Hi Sneha,
FI-MM Integration is basically it is a link between your purchase department and Accounts department. What ever purchase requisition that has been made, finalised and order placed with a vendor for goods receipt will be happened in MM, once Goods has been received the same has to be updated in FI, there the integration part between FI and MM will be coming in to picture, once Goods are received the entry posted in MM will automatically generates FI document in FI module. Similarly for Invoice receipt also the same will happen. All the entries will be posted to a account called GR/IR account. At the month end reconciliation will be done so that for what purchase order how many goods received and what is the balance can be found.
FI-SD Integration is all about your Sales and Distribution when ever u sell goods to your customers, then once billing is made in SD, automatically FI entries will be generated.
FI-CO is all about your Management accounting, how much cost has been incurred on a particular project or on a product or a cost object the same details will be transferred to a particular cost object once u post any document in FI by giving Addition Account Assignment object (nothing but your cost center or orders etc). Once all the data is passed to CO, then on the base of that reports can be made as per management requirement and the same can be analysed for decision making.
Hope u got some idea.
regards
srikanth
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