SAP FI/CO – Finance & Controlling
SAP Finance covers essentially the external and internal accounting needs of the companies.
External accounting is treated within SAP Financial Accounting and aims at fulfilling all the regulatory requirements to which the companies are submitted (including the periodic production of financial statements). This accounting is said to be external because it interests mainly external parties (fiscal authorities, shareholders, auditors, …). It records financial operations by nature.
Internal accounting (also called management accounting) is treated within SAP Controlling and aims at providing decision makers with the necessary information in order to assess the performance of the company at a detailed level and to support their strategic decisions.
This accounting is said to be internal as it interests primarily the managers of the company. It records financial operations also by destination.
Tags: SAP Controlling, SAP Finance