SAP FI is the abbreviation of Financial Accounting and is one of the most essential components of SAP ERP. It helps in storing an organization’s financial data. SAP FI is known to be utilized for analyzing the organization’s financial conditions in the given market. Integrations with leading SAP modules like SAP SD, SAP PP, SAP MM, SAP SCM, etc are also ensured.
SAP Finance Accounting involves the following sub-components –
- FI General Ledger
- FI Accounts Payable and Receivable
- FI Asset Accounting
- FI Bank Accounting
- FI Travel Management
- FI Fund Management
- FI Legal Consolidation
SAP FI provides comprehensive ways of making daily financial accounting decisions that are both convenient and pleasant from the point of view of the employees. From the business’s point of view, it uses human resources efficiently.
SAP Financial Accounting has been developed keeping in mind practical relevance. You can make optical arrangements for the company. To understand the system better, the employees must be trained and sensitized about individual modules that are interlinked and also about individual customizing and it affects the indicators of the surrounding settings.
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Reasons to use SAP FI
SAP FI is used to manage and monitor financial accounting information within the international context of various currencies, languages, and companies. Modules of SAP FI are known to deal with important financial components including –
- Fixed asset
- Accrual
- Cash journal
- Accounts payable and receivable
- Inventory
- Tax accounting
- General ledger
- Parallel valuations
- Master data governance
- Close functions
- Financial statements
SAP FI consultants are mostly responsible for the execution of Cost Accounting and Financial Accounting with the help of advanced SAP ERP financial tools.
Time and again, an organizations’ Finance wing has been regarded as being skeptical about the swift changes that are constantly taking place in the world of digital. Finance leaders need to take one step back to incorporate changes taking place in the modern world. This would be beneficial for any organization to carry out a steady paradigm that employs those business models that can easily accelerate cash revenues or cash flows.
If a Chief Financial Officer wants to run his business efficiently, he will have to make rapid and dynamic decisions. If the decisions are mainly based on past data, they are more likely to have a drawback for the Finance Personnel. In order to overcome these hurdles, he needs to depend on an error-proof and robust system.
Overcome Problems with Simple Finance
With the advent of SAP’s Simple Finance, the process lags or hurdles have been considerably reduced. People can now make dynamic decisions that enhance the efficiency and performance of the businesses, by using financial accounting data. You can get reliable and timely data instantly at all times since the storage has been centralized and data redundancy has been removed. Closing activities in preparing the financial statements have now been reduced to the minimum level. This helps in making analysis efficiently.
Digital revolution or digital transformation has been making more businesses prosper than ever before. Business models that are agile or swift may help you thrive. During the process of decision making, live data can help the finance leaders in capturing markets either by proposing acquisitions or mergers or by resourcing any working capital.
Hence, if you utilize live financial accounting data, it is more likely that your business will gain an understanding of KPIs which will influence your business, enhance the business’s performance to attain higher targets, forecast an efficient business model, and adjust the KPS factors.
Conclusion
SAP Financial Accounting is a mature and advanced tool for SAP ERP financial system providers. However, in Finance and Controlling configuration, if the consultant is experienced and knowledgeable, he can offer valuable service that can quickly pay off.
If you consider the digital transformation described above, the finance processes and functions are bound to progress steadily. This is most likely to impact both the finance organization and the business on the whole. If innovation is encouraged coupled with notified risks, the finance leaders will be able to solve the major challenges that come in the company’s way. Modeling and dynamic planning can be presented to any business from a business achievement’s point of view, with the contact help from Simple Finance.
