When SAP was founded in the year 1972, it was confined to inventory management. However, over the years, SAP has emerged as the biggest provider of enterprise resource planning solutions for different processes. Today, there are host of SAP solutions designed for different process of an enterprise. From SAP financials and accounting to HR management and product management, there are number of modules for different processes in organizations. SAP aims at delivering effective software that enables organized work and data management in enterprises. SAP financials and SAP accounting are two of the most popular modules in SAP system. Accounting and finance professionals are moving towards learning SAP in order to be eligible and competitive for handling SAP system in organizations. SAP system enables organizations to manage data bases from one single unified system. SAP users can transfer, manage and control bundles of data using SAP system. This increases credibility of team work and also improves security measures. Accounting has the maximum amount of data and documents to be managed and controlled. Managing all the account details manually at times can become very difficult. To cope up with this problem, SAP accounting modules are developed so that diverse accounting data can be managed automatically from a single system. This not just helps in managing but also in creating accounting reports for teams and organizations. Let’s have a closer look at SAP accounting modules and their diverse aspects in this post.
SAP Accounting Modules
SAP accounting modules are designed to automate the accounting systems in organizations. The SAP FI module is the most popularly used module for financials and accounting. Diverse accounting tasks such as maintaining ledgers, balance sheets, and profit and loss statements etc., are managed automatically by SAP ERP solutions. SAP FI modules help towards asset management in enterprises. On the other hand SAP CO Course takes care of cost controlling. There is also SAP EC (Enterprise Controlling) module that takes over complete integration of company information towards achieving set organizational goals. SAP financial system helps organizations to maintain business transactions in a satisfactory manner. At times accounting involves multiple currencies and countries. Reports of multiple company branches located at different geographical locations with different currencies can be handled from a unified system. The entire data base of financials is integrated and managed from a single system. Organizations can work out various financial transactions using SAP financial system. The SAP financial accounting module includes different components; some of these are mentioned as below.
Components of SAP Financials and Accounting Module
- SAP General Ledger
- SAP Accounts Payable
- SAP Accounts Receivable
- SAP Bank Accounting
- SAP Asset Accounting
- SAP Funds Management
- SAP Travel Management
SAP General Ledger: The major aim of SAP general ledger accounting is to provide a system for managing all external accounts of an organization. Recording all the business transactions of an enterprise along with various other operation areas are managed by this SAP accounting module. It provides real-time assessment of cost accounting areas.
SAP Accounts Payable and Receivable: While SAP accounts payable records all the components and data for vendors, SAP account receivable records all the components and data for customers. Balance sheets and account statements can be created using these modules.
SAP Bank Accounting: This module is used to handle all bank accounting transactions. From managing bank master data, cash balance management to processing incoming and outgoing payments; everything can be managed using this module.
SAP Asset Accounting: This module is designed to manage fixed assets of organizations. The SAP financials system enables to manage and supervise fixed assets along with providing detailed information and reporting data.
SAP Funds Management: This SAP accounting module supports all the related tasks in creating and managing budgets. Calculating revenues, expenditures and funds are included in the task lists of SAP funds management.
SAP Travel Management: This SAP module accounts all the transactions related to corporate trips organized within and by the organization. Approvals, bookings, settlement and diverse travel expenditures are recorded and managed using the SAP travel management module.
These are the major modules of SAP accounting. Adopting SAP financial system, organizations can maintain records and transactions related to assets, revenues and expenditures in an automated and organized manner. Owing to the various accounting advantages, most of the organizations are adopting SAP financials and accounting modules towards managing work and finance status of all the departments through a unified system.