Interview Questions.

Sap Fico Interview Questions

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Sap Fico Interview Questions

Q1. Explain the time period SAP FICO?

Ans: SAP FICO stands for FI ( Financial Accounting) and CO (controlling). In SAP FICO, SAP FI take cares about accounting, preparation of financial statements, tax computations and many others, even as SAP CO take cares of inter orders, price sheet, inventory sheet, cost allocations etc. It is the software program that shops statistics, and additionally computes them and retrieves the result primarily based at the current advertising state of affairs. SAP FICO prevents statistics misplaced and also does the verification and reporting of facts.

Q2. What are the alternative modules to which 'Financial Accounting' is incorporated?

Ans: The different modules to which 'Financial Accounting' is integrated are

a) Sales and Distribution

b) Material Management

c) Human Resource

d) Production Planning

e) Controlling of monetary transaction

Q3. 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 Account

d) Functional Area

SAP Interview Questions

Q4. Explain what's posting key and what does it control?

Ans: In order to decide the transaction kind that's entered in the line object, a  digit numerical is used known as 'Posting Key'

Posting key determines

a) Account Types

b) Types of posting. Debit or Credit

 

c) Field reputation of transaction

Q5. What is the corporation code in SAP?

Ans: To generate economic statements like Profit and Loss announcement, Balance sheets and so on. Corporation code is used.

Q6. How many Chart of Accounts can agency code have?

Ans: You will have one Chart of Account for one business enterprise code that's assigned.

Q7.For a Company Code what number of currencies can be configured?

Ans: There are 3 currencies that can be configured for a Company code, one is a nearby forex and two are the parallel currencies.

Q8. What are the options in SAP for Fiscal years?

Ans: Fiscal year in SAP is the manner monetary records is saved within the system. In SAP, you have got 12 durations and 4 special durations. These periods are saved in fiscal yr variant this is:

a) Calendar Year: From Jan-Dec, April-March

b) Year based financial 12 months

Q9. What is a '12 months shift' in SAP calendar?

Ans: SAP device does now not realize what's broken monetary 12 months e.G April 2012 to March 2013 and best understand the calendar year. If, for any business, the financial year isn't always a calendar year but the combination of the unique months of two extraordinary calendar yr after which one of the calendar 12 months has to categorised as a fiscal year for SAP and the month falling in every other 12 months needs to be adjusted into the economic year by means of transferring the year by using using the signal -1 or +1. This shift within the year is known as 'yr shift'.

Example: April 2012 to Dec 2012 is our first calendar yr, and Jan 2013 to March 2013 is our 2d year, now in case you are taking April-12 to Dec-12 as your fiscal year, then Jan-thirteen to March-thirteen automatically turns into the second one yr, and you have to alter this 12 months by means of the usage of -1 shift, and vice versa if the state of affairs is reversed, here you may use +1 shift.

Q10. What is year structured financial yr variant?

Ans: In a 12 months structured monetary 12 months variant, the number of days in a month isn't as in line with the calendar month. For instance, in year 2005, month January quit on 29th, month Feb ends on twenty sixth etc.

Q11. In SAP how input and output taxes are taken care?

Ans: For each united states tax process is described, and tax codes are described inside this. There is a flexibility to both cost out the Tax quantities or capitalise the same to shares.

Q12. Explain what is validations and substitutions in SAP?

Ans: For each useful region in SAP Validation or Substitution is defined eg, Assets, Controlling and many others. At the following levels

a) Document Level

b) Line object Level

Q13. What are the software areas that use validation and substitutions?

Ans:

FI- Financial accounting

CO-Cost accounting

AM-Asset accounting

GL-Special reason ledger

CS-ConsolidationPS-Project device

RE-Real property

PC-Profit middle accounting

Q14. In SAP what is the use of FSV ( Financial Statement Version) ?

Ans: FSV ( Financial Statement Version) is a reporting device. It can be used to extract very last debts from SAP like Profit and Loss Account and Balance Sheet. The a couple of FSV's can be used for generating the output of numerous external organizations like Banks and different statutory authorities.

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Q15. What is a subject reputation group?

'Ans: Field reputation companies' manipulate the fields which arise when the user does the transactions. In FIGL (Financial General Ledger) master, the sphere fame group is saved.

Q16. What is FI-GL (Financial- General Ledger) Accounting does?

Ans: To get an outline of external Accounting and accounts, G L (General Ledger)Accounting is used. It does the recording of all enterprise transactions integrated with all other operational areas in a software system and additionally ensures that the Accounting facts is usually complete and correct.

Q17. What is the default exchange charge type which is picked up for all SAP transactions?

Ans: For all SAP transaction, the default alternate fee is M (Average Rate).

Q18. What are the techniques by using which dealer invoice payments may be made?

Ans:

Manual fee with out using any output medium like cheques and so on.

Automatic bills like DME (Data Medium Exchange), cheques, Wire switch

Q19. What are the issues whilst commercial enterprise region is configured?

Ans: The hassle faced whilst a business region is configured, is splitting of account balance which is extra pertinent inside the case of tax money owed.

Q20 For record clearing what are the customizing stipulations ?

Ans: The customizing pre-needful for file clearing is to check the items cleared and uncleared, and that is executed by means of open item management. Open object control manages your excellent account, i.E account payable and account receivable. For instance, an bill object that has now not but been paid is recorded as open account till it is paid.

Q21. What is the significance of GR/IR ( Good Received/ Invoice Received) clearing account?

Ans: GR/IR ( Good Received/ Invoice Received) is an intervening time account. In the legacy gadget, if the goods are obtained and the invoice is not obtained, the supply is made, in SAP at the goods receipt. It passes the Accounting access debiting the Inventory and crediting the GR/IR account. Similarly, whilst an invoice is received the seller account is credited, and the GR/IR account is debited, the GR/IR will display as an un-cleared gadgets until the time the invoice is not obtained.

Q22. What is parallel and nearby currency in SAP?

Ans: Each organisation code will have  extra currencies, further to the agency code, foreign money entered to the organisation code records. The foreign money entered within the corporation code introduction is known as neighborhood foreign money and the other two additional currencies are known as parallel currencies. Parallel Currencies may be used in foreign enterprise transactions. In order to do worldwide transaction, parallel currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD CURRENCY.

Q23. Where can you operate the inner order?

Ans: To music the price, inner orders are used; they're proposed to be incurred over on a quick term basis.

Q24. Is it feasible to calculate depreciation to the day?

Ans: Yes, it is possible to calculate depreciation, to do this you have to switch on the indicator Dep. To the day inside the depreciation key configuration.

Q25. In Asset Accounting what is the organizational assignments?

Ans: In Asset Accounting, chart of depreciation is rated as the best node, and this is assigned to the employer node. All the depreciation calculations are saved beneath the chart of depreciation.

Q26. What is the importance of asset lessons? What asset instructions are there?

Ans: The asset class is the main magnificence to classify property. Every asset should be assigned to handiest one asset class. Example of asset class is Furniture & Fixtures, Plant & Machinery, and Computers etc. The asset elegance additionally consists of G1 account, when any asset is procured, G1 account is debited. Whenever you create and asset master, it becomes mandatory to mention the assest elegance for which you are creating the desired property. So, each time any asset transaction occurs, the G1 account connected to the asset class is robotically picked up and the entry is exceeded. You can also specify the default values for calculating the depreciation values and different master records in each asset elegance.

Q27. How capital WIP (Work In Process) and Assets accounted for in SAP?

'Ans: Capital WIP' is referred to as Assets below construction in SAP and is represented beneath particular asset class. Depreciation isn't charged under 'Capital WIP' typically. The price incurred on constructing a capital asset can be booked to an 'internal order' and through the settlement procedures, and may be published onto an 'Asset Under Construction'.

Q29. What are the main components of Chart of Accounts?

Ans: The primary components of Chart of Accounts are:

Chart of account key

Name

Maintain Language

Length GL account wide variety

Controlling Integration

Consolidation-Group chart of money owed

Block indicator

Q29.What is credit score control vicinity in SAP?

Ans: To immune your organisation from the hazard of bad money owed and multiple terrific receivable, you can set a credit restrict to your client by the use of credit score manipulate place in SAP. With the help of SAP, you may block the deliveries in your customer primarily based on the credit score restriction and the money owed receivable stability of their account which is maintained by you.

Q30. How are you able to create Credit Control Area in SAP?

Ans: By the usage of transaction code OB45 or course you can create Credit Control Area in SAP

SPRO> agency structure >maintain shape>definition>financial accounting>preserve credit control place and then input the following description

UpdateName of the credit score control area in SAPCurrency

Description

Credit Limit

Risk Category

Fiscal Variant

Rep group

Q31. What is posting duration editions?

Ans: In economic yr posting period is a length for which the transactions figures are updated. The posting length variants in SAP is accountable to manipulate which Accounting length is open for posting and ensures that the closed periods remain balanced.

Q32. Explain in easy phrases what's subject fame and what does it manage?

Ans: Field fame group is a group configured in FSV (Field Status Variant) to preserve area reputation for G/L (General Ledger) money owed. It controls which subject need to suppress, show, optional and required.

Q33. What is brief-end economic 12 months?

Ans: A brief-stop monetary 12 months consequences while you change from a normal economic 12 months to a non-calendar fiscal year, or other manner around. This form of trade occurs whilst an organisation turns into a part of a new co-corporate institution.

Q34. What is an account group and in which it's miles used?

Ans: To control the data that wishes to be entered on the time of the introduction of a grasp file an account group is used. Account group exist for the definition of GL account, Customer Master and Vendor.

Q35. What is the reason of "Document type" in SAP?

Ans:

The motive of " Document kind" in SAP is

Number range for files are described by way of it

Types of accounts that may be posted are controlled via it, e.G Assets, Vendor, Customer, Normal GL account

It is used for the reversal of entries

Q36. Is enterprise area at company code degree?

Ans: No. Business place is at purchaser level which means different corporation codes also can be posted to the equal enterprise place.

Q37. In SAP, Customer and Vendor code are stored at what degree?

Ans: The Vendor and Customer codes are saved on the consumer degree. It method that with the aid of extending the organisation code view any business enterprise code can use the customer and seller code.

Q38. How are tolerances for bill verification described?

Ans: Tolerance determines whether or not the payable places matching or tax hold at the invoice. The following are the times of tolerance may be defined for Logistic Invoice Verification.

A) Small differences

b) Moving common rate variances

c) Quantity variances

d) Price variances

Q39. What is a rustic Chart of Accounts?

Ans: Country Chart of Accounts includes G/L (General Ledger) accounts needed to meet the united states's prison requirements.

Q40. What is APP in SAP Fico?

Ans: APP stands for 'Automatic Payment Program'; it is a tool supplied via SAP to businesses to pay its carriers and clients. APP tools help to keep away from any mistakes taken vicinity in posting manually. Also, whilst quantity of employees is greater in the agency, price through APP will become more viable.

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Q41. In SAP FICO what are the phrases of charge and where are they stored?

Ans: Payment phrases are created within the configuration and decide the payment due date for vendor/customer invoice.

They are stored at the patron or dealer grasp report and are pulled via onto the customer/supplier invoice postings. The due date can be changed on each individual invoice if required.

Q42. What are one-time providers?

Ans: In positive companies, particularly the one managing high cash transactions, it isn't sensible to create new master statistics for each supplier trading associate. One time carriers lets in a dummy seller code to be used on bill entry and also the facts that is generally saved inside the dealer master.

Q43. What are the usual tiers of the SAP charge run?

Ans: The following steps are the usual ranges of the SAP fee run

Entering of parameters ( Vendor Accounts, Company Codes, Payment Methods)Proposal Scheduling – the gadget proposes the list of bill paid

Payment reserving- the booking of the real bills within the ledger

Printing of payment paperwork ,instance cheques

Q44. In Accounts Receivable, what's the distinction between the 'Residual Payment' and 'Part Payment' strategies of allocating cash?

Ans: 'Residual fee' and 'Part payment' are the 2 strategies for allocating partial techniques from customers. For instance, an invoice for $a hundred is generated, purchaser has paid $70. Now this $70 will be off-set and leaving the ultimate stability $30. With residual payment, the bill is cleared for the full cost of $one hundred and a brand new bill is generated for the last balances $30.

Q45. What is "dunning" in SAP?

'Ans: Dunning' is the system by which fee chasing letters are issued to customers. SAP can decide which clients should acquire the letters and for which overdue gadgets. Different letters can be published in SAP depending on the overdue price date, with a easy reminder. With the assist of dunning level at the purchaser grasp, we will understand which letter has been issued to the customer.

Q46. What is the motive of the account type area inside the GL (General Ledger) grasp file?

Ans: At the cease of the 12 months, earnings and loss bills are cleared all the way down to the retained earnings stability sheets account. The subject incorporates a hallmark which is related to a particular GL (General Ledger) money owed to use in this clean down.

Q47. Explain what is routine entries and why are they used?

Ans: Recurring entries can remove the want for the manual posting of Accounting files which do now not trade from month to month. For instance, an fee record can be generated which may be scheduled for the closing days of every month or whenever an person wishes it. Usually more than one routine entries are created at one move and then processed all collectively as a batch month give up the usage of transaction.

Q48. What is a 'Value Field' inside the CO-PA module?

Ans: Value fields are quantity or cost related fields in profitability evaluation inclusive of amount, sales revenue, bargain fee etc.

Q49. What are the statistical inner orders?

Ans: Statistical internal orders are dummy fee items used for reporting and analysis functions. It ought to be published to at the side of a actual item consisting of a value middle.

Q50. For what purposes internal orders may be used?

Ans: You can use internal orders for

Overhead Orders: It video display units internal jobs settled to fee centres

Investment Orders: It monitors inner jobs settled to constant assets

Accrual Orders: Offsetting posting of collected costs calculated in CO

Orders with Revenue: It display the fee controlling parts of Sales and Distribution, it does no longer have an effect on the core enterprise of the company

 

Q51. What is financial accounting?

 

SAP FI stands for Financial Accounting and it's far one among critical module of SAP ERP. It is used to shop the financial information of an corporation. SAP FI facilitates to analyze the monetary circumstance of a employer inside the marketplace. It can combine with other SAP modules like SD, PP, SAP MM, SAP SCM and so on.

 

Q52. Why will we use SAP FI?

 

Ans: SAP Financials accounting module permits you to manage economic accounting records inside an worldwide framework of a couple of businesses, currencies, and languages. SAP FI module specially deals with the beneath financial components −

Fixed asset

Accrual

Cash magazine

Accounts receivable and payable

Inventory

Tax accounting

General ledger

Fast close capabilities

Financial statements

Parallel valuations

Master information governance

 

Q53. What are the distinct submodules in SAP FI?

Ans:

 

General Ledger

AR/AP

Banks

Fixed Assets

Travel Management

Lease Accounting, and so forth.

 

Q54. Why do we create Profit Centers in Controlling?

 

Ans: The predominant goal of making a Profit Center in Controlling is to research the value of a product line or a commercial enterprise unit.

You also can generate profit and loss bills consistent with Profit Center and additionally generate balance sheets but Profit middle ought to handiest be used for internal reporting purposes.

The key additives of a income middle consists of - call of the profit center, the controlling vicinity underneath which it's far assigned, term, person responsible for the earnings middle, standard hierarchy, and so on.

 

Q55. What do you apprehend through Product costing in SAP Controlling?

 

Ans: SAP CO-Product Costing module is used to find the cost of internal price of products. It is likewise used for profitability and control accounting for production.

While configuring Product Costing, it entails two regions for setting −

Product Cost Planning

Cost Object Controlling

 

Q56. How do you perform Profitability analysis in SAP CO? What are the exclusive varieties of profitability analysis?

 

Ans: SAP CO-PA is used to analyze the marketplace segments labeled as products, clients, sales area, commercial enterprise vicinity, and many others.

SAP CO Profitability Analysis (CO-PA) is used for the assessment of Market segments, which is classified consistent with −

products, clients, and orders

or any mixture of those

or Strategic commercial enterprise gadgets including income corporations

or commercial enterprise regions, close to corporation's earnings

or contribution margin

There are two kinds of Profitability Analysis are supported −

Costing-based totally

Account-based totally

 

Q57. What is using FI-Asset Accounting thing?

 

Ans: The FI-Asset Accounting (FI-AA) element is used for managing the constant assets in FI gadget. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, imparting certain facts on transactions related to constant assets.

 

Q58. What are the not unusual sorts of reports that may be used for Account Analysis (A/R)?

 

Ans: There are many varieties of reviews that can be used for account analysis (A/R) −

Customer Line Item Analysis

Balance Analysis

Customer Evaluation Report

Q59.Name few of the tables in G/L accounting and customizing in FI?

Ans:

SKAS    G/L Account Master (Chart of Accounts – Key Word list)    MANDT / SPRAS / KTOPL / SAKNR / SCHLW

SKB1    G/L Account Master (Company Code)    MANDT / BUKRS / SAKNR

FI-GL-GL (FBSC)    General Ledger Accounting: Basic Functions - R/three Customizing for G/L Accounts

FIGLREP    Settings for G/L Posting Reports    MANDT

TSAKR    Create G/L account in regards    MANDT / BUKRS / SAKNR

KOMU    Account Assignment Templates for G/L Account objects    MANDT / KMNAM / KMZEI

 

60) What is automated price software?

Ans: Automatic Payment Program serves the purpose of posting bills payable like charge to a seller based totally on vendor invoices automatically, shortly termed as APP.

It is used to find out due/overdue invoices and to manner list of customer and supplier invoices to make bills in a single cross. APP can’t be used for all organisation codes from one of a kind nations.

APP has beneath classes −

Setup all enterprise codes

Setup paying business enterprise codes

Payment technique in line with united states

Payment technique in step with us of a code

Bank Selection

House Bank




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