SAP MM FICO

 

SAP MM (Materials Management) and SAP FICO (Financial Accounting and Controlling) are two distinct modules within the SAP ERP system, each serving specific functions:

SAP MM (Materials Management)

  • Focus: This module manages the entire lifecycle of materials within an organization, from procurement and inventory management to material planning and invoice verification.
  • Key Functions:
  • Procurement: Creating purchase requisitions and purchase orders and managing vendor relationships.
  • Inventory Management: Tracking stock levels, valuation, and movements within the warehouse.
  • Material Planning: Forecasting demand, creating production plans, and managing bills of material (BOM).
  • Invoice Verification: Matching invoices with purchase orders and goods receipts to ensure accuracy.

SAP FICO (Financial Accounting and Controlling)

  • Focus: This module handles all financial and accounting processes within an organization, including financial accounting, management accounting, and financial reporting.
  • Key Functions:
  • Financial Accounting (FI): Recording financial transactions, generating financial statements (balance sheet, income statement, cash flow statement), managing accounts receivable and payable, and handling asset accounting.
  • Controlling (CO): Managing cost center accounting, profitability analysis, budgeting and planning, and internal orders.

Why are SAP MM and FICO often mentioned together?

While SAP MM and FICO are separate modules, they are closely integrated. This is because the procurement and management of materials have a direct impact on a company’s financial health. For example, the purchase of raw materials affects inventory levels, which in turn impacts the cost of goods sold and, ultimately, profitability.

Example of MM-FICO Integration:

  1. A purchase order for raw materials is created in MM.
  2. The goods are received and recorded in MM.
  3. An invoice is received and verified in MM.
  4. FICO automatically posts the financial transactions related to the purchase and receipt of goods.
  5. The cost of the raw materials is allocated to relevant cost centers in CO for analysis and reporting.

In conclusion:

SAP MM and FICO are potent modules that, when used together, provide a comprehensive solution for managing materials and finances within an organization. Their integration ensures accurate and up-to-date financial information, streamlined processes, and improved decision-making.

SAP MM Training Demo Day 1 Video:

You can find more information about SAP MM in this SAP MM Link

Conclusion:

Unogeeks is the №1 IT Training Institute for SAP Training. Anyone Disagree? Please drop in a comment

You can check out our other latest blogs on SAP here — SAP MM Blogs

You can check out our Best In Class SAP Details here — SAP MM Training

Follow & Connect with us:

— — — — — — — — — — — -

For Training inquiries:

Call/Whatsapp: +91 73960 33555

Mail us at: info@unogeeks.com

Our Website ➜ https://unogeeks.com

Follow us:

Instagram: https://www.instagram.com/unogeeks

Facebook: https://www.facebook.com/UnogeeksSoftwareTrainingInstitute

Twitter: https://twitter.com/unogeeks

#unogeeks #training #ittraining #unogeekstraining

Comments

Post a Comment

Popular posts from this blog

Oracle Fusion HR Modules

Image
  Oracle Fusion Human Capital Management (HCM) is a comprehensive cloud-based solution for managing various aspects of human resources within an organization. It offers multiple modules catering to different HR functions, allowing businesses to streamline their processes and improve workforce management. Here are some of the core modules typically included in Oracle Fusion HCM: Workforce Compensation:  This module helps organizations manage employee compensation, including salary structures, bonuses, incentives, and other forms of payment. Workforce Rewards:  This module manages and administers various employee rewards and recognition programs. Talent Management:  This suite of modules covers various aspects of talent acquisition, development, and retention. It includes sub-modules like: Talent Acquisition:  Managing the recruitment and hiring process. Performance Management:  Setting and tracking employee performance goals and evaluations. Succession Planning:  Identifying and groomin
Read more

Oracle Fusion HCM Cloud

Image
  Oracle Fusion HCM Cloud is a cloud-based human capital management (HCM) software suite developed by Oracle Corporation. It is designed to help organizations manage various aspects of their workforce, from recruitment and onboarding to talent management and payroll processing. The “Fusion” name signifies integrating multiple features and technologies into a unified platform. Key features and modules of Oracle Fusion HCM Cloud include: Core HR : This module covers essential HR functions such as employee records, organizational structures, job roles, and workforce modeling. Talent Management : This includes modules for performance management, goal setting, talent reviews, succession planning, and career development. Recruitment : Helps manage the hiring process, from creating job requisitions and managing candidate profiles to conducting interviews and making job offers. Workforce Compensation : Allows designing, budgeting, and managing employee compensation plans and programs. Benefits
Read more

SAP Fiori SD

Image
  SAP Fiori for Sales and Distribution (SD) is a collection of apps designed to streamline sales processes and provide a user-friendly interface for sales professionals. These apps cover a wide range of functions within the SD module, such as: Sales Order Management:  Create, change, and display sales orders, track order status, and manage deliveries. Pricing and Availability:  Check product availability, calculate prices, and manage discounts and promotions. Billing and Invoicing:  Create and process invoices, manage credit memos, and track customer payments. Sales Analytics:  Monitor sales performance, track key metrics, and generate reports. Some popular SAP Fiori apps for SD include: My Sales Overview:  A central hub for sales professionals, providing an overview of key sales data and access to other relevant apps. Sales Order Fulfillment:  A comprehensive app for managing the entire sales order fulfillment process, from order creation to delivery. Manage Sales Quotations:  Create,
Read more