Top 20 SAP FICO Interview Questions

Prepare confidently with the Top 20 SAP FICO Interview Questions covering key concepts, real-time scenarios, and expert insights to ace your next interview.

1. How many currencies can you configure for a Company Code?

ANS: You can configure three currencies for a Company Code, including

• One local currency
• Two parallel currencies

2. What is the year shift in the SAP calendar?

ANS: The SAP system only understands the calendar year. It fails to acknowledge a broken fiscal year. Suppose for a business, a fiscal year is not a calendar year but a combination of the different months of two different calendar years. Then, one of the calendar years needs to be classified as a fiscal year, and the months that fall in another year should be adjusted into the fiscal year by shifting the year by using the sign -1 or +1. This shift is termed a year shift.

3. What are validations and substitutions in SAP FICO?

ANS: Validations in the FI and CO modules help ensure data integrity when entering actual transactions online or in a batch. The substitutions in the FI / CO / EC modules help derive or correct values that are passed via integration or submitted to the FI / CO modules.

4. Which application areas use validation and substitutions?

ANS: Validation and substitution are used by the following application areas in SAP: 

• FI- Financial Accounting
• CO- Cost accounting
• GL- Special purpose ledger
• AM- Asset accounting
• PS- Project system
• PC- Profit center accounting
• CS- Consolidation
• RE- Real estate

5. What are the different methods for making vendor payments?

ANS: The two methods are:

• Manual Payment: Done without a medium such as cheques.
• Automatic Payment: Done through DME (Data Medium Exchange) like wire transfer or cheque.

6. What is the use of FSV (Financial Statement Version) in SAP FICO?

ANS: FSV is a reporting tool. It helps extract final accounts from SAP, like Balance Sheets and Profit and Loss Accounts. Using multiple FSVs, you can generate the output of various external agencies like banks and other statutory authorities.

7. What is the purpose of "Document type" in SAP FICO?

ANS: The main purposes of "Document type" are as follows:

• It helps define the documents' number range.
• It enables controlling the types of accounts posted, like Vendor, Assets, Customer, Normal GL account, and more.
• It is used for entry reversals.

8. Explain the relationship between the company code and the controlling area in SAP FICO.

ANS: A controlling area in SAP can contain one or more company codes. These company codes use the same operative Chart of Accounts as the controlling area. A single company code can be assigned to a controlling area, while a controlling area can contain multiple company code assignments.

9. What is parallel and the local currency in SAP FICO?

ANS: Local Currency: The currency entered in the company code creation. 

Parallel Currencies: The other two additional currencies that can be used in foreign business transactions or international transactions. GROUP CURRENCY and HARD CURRENCY are two examples of parallel currencies. 

10. What is the significance of the GR/IR clearing account in SAP FICO?

ANS: GR/IR is the abbreviation for Good Received/ Invoice Received. A GR/IR clearing account is an interim account. The provision is made if the goods are received in the legacy system, but the invoice isn't. It goes through the Accounting entry, debiting the Inventory and crediting the GR/IR account. 

Similarly, when an invoice is received, the vendor account gets credited, and the GR/IR account is debited. Thus, the GR/IR is an unclear item till the invoice is received.

11. What is the default exchange rate type picked up for all SAP transactions?

ANS: The default exchange rate type is M or Average Rate for all SAP transactions.

12. What are the internal orders in SAP FICO? Where can you use them?

ANS: Internal orders are used for planning, collecting, and settling the costs of internal tasks and jobs. They can also be used to track the cost. They are incurred on a short-term basis.

13. What is the chart of depreciation in Asset Accounting?

ANS: The chart of depreciation is the highest node assigned to the company node. It stores all the depreciation calculations.  

14. What is APP in SAP FICO?

ANS: APP is the abbreviation for Automatic Payment Program. It is a tool provided to companies for paying their customers and vendors. It facilitates avoiding mistakes while posting manually. Payments via the app are more feasible when there are more employees in the company.

15. In SAP FI, what are the organizational elements?

ANS: The organizational elements in SAP FI are:
a) Company Code
b) Business Area
c) Chart of Accounts
d) Functional Area

16. What are the options in SAP for Fiscal years?

ANS: Fiscal year in SAP is the way financial data is stored in the system. In SAP, you have 12 periods and four special periods. These periods are stored in the fiscal year variant, that is:
a) Calendar Year: From January to December, April to March
b) Year-dependent fiscal year
 

17. In SAP FICO, what are the terms of payment, and where are they stored?

ANS: Payment terms are created in the configuration and determine the payment due date for vendor/customer invoices.
They are stored on the customer or vendor master record and are pulled through onto the customer/vendor invoice postings. The due date can be changed on each individual invoice if required.

18. What are the standard stages of the SAP payment run?

ANS: The following steps are the standard stages of the SAP payment run
a) Entering of parameters ( Vendor Accounts, Company Codes, Payment Methods)
b) Proposal Scheduling – the system proposes a list of invoices paid
c) Payment booking- the booking of the actual payments in the ledger
d) Printing of payment forms, for example, cheques

19. In Accounts Receivable, what is the difference between the ‘Residual Payment’ and ‘Part Payment’ methods of allocating cash?

ANS: ‘Residual payment’ and ‘Part payment’ are the two methods for allocating partial payments from customers. For example, an invoice for $100 is generated, customer has paid $70. Now this $70 will be offset, leaving the remaining balance of $30. With residual payment, the invoice is cleared for the full value of $100, and a new invoice is generated for the remaining balance of $30.

20. What are the statistical internal orders?

ANS: Statistical internal orders are dummy cost objects used for reporting and analysis purposes. It must be posted in conjunction with a real object, such as a cost center.

Author:-

Vaibhav Phadke

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