SAP FI (Financial Accounting) records every external-facing financial transaction so a company can produce balance sheets, profit and loss statements and statutory reports for each legal entity.
FI covers the general ledger, accounts payable, accounts receivable, asset accounting and bank accounting. It enforces controls such as posting periods, tolerance limits and document splitting, and supports multiple currencies, ledgers and accounting principles (for example local GAAP alongside IFRS).
In S/4HANA, FI postings land in the Universal Journal, New Asset Accounting is mandatory, and Business Partner replaces separate customer and vendor masters. Bank communication often moves to Advanced Payment Management or Cash Management with bank statement automation.