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SAP FICO
SAP FICO is one of the essential functional modules in SAP ERP components which helps organizations to manage all of their financial data. The primary purpose of SAP FICO is to support the organization to produce and handle all the financial statements for analysis and reporting and also assist with effective business planning and decision making. SAP FICO comprises of two modules, i.e., SAP Finance (FI) and SAP Controlling (CO), each of these modules is used to carry out specific financial processes. SAP FI Module focuses on complete financial reporting and accounting while SAP CO emphasis on planning and monitoring costs. SAP FI and SAP CO were originally released as separate modules, but now these modules are integrated so strongly that most people are referring to them as a single module.
SAP S/4HANA Finance
‘SAP S/4 HANA Finance‘ which was known earlier as SAP Simple Finance. The term ‘SAP Simple Finance’ is no longer an official brand, yet there are still many people who utilize this term interchangeably due to the fact that it was highly marketed by SAP for a while.
S/4HANA is a company suite built on top of SAP’s in-memory platform, HANA. The S/4HANA suite includes ERP capabilities across many different business areas such as Human Resources, Sales, Finance, Procurement, Supply Chain, and more.
“SAP S/4HANA Finance” is the area of the S/4HANA Suite dealing especially with Financial Management solutions. It makes it possible for:
- One usual view of financial data which is consistent company-wide, reducing reconciliation initiatives.
- A Universal Journal for financial/controlling data.
- Central Finance to consolidate multiple back-end data sources.
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Difference Between SAP FICO & SAP S/4HANA Finance
The main distinction is SAP S/4HANA comes under the technical module while SAP FICO comes under the functional Module to handle all financial and costing aspects of an organization while SAP S/4HANA is a Reporting tool.
SAP FICO helps us to deal with all activities regard to accounts and it is integrated with various modules for example MM, PP, SD.
SAP FICO is the important module of ERP and both FI and CO modules store the financial transactions data. while SAP S/4HANA Finance is the area of the S/4HANA suite dealing specifically with Financial Management solutions. It enables a Universal Journal for financial/controlling data, Central Finance to consolidate multiple back end data sources.
The S/4HANA Finance system could be executed and immediately replace all existing transactional or FICO systems at once. Nevertheless, as we understand the implementation of a system this essential is a time consuming and sensitive project.
Central Finance is an intermediate way of implementing a S/4HANA Finance system that reduces any disruption by allowing the existing Finance and Controlling applications to remain in place and active, while still integrating those same transactions into the new S/4HANA Finance system by utilizing SLT data replication. This can reduce the risk of attempting to replace several transactional systems all at the same time.
Conclusion
S/4HANA is a company suite built on top of SAP’s in-memory platform, HANA. The S/4HANA suite includes ERP capabilities across many different business areas such as Human Resources, Sales, Finance, Procurement, Supply Chain, and more.
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Check out this insightful video on SAP FICO Tutorial for Beginners:
