What is sap accounting software?
SAP (Systems Applications and Products) accounting software is a financial accounting and reporting system that helps record transactions and report operating data at the end of a quarter or month. The software also helps analyse financial data.
A company uses SAP accounting software to make journal entries by debiting and crediting financial accounts such as assets, liabilities, equities, revenues and expenses. You also can use this software to prepare budgets.
SAP accounting software has all the components of a traditional accounting and financial reporting system. These components include financial accounts, general and subsidiary ledgers, financial statement modules, and budget sections.
SAP General Ledger
The SAP general ledger is a two-entry accounting form that helps you make journal entries. In a SAP general ledger, an accountant debits and credits financial accounts to record transactions occurring in a month or quarter.
SAP Subsidiary Ledger
A SAP general ledger has multiple subsidiary ledgers, depending on the client's activities and software configuration. For example, the accounts payable general ledger may have many subsidiary ledgers related to individual vendors.
SAP Fixed Asset
The SAP fixed asset module helps a company record asset purchases and sales. A fixed asset is also called a long-term asset. Examples include machinery, equipment, buildings and plants.
SAP Financial Reporting
The SAP financial reporting module helps prepare financial reports, including a balance sheet, statement of profit and loss, statement of cash flows, and statement of retained earnings.