Beginner’s Guide to SAP FICO: Learn the Core of Financial Management in SAP

Beginner’s Guide to SAP FICO: Learn the Core of Financial Management in SAP

8 min reading • 29 September, 2025

Introduction :-

Today, Every business wants to be stay ahead in competition. While ERP systems like SAP provide a strong backbone for operations.
BTP as a toolbox lets you build exactly what your business needs. Even if it is a simple extension, complete custom app, or an integration with other systems.
In this blog, I will help you to understand how custom applications can be built on SAP BTP, along with real-world use cases, practical examples, and best practices.

Why to go with Custom Applications on SAP BTP?

Every business is different. There are different ways to handle the inventory of retail company and the bank handles the approvals, or how a manufacture company monitors production quality. Standard SAP solutions are powerful but it cannot always cover every scenario.
This is where SAP BTP truly stands out. It allows you to create applications that works for your business perfectly without overloading your core ERP system.

Benefits of Building on BTP:
  • Innovate quickly without affecting ERP core processes.
  • Easily scalable and remain secure with cloud technology.
  • User can Connect with both SAP and non-SAP systems.
  • Reduce the heavy custom ABAP coding, making easier and safer upgrades.

We are taking a real project example: building a Travel & Expense Management app on BTP.

  • Backend: A CAPM service handles Travel request creation, expense recording of particular travel request, and approvals.
  • Database: SAP HANA Cloud stores Travel request’s data, expenses receipts, and financial data.
  • UI: An SAP Fiori app allows employees to submit travel request and its expenses and for managers to review them.
  • Workflow: SAP Build Process Automation enables multi-level approvals with notifications.
Benefits:
  • No need of paper to print receipt.
  • Employees can track travel expenses easily.
  • Approvals uses automated workflows which reducing delays.

Key Components of SAP BTP for Custom Development

To build custom applications on BTP, let us check the core building blocks.

1. SAP CAP (Cloud Application Programming Model)

Using node.js or java, CAP provides a simple framework for building apps. Developers can expose OData services, define data models and integrate easily with SAP HANA.

Example: A Travel and Expense app where employees can create travel request, and manager can approve or reject them. CAP handles the service logic and data exposure with better UI.

Best Practices:
  • Build module wise services which can be reused easily.
  • Keep sensitive data safe using hashing or encryption.
  • For secure access, use CAP’s built-in authentication with XSUAA.
2. SAP HANA Cloud

This is the data powerhouse of BTP. It is highly secure, scalable and user can integrate SAP and non-SAP systems easily.

Example: A travel expense app stores travel request and expense data of particular travel request in HANA Cloud for reporting and approval workflows.

Best Practices:
  • Use HDI containers for isolated schemas.
  • Optimize queries with CDS views.
  • Separate transactional and analytical workloads.
3. SAP Fiori/UI5 for Custom UIs

For better user experience, UI5 Fiori comes in picture. SAP Fiori and UI5 helps to create modern, responsive applications that are easy to use.

Example: A timesheet application where employees can log hours, and managers can view presence/absence directly on a calendar.

Best Practices:

  • Fiori design principles should be followed for a consistent look and feel.
  • Use Smart Controls such as Smart Table, Smart Filter to speed up the development.
4. SAP Build Process Automation:

With low-code/no-code tools, professional developers and business users can easily automate repetitive tasks. SAP Build Process Automation allows us to combine workflow management and robotic process automation which is also called RPA into a single service. Approval process and connection with different systems without heavy coding makes development easy.

Example: In a Travel & Expense application, SAP Build Process Automation can manage the multi-level approval workflow. Workflow automatically routes the requests to the right approvers and reduces manual efforts. Best Practices:
  • Begin with automating processes that are simple, repetitive.
  • Use existing content from SAP’s library to speed up automation.
  • Combine workflows and RPA to create automations which connects both SAP and non-SAP systems.
5. Integration with SAP BTP

Most applications are not standalone. Some applications need to communicate with other systems to become effective. SAP BTP makes this integration process simple and reliable.

Example: If A logistics company builts a custom app, It will bring together data from SAP S/4HANA and GPS tracking from an external provider. With this integration, managers can view real-time shipment updates directly in a Fiori dashboard, improving visibility and decision-making. Best Practices:
  • Use SAP Integration Suite for standard APIs.
  • Make sure security by using destinations and OAuth for system connections.
Best Practices for Building Custom Apps on BTP
  • Begin with a small app, then expand.
  • Use existing APIs and CDS views instead of reinventing.
  • Implement XSUAA for authentication.
  • Use SAP BTP’s monitoring tools for performance tracking.

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