these financial statements can be used for internal reporting
purpose.
Business areas are not assigned to any company codes.

Transaction Code for Creation of Business Area in SAP :- OX03

1.

Steps for the Creation of New Business Areas in SAP :-

Step 1 :- Enter transaction code SPRO in the commend field

Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )

Step 3 :- After selecting SAP Reference IMG, follow the below structure to configure the
Business areas

Step 4 :- After Selecting Define Business Area, Select new entries to configure new Business
areas

Step 5 :- Enter the 4 digit code in the business area field and enter the name of business areas
in the description field and save the settings.

6.Configuration of Functional Area in SAP

FICO | Define Functional Area

Functional Area in SAP

Definition of Functional Area in SAP :- Functional Area is a organisational unit in

accounting that classifies the expenses of an organisation by functions.

Uses of Functional Area :-

TheFunctional area in SAP is use to create P&L A/C in Financial Accounting using cost of sales
accounting and used to analyse the cost of sales accounting

Examples of Functional Area are : Administration

sales and distribution
Manufacture
Production
Research and development

Steps for the Creation of Functional Area in SAP

Transaction code :- OKBD

SAP Menu Path :- SPRO > SAP Reference IMG > Financial Accounting > Financial Accounting
Global Settings > Company Code > Cost of Sales Accounting > Activate Cost of Sales
Accounting for Preparation
Step 1 :- Enter T-Code OKBD in the commend filed

Step 2 :- In the Next screen Click New Entries

Step 3 :- Enter four digits Functional area code in the Functional Area column and update
names of the Functional Areas

Thus Functional Areas ADPR, ADSO are created in SAP.

7.Define Credit Control Area for Customer in

SAP
The credit control area is an organizational unit that specifies and checks a credit limit for
customers. Credit control area can includes one or more company codes.
2.

Steps to Define Credit Control Area

Transaction Code to Define Credit Control Area OB45

IMG Menu Path :SPRO > Implementation Guide > Enterprise Structure > Definition > Financial Accounting
> Define Credit Control Area
Step 1 :- Enter T-Code SPRO in the Command Field and press enter

Step 2 :- Click SAP Reference IMG

Step 3 :- Follow the IMG Menu path

Step 4 :- In next screen click on new entries

Step 5 :- Update the required data

1. Credit Control area :- Enter four digits credit control area code
2. Currency :- Update currency of the credit control area.
3. Credit limit :- Update credit limit amount for the customers.

Step 6 :- Click on save icon to save the new credit control area

Thus credit control area in SAP was successfully configured.

8.Assign Company Code to Credit Control

Area in SAP
1. Steps for Assign company code to credit control area
After creating of credit control, next step is to assign company code to credit control area.

IMG Menu Path :SPRO > Implementation Guide > Enterprise Structure > Assignment > Financial Accounting >
Assign company code to credit Control Area.
Step 1 :- Enter T-Code SPRO in the Command field and press enter

Step 2 :- Click on SAP Reference IMG ( short cut key F5 )

Step 3 :- Follow the menu path for Assigning Company Code to Credit Control Area

Step 4 :- In next screen click on Position icon and update the company code and press enter

Step 5 :- In next screen, update the credit control code in the CCAr field and

Step 6 :- After updating credit control code click on save icon

Thus company code successfully assigned to credit control area.