For any organization implementing SAP, the Financial Accounting (FI) module is the foundation of its financial operations. Within FI, three core components  General Ledger (GL), Accounts Receivable (AR), and Accounts Payable (AP)  form the backbone of all accounting transactions. Understanding how these are configured from scratch is one of the most important learning outcomes in sap fico training in mumbai, as they are directly linked to daily business transactions, financial statements, and real-world accounting scenarios.

SAP FICO configuration involves setting up organizational elements, defining account structures, and establishing relationships between master data and transactional data. For freshers learning FICO, mastering GL, AR, and AP configuration gives a clear picture of how SAP mirrors real accounting systems and automates complex financial processes.

1. Foundation: Organizational Structure Setup

Before configuring GL, AR, or AP, you must define the key financial structures in SAP. These structures determine how accounting data is processed, stored, and reported.

The setup includes:

• Company Creation (Transaction OX15): The top-level entity in SAP that represents a corporate group.
  
  
• Company Code Creation (Transaction OX02): The smallest organizational unit for external reporting; each company code maintains its own balance sheet and PL.
  
  
• Assigning Company to Company Code (Transaction OX16): Links both entities for consolidated reporting.
  
  
• Chart of Accounts (COA) Definition (Transaction OB13): A list of all GL accounts used by the company.
  
  
• Assigning Chart of Accounts to Company Code (OB62): Ensures the company code uses the correct chart of accounts.
  
  

In sap fico training in mumbai, learners begin configuration with these structural elements before moving to individual modules, as they form the base for financial postings.

2. General Ledger (GL) Configuration from Scratch

The General Ledger is where all financial transactions from various submodules (like AR, AP, and Assets) converge. Proper GL configuration ensures smooth integration and accurate reporting.

Step 1: Define Account Groups (OBD4)

• Account groups classify GL accounts into categories such as assets, liabilities, income, or expenses.
  
  
• They control number ranges and field statuses (which fields are mandatory, optional, or hidden).
  
  

Step 2: Define Number Ranges for GL Accounts (OBAR)

• Each account group must have a number range assigned.
  
  
• For example, asset accounts (100000–199999), liability accounts (200000–299999), income accounts (400000–499999).
  
  

Step 3: Create Retained Earnings Account (OB53)

• The retained earnings account is linked to the PL statement to carry forward net profit or loss to the balance sheet.
  
  

Step 4: Create GL Master Records (FS00)

• Each GL account is created with company code-specific and chart of accounts data.
  
  
• Data segments include:
  
  
• Type: Balance sheet or PL.
  
  
• Account group: Determines number range and layout.
  
  
• Field status group: Controls which fields appear during postings.
  
  

Step 5: Automatic Account Determination for Integration (OBYC)

• Links GL accounts to other modules like MM (Inventory) and SD (Sales).
  
  
• For example, goods receipt, GR/IR, and revenue accounts are automatically posted based on predefined rules.
  
  

In sap fico training in mumbai, these configurations are practiced in sequence to help learners understand how each setting affects posting behavior and reporting outcomes.

3. Accounts Receivable (AR) Configuration from Scratch

Accounts Receivable handles all transactions related to customers  from sales invoicing to payment receipts. AR configuration ensures that customer balances and transactions are properly reflected in financial statements.

Step 1: Define Customer Account Groups (OBD2)

• Groups customers based on type (domestic, export, one-time).
  
  
• Controls number range and master data fields.
  
  

Step 2: Assign Number Ranges to Customer Groups (OBAR)

• Each account group (like domestic or export customers) gets its own number series.
  
  

Step 3: Define Tolerance Groups for Customers (OBA3)

• Tolerance groups set limits for cash discounts, residual amounts, and payment differences.
  
  

Step 4: Define Reconciliation Account for AR

• Every customer account is linked to a Reconciliation Account in GL.
  
  
• Example: Reconciliation Account 140000 (Accounts Receivable).
  
  
• This ensures all customer postings automatically update the GL.
  
  

Step 5: Define Payment Terms (OBB8)

• Payment terms define due dates, discounts, and baseline dates for customer invoices.
  
  

Step 6: Create Customer Master Record (XD01 or FD01)

• Divided into three views:
  
  
• General Data: Name, address, communication details.
  
  
• Company Code Data: Reconciliation account, payment terms, tolerance group.
  
  
• Sales Area Data: (If integrated with SD).
  
  

Step 7: Configure Automatic Posting for Incoming Payments

• Set up Bank GL Accounts and posting keys.
  
  
• Use Automatic Clearing (F.13) or Electronic Bank Statement (FF_5) for payment reconciliation.
  
  

In sap fico training in mumbai, students simulate creating customers, posting invoices (FB70), and recording receipts (F-28), gaining practical exposure to AR cycle automation.

4. Accounts Payable (AP) Configuration from Scratch

Accounts Payable manages vendor transactions  from purchase invoices to outgoing payments. Its setup mirrors AR but focuses on vendor-related configurations.

Step 1: Define Vendor Account Groups (OBD3)

• Groups vendors into categories (local, foreign, one-time).
  
  
• Determines number ranges and field controls.
  
  

Step 2: Assign Number Ranges (XKN1)

• Each vendor group receives its own number series.
  
  

Step 3: Define Tolerance Groups for Vendors (OBA3)

• Sets the permissible limits for payment differences or discounts.
  
  

Step 4: Define Reconciliation Account for AP

• Each vendor master is linked to a Reconciliation Account (e.g., 160000 Accounts Payable).
  
  
• Ensures that all vendor postings automatically reflect in the general ledger.
  
  

Step 5: Define Payment Terms (OBB8)

• Specifies due dates and discount terms for vendor invoices.
  
  

Step 6: Create Vendor Master Record (XK01 or FK01)

• Similar to customer master, with:
  
  
• General Data: Name, address, bank details.
  
  
• Company Code Data: Reconciliation account, payment methods, payment terms.
  
  
• Purchasing Data: Linked with MM for procurement integration.
  
  

Step 7: Configure Automatic Payment Program (APP)

• APP automates vendor payments through transaction F110.
  
  
• Configuration includes:
  
  
• Defining payment methods (OBPM1).
  
  
• Assigning company code and bank details.
  
  
• Defining ranking order for payment priorities.
  
  
• Creating house banks (FI12).
  
  

In sap fico training in mumbai, this process is practiced end-to-end  posting vendor invoices (FB60), simulating payments (F110), and reconciling vendor balances  to build job-ready functional understanding.

5. Integration of GL, AR, and AP

Once configured individually, these components work together seamlessly:

• When a customer invoice is posted in AR, it credits the revenue GL and debits the AR reconciliation account.
  
  
• When a vendor invoice is posted in AP, it debits the expense GL and credits the AP reconciliation account.
  
  
• When payments are made or received, the relevant bank GL accounts are updated automatically.
  
  

In sap fico training in mumbai, learners perform these transactions step-by-step, observing the automatic flow of entries between subledgers and the general ledger. This integration demonstrates how SAP ensures data accuracy and eliminates redundant accounting entries.

6. Practical Tips for Learners Configuring FICO Modules

• Always create a Chart of Accounts and Company Code before beginning configuration.
  
  
• Maintain consistency between number ranges and account groups for traceability.
  
  
• Link every subledger account to a reconciliation account to ensure automatic GL postings.
  
  
• Test configurations with sample transactions (like FB50, FB60, FB70) to validate setups.
  
  
• Use Document Splitting to enable detailed financial reporting by dimensions like cost center or segment.
  
  

7. Why This Configuration Knowledge Matters for Freshers

Month-end reporting, vendor reconciliation, and customer balance confirmation all depend on correct configuration. Employers expect SAP FICO professionals to understand how GL, AR, and AP interact because these modules form the foundation of financial operations in every SAP implementation.

Those completing sap fico training in mumbai gain practical exposure to how accounting logic translates into SAP settings  learning to configure from scratch, simulate live business scenarios, and troubleshoot posting errors effectively.

For freshers aiming to start a career in finance or consulting, mastering the configuration of GL, AR, and AP doesn’t just teach SAP  it teaches how modern enterprises manage money, compliance, and performance through automation.