The full form of SAP FICO is Systems, Applications, and Products & Finance and Controlling.

SAP is the acronym for Systems Applications and Products in data processing. It’s very widely used across industries because of its flexibility and highest data integrity.

It’s originally introduced in 1980 by SAP AG (German based company) as SAP R/2. In 1992 they introduced client-server based system and named it SAP R/3. In 2004 they launched mySAP ERP which is now called SAP ECC (ECC stands for ERP Central Component). 

The journey started in 1972 by five German engineers. Now SAP AG is the world’s largest business software provider and the third largest independent software manufacturer. It’s operating out of walldorf, Germany. For last one decade it has dominated the entire ERP market because of the product’s flexibility and user friendly ness.

It got different modules based on the function it provides and the technical integration it has with other modules.

FICO stands for financial accounting and controlling modules. Both modules are used for external reporting and internal reporting purpose. All the financial activities are carried on in FICO. It has two parts;

• Financial Accounting (FI)
• Controlling (CO)

FI Stands for Financial Accounting Module which is required for our external and legal reporting purpose. By FI module you enter all the financial transactions which in turn transferred to a profit and loss account and balance sheet. At the period end you can close your financial accounting book by using this module and prepare your financial statements for the fiscal year. It’s very flexible to use. You can define any type of report through the help of an ABAP consultant. The module has so many standard reports which are also a great use.

CO stands for controlling module. We use this module for internal reporting purpose. CO module has different sub module within it and by using the sub module it collects all cost related to different processes and products through cost center and uses it to provide in a form of report to management. Cost center accounting collects cost from various modules like financial accounting and pass on it to the product to get its cost. We can derive segment wise profitability by using another sub module of CO module called Profitability analysis (COPA).