What is the Difference Between SAP FICO and Simple Finance?
People who use the SAP software or want to become an expert in SAP Fico need to pass and go through the SAP Fico certification course, so they should know about the key differences between SAP Fico and simple finance The basic difference between these two functional modules is the technology used in them, like the SAP Fico, which performs on the ECC model, whereas the simple finance works on the in-memory HANA database that runs on cloud technology Use this information as a guidance tool to learn about SAP Fico and simple finance on SAP software
What do you understand about the term “SAP Fico”?
SAP Fico refers to the important modules in the SAP ERP Software that help the business easily manage all the financial data SAP FICO consists of two modules in which FI and CO manage to process the b business in Financial and management accounting The SAP FICO stands for FI, which means financial accounting, and CO, which means controlling
Uses of SAP FICO:
Below are some uses mentioned of SAP FICO for which people operate SAP FICO:
People can use SAP Finance, which FI for external reporting like making Balance sheets, Profit and loss account statements, and more.
SAP FICO also integrates with other functional modules like Material management (MM) and Sales and Distribution (SD)
Similarly, SAP FICO integrates with the Production Planning modules (PP) and others
Provide the sub-modules of SAP FI:
SAP FI has some sub-modules that also help in business processing General ledger accounting, bank accounting, asset accounting, accounts payable, and account receivables are some of them All these sub-modules work for maintaining financial accounting
Provide the sub-modules of SAP CO:
Some sub-modules in the SAP CO help in financial controlling, like internal orders, cost controlling of products, cost element accounting, profitability analysis, cost center accounting, and profit center accounting.
What is simple finance on SAP?
Simple Finance of SAP is basically an initial part of the business Suite that needs to be rewritten to work on superfast in-memory HANA database technology on SAP The new name of SAP Simple Finance is SAP S/4 HANA Finance The simple finance suite comprises some SAP ERP capabilities for several business areas like Human resources, supply chain, sales, finance, procurements, and more
The SAP Simple Finance makes it possible to view the financial data, which reduces restoration and initiatives and consists of the company-wide. This helps in dealing with financial management solutions Simple finance is used for controlling the data
What is the difference between SAP FICO and Simple Finance?
The SAP Simple finance varies from the SAP FICO, which depends on its release, but some functionality is available in the ECC 6. People can easily recognize and enhance the transactions, which are both new and old transactions Read the below points to find difference:
The simple finance of SAP comes under the category of the technical module, whereas SAP FICO comes under the functional module, which deals with the costing aspects of any business, organizations while simple finance works as a reporting tool
The functional module - SAP FICO helps people handle accounts-related activities and integrates with other modules like MM, PP, SD, etc
The most important module of ERP is SAP FICO, wherein both FI and CO Modules keep the financial transactions and store them, while SAP simple finance works only on some specific financial management solutions. SAP Simple Finance provides the Universal journal to go through the process of financing and controlling the data and information, and the central Finance accumulates the various back-end data sources
The SAP Simple finance can be executed and instantly replace all the transactions and other FICO systems. Still, people get an understanding of the time-consuming and sensitive project in system implementation.
The central finance on SAP is an intermediate method to implement the simple finance systems by which disruption will be reduced while other finance and controlling applications will remain active in their place. At the same time, the same transactions can be integrated into the new S/4 HANA financing system approach by using the SLT data replication
Conclusion
SAP S/4 HANA is a company suite that is on top of the SAP in-memory platform that also has various ERP capabilities across different organization aspects like sales, finance, human resources, production, supply, etc., so in case you are making plans to enhance your skills, then you can opt for the sap fico course which is best training platform online and wherein you will get to learn from the industry experts
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