A Study on Impact of SAP FICO on Financial Decision-Making in Organizations

In the contemporary business environment, financial decision-making has become increasingly complex due to globalization, technological advancements, and competitive pressures. Organizations are required to make timely and accurate financial decisions to ensure profitability, sustainability, and growth. Traditional accounting systems often lack integration, real-time capabilities, and accuracy, which creates challenges in effective decision-making. Enterprise Resource Planning (ERP) systems have emerged as a solution to these challenges by integrating various business functions into a unified system. Among these, SAP is one of the most widely adopted ERP systems globally. SAP FICO, comprising Financial Accounting (FI) and Controlling (CO), plays a vital role in managing financial data and supporting decision-making processes. This study examines the impact of SAP FICO on financial decision-making in organizations. The research is based on primary data collected from 50 respondents and supported by secondary data from academic literature. The results indicate that SAP FICO significantly improves financial accuracy, enhances reporting quality, and facilitates faster decision-making. The study concludes that SAP FICO is an effective tool for improving financial management practices and organizational performance. Keywords— SAP FICO, ERP Systems, Financial Decision-Making, Financial Accuracy, Financial Management