Finance & Costing


The SAP FI module fulfills financial needs of the customer 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 the customer has to wait for updates and consolidation of the data before analyzing the financial status of the company, but with SAP FI the customer can look into their financial status 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. 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 customer. SAP FI also integrates HR including personnel 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 which helps the customer to control financial position.


SAP CO module works in close integration with SAP FI module to provide supporting information to management for planning, controlling, streamlining business operations and decision making. SAP CO provides components like cost element accounting, cost center accounting, activity-based accounting, internal orders, product cost controlling, profitability analysis and profit center accounting.

Cost element accounting of SAP CO provides details of material cost, personnel cost, energy cost where a corresponding GL account exist in SAP FI and allows the costs to flow to that. But secondary cost elements like material overhead, production overhead, production costs are maintained, created and administered in SAP CO and costs does not flow to FI, these are used in internal cost allocation, settlement transactions, overhead calculations etc. Cost elements are basis of cost accounting which can give details of costs of each account assigned to cost element, accounts like cost center, internal orders, work breakdown structures can be assigned to cost elements for cost and revenue calculations.

Cost center accounting is very crucial for the customer to calculate their exact profitability as these are those divisions of any organization which incur cost directly but add to the profit indirectly. Some examples of cost centers are sectors of the customer. SAP CO provides the facility to create and assign cost centers to business areas or functional areas of the organization like marketing, purchase, human resource, finance, facilities, information system, operation, administration and quality. The cost center accounting allows setting up of budgets, it improves visibility of cost centers at various functional areas of organization and helps in effective planning and distribution of costs to other cost objects.