Top 20+ SAP FICO Questions & Answers
Prepare for your next interview with these Top 20+ SAP FICO Questions & Answers, covering key concepts, financial accounting, and controlling. Read now!
1. How many Charts of Accounts can the company code have?
You can have one Chart of Accounts for one company code that is assigned.
2. For a Company Code, how many currencies can be configured?
There are three currencies that can be configured for a Company code, one is a local currency and two are parallel currencies.
3. What is a field status group?
‘Field status groups’ control the fields that come up when the user does the transactions. In the IGL (Financial General Ledger) master, the field status group is stored.
4. What is the default exchange rate type which is picked up for all SAP transactions?
For all SAP transactions, the default exchange rate is M (Average Rate).
5. What are the methods by which vendor invoice payments can be made?
- a) Manual payment without the use of any output medium like cheques etc.
- b) Automatic payments like DME (Data Medium Exchange), cheques, Wire transfer
6. What are posting period variants?
In the fiscal year posting period is a period for which the transaction figures are updated. The posting period variants in SAP are accountable for controlling which Accounting period is open for posting and ensuring that the closed periods remain balanced.
7. Explain in simple terms what is field status and what it controls.
The field status group is a group configured in FSV (Field Status Variant) to maintain field status for G/L (General Ledger) accounts. It controls which field should be suppressed, displayed, optional, and required.
8. What is an account group and where it is used?
To control the data that needs to be entered at the time of the creation of a master record an account group is used. Account groups exist for the definition of GL account, Customer Master,r, and Vendor.
9. In SAP, Customer and Vendor codes are stored at what level?
The Vendor and Customer codes are stored at the client level. It means that by extending the company code view any company code can use the customer and vendor code.
10. What is APP in SAP Fico?
APP stands for ‘Automatic Payment Program’; it is a tool provided by SAP to companies to pay its vendors and customers. APP tools help to avoid any mistakes that take place in posting manually. Also, when a number of employees are in the company, payment through an APP becomes more feasible.
11. In SAP FICO what are the terms of payment and where are they stored?
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.
12. What is “dunning” in SAP?
‘Dunning’ is the process by which payment chasing letters are issued to customers. SAP can determine which customers should receive the letters and for which overdue items. Different letters can be printed in SAP depending on the overdue payment date, with a simple reminder. With the help of the dunning level on the customer master, we can know which letter has been issued to the customer.
13. What are the other modules into which ‘Financial Accounting’ is integrated?
The other modules to which ‘Financial Accounting’ is integrated are
- Sales and Distribution
b) Material Management
c) Human Resource
d) Production Planning
e) Controlling financial transaction
14. In SAP FI what are the organizational elements?
The organizational elements in SAP FI are:
- a) Company Code
b) Business Area
c) Chart of Account
d) Functional Area
15. Explain what is posting key is and what it controls.
In order to determine the transaction type that is entered in the line item, a two-digit numerical is used known as a ‘Posting Key’
The posting key determines
a) Account Typesand
b) Types of posting. Debit or Credit
c) Field status of the transaction
16. Explain the relationship between company code and the controlling area in SAP FICO.
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.
17. What is the significance of the GR/IR clearing account in SAP FICO?
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 uncleared item till the invoice isn’t received.
18. What are the internal orders in SAP FICO? Where can you use them?
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 over a short-term basis.
19. What is the chart of depreciation in Asset Accounting?
In Asset Accounting, the chart of depreciation is rated as the highest node, which is assigned to the company node. All the depreciation calculations are stored under the chart of depreciation.
20. What are special general ledger transactions?
Special G/L transactions are transactions with our business partners (customer/vendor) that are not typical. The system usually records them in alternative reconciliation accounts ledgers and does not group them with regular transactions. Some of them include bills of exchange, down payments, and bank guarantees.’
21. Explain the difference between a parked document and a posted document in SAP FICO.
A parked document is a temporary document that has not been posted, allowing users to review and edit it before posting. A posted document is a finalized transaction that has been recorded in the system.
22. How is cost-center accounting related to the profit center?
In the master data of the Cost Center, there is a provision to enter the
profit center. This way all costs which flow to the cost center are also
captured in the profit center.
Cost centers are basically created to capture costs e.g. admin cost center, canteen cost center, etc
Profit centers are created to capture cost and revenue for a particular
plant, business uni,t, or product line.
23. What is the leading ledger in SAP FICO?
In SAP FICO, a “leading ledger” refers to the primary or standard ledger within an organization, which is typically designated as “0L” and represents the main accounting principle used for consolidated financial statements, meaning it captures all day-to-day transactions across the company and is considered the primary source of financial data for reporting purposes
24. What are the methods of Document Reversal in SAP?
- Normal Reversal
- Negative Reversal
25. What is the use of the Financial Statement version in SAP?
It is a tool that is used for reporting. It can be used to take out final accounts from SAP like Profit and Loss Account etc. When there is a requirement to generate the output of different outside agencies then we can use multiple FSV’s.
Do visit our channel to know more: Click Here
Author:-
Vaibhav Phadke
Call the Trainer and Book your free demo Class for SAP FICO now!!!
© Copyright 2021 | SevenMentor Pvt Ltd