Ans: SAP FICO ECC is the Financial Accounting and Controlling module within the SAP ERP system, providing comprehensive financial management functionalities.
Ans: The components of SAP FICO ECC are Financial Accounting (FI) and Controlling (CO).
Ans: The General Ledger in SAP FICO ECC is used to record all financial transactions and generate financial statements.
Ans: Accounts Payable manages outgoing payments to vendors, while Accounts Receivable handles incoming payments from customers.
Ans: SAP FICO ECC integrates with modules like Sales and Distribution (SD), Materials Management (MM), and Production Planning (PP) to ensure smooth data flow.
Ans: Controlling allows businesses to analyze costs, profitability, and make informed decisions based on financial data.
Ans: Asset accounting in SAP FICO ECC involves recording and managing fixed assets, including acquisition, depreciation, and retirement.
Ans: SAP FICO ECC provides functionality to handle foreign currency transactions through currency conversions and valuation methods.
Ans: SAP FICO ECC offers various financial reporting tools, including balance sheets, income statements, and cash flow statements, to perform financial analysis.
Ans: The month-end closing process involves activities such as reconciling accounts, posting accruals, and generating financial statements.
Ans: Tax settings in SAP FICO ECC include defining tax codes, tax jurisdictions, and tax calculation procedures to ensure accurate tax calculations.
Ans: Cost center accounting helps track and control costs incurred by different departments or business units within an organization.
Ans: Cost allocation in SAP FICO ECC involves distributing indirect costs to cost objects based on predefined allocation rules.
Ans: SAP FICO ECC supports various depreciation methods, including straight-line, declining balance, and units-of-production, to calculate asset depreciation.
Ans: Intercompany transactions can be managed in SAP FICO ECC through intercompany billing, cross-company code postings, and reconciliation.
Ans: Credit management in SAP FICO ECC involves setting credit limits, monitoring customer creditworthiness, and managing credit exposures.
Ans: The New General Ledger in SAP FICO ECC provides enhanced functionality, including real-time integration, parallel accounting, and improved reporting capabilities.
Ans: Asset accounting integration with general ledger accounting in SAP FICO ECC ensures accurate recording and reporting of asset-related transactions.
Ans: A chart of accounts in SAP FICO ECC defines the structure and organization of general ledger accounts used for recording financial transactions.
Ans: Cost element accounting in SAP FICO ECC involves classifying and managing all costs and revenues based on cost elements.
Ans: Cost centers represent departments or business units, while internal orders are used for specific projects or one-time activities.
Ans: Profit centers are configured in SAP FICO ECC to analyze profit and loss for individual business segments within an organization.
Ans: SAP FICO ECC offers functionalities for financial planning, budgeting, and forecasting to support effective financial management.
Ans: Accounts payable process includes invoice verification, payment processing, and vendor management, while accounts receivable involves invoice creation, customer payment processing, and dunning.
Ans: SAP FICO ECC provides features for statutory reporting, tax compliance, and audit trail, ensuring organizations adhere to regulatory requirements