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  • 45 Hours Online Classroom Sessions
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Finance and Controlling (FICO) training, is an essential training for the finance professionals. FICO training covers the major aspects of FI (Financial Accounting) and CO (Controlling) required by organizations of varying sizes. During the training, the aspirants will learn how to integrate different modules of ERP for bringing financial automation by getting complete information on Accounts Receivable, Accounts Payable, General Ledger, Tax, etc. The participants get complete overview of controlling the flow of costs and revenues taking place, and analysing the company’s performance for providing improved business process in terms of financial accounting and reporting.

All the sub modules are interlinked and integrate in real time. A trial balance can be extracted at a time and it will always balance because all the sub modules are connected. 


What we will learn



Advantages of ERP FICO:


ERP FICO is very easy to use and also it is to understand. This ERP module is very flexible that means you can easily alter the records in any required manner. The data which is stored in the database would be much secured. In other words,  FICO is reliable. ERP FICO provides great reporting features and you can get an efficient report from ERP FICO. We can easily manage ERP FICO with its better management features. These are some of the important benefits of REP FICO module.


Firstly, we need to configure all modules in a systematic way. When a company purchases. ERP software, you need to maintain some basic things. This FI configuration will be vital for any company. Once we finish the configuration of FI, we can move on to other parts such as MM, SD, and HR, etc. In the FI/CO organizational structure, we have client, company, chart of accounts, company code, business area, credit control area, and controlling area. Let’s discuss each of these modules. Firstly, Client is a highest hierarchical level in an ERP system. All master data records are created at this level only. In the company level, we create the financial statements. In charts of account level, we can see different listing accounts. These are some of the important FI/CO structure levels.


If you want to start your career in ERP, then you have to take training on  FICO module and that will be more helpful for your career growth.




Who can go for this

To work with ERP FICO, you need to have a background in finance, accounting, or business administration. A degree in any of these fields can be beneficial. Additionally, knowledge of enterprise resource planning (ERP) systems and financial accounting processes is required.

ERP FICO implementation and management involve technical expertise and business knowledge. Therefore, it is ideal to have experience in using ERP FICO in various industries such as manufacturing, retail, or services.

Course Content


Introduction to ERP Software

Overview of Full Life Cycle

Overview of All Functional Modules

History of Software



Implementation Tools (Asap and Solution Manager)

System Landscape

Roles and Responsibilities of a Consultant        

Types of Projects

Change Transport System

Logging on to the R/3 System

Screen Elements

Creating Favorites

Adding Transaction to Favorites

Define Company

Define Company Code

Assign Company Code to Company

Define Business Area

Define Segments

Define Fiscal year variant(V3)-April to March/12 posting/4 SPL. posting period

Assign Fiscal Year to Company Code

Define variant for open posting period

Assign variant for open posting period

Define open & close posting period

Define field status variant

Assign field status variant to company code

Define documents types

Define number ranges for document type

  1. Transfer number ranges from 1 fiscal year to next fiscal year
  2. Transfer number ranges from one company code to another company code.


Define tolerance group for G/L

Define tolerance group for user/employee

Assign tolerance group to user

Define posting keys

Define local additional currency to company code

Maintain global data for company code

Define chart of account for company code

Assign chart of account for company code

Define account group.

Define retained earning account

Create/Block/Delete/Unblock General Ledger

Post GL Document in Sap (With or without Reference)

Line-item display

Display G/L balances

Post sample document

Post individual and mass reversal

Post recurring documents

Parking Documents

Holding Documents

Define bank keys

Define bank house

Define e check lots

Check check register

Maintain Confi. for Electronic bank statement.

  1. Create account symbols
  2. Assign accounts to account symbols
  • Create key for posting rules
  1. Define posting rules
  2. Create transaction type
  3. Assign External transaction to posting rules
  • Assign bank accounts to transaction types

Maintain Confi. For manual bank statement.

  1. Create and assign business transaction
  2. Define variant for manual bank statement

Bank reconciliation statement

Manual clearing

Define interest indicator

Prepare account balance interest calculation

Define reference interest rates

Define time-dependent terms

Enter interest values

Prepare G/L account balance interest calculation

Assign interest indicator to G/L accounts

Post A G/L Document

Interest calculation

Create 2 G/L accounts-

  1. Bank Loan
  2. Bank Interest

Create G/L cash accounts

Define number range intervals for cash journal documents

Setup cash journal

Create/Change/ Delete business transaction

Setup print parameters for cash transaction

Post cash journal

Check cash account balance

Creation of customer accounts groups

Creation of number ranges for customer master records

Assignment of number ranges for customer account groups

Creation of tolerance group for customers

Creation of customer master (Display/Change/Block/Unblock of customer master)

Posting of customer transactions (Sales Invoice posting/payment posting)

Setting for advance payment from parties (Down payment)

Configuration of setting for dunning

Generating the dunning letters

Party statement of accounts

Posting of sales returns

Payment posting (Partial & residual)

Define Payment terms

Discount allowed to customer

Customer line-item display

Create G/L account

Define interest Cal. Types

Define number ranges for interest form

Prepare interest on arrears calculations

Define reference interest rate

Define time-based terms

Enter interest value

A/R calculation of interest on arrear 

Assign form of interest indicate

Assign interest indicator to customer A/C.

Sales invoice posting

Execute interest

Create two ledgers

  1. Sundry debtor
  2. Bills receivable
  • Bank charges
  1. Bank bill discounting

Define alternate reconciliation A/C for bill receivable

Define accounts for bill of exchange transaction

Define bank sub account

Sale invoice

Bill of exchange payment

Bill discounting at bank

Open line-item display

Reverse contingent liability

Check due date setting

Creation of vender account groups

Creation of number ranges for vender master records

Assignments of number ranges to vender accounts groups

Creation of tolerance groups for venders

Creation of vender master (display/change/block/unblock of vender master)

Posting of vendor transactions (invoice posting/payment posting, credit memo)

Setting for advance payment to parties (down payment) & cleaning down payment

against invoices (special GL transactions)

Posting of partial payment & residual payment

Creation of payments terms

Configuration of automatic payment program

Payment to vender through

Party statement of accounts

Line- Item display

Discount allowed to venders

Check withholding tax countries

Define withholding keys

Define withholding tax type for invoice posting

Define withholding tax type for payment posting

Define withholding tax code

Define withholding tax type for company code

Activate extended withholding tax.

Define account for withholding tax paid over (Create GL for tax payable)

Edit vender master data (Withholding Tax/Pan update)

Post vender invoice

TDS certificate number range

Check calculation Type

  1. Define Condition type
  2. Define Procedure
  3. Access Sequence

Check and change settings for tax processing

Assign tax procedure to company code

Calculation Setting

Define tax code for sale and purchase


Create tax G/L

Define tax accounts

Testing- invoicing

Prepare automatic posting -OB74(Run automatic clearing)

Create accounting for clearing differences

Create G/L accounts-G/L clearing DR

                                    -G/L clearing CR

Define maximum exchange rate difference

Global parameters for company code

Define valuation methods

Prepare automatic posting for Foreign currency valuation

Create GL for exchange rate expenses/gains


  1. Exchange rate accounts-
  2. Exchange rate gain account-
  3. Trade debtor foreign account-
  4. Balance sheet adjustment (Trade Debtor)
  5. Trade Center foreign account
  6. Balance sheet adjustment (Trade Creditor)
  7. Foreign currency valuation realised
  8. Foreign currency valuation 

Define a standard quotation for exchange rates

Enter prefixes for direct/in direct quotation exchange rates

Define exchange rate type

Define translation ratios for currency translation ratio

Define exchange rates

Financial statement versions

Setup Parameters

Define chart of deprecation (Copy)

Assign chart of deprecation to company code

Define account determination

Define screen layouts

Define number range of asset class

Define asset class

Create General ledger for assets accounting

Assign G/L

Specify posting key for asset posting

Document type for asset posting

Specify posting keys for assets posting

Set charts for deprecation

Define deprecation areas

Determine deprecation area in the asset class

Specify rounding of net book value and/or deprecation

Maintain deprecation key

Calculation methods

Define screen layout for asset master data

Define screen layout for asset deprecation areas

Create asset

Acquisition of assets.

Disposal of asset

Calculation and posting of deprecation

Define Plant

Define storage location

Maintain Purchase Organisation

Define Division

Define sales area

Define distribution channel

Assign sales organisation to company code

Assign sales area with division and distribution channel

Define controlling area

Assign controlling area to company code

Define cost elements (primary & secondary)

Define cost centres

Define cost groups

Define profit centres

Define profit centres groups

Maintain standard hierarchy

Define valuation profiles (planned & actual)

Maintain versions

Maintain number ranges for controlling documents

Post documents for cost objects

Standard repots for costing.




Hi I am Shardanand and I am super excited that you are reading this.

Professionally, I am a ERP Principle Consultant with over all 20+ years of experience in Banking, Retail, Manufacturing Industry and other industry. As a Fico consultant i have done sixteen implementation projects and twenty two support projects.

I have trained  so many candidate’s and now a days I leverage  fico to drive business strategy, revamp customer experience and revolutionize existing operational processes.  

From this course you will get to know how I combine my working knowledge, experience and qualification background in to deliver training step by step.  

Student feedback

4.5 OUT OF 5


6 months ago

Mr. Shardanand is a good instructor for Fico.He provided very good study materials and high support provided by him for interview prepration. Overall best online course for Sap. 

Deepak Jaiswal

1 year ago

This is a very good place to jump start on your focus area. I wanted to learn python with a focus on data science and i choose this online course. Kushal who is the faculty, is an accomplished and learned professional. He is a very good trainer. This is a very rare combination to find. 


Thank you Deepak…

Shashidhar Patnaik

1 year ago

Good environment and nice place to learn data science online. Trainer and staff is really supportive and they help me every time if I have any issue regarding my assignments and they also help me in job placement also.


Thanks shashi thank you very much

Add Reviews about your experience with us.


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SAP stands for “Systems, Applications and Products in data processing” and it is the fourth largest software company in the world. SAP provides end to end solutions for financials, manufacturing, logistics, distribution etc. Each SAP module is integrated with other modules. SAP System divided in to two types of modules such as functional modules and technical modules.

It is easier if you are a Finance Graduate/Post Graduate/CA/ MBA Finance etc. to start syncing in the concepts easily. That is the only differentiation from a degree perspective. How fast can you understand Debit-Credit, Balance Sheet/ P&L ? Of course, the Finance degree guys have an edge. They learned these topics for 3/6 years compared to a non-Finance degree guy.

Pool of working professionals with several years experience in same field with different domains like banking, healthcare, retail, ecommerce and many more. 

Palin Training Institute provides Best SAP FICO Training as per the current industry standards. Our training programs will enable professionals to secure placements in MNCs. Palin is one of the most recommended SAP FICO Training that offers hands-on practical knowledge / practical implementation on live projects and will ensure the job with the help of advance level SAP FICO Training.

Yes, you can. Many services companies like Infosys, TCS, Genpect, Wipro etc. have always been recruiting fresh CAs/MBAs from colleges.

Its  Live interactive training, Ask your quesries on the go, no need to wait for doubt clearing.

you will have access to all the recordings, you can go through the recording as many times as you want.

Ask your questions on the go or you can post your question in group on facebook, our dedicated team will answer every query arises.

Yes we will help learners even after the subscription expires.

Our strong associations with top organizations like HCL, Genpact, Wipro, Dell, Birla soft, Tech Mahindra, TCS, IBM, etc. make us capable to place our students in top MNCs across the globe. We have placed thousands of students according to their skills and area of interest that makes us preferred SAP FICO Training.

SAP FICO consultant is the highest-paid salary with a very good growth rate. Many companies are looking for SAP FICO Professionals. But it is not that easy to get a job in SAP FICO as the competition is very high. The job of SAP FICO consultant is one of the most lucrative career paths in the market today.

you can write your questions at we will address your questions there.

As the market is growing, more and more industries are implementing SAP systems. In the next five to six years, there will be a huge demand from a financial perspective. There are very few certified SAP FICO Consultants with complete subject knowledge in the market.

ASAP (Accelerated SAP) methodology is a standardized approach to implementing SAP software, which is a suite of enterprise resource planning (ERP) applications. The methodology was developed by SAP to provide a structured and streamlined process for implementing SAP solutions.

The ASAP methodology consists of five phases:

  1. Project Preparation: In this phase, the project team is assembled, the project scope is defined, and the project plan is created.

  2. Business Blueprint: In this phase, the business requirements are gathered and documented in a detailed blueprint document.

  3. Realization: In this phase, the SAP software is configured, customized, and tested to ensure that it meets the business requirements defined in the blueprint.

  4. Final Preparation: In this phase, the final testing, training, and system cutover activities are completed.

  5. Go-Live and Support: In this phase, the SAP software is deployed into production and the ongoing support activities are initiated.

The ASAP methodology provides a comprehensive and structured approach to SAP implementation that helps organizations to reduce the time, cost, and risk associated with implementing SAP software. The methodology is widely used by SAP consultants and project teams around the world.

In SAP FICO (Financial Accounting and Controlling), GL stands for General Ledger. The General Ledger is a central component of the SAP FICO module, which stores all financial transactions of an organization in a structured and organized way.

The GL is the primary accounting record for a company, where all financial transactions are recorded and posted to specific accounts. It serves as the source of information for generating financial statements, such as the balance sheet, income statement, and cash flow statement.

In the SAP FICO module, GL is used to manage the following financial accounting processes:

  1. Recording and posting of all financial transactions, such as journal entries, accruals, and deferrals.

  2. Maintaining the chart of accounts, which defines the structure and organization of the GL accounts.

  3. Generating financial reports, such as balance sheet and income statement.

  4. Managing the closing and reporting processes, such as period-end and year-end closing.

Overall, the GL plays a critical role in the financial accounting processes of an organization, providing a centralized and reliable record of all financial transactions.

There are several reasons why companies may prefer to use SAP as their primary enterprise resource planning (ERP) software solution:

  1. Comprehensive and integrated functionality: SAP provides a comprehensive range of integrated modules, covering all business functions such as finance, human resources, logistics, sales, and production. This integrated approach ensures that all business processes are streamlined and work together seamlessly.

  2. Scalability: SAP is a highly scalable solution that can grow with the needs of a company. It can handle large amounts of data, transactions, and users, making it suitable for companies of all sizes.

  3. Global reach: SAP is a global company with a presence in over 180 countries. Its software solutions are designed to support businesses with operations in multiple countries and languages, making it a popular choice for multinational companies.

  4. Industry-specific solutions: SAP provides industry-specific solutions tailored to the unique needs of different industries, such as manufacturing, healthcare, retail, and banking. This enables companies to optimize their business processes and achieve greater efficiency.

  5. Flexibility and customization: SAP provides a high degree of flexibility and customization, allowing companies to tailor the software to their specific needs and requirements.

  6. Strong partner network: SAP has a large ecosystem of partners, including consulting firms, implementation partners, and software vendors, which provide a range of services and solutions to support SAP implementations.

Overall, these factors make SAP a popular choice for companies looking for a comprehensive, scalable, and integrated ERP solution that can meet their business needs, while also providing a high degree of flexibility and customization.

In SAP, FI (Financial Accounting) Enterprise Structure refers to the organizational structure of a company, which is used to manage financial transactions and accounting processes.

The FI Enterprise Structure is made up of several elements, including company code, credit control area, business area, and chart of accounts. Each element is used to define different aspects of the company’s financial accounting and reporting processes.

  • Company Code: represents an independent legal entity within a company group, and it’s the smallest unit of financial accounting.
  • Credit Control Area: used to monitor credit limits for customers and vendors and manage credit exposure risks.
  • Business Area: used to segregate a company’s financial transactions into different business segments.
  • Chart of Accounts: defines the accounts used for posting transactions, and it provides a framework for organizing financial data.

Together, these elements provide the foundation for financial accounting in SAP, allowing companies to manage financial transactions, generate financial reports, and comply with regulatory requirements.

In SAP , a chart of accounts is a list of all the G/L (General Ledger) accounts that an organization uses to record its financial transactions.

A chart of accounts in SAP provides a structure for organizing the financial transactions of a company in a logical and consistent manner. It defines the codes used to classify each transaction and the accounts used to record them.

The chart of accounts is a crucial component of financial accounting in SAP, as it forms the basis for generating financial statements such as the balance sheet, income statement, and cash.

In SAP, a posting period variant is a configuration object used to define the fiscal periods for posting accounting transactions. It specifies the start and end dates of each period and controls when the periods can be open or closed for posting.

A posting period variant is used to define the posting periods for different company codes, business areas or financial statement versions. It can also be used to define different sets of posting periods for different types of transactions or posting keys.

The posting period variant is assigned to the company code or business area in SAP, and it determines which periods are open for posting accounting transactions. The posting period variant can also be used to control the fiscal year variant, which is used to define the fiscal year structure.

In summary, a posting period variant in SAP is used to control the posting periods for accounting transactions, and it is a critical element in ensuring the accuracy and completeness of financial reporting.

In SAP FI (Financial Accounting), a number range is a range of numbers used to uniquely identify different types of financial documents such as invoices, purchase orders, payment documents, and other accounting documents.

Number ranges are used to ensure that financial documents are uniquely identified, and that there are no duplicate numbers used for different documents. They also help to control document creation and tracking.

In SAP FI, number ranges are defined using the transaction code FBN1. Each document type (such as vendor invoice, customer invoice, or purchase order) has its own number range assigned to it. The number range can be defined based on specific criteria such as company code, fiscal year, or document type.

Once the number range is defined, it can be used to automatically assign unique document numbers to new financial documents created in SAP FI. The system checks the number range to ensure that the document number is unique, and assigns the next available number in the range.

Number ranges can also be used to control the timing and frequency of document creation. For example, if a number range is set up to allow only a certain number of documents to be created in a given time period, the system will prevent further document creation until the next period.

In summary, number ranges in SAP FI are used to uniquely identify financial documents and ensure their accuracy and completeness. They are an essential tool for financial reporting and management in SAP FI.

In SAP, there are mainly two types of data: Master Data and Transactional Data.

  1. Master Data: Master data is the core data that is required to carry out day-to-day transactions in SAP. It is the data that remains relatively stable and does not change frequently. Master data is used for creating transactional data. Some examples of master data in SAP include:
  • Material master data: This includes data about materials, such as their description, unit of measure, storage location, and price.
  • Vendor master data: This includes data about vendors, such as their name, address, payment terms, and bank details.
  • Customer master data: This includes data about customers, such as their name, address, payment terms, and credit limit.
  • General ledger account master data: This includes data about general ledger accounts, such as their description, account type, and posting rules.
  1. Transactional Data: Transactional data is data that is created or updated when a transaction is carried out in SAP. This data is dynamic and changes frequently. Some examples of transactional data in SAP include:
  • Sales orders: This includes data about customer orders, such as the order number, items ordered, quantities, prices, and delivery dates.
  • Purchase orders: This includes data about purchase orders, such as the order number, items ordered, quantities, prices, and delivery dates.
  • Invoices: This includes data about invoices, such as the invoice number, items invoiced, quantities, prices, and payment terms.
  • General ledger postings: This includes data about financial transactions posted to the general ledger, such as the posting date, account number, amount, and document number.

In summary, SAP has two main types of data: Master Data and Transactional Data. Master data is the core data required to carry out transactions, while transactional data is created or updated when a transaction is carried out in SAP.

Accounts Payable (AP) is a term used in accounting to refer to the amount of money that a company owes to its vendors or suppliers for goods or services received but not yet paid for. In other words, it represents the company’s short-term liabilities or debts that are due to be paid in the near future.

When a company purchases goods or services on credit, the supplier or vendor sends an invoice to the company. The invoice specifies the amount due and the payment terms. The company records this amount as a liability in its accounts payable account until the invoice is paid.

Accounts payable is an important part of a company’s financial management as it affects the company’s cash flow and liquidity. Managing accounts payable effectively involves tracking invoices, making timely payments, and maintaining good relationships with suppliers.

In summary, accounts payable represents the amount of money that a company owes to its vendors or suppliers for goods or services received but not yet paid for. It is an important part of a company’s financial management and affects its cash flow and liquidity.


Accounts receivable refers to the money owed to a business by its customers or clients for goods or services that have been sold but not yet paid for. It is an asset account that represents the amount of money that a business expects to receive from its customers in the future.

When a company sells its products or services on credit, it creates an account receivable, which is recorded in the balance sheet. The account is typically classified as a current asset, as it is expected to be collected within a year.

Businesses use various methods to manage and collect their accounts receivable, such as sending invoices, reminders, and collection letters. Accounts receivable can also be factored or sold to a third party for immediate cash, but this often comes at a discount to the business.

In SAP FICO, payment terms are used to determine the due date of customer invoices and to calculate the payment amounts that are due. The payment terms are also used to determine the cash discount that the customer is eligible for if they pay within a specified period.

SAP FICO allows for the creation and management of various payment terms, which can be customized to meet the specific needs of the business. The payment terms can also be linked to customer master records, so that the payment terms are automatically applied to invoices for that customer. This helps to streamline the billing and payment process and ensures that the company is paid in a timely manner.

In SAP FICO, payment terms can be created and managed in the Vendor and Customer Master Records.

To create payment terms in SAP FICO, follow these steps:

  1. Go to the main menu and navigate to Accounting → Financial Accounting → Accounts Receivable or Accounts Payable → Master Records → Maintain centrally → XK01 for vendors or XD01 for customers.

  2. In the vendor or customer master record, navigate to the Payment Transactions tab, and then to the Payment Terms field. Click on the “Create” button.

  3. In the Payment Terms window, enter a unique payment term key, a description for the payment term, the payment due date, the percentage discount offered (if any) and the number of days within which the discount is valid.

  4. Save the payment term.

Once the payment terms are created, they can be assigned to vendors or customers to be used in their transactions. The payment terms can also be assigned to specific company codes and can be customized to meet the specific needs of the business. In addition, SAP FICO allows for the creation of payment term groups, which can be used to group similar payment terms together for easy management and reporting.

In SAP FICO, payment terms are defined by a number of fields, including:

  1. Payment terms key – a unique identifier for the payment term.
  2. Description – a brief description of the payment term.
  3. Payment due date – the date by which payment is due.
  4. Cash discount percentage – the percentage of cash discount offered for early payment.
  5. Cash discount days – the number of days within which the cash discount is valid.
  6. Net payment days – the number of days within which payment must be made to qualify for the cash discount.
  7. Invoice date-dependent – indicates whether the payment term is based on the invoice date or the due date.
  8. Payment method – the payment method to be used, such as check or wire transfer.
  9. Partial payment – indicates whether partial payments are allowed.
  10. Late payment interest – the interest rate or penalty to be charged for late payments.

These fields allow businesses to define payment terms that meet their specific needs and requirements, and to ensure that their customers are aware of the payment terms and conditions before making a purchase. By setting clear payment terms, businesses can help to ensure that they receive payment for their products or services in a timely manner and avoid any misunderstandings or disputes with their customers.

In SAP FICO, dunning refers to the process of reminding customers who have overdue payments to pay their outstanding balances. The dunning process helps businesses to collect payments more efficiently and reduce the amount of outstanding debt.

Dunning is carried out using the Dunning program in SAP FICO, which automatically generates dunning letters based on predefined rules and criteria. The program analyzes the customer’s payment history, identifies overdue invoices, and selects the appropriate dunning level and letter template.

The dunning levels in SAP FICO are defined based on the severity of the overdue payment and the number of dunning letters that have already been sent to the customer. Each dunning level corresponds to a specific dunning letter template and includes different payment reminders, warnings, and penalties.

Once the dunning letters have been generated, they can be printed, sent via email, or saved as a PDF file for later distribution. The dunning process can be customized to meet the specific needs of the business, and can be configured to include various options, such as interest charges, legal notices, and blocked deliveries.

Overall, the dunning process in SAP FICO helps businesses to manage their accounts receivable and improve their cash flow by reminding customers to pay their outstanding balances in a timely manner. It also helps to reduce the risk of bad debts and improve customer relationships by providing clear and consistent payment reminders.

Typically, the dunning procedure in SAP FICO includes nine dunning levels, with each level becoming progressively more severe. For example, the first level might include a friendly reminder that the payment is overdue, while the final level might include a notice of legal action or debt collection.

In General, The number of dunning levels and the content of the dunning letters are defined by the company and can vary depending on the industry, the customer relationship, and the specific business needs.

FCV( Foreign Currency Valuation) is an important function in SAP FICO that helps organizations to accurately value their foreign currency transactions and ensure compliance with legal and regulatory requirements.


In SAP FICO, there are several currency types that are used to represent different types of currencies. Some of the common currency types are:

  1. Company Code Currency (Type 10): This is the currency in which the financial statements of the company code are prepared. It is also the default currency for all financial transactions in the company code.

  2. Group Currency (Type 30): This is the currency that is used for consolidation purposes when the organization has multiple company codes. It is used to convert financial statements of each company code into a common currency for reporting purposes.

  3. Hard Currency (Type 20): This is a currency that is highly stable and widely used in international trade, such as US dollars, Euros, or Japanese Yen.

  4. Index-Based Currency (Type 50): This is a currency that is indexed to a specific value, such as inflation or a benchmark rate.

  5. Global Currency (Type 40): This is a currency that is used for global transactions, such as in international trade, where multiple currencies are involved.

  6. Parallel Currency (Type 30): This is an additional currency that can be used for local legal requirements or to meet reporting needs of stakeholders. It is used in addition to the company code currency.

  7. Controlling Area Currency (Type 30): This is the currency in which the controlling area of an organization is managed.

Each currency type has a specific purpose and is used in different contexts within SAP FICO. By using multiple currency types, organizations can accurately reflect their financial transactions and meet legal and regulatory requirements.

In SAP FICO, a house bank is a bank with which an organization has a business relationship and maintains one or more bank accounts. The house bank is responsible for managing the bank accounts and providing banking services to the organization.

The house bank is configured in the SAP system using the following steps:

  1. Define House Bank (Transaction code FI01): This involves creating a new house bank in the SAP system. You will need to provide information such as bank key, bank name, bank country, and bank address.

  2. Create Bank Account (Transaction code FI12): After defining the house bank, you can create bank accounts associated with that house bank. You will need to provide information such as account number, currency, and GL account number.

  3. Assign Bank Accounts to Company Codes (Transaction code FI12): You will need to assign the bank accounts created in step 2 to the relevant company codes. This is important to ensure that bank transactions are correctly assigned to the relevant company codes.

  4. Assign Bank Accounts to Business Partners (Transaction code FI12): You can also assign bank accounts to business partners, such as vendors and customers. This allows you to make payments or receive payments from those business partners using the associated bank accounts.

Once the house bank and bank accounts are configured in the SAP system, you can use them for various banking transactions, such as making payments, receiving payments, and reconciling bank statements.

A cross-company code transaction is a transaction in SAP FICO that involves two or more company codes. It is a transaction in which one company code performs a financial transaction with another company code, and the transaction affects the financial statements of both company codes.

For example, if one company code sells goods to another company code, it would result in a cross-company code transaction. The sales revenue would be recorded in the income statement of the selling company code, while the cost of goods sold would be recorded in the income statement of the buying company code.

Cross-company code transactions are important in SAP FICO because they allow for centralized financial management and reporting for multiple companies within a single SAP system. They also allow for better coordination between different departments and business units within an organization.

To process cross-company code transactions in SAP FICO, the relevant company codes must be configured in the system and authorization must be granted for users to perform such transactions. In addition, the appropriate accounting entries must be posted to the relevant company codes to ensure accurate financial reporting.


In SAP FICO, G/L accounts can be assigned in cross-company code transactions using a process called “intercompany code postings”. This process allows transactions to be posted between two or more company codes while maintaining the integrity of the financial statements for each company code.

By using intercompany code postings, G/L accounts can be assigned in cross-company code transactions while maintaining the integrity of the financial statements for each company code. It also allows for centralized financial management and reporting for multiple companies within a single SAP system.

Asset Accounting is a submodule of SAP FICO that deals with managing fixed assets of an organization. It enables organizations to manage their assets throughout their lifecycle – from acquisition to retirement. The Asset Accounting module is tightly integrated with other submodules of SAP FICO, such as General Ledger Accounting, Accounts Payable, and Accounts Receivable.

Asset Accounting in SAP FICO provides a comprehensive set of functionalities for managing assets, including:

  1. Asset Master Data: This includes maintaining information on the assets such as asset class, useful life, depreciation method, and acquisition value.

  2. Depreciation Calculation: Asset Accounting in SAP FICO provides various depreciation methods such as straight-line, declining balance, and sum-of-years’ digits. It also allows for the configuration of depreciation areas for different accounting requirements.

  3. Acquisition and Retirement: The Asset Accounting module enables organizations to manage the acquisition of new assets and retirement of old assets. It allows for the recording of transactions such as asset purchases, transfers, and disposals.

  4. Asset Reports: Asset Accounting in SAP FICO provides a wide range of reports for analyzing asset-related data, such as asset balances, depreciation, and asset transactions.

By using Asset Accounting in SAP FICO, organizations can improve their asset management processes, ensure compliance with accounting standards, and maintain accurate financial statements. It also provides organizations with a comprehensive view of their asset portfolio, enabling them to make informed decisions related to asset investments and retirement.

Cash Management in SAP FICO is a submodule that helps organizations manage their cash positions and optimize their liquidity. It provides tools and functionalities to manage bank transactions, cash flow forecasts, and cash positions in real-time.

The Cash Management submodule in SAP FICO provides various functionalities, including:

  1. Bank Account Management: It enables organizations to manage their bank accounts, including opening and closing accounts, changing signatories, and managing bank limits.

  2. Cash Position Management: It enables organizations to track their cash positions in real-time, including their actual cash balances and available credit lines.

  3. Cash Flow Forecasting: It enables organizations to forecast their cash flows based on planned and actual transactions, allowing them to predict cash shortages and surpluses.

  4. Bank Reconciliation: It enables organizations to reconcile their bank statements with their accounting records, ensuring accuracy in financial reporting.

  5. Liquidity Planning: It enables organizations to manage their short-term and long-term liquidity requirements, ensuring that they have sufficient funds to meet their financial obligations.

By using Cash Management in SAP FICO, organizations can optimize their cash positions, reduce their borrowing costs, and improve their cash flow forecasting accuracy. It also provides organizations with greater visibility into their cash positions, allowing them to make informed decisions related to cash management and investment.

n SAP FICO (Financial Accounting and Controlling), a tolerance group is a set of rules or limits that define the level of flexibility a user has when posting financial transactions in the system.

A tolerance group specifies maximum permissible deviation from the standard values when entering accounting documents in SAP. This is done by setting tolerance limits for various fields such as amount, posting date, and currency.

For example, if a user belongs to a tolerance group that has a limit of 5% for the amount field, the user will be able to post transactions with an amount that is up to 5% higher or lower than the standard value.

Tolerance groups are used to ensure that financial transactions are posted correctly and within acceptable limits. They can be assigned to users or user groups, and multiple tolerance groups can be assigned to a single user or user group depending on their responsibilities and requirements.

In SAP FICO (Financial Accounting and Controlling), a business area is a part of an organization that represents a specific line of business, product or service.

A business area is used to represent a separate area of operation within a company, such as a division, department, plant or geographical region. Each business area can be assigned specific financial transactions, such as expenses, revenue, or profit and loss, and is used to facilitate the analysis of financial data by providing meaningful information for management reporting.

onfiguring the automatic payment program in SAP FICO involves several steps:

  1. Define Payment Methods: Payment methods represent the forms of payment that the company uses to pay vendors, such as checks or electronic bank transfers. These are defined in the SAP system through transaction code FBZP.

  2. Define House Bank: The house bank is the bank account that the company uses to make payments. This is defined in the SAP system through transaction code FI12.

  3. Create Vendor Master Data: Vendor master data contains all the information required to make payments to the vendor. This includes the vendor’s name, bank details, and payment terms. This is created in the SAP system through transaction code XK01.

  4. Define Payment Terms: Payment terms represent the agreed-upon terms for payment between the company and the vendor. These are defined in the SAP system through transaction code OBB8.

  5. Define Payment Program: The payment program is a program that runs automatically in the SAP system to process vendor payments. This is defined in the SAP system through transaction code FBZP.

  6. Define Payment Proposal: A payment proposal is a list of vendor invoices that are due for payment. This is created in the SAP system through transaction code F110.

  7. Run Automatic Payment Program: The automatic payment program is run in the SAP system through transaction code F110. During the program run, the system selects the vendor invoices that are due for payment and creates payment documents, such as checks or electronic bank transfers.

  8. Review Payment Status: The payment status can be reviewed in the SAP system through transaction code FBL1N, which displays a list of vendor open items and their payment status.

These are the basic steps involved in configuring the automatic payment program in SAP FICO. However, additional configuration settings may be required depending on the specific requirements of the company.

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