GL, AP, AR, Asset Accounting. T-codes. Clearing. Period close. The complete FI picture.
~25 minutes
📌 Before You Start
What you need: Your SAP Vocabulary List from Module 10. A notepad ready to add new terms. openSAP.com open in another tab.
What you’ll do: Learn the four sub-modules of SAP FI in depth, understand key T-codes for each, and grasp the core concepts (document, clearing, period close) that come up in every FI interview and job.
This module has more to read than previous ones. Take your time. Stop when you need to. The Brain Break is in the middle for a reason.
💡 SAP FI — The Four Sub-Modules
FI (Financial Accounting) is the module that records every financial transaction in the company. It is the legal accounting record — the source of truth for tax reporting, audits, and financial statements. Everything that involves money flows through FI.
FI Organizational Structure:
Client→ highest level, the whole SAP system
Company Code→ one legal entity (e.g., SAP Americas Inc.)
The master financial record of the company. Every single financial transaction ultimately posts to the GL. The GL provides the data for the balance sheet, income statement, and cash flow statement.
Tracks money the company OWES to vendors. The AP process: vendor delivers goods or services → invoice arrives → AP clerk posts the invoice in SAP → payment is made → invoice is cleared. AP is a sub-ledger: it summarizes to the GL through a Reconciliation Account.
FB60F110FBL1NFK03
FB60 = Enter vendor invoice • F110 = Automatic payment run • FBL1N = Vendor line items • FK03 = Display vendor master
3. Accounts Receivable (AR)
Tracks money OWED to the company by customers. The AR process: sale is made → invoice is sent to customer → customer pays → payment is posted → invoice is cleared. F150 is the dunning program — it automatically contacts customers about overdue invoices.
FB70F-28FBL5NF150
FB70 = Enter customer invoice • F-28 = Post incoming payment • FBL5N = Customer line items • F150 = Dunning (overdue notices)
4. Asset Accounting (AA)
Tracks company assets: buildings, equipment, vehicles, computers. Handles depreciation automatically — the scheduled decrease in asset value over time. AW01N is the Asset Explorer — shows the complete life of an asset including all postings and planned depreciation.
AS01AW01NAFABAS91
AS01 = Create asset • AW01N = Asset Explorer • AFAB = Depreciation run • AS91 = Create legacy asset
🔑 Key FI Concepts — Learn These
Document
Every transaction in SAP creates a document with a unique number, date, user, and line items. Documents are permanent — they can be reversed but never deleted. “Show me the document” means “show me the record of that transaction.”
Posting Key
A two-digit code that controls whether an entry is a debit or credit and which account type it applies to. Posting key 40 = GL debit. Posting key 50 = GL credit. This determines the accounting direction of each line item.
Clearing
The process of matching an open item (e.g., an unpaid invoice) with a payment — setting the balance to zero. An open invoice + a payment = cleared items. Cleared items no longer appear in aging reports.
Open Item
A transaction that has not yet been matched (cleared). An unpaid invoice is an open item. An outstanding customer balance is an open item. Open items are the outstanding transactions you need to resolve.
Period Close
The month-end process of closing an accounting period. Once a period is closed, no new postings can go into it. Period close involves reconciliation, depreciation runs, and blocking the period for changes.
Reconciliation Account
A GL account that automatically summarizes the sub-ledger (AP or AR) balances. When you post a vendor invoice in AP, the GL reconciliation account updates automatically. You cannot post directly to a reconciliation account.
🔗 Why It Matters
Every company using SAP needs FI. AP clerks, AR specialists, GL accountants, financial analysts, SAP consultants, auditors — all work in FI daily. Understanding FI makes you able to support these users, analyze the data they produce, and in a consultant role, configure the system for them.
When an interviewer asks “what is clearing in SAP?” or “walk me through the AP process,” you now have real answers. Not vague answers — specific, confident, accurate ones. That is what Module 11 just gave you.
🖐️ Practice
1
On paper or in your notes, draw the FI organizational hierarchy: Client → Company Code → Chart of Accounts → GL Account. Draw it as a tree. Label each level. This physical act of drawing locks the structure in memory.
2
Think of a real company (any company you know). Write out what their AP process would look like in SAP, step by step: vendor delivers goods → invoice arrives → AP clerk posts in FB60 → payment runs via F110 → document cleared. Write each step and which T-code applies.
3
Search “SAP FB60 transaction code” on Google and find a screenshot. Look at the screen. Identify: the Company Code field, the Vendor field, the Posting Date field, the Document Type field, the line item area with amounts and account numbers. You are reading SAP without having access to a system.
4
Go to openSAP.com and find a video specifically about SAP Financial Accounting. Watch 10–15 minutes. Pause when you hear a term from this module — write it down and confirm your understanding matches.
5
Add to your vocabulary list: GL, AP, AR, AA (Asset Accounting), T-code, document, posting key, clearing, open item, reconciliation account, period close, FB50, FB60, FB70, F110, FBL1N, FBL5N, AW01N. That is 17 terms. You now speak FI.
🛑 Great stopping point. Module 12 (CO) builds on this — come back rested.
🧠 Brain Break
That was a significant amount of new terminology. Your brain is organizing new information into existing frameworks — that is real cognitive work. Stand up. Walk slowly around your space. Let your mind wander for 2 minutes. Do not think about SAP.
Stand upWalk slowlyLet your mind wander2 full minutes
✅ You Got This
The ONE thing to remember from this module:
FI = the company’s financial truth in SAP. GL is the master record. AP/AR/AA are sub-ledgers. Every posting creates a document. Clearing closes the loop. You now speak FI.
What comes next: Module 12 covers SAP CO — Controlling. Where FI is legal accounting, CO is management accounting. Plus SPRO configuration basics. The complete FI/CO picture closes in Module 12.