What is SAP FICO

What is SAP FICO:

->   FICO stands for Finance and Controlling which is an important module of SAP.

->   SAP FI deals with recording of Business Financial transactions like purchases, sales, invoices, bank transactions etc etc.

->  SAP FI helps in preparation of Balance Sheet, Profit and Loss statements.

->  SAP CO deals with reporting of transactions which is used at the managerial purposes to understand how Business is performing.

->   SAP CO is purely an internal reporting activity for the better decision making.

Domains of SAP FICO:

GL - General Ledger Accounting

AP - Accounts Payables

AR - Accounts Receivables

AA - Asset Accounting

Integration:

SAP FICO is integrated with other modules such as MM (Material Management), SD (Sales and Logistics), HR (Human Resources) etc.

So whole business is integrated to FICO which records all transactions like MM invoices, SD invoices, each and every finance transactions.

At the end of the day, 

-> SAP FICO is nothing but a box of Financial transactions of Business.

-> And SAP is a tool which helps in recording and reporting of all these transactions.