Finance and Accounting Module:

Businesses raise funds and try to manage them effectively during the course of their operations. This important function is known as financial management and it requires financial data. However, the mere presence of a huge body of financial data is worthless unless it is presented in a way that will help the management take strategic decisions. The finance and accounting module controls all the finance related transactions and contains all the functionalities that are required for an accounting department such as vouchers, the profit and loss account, and the balance sheet. It provides budgeting and variance analysis between the budgeted and the actual figures and helps the manager handle the income and expenses of the division efficiently. This module consists of a number of sub-modules such as financial accounting, enterprise control, treasury, investment management, controlling system, and so on. Each sub-module performs different tasks and takes care of all the functions of an accounting department.

SAP's finance and accounting module facilitates the collection of all financial data required to prepare financial statements. It integrates financial reporting processes such as preparing the balance sheet and income statements with other modules such as materials management, sales and distribution, production planning, and execution. It improves the efficiency of processes such as accounting, financial analysis and reporting, and treasury management. This module further consists of sub-modules such as the general ledger, legal consolidation, treasury, accounts receivable, accounts payable, and a special purpose ledger. It allows companies to address issues such as compliance with government rules and regulations such as the Sarbanes-Oxley (SOX) Act of 2002, which requires companies to adopt and follow fair accounting methods and to face severe punishment for any failure.

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