Which module in SAP is primarily used for managing intercompany transactions?

• A. SAP Supply Chain Management (SCM)
• B. SAP Financial Accounting (FI) module
• C. SAP Customer Relationship Management (CRM)
• D. SAP Sales and Distribution (SD)

Answer: (B)

The SAP Financial Accounting (FI) module is primarily used for managing intercompany transactions because it is designed to handle all financial transactions and records within an organization. This module includes accounts payable, accounts receivable, general ledger, and financial reporting functionalities, which are essential for tracking and reconciling intercompany balances and transactions accurately.

FI enables organizations to manage different accounting entities and ensures compliance with financial regulations across jurisdictions. Through the use of intercompany accounting processes, companies can effectively process transactions between different subsidiaries or business units, facilitating accurate financial consolidation and reporting.

In contrast, the other modules serve different core functionalities. SAP Supply Chain Management (SCM) focuses on logistics and supply chain processes, while SAP Customer Relationship Management (CRM) is oriented towards managing customer interactions and relationships. SAP Sales and Distribution (SD) deals mainly with the selling and distribution of goods and services. While these modules may contribute to the broader context of intercompany transactions, they do not specifically address the financial management aspect necessary for direct intercompany transaction oversight and reconciliation.