What are statutory reports in SAP FICO?

Statutory reports in SAP FICO refer to legally required financial statements that organizations must prepare and present in accordance with applicable laws and regulations. These reports are crucial for ensuring compliance with legal standards as they provide a clear view of the financial position and performance of a company.

Statutory financial statements typically include documents such as the balance sheet, income statement (profit and loss statement), and cash flow statement. These documents not only fulfill legal obligations but also serve external stakeholders, including investors, regulators, and auditors, with the transparency and accountability they require.

While internal management reports focus on decision-making within the organization and forecasting and budget reports assist in planning and future financial strategy, these do not meet the legal compliance criteria that defines statutory reports. Profitability and cost analysis reports also serve a specific purpose for internal analysis rather than fulfilling statutory obligations. Hence, the emphasis on compliance with regulations clearly defines the nature of statutory reports in SAP FICO.