SAP FICO – Complete Step-by-Step Guide | Confidential

SAP FICO
Financial Accounting & Controlling

Complete Step-by-Step Guide

From Configuration to End-User Transactions

Covers SAP ECC 6.0 and S/4HANA

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

1. Introduction to SAP FICO

SAP FICO is the core financial module of SAP ERP. It is a combination of two sub-modules:
• FI – Financial Accounting: Manages external financial reporting, legal compliance, and
statutory accounts.
• CO – Controlling: Manages internal cost management, profitability analysis, and managerial
reporting.

Why SAP FICO Matters

• Used by 90%+ of Fortune 500 companies for financial reporting
• Provides real-time integration with MM, SD, PP, HCM, and all other modules
• Ensures legal compliance (IFRS, GAAP, local GAAP) out of the box
• S/4HANA Universal Journal merges FI and CO into a single table (ACDOCA)

1.1 SAP FICO Module Architecture

Sub-Module Key Area Primary Purpose
FI-GL General Ledger Trial balance, financial statements
FI-AP Accounts Payable Vendor invoices, payments, aging
FI-AR Accounts Receivable Customer invoices, collections
FI-AA Asset Accounting Fixed assets, depreciation
FI-BL Bank Ledger Bank reconciliation, cash position
CO-CCA Cost Center Accounting Cost allocation by department
CO-IO Internal Orders Budget tracking for projects/events
CO-PA Profitability Analysis Revenue and margin by segment
CO-PC Product Costing Manufacturing cost of goods
CO-PCA Profit Center Accounting Divisional P&L reporting

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

2. SAP Enterprise Structure – Foundation Setup

Before any transaction can be posted, the organizational structure must be configured. This is done
in SPRO (SAP Project Reference Object / Implementation Guide).

NOTE: All configuration steps below are performed in SPRO unless stated otherwise. Navigate
via: SAP Easy Access Menu → Tools → Customizing → IMG → Execute Project, or type SPRO
in the command bar.

2.1 Define Company

1. Go to SPRO → Enterprise Structure → Definition → Financial Accounting → Define
Company
2. Click New Entries
3. Enter: Company ID (e.g., 1000), Company Name, City, Country, Currency, Language
4. Save (Ctrl+S)

Field Description / Example

Company 6-char identifier, e.g., INDIA
Company Name ABC Corporation Ltd.
Country IN (India), US, DE, etc.
Currency INR, USD, EUR
Language EN (English)

2.2 Define Company Code

Company Code is the legal entity that produces financial statements. One company can have
multiple company codes.
5. SPRO → Enterprise Structure → Definition → Financial Accounting → Edit, Copy, Delete,
Check Company Code
6. Click Edit Company Code Data → New Entries
7. Enter Company Code (4-char, e.g., 1000), Name, City, Country, Currency, Language
8. Save

NOTE: Company Code is the most critical organizational element. All FI postings require a
Company Code.

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

2.3 Define Business Area

9. SPRO → Enterprise Structure → Definition → Financial Accounting → Define Business
Area
10. New Entries → Enter 4-char Business Area code and description (e.g., 1000 –
Manufacturing, 2000 – Sales)
11. Save

2.4 Define Fiscal Year Variant

12. SPRO → Financial Accounting → Financial Accounting Global Settings → Fiscal Year →
Maintain Fiscal Year Variant
13. New Entries → Define if fiscal year matches calendar year or is offset (e.g., April to March =
V3)
14. Set number of posting periods (usually 12 normal + 4 special = 16)
15. Assign Fiscal Year Variant to Company Code

Variant Description
K4 Calendar year Jan–Dec (Germany standard)
V3 April–March fiscal year (India standard)
V6 July–June fiscal year

2.5 Define Posting Period Variant & Open/Close Periods

16. SPRO → Financial Accounting → Financial Accounting Global Settings → Document →
Posting Periods → Define Variants for Open Posting Periods
17. Assign the variant to your Company Code
18. Open and close periods: SPRO → … → Open and Close Posting Periods (T-code: OB52)

OB52 – Open/Close Posting Periods – controls which periods allow postings

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

3. FI-GL – General Ledger Accounting

The General Ledger is the central repository for all accounting entries. Every financial transaction
flows into the GL.

3.1 Chart of Accounts (COA)

A Chart of Accounts is a list of all GL accounts used by the company. SAP uses three types of
COA:
• Operative COA – Used for daily postings (mandatory)
• Country-Specific COA – Local legal reporting
• Group COA – Consolidation at group level

19. SPRO → Financial Accounting → General Ledger Accounting → GL Accounts → Master

Records → Preparations → Edit Chart of Accounts List
20. New Entries → Enter COA key (e.g., INT), Name, Maintenance Language, Length of GL
Account Number, Controlling Integration
21. Save

NOTE: SAP provides standard COA: INT (International), CAIN (Canada), CA (Canada
Alternate). You can copy and modify these.

3.2 Assign COA to Company Code

22. SPRO → Financial Accounting → GL Accounting → GL Accounts → Master Records →
Preparations → Assign Company Code to Chart of Accounts
23. Select your Company Code → Enter COA key → Save

3.3 Define Account Groups

Account Groups control the number ranges and screen layouts for GL master records.
24. SPRO → … → Define Account Group
25. New Entries → Enter COA, Account Group (e.g., CASH, BANK, LIAB), Name, From
Account / To Account number
26. Save

Account Group Number Range Example

CASH – Cash Accounts 100000 – 109999
BANK – Bank Accounts 110000 – 119999
AR – Accounts Receivable 120000 – 129999

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

AP – Accounts Payable 200000 – 209999

ASSET – Fixed Assets 300000 – 399999
EXPS – Expenses 400000 – 499999
REV – Revenue 500000 – 599999

3.4 Create GL Account Master

GL accounts have two levels: COA Segment (shared) and Company Code Segment (company-
specific).
27. T-code FS00 → Enter GL Account number and Company Code → Click Create
28. COA Segment tab: Enter Account Group, P&L or Balance Sheet indicator, Short/Long Text
29. Company Code tab: Enter Currency, Tax Category, Reconciliation Account for (if
applicable), Field Status Group
30. Save

FS00 – Create/Change/Display GL Account Master

FSP0 – Create GL Account – COA Segment only
FSS0 – Create GL Account – Company Code Segment only

3.5 Document Types & Number Ranges

Every SAP posting requires a Document Type that defines the transaction category and controls
posting behavior.
31. SPRO → Financial Accounting → … → Document → Document Types → Define Document
Types
32. Key fields: Document Type key (2 chars), Number range, Account types allowed, Net
document type
33. Assign number range: SPRO → … → Define Number Ranges for Documents

Document Type Description

SA GL Account Document (general posting)
KR Vendor Invoice
KZ Vendor Payment
DR Customer Invoice
DZ Customer Payment
AA Asset Posting
AB Accounting Document (reversals)
WA Goods Issue (from MM)

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

WE Goods Receipt (from MM)

3.6 Posting Keys

Posting Keys define whether a line item is a Debit or Credit and the account type it can be posted
to.
Posting Key Debit/Credit
01 Customer Invoice (Debit)
40 GL Debit
50 GL Credit
31 Vendor Invoice (Credit)
21 Vendor Credit Memo (Debit)
11 Customer Credit Memo (Credit)

3.7 Post a Manual GL Document

34. T-code FB50 (General Ledger Document Entry – Enjoy Screen)
35. Enter: Document Date, Posting Date, Company Code, Currency
36. Enter line items: GL Account, D/C (Debit/Credit), Amount, Cost Center, Tax Code
37. Check for errors via Simulate (Ctrl+F9)
38. Post (Ctrl+S)

FB50 – Enter GL Document (Enjoy Transaction)

F-02 – Enter GL Document (Classic Screen)
FB03 – Display Posted Document
FB08 – Reverse GL Document
FBL3N – GL Account Line Item Display
FS10N – GL Account Balance Report

3.8 Recurring Entries & Accruals

39. Create recurring document template: T-code FBD1
40. Enter: First run date, Last run date, Interval (monthly = 1), Reference document data
41. Execute recurring entries: T-code F.14 (run in batch) or F-14
42. Post accruals/deferrals: T-code FBS1 (post) → FBV0 (display) → F.81 (reverse on
schedule)

FBD1 – Enter Recurring Document

F.14 – Post Recurring Entries

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

FBS1 – Enter Accrual/Deferral Document

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

4. FI-AP – Accounts Payable

Accounts Payable manages all outgoing payments to vendors. It integrates tightly with Materials
Management (MM) through the Purchase-to-Pay cycle.

4.1 Vendor Account Group & Number Range

43. SPRO → Financial Accounting → Accounts Receivable and Payable → Vendor Accounts →
Master Data → Preparations → Define Account Groups with Screen Layout (Vendors)
44. Create groups: KRED (Domestic Vendors), KREM (Foreign Vendors), KINT (Intercompany)
45. Define number ranges: SPRO → … → Create Number Ranges for Vendor Accounts
46. Assign number ranges to account groups

4.2 Create Vendor Master

47. T-code XK01 (Central Creation) or MK01 (Purchasing only)
48. Enter: Account Group, Company Code, Purchasing Organization
49. General Data tab: Name, Address, Bank Details, Communication
50. Company Code Data tab: Reconciliation Account, Payment Terms, Payment Methods,
Withholding Tax
51. Purchasing Data tab: Order Currency, Incoterms, GR-Based Invoice Verification flag
52. Save – SAP assigns the vendor number

XK01 – Create Vendor (Central)

XK02 – Change Vendor
XK03 – Display Vendor
XK06 – Mark Vendor for Deletion

4.3 Enter Vendor Invoice

53. T-code FB60 (Enjoy) – for invoices NOT related to a Purchase Order
54. T-code MIRO – for PO-based invoices (3-way match: PO + GR + Invoice)
55. Enter: Vendor, Invoice Date, Posting Date, Amount, Tax Code, GL Account / Cost Center
56. Simulate → Post

FB60 – Enter Vendor Invoice (non-PO)

MIRO – Enter Incoming Invoice (PO-based, 3-way match)
FB65 – Enter Vendor Credit Memo

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

4.4 Process Vendor Payment

57. Manual Payment: T-code F-53 (Outgoing Payment) or F-58 (Payment with Printout)
58. Automatic Payment Program (APP):
a. Configure payment methods: SPRO → … → Payment Methods in Country / Company
Code
b. Set up bank selection: SPRO → … → Bank Selection
c. Run APP: T-code F110
d. Parameter screen: Company Code, Payment date, Vendors, Payment methods
e. Proposal run → Review → Payment run → Print/send payment files

F110 – Automatic Payment Program (APP)

F-53 – Post Outgoing Payment (manual)
F-44 – Clear Vendor Open Items
FBL1N – Vendor Line Item Display
S_ALR_87012078 – Vendor Balance Report

4.5 Down Payment to Vendors

59. Post down payment request: F-47
60. Post actual down payment: F-48
61. Clear down payment against invoice: F-54

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

5. FI-AR – Accounts Receivable

Accounts Receivable manages all incoming payments from customers. It integrates with Sales &
Distribution (SD) for the Order-to-Cash cycle.

5.1 Customer Account Group & Number Range

62. SPRO → … → Customer Accounts → Master Data → Preparations → Define Account
Groups with Screen Layout (Customers)
63. Common groups: KUND (Domestic), KUND_E (Export), CPDA (One-time customer)
64. Define and assign number ranges to customer account groups

5.2 Create Customer Master

65. T-code XD01 (Central) or FD01 (FI only)
66. General Data: Name, Address, Communication, Bank details
67. Company Code Data: Reconciliation Account, Payment Terms, Dunning Area, Credit Limit
68. Sales Area Data: Sales Organization, Distribution Channel, Division (if SD integrated)
69. Save

XD01 – Create Customer (Central)

FD01 – Create Customer (FI)
FD32 – Change Customer Credit Limit

5.3 Post Customer Invoice

70. T-code FB70 (Enjoy screen) for manual invoices
71. SD billing (VF01) automatically posts to FI-AR when integrated
72. Enter: Customer, Invoice date, Posting date, Amount, Tax code, Profit Center
73. Simulate → Post

FB70 – Enter Customer Invoice

FB75 – Enter Customer Credit Memo
VF01 – Create SD Billing Document (auto-posts to AR)

5.4 Process Incoming Payments

74. Manual: T-code F-28 (Post Incoming Payment)
75. Enter: Bank Account, Customer, Amount, and match against open invoices
76. Use Automatic Clearing: T-code F-32 (Clear Customer)

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

77. Electronic Bank Statement: T-code FF_5 (upload) → FEBAN (process)

F-28 – Post Incoming Payment

F-32 – Clear Customer
FBL5N – Customer Line Item Display
S_ALR_87012168 – Customer Balance Report (Aging)

5.5 Dunning (Payment Reminders)

78. Configure dunning: SPRO → … → Business Transactions → Dunning
79. Set dunning levels (1=reminder, 2=warning, 3=final notice, 4=legal)
80. Assign dunning procedure to customer master
81. Run dunning: T-code F150 → Enter run date and company → Dunning proposal → Print
letters

F150 – Dunning Run

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

6. FI-AA – Asset Accounting

Asset Accounting manages the complete lifecycle of fixed assets: acquisition, depreciation, transfer,
and retirement.

6.1 Configure Asset Accounting

82. Define Chart of Depreciation: SPRO → Financial Accounting → Asset Accounting →
Organizational Structures → Copy Reference Chart of Depreciation / Depreciation Areas
83. SAP provides 0DE (Germany), 0US (USA), 0IN (India) as reference – copy and rename
84. Assign Chart of Depreciation to Company Code
85. Define Asset Classes (Land, Buildings, Machinery, Vehicles, Furniture, etc.)
86. Assign GL accounts to Asset Classes (acquisition, accumulated depreciation, depreciation
expense)

6.2 Define Depreciation Keys

87. SPRO → Asset Accounting → Depreciation → Valuation Methods → Depreciation Key →
Maintain Depreciation Key
88. Key fields: Depreciation method (SLM = Straight Line, DBD = Declining Balance), Period
control, Useful life

Method Description
LINA Straight-Line – equal amounts each period
GWG Immediate write-off (low-value assets)
DG00 Declining balance method

6.3 Create Asset Master

89. T-code AS01 → Enter Asset Class and Company Code → Continue
90. General tab: Description, Serial Number, Inventory number, Cost Center, Location
91. Depreciation Areas tab: Depreciation key, Useful life (in years), Scrap value
92. Save → Note the Asset Number

AS01 – Create Asset

AS02 – Change Asset
AS03 – Display Asset

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

6.4 Asset Transactions

93. External Acquisition (purchase): T-code F-90 or MIGO (if via MM/PO)
94. In-house acquisition (capitalise WIP): T-code AIAB / AIBU
95. Asset Transfer (within company code): T-code ABUMN
96. Asset Retirement (scrapping): T-code ABAVN
97. Asset Sale: T-code F-92

F-90 – Asset Acquisition (external purchase)

ABUMN – Asset Transfer within Company Code
ABAVN – Asset Retirement by Scrapping
AFAB – Run Depreciation (Periodic)
AW01N – Asset Explorer – View full asset history
S_ALR_87011990 – Asset History Sheet

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

7. FI-BL – Bank Accounting & Cash Management

7.1 Create House Bank

98. SPRO → Financial Accounting → Bank Accounting → Bank Accounts → Define House
Banks
99. Select Company Code → New Entries → Enter Bank ID, Bank Key (routing/IFSC), Bank
Name, Bank Country
100. Create bank accounts under house bank: Enter Account ID, GL Account, Description
101. Save

7.2 Bank Reconciliation

102. Upload bank statement: T-code FF_5 (SWIFT / BAI2 / MT940 formats)
103. Process statement: T-code FEBAN → Post cleared items → Investigate unmatched
items
104. Manual bank reconciliation: T-code FF67

FF_5 – Import Electronic Bank Statement

FEBAN – Process Bank Statement
FDFD – Cash Position Report
FF7A – Cash Management – Liquidity Forecast

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

8. CO – Controlling Module Overview

Controlling (CO) provides management accounting. Unlike FI (external reporting), CO focuses on
internal decisions, budgeting, and cost transparency.

CO vs FI – Key Difference
• FI: External reporting to investors, banks, tax authorities (legal requirement)
• CO: Internal reporting to management for decisions (not legally required)
• In S/4HANA: Both FI and CO are merged in the Universal Journal (table ACDOCA)
• CO postings can be non-value-based (statistical) or value-based (real costs)

8.1 Controlling Area

The Controlling Area is the top-level organizational unit in CO. One controlling area can serve
multiple company codes.
105. SPRO → Controlling → General Controlling → Organization → Maintain Controlling
Area
106. New Entries → Enter Controlling Area key (e.g., 1000), Name, COA, Fiscal Year
Variant, Currency
107. Assign Company Code(s) to Controlling Area
108. Activate components: Cost Center Accounting, Internal Orders, Profit Center
Accounting, etc.
109. Save

8.2 CO Number Ranges & Version

110. Define number ranges for CO documents: SPRO → Controlling → General
Controlling → Organization → Maintain Number Ranges for CO Documents
111. Define planning version: T-code OKEQ → Version 0 is always the actual version;
Version 1, 2... for plan

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

9. CO-CCA – Cost Center Accounting

Cost Center Accounting (CCA) tracks costs by organizational units (departments, locations,
functions). It answers: WHERE was cost incurred?

9.1 Standard Hierarchy

112. Every controlling area needs a Standard Hierarchy for cost centers
113. T-code OKEON → Create node structure (e.g., Company → Division → Department)

9.2 Create Cost Center

114. T-code KS01 → Enter Cost Center number and Controlling Area
115. Basic Data tab: Name, Description, Cost Center Category (F=Production, V=Sales,
A=Admin), Standard Hierarchy Node, Person Responsible
116. Control tab: Actual/Plan/Commitment postings allowed
117. Valid From / To dates → Save

KS01 – Create Cost Center

KS02 – Change Cost Center
KSH1 – Create Cost Center Group

9.3 Cost Center Planning

118. T-code KP06 → Enter version (Plan version, e.g., 1), fiscal year, period
119. Enter planned activity quantities and cost amounts per cost element
120. Save plan data → Release plan: T-code KPF6 or via menu

KP06 – Cost Center Planning (manual entry)

KP26 – Activity Type / Price Planning

9.4 Cost Center Allocations

Costs can be moved between cost centers using:
• Assessment: Moves cost using an assessment cost element. Sender structure is not visible
at receiver.
• Distribution: Moves cost to receivers retaining the original cost element.
• Reposting: Manual correction, direct.

121. Configure assessment/distribution cycle: T-code KSU1 (Assessment) / KSV1

(Distribution)

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

122. Enter cycle name, start/end dates, sender cost center and cost elements, receiver
cost centers and tracing factor
123. Execute cycle: T-code KSU5 (Assessment) / KSV5 (Distribution)

KSU1 / KSU5 – Create / Execute Cost Assessment Cycle

KSV1 / KSV5 – Create / Execute Cost Distribution Cycle
KB11N – Manual Reposting of Costs
S_ALR_87013611 – Cost Centers: Actual/Plan/Variance Report

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

10. CO-IO – Internal Orders

Internal Orders are used to monitor costs and revenues for short-term events, projects, or overhead
activities (e.g., marketing campaigns, office renovation, training events).

10.1 Order Types

124. SPRO → Controlling → Internal Orders → Order Master Data → Define Order Types
125. Key settings: Order category (01=Overhead, 02=Investment, 03=Accrual),
Settlement profile, Budget profile, Number range

Order Type Use Case

Overhead Orders Track overhead costs (e.g., office renovation)
Investment Orders Capital expenditure (later capitalised to asset)
Accrual Orders Reconcile accrued costs to financial accounts
Production Orders Used in PP, but CO-IO can interface

10.2 Create Internal Order

126. T-code KO01 → Enter Order Type and Controlling Area
127. Assignments tab: Company Code, Business Area, Plant, Cost Center (responsible)
128. Control Data tab: Currency, Order Category, Release status
129. Period/Year for valid dates → Save → Note Order Number

KO01 – Create Internal Order

KO02 – Change Internal Order
KOB1 – Internal Order Line Item Report

10.3 Budget and Availability Control

130. Set original budget: T-code KO22 → Enter order, fiscal year, and budget amount
131. Supplement budget: KO24 → Increase budget mid-year
132. Configure availability control: SPRO → … → Availability Control → Define Tolerance
Limits → set warning/error at 90%/100%

10.4 Settle Internal Order

At period-end, costs collected on an Internal Order must be settled to a Cost Center, GL Account,
or Asset.

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

133. Define settlement rule on the order: KO02 → Goto → Settlement Rule → Enter
receiver (Cost Center/GL/Asset) and % allocation
134. Run settlement: T-code KO88 (individual) or KO8G (collective/batch)

KO88 – Settle Internal Order (individual)

KO8G – Collective Settlement of Internal Orders

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

11. CO-PCA – Profit Center Accounting

Profit Center Accounting enables internal P&L reporting by business segment, product line, or
geography.

11.1 Create Profit Center

135. T-code KE51 → Enter Controlling Area and Profit Center number
136. Basic Data: Name, Short description, Profit Center Group, Segment (for segment
reporting in S/4HANA)
137. Indicators: Suppress balances flag, Lock indicator for future changes
138. Activate Profit Center: Set status to Active → Save

KE51 – Create Profit Center

KE52 – Change Profit Center
KCH1 – Create Profit Center Hierarchy

11.2 Assign Profit Center

• To Cost Center: In Cost Center master (KS01/KS02)
• To Material: MM02 → Costing 2 view → Profit Center field
• To GL Account: FS00 → Company Code → Profit Center field (for balance sheet)

11.3 Profit Center Reports

KE5Z – Profit Center: Actual Line Items
S_ALR_87013326 – Profit Center: Plan/Actual Comparison
KE5T – Profit Center Balance Report

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

12. CO-PA – Profitability Analysis

CO-PA provides multidimensional profitability analysis by combining revenue, cost of goods sold,
and overhead allocations. It is the source for management P&L (contribution margin analysis).

12.1 Types of CO-PA

• Costing-based CO-PA: Uses value fields; separates from FI; faster but more complex to
reconcile
• Account-based CO-PA: Uses cost elements aligned to GL; S/4HANA default; easier FI
reconciliation

12.2 Maintain Operating Concern

139. SPRO → Controlling → Profitability Analysis → Structures → Define Operating
Concern
140. Define characteristics (dimensions for analysis): Customer, Product, Sales Org,
Region, Division
141. Define value fields (revenue and cost amounts): Revenue, Discounts, COGS,
Freight, Marketing costs
142. Generate the operating concern → Activate for actual/plan data
143. Assign Operating Concern to Controlling Area

12.3 CO-PA Planning

144. T-code KEPM → Select planning level (Operating Concern, Fiscal Year, Version)
145. Enter planned revenue and quantities per characteristic combination
146. Run top-down distribution to spread totals to detailed levels

KE30 – CO-PA Profitability Report (Drill-down)

KE24 – CO-PA Actual Line Item Report
KEPM – CO-PA Planning

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

13. CO-PC – Product Costing

Product Costing calculates the standard cost of manufactured goods. It feeds into inventory
valuation (FI) and contribution margin reporting (CO-PA).

13.1 Cost Component Structure

147. SPRO → Controlling → Product Cost Controlling → Product Cost Planning → Basic
Settings → Define Cost Component Structure
148. Define cost components: Raw Materials, Labor, Machine, Overhead, Packaging
149. Assign cost elements to cost components

13.2 Create Cost Estimate with Quantity Structure

150. T-code CK11N → Enter Material, Plant, Costing Variant (PPC1 = Standard Cost
Estimate)
151. SAP reads Bill of Materials (BOM) and Routing from PP
152. Costing result shows breakdown: Material costs, Activity costs, Overhead
153. Mark cost estimate: CK24 → Update standard price in material master
154. Release cost estimate: CK24 → Sets new standard price for coming period

CK11N – Create Product Cost Estimate

CK13N – Display Product Cost Estimate
CK24 – Mark and Release Standard Cost Estimate
CKMLCP – Actual Costing / Material Ledger Closing

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

14. Period-End & Year-End Closing

Period-end closing is a structured sequence of activities performed at month-end and year-end to
ensure accurate financial reporting.

14.1 FI Month-End Closing Checklist

Step T-Code Description
1. Post Record accrued expenses and prepaid
FBS1
accruals/deferrals items
2. Run recurring Post recurring journals (rent, insurance,
F.14
entries etc.)
3. Post
AFAB Run depreciation for all asset classes
depreciation
4. Foreign
currency F.05 / FAGL_FC_VAL Revalue open items and balances
revaluation
Clear unmatched goods receipts and
5. GR/IR clearing F.13 / MR11
invoices
6. Reconcile
FB5N Post cross-company eliminations
intercompany
7. Close posting
OB52 Restrict prior-period postings
period
8. Run balance
F.16 / FAGLGVTR Carry balances to next year
carry-forward
9. Produce
financial S_ALR_87012284 Balance Sheet / P&L
statements

14.2 CO Month-End Closing Checklist

Step T-Code Description
1. Post CO manual
KB11N Repost misallocated costs
allocations
2. Run
assessments/distri KSU5 / KSV5 Allocate shared costs to receivers
butions
3. Calculate
KSII Update actual activity rates
activity prices
4. Settle internal KO8G Move order costs to final receivers

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

orders
5. WIP calculation
KKAX / KKAO Calculate work-in-progress
(PP)
6. Variance
KKS1 / KKS2 Compare actual vs standard cost
calculation
7. Settlement of
CO88 / KO8G Final settlement to stock/P&L
production orders
8. CO-PA
KEU5 Allocate costs to profitability segments
assessment
9. Close CO period OKP1 Lock CO period for postings

14.3 Year-End Closing

155. Complete all month-end steps for Period 12
156. Post year-end adjustment entries (audit adjustments, tax provisions)
157. Run asset year-end closing: T-code AJAB
158. Carry forward GL balances: T-code FAGLGVTR (Balance sheet) – P&L balances
automatically go to retained earnings
159. Carry forward vendor/customer open items: T-code F.07 / F.07
160. Carry forward CO plan data (optional): T-code KP97
161. Open new fiscal year: T-code OB52 → Open Period 1 of new year

AJAB – Asset Fiscal Year Change

FAGLGVTR – Balance Carry-Forward (GL)
S_ALR_87012284 – Financial Statements (Balance Sheet / P&L)

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

15. Key SAP FICO Reports & T-Codes Reference

15.1 Financial Accounting Reports

T-Code Report Name Purpose
View debit/credit balance per GL
FS10N GL Account Balances
account
FBL3N GL Line Items Drill into individual GL postings
FBL1N Vendor Line Items All open and cleared vendor items
FBL5N Customer Line Items All open and cleared customer items
S_ALR_87012284 Financial Statements Balance Sheet and P&L
S_ALR_87012085 AP Aging Analysis Vendor open items by age bucket
S_ALR_87012168 AR Aging Analysis Customer open items by age bucket
Asset acquisition, transfer, retirement,
S_ALR_87011990 Asset History Sheet
NBV
F.08 GL Trial Balance All accounts debit/credit totals
Line items with segment/profit center
FAGLL03 GL Line Items (New GL)
split

15.2 Controlling Reports

T-Code Report Name Purpose
S_ALR_87013611 Cost Centers: Act/Plan/Var Variance analysis by cost center
S_ALR_87013612 Cost Centers: Actual Line Items Cost center posting details
KOB1 Internal Orders: Line Items Costs posted to internal orders
S_ALR_87012993 Internal Orders: Act/Plan/Var Budget vs actual for orders
KE30 CO-PA Profitability Report Multidimensional margin analysis
S_ALR_87013326 Profit Center: Plan/Actual P&L by profit center
S_ALR_87013340 Profit Center: Balance Sheet Balance sheet by profit center
KKBC_ORD Production Order Costs Actual vs standard for prod orders
S_ALR_87013179 Cost Element Report Costs by cost element (category)

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

16. SAP S/4HANA FICO – Key Differences from ECC

S/4HANA Finance Revolution

• Universal Journal (ACDOCA) replaces all FI and CO tables with a single line-item table
• Elimination of reconciliation between FI and CO – they are now always in sync
• New GL is mandatory in S/4HANA – document splitting and segment reporting are standard
• Business Partner (BP) replaces separate Customer and Vendor masters
• Asset Accounting completely redesigned – new depreciation engine and parallel valuation
• Fiori apps replace most SAP GUI transactions for end users

16.1 Universal Journal (ACDOCA)

In S/4HANA, every financial posting creates a single entry in ACDOCA with all dimensions (GL,
Cost Center, Profit Center, Segment, Business Area, etc.) stored in one row. This eliminates the
need for reconciliation between FI and CO.

16.2 Business Partner (BP) in S/4HANA

162. Customer and Vendor masters are replaced by Business Partner with roles
163. T-code BP replaces XD01 (customer) and XK01 (vendor)
164. Role FLCU00 = Customer (FI), FLCU01 = Customer (Sales)
165. Role FLVN00 = Vendor (FI), FLVN01 = Vendor (Purchasing)

BP – Business Partner – Create/Change/Display (S/4HANA)

16.3 New Asset Accounting (S/4HANA)

• Parallel valuation areas are truly parallel – no lead valuation concept
• Depreciation is always up-to-date – no batch job needed for current period
• AW01N (Asset Explorer) shows real-time values
• T-code AFAB still used but runs differently – can post in any period

16.4 Key S/4HANA Fiori Apps

Fiori App Replaces (GUI T-Code)
Post General Journal Entries FB50 / F-02
Manage Journal Entries FB03 / FBL3N
Manage Incoming Payments F-28

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

Manage Outgoing Payments F-53

Display Financial Statements S_ALR_87012284
Manage Fixed Assets AS01 / AS02 / AW01N
Cash Flow Analyzer FF7A / FDFD
Profitability Analysis KE30

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

17. FI/CO Integration with Other Modules

Module Integration Point FI/CO Impact

MM (Materials Debit Stock / Credit GR-IR clearing
Goods Receipt (MIGO)
Mgmt) account
MM Vendor Invoice (MIRO) Debit GR-IR / Credit Vendor (AP)
Debit Customer (AR) / Credit Revenue
SD (Sales & Dist) Billing Document (VF01)
+ Tax
SD Goods Issue (PGI) Debit COGS / Credit Stock
Debit Finished Goods / Credit WIP +
PP (Production) Production Order Settlement
Variances
Debit Salary Expense / Credit Payable +
HCM (HR / Payroll) Payroll Posting
Tax
PM (Plant Maint) Maintenance Order Settlement Costs settled to Cost Center or Asset
PS (Project CO: Internal Orders or CO-PA
WBS Element Costs
System) segments
Debit/Credit Bank GL, cash pooling, FX
TRM (Treasury) Bank Transactions
revaluation

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

18. Essential T-Code Quick Reference Card

Financial Accounting
T-Code Transaction Module
FB50 Enter GL Document (Enjoy) FI-GL
FB03 Display Document FI-GL
FB08 Reverse Document FI-GL
FBL3N GL Line Items FI-GL
FS10N GL Account Balances FI-GL
FB60 Vendor Invoice FI-AP
F110 Automatic Payment Program FI-AP
FBL1N Vendor Line Items FI-AP
MIRO Invoice Verification (PO) FI-AP/MM
FB70 Customer Invoice FI-AR
F-28 Incoming Payment FI-AR
FBL5N Customer Line Items FI-AR
F150 Dunning Run FI-AR
AS01 Create Asset FI-AA
AFAB Run Depreciation FI-AA
AW01N Asset Explorer FI-AA
FF_5 Import Bank Statement FI-BL
FEBAN Process Bank Statement FI-BL
OB52 Open/Close Posting Periods FI Config

Controlling
T-Code Transaction Module
KS01 Create Cost Center CO-CCA
KP06 Cost Center Planning CO-CCA
KSU5 Execute Assessment Cycle CO-CCA
KSV5 Execute Distribution Cycle CO-CCA

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

KB11N Manual Reposting CO-CCA

S_ALR_87013611 Cost Center Actual/Plan CO-CCA
KO01 Create Internal Order CO-IO
KO22 Set Order Budget CO-IO
KO88 Settle Internal Order CO-IO
KE51 Create Profit Center CO-PCA
KE5T Profit Center Balance CO-PCA
CK11N Create Cost Estimate CO-PC
CK24 Mark/Release Cost Estimate CO-PC
KE30 CO-PA Report CO-PA
KEPM CO-PA Planning CO-PA
KSII Calculate Activity Prices CO-CCA
OKP1 Close CO Period CO Config

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

19. Best Practices & Pro Tips

Configuration Best Practices

• Always work in a Sandbox or Development client before moving changes to Production via
transport
• Use the SPRO Project Management to track configuration tasks and assign to consultants
• Copy standard SAP objects (COA, chart of depreciation, payment methods) instead of
creating from scratch
• Document every configuration decision with functional specs and keep in the system via
SPRO documentation
• Use substitution rules (GGB1) and validation rules (GGB0) to enforce data quality on
postings

End-User Best Practices

• Use Enjoy transactions (FB50, FB60, FB70) instead of classic screens for faster posting
• Set default values in user parameters (T-code SU3) for Company Code, Controlling Area,
Plant to save time
• Use document parking (FV50) to save incomplete documents for review before posting
• Always simulate before posting to catch errors without creating a document
• Use note to payee / text fields consistently – helps in reconciliation and audit

Month-End Best Practices

• Follow a documented closing calendar with assigned owners and deadlines for each step
• Run clearing programs (F.13) early in closing to reduce open items
• Communicate period closing dates to all business units to avoid last-minute requests
• Retain copies of all month-end reports (balance sheet, P&L, aging) as PDF for audit trail
• Use batch jobs (SM36/SM37) to schedule recurring tasks like depreciation and recurring
entries

© SAP FICO Guide 2025 Page

SAP FICO – Complete Step-by-Step Guide | Confidential

20. SAP FICO Career Guide

20.1 Career Pathways

Role Typical Experience & Skills
SAP FICO Consultant (Junior) 0–2 years, 1 full implementation cycle, configuration basics
SAP FICO Consultant (Senior) 3–7 years, multiple projects, blueprint to go-live experience
SAP FICO Lead / Solution 8+ years, end-to-end design, integration expertise
Architect
SAP FICO Manager / Practice 10+ years, team management, pre-sales, proposal writing
Head
SAP S/4HANA Finance Expert S/4HANA migration experience, Fiori, Universal Journal
SAP Finance Business Mix of SAP + Finance domain, bridge between IT and business
Analyst

20.2 SAP Certifications

• C_TFIN52_67 – SAP Certified Application Associate – Financial Accounting with SAP ERP
6.0 EhP7
• C_TS4FI_2021 – SAP Certified Application Associate – SAP S/4HANA for Financial
Accounting
• C_TS4CO_2021 – SAP Certified Application Associate – SAP S/4HANA for Management
Accounting
• C_S4CFI_2402 – SAP Certified Associate – SAP S/4HANA Cloud, Public Edition – Financial
Accounting

20.3 Learning Resources

• SAP Learning Hub ([Link]) – Official SAP training platform
• SAP Help Portal ([Link]) – Free official documentation
• SAP Community ([Link]) – Forums, blogs, Q&A
• IDES System – SAP demo system for practice (available via SAP or training partners)
• Udemy / LinkedIn Learning – FICO courses with hands-on IDES exercises

End of SAP FICO Complete Step-by-Step Guide

For questions, consult SAP Help Portal at [Link]

© SAP FICO Guide 2025 Page