Interview Questions.

Question 1. Explain ‘customer/supplier Master Records?

Answer :

There are 3 classes of facts maintained in a typical master document for a customer:

General Data
Company Code Data
Sales Area Data (for customers)/Purchasing Organization Data (for carriers) 
General Data includes general information together with account variety, call, phone, bank information, trading accomplice, dealer (if the client is likewise a supplier), group key, bank key, bank account, exchange payee, and so forth., that are common to all of the Company Codes the usage of this grasp. Company Code Data comprises phrases of payment, payment strategies, tolerance institution, clearing with seller, dunning information (dunning manner, dunning recipient, dunning block, dunning clerk, and so on.), reconciliation account, sort key, income place (purchasing employer inside the case of vendor master), head workplace, and so forth. Except for sales (buying) associated information, all different details are commonly maintained for the finance folks who can also get entry to the income data while the grasp is maintained ‘centrally.’ 

Sales Area Data inside the Company Code region of a Customer grasp record incorporates the subsequent:

Order-associated records (income district, sales workplace, sales group, consumer group, and so forth.)
Price-associated records (pricing organization, pricing method, and many others.)
Shipping data (shipping method, transport priority, etc.)
Billing information (price terms (specific from the fee phrases maintained on the Company Code level), account mission organization, and many others.) 
Purchasing Organization Data inside the Company Code location of a Vendor grasp file contains the following:

Conditions (order forex, charge phrases, Incoterms, minimum order cost, and so on.)
Sales facts (a/c with Vendor)
Control facts (as within the display screen shot below) 
During creation of a master record, the gadget tests for ‘duplicates’ for the equal client that's finished via the gadget thru the ‘Search-Id’ (Match Code) configured at the client’s address facts.
As inside the case of the GL account master file, the creation of the client/ seller grasp record is also controlled by means of the ‘Account Group,’ that's referred to as ‘Customer Account Group/Vendor Account Group’ (CPD/CPDL/KREDI/LIEF) and controls the numbering of consumer/supplier grasp information, subject fame, whether or not an account is a regular one or a ‘One Time’ account, and so forth. 

Open table as spreadsheet Activity in Accounting Centrally Customer Vendor Customer Vendor

Create FD01 FK01 XD01 XK01
Change FD02 FK02 XD02 XK02
Display FD03 FK03 XD03 XK03
Block/Unblock FD05 FK05 XD05 XK05
Mark for Deletion FD06 FK06 XD06 XK06

Question 2. Who Is An ‘exchange Payee’?

Answer :

A customer who pays on behalf of any other client is referred to as an ‘Alternate Payee’ (or Alternate Payer). Though the change payee can pay on behalf of some other, the gadget maintains all the transaction details in the account of the unique customer. Designating ‘alternate payee’ does not absolve the customer of his/her duty for fee.
The ‘exchange payee’ can be maintained in Client-precise facts or in the Company Code region. When maintained in the Company Code place you may use that payer handiest in that Company Code; if described at the Client degree you could use it across all Company Codes. There are three ways to ‘choose’ the alternate payee when an invoice is processed:
1. The trade payee (say, a thousand) entered inside the patron master document is the one selected by way of the system because the default.
2. When there's a couple of change payer (say, one thousand, 1900, 2100, and so forth.) defined for a single purchaser in the grasp document (you'll do that by means of clicking on the ‘allowed payer’ button and create a couple of payer), you can pick a payer (say, 2100) (apart from the default, a thousand) whilst processing the invoice. Now the machine will forget about the alternate payer (one thousand) coming from the master record.
Three. If you've got placed a check mark in the ‘individual entries’ take a look at container inside the ‘alternate payer in file’ section in the customer master file, then this can allow you to endorse a new trade payer, say, 3000 (aside from those already described in the device). Now, after defining this trade payer you can use it to technique the bill. In this case, the trade payer (3000) takes precedence over the payers (a thousand and 2100) in step 1 and a pair of above.

Financial Accounting Interview Questions
Question 3. What Is The ‘buying and selling Partner’ Concept?

Answer :

The ‘Trading Partner’ idea is used to settle and reconcile ‘inter-agency transactions,’ each income and purchases. This is generally done with the aid of getting into the Company-ID (now not the Company Code) to which a client belongs within the ‘trading associate’ area under the tab ‘Account Control’ within the customer master document. You can do a comparable entry inside the vendor grasp report.

Question four. Explain ‘tolerance’ In Transaction Processing?

Answer :

‘Tolerances’ are described inside the gadget to facilitate coping with the variations bobbing up out of accounting transactions and to teach the device on the way to proceed in addition. Normally, you outline tolerances (either in ‘absolute phrases’ or in ‘possibilities’) past which the system will not can help you post a report ought to there be a difference.

In SAP, tolerances are described in keeping with Company Code and there are numerous sorts:

Employee tolerance
Customer/dealer tolerance
GL account clearing tolerance
You will define an ‘employee tolerance organization’ in the device and assign the employees to those organizations.

While defining the tolerance group you may specify:

1. Upper limits for various posting tactics

Amount in step with record
Amount according to open account object
Cash discount, in percentage
2. Permitted fee variations
How lots over or under payment an employee is allowed to technique. This is described each in absolute values and in probabilities. Besides defining the above , on the Company Code level, you'll also outline comparable tolerances for consumer/supplier tolerance organization. Once defined, every of the clients (providers) is assigned to this sort of agencies. Here also, you define the ‘permitted fee differences’:
While processing, the gadget compares the tolerance of an worker in opposition to the patron tolerance (or supplier tolerance or the GL) and applies the maximum restrictive of the two.

SAP FICO Tutorial
Question 5. What Is ‘twin Control’ In Master Records?

Answer :

‘Dual Control’ helps to prevent unauthorized modifications to the crucial and ‘touchy’ fields inside the grasp information within the device. (All such sensitive fields are described within the Table T055F when customizing the software. And those fields are described according to Company Code and in line with Client.) Consider, as an example, a sensitive discipline along with ‘price block’ in a supplier master report. When a person modifications this discipline’s content, the machine calls for some other consumer (usually of higher authority) to approve this variation and an audit trail is maintained of all such changes. Unless ' the change is authorised, in this case, this particular master is blocked through the machine for thinking about the equal inside the subsequent ‘payment run.’

Open desk as spreadsheet Activity Customer Vendor
Display adjustments (accounting location) FD04 FK04
Display adjustments (centrally) XD04 XK04
Confirm changes, individually FD08 FK08
Confirm adjustments, in a list FD09 FK09

SAP FICO Interview Questions
Question 6. What Is A ‘bank Director’ In Sap?

Answer :

SAP stores the master statistics (information together with financial institution key, bank call, bank us of a, financial institution deal with, and so on) regarding the banks in the ‘Bank Directory’ (Table: BNKA). Remember, the ‘financial institution masters’ are not created within the software however within the implementation aspect using the IMG. (Of route, you can also create the financial institution grasp inside the utility aspect in FI-TR and no longer in FI-GL or AP or AR.) However, in case you are in the manner of creating a master file for a supplier or a patron and also you input a few financial institution info, which the device does not discover in the ‘Bank Directory,’ then the machine robotically brings inside the applicable displays to be able to hold and replace the bank info within the financial institution directory.
You may additionally create the bank directory in  approaches:
1. Manually (IMG direction: Financial Accounting>Bank Accounting>Bank Accounts>Define ‘House Banks’)
2. Automatically (with the aid of uploading the bank details the usage of a unique program)

Question 7. What Is A ‘house Bank’?

Answer :

‘House Bank’ is the financial institution (or financial institution) in which the Company Code in question maintains its money and does the transactions from. A house bank in SAP is identified through a 5 person alphanumeric code. You can have any range of house banks in your Company Code, and the details of these kinds of house banks are to be had inside the ‘financial institution listing.’
Each ‘residence bank’ within the gadget is associated with a rustic key (U.S., IN, and so on.) representing the us of a in which the financial institution is placed, and a unique us of a unique code called a ‘financial institution key.’ The machine makes use of each the ‘us of a key’ and the ‘financial institution key’ to perceive a ‘residence financial institution.’

For every of the ‘house banks,’ you could keep more than one bank account; each such account is identified by means of an account ID; i.E., Chek1, Check2, Pybl1, and so on. Here, ‘Chek1’ may additionally denote Checking account 1, ‘Pybl1’ might also denote Payables account 1, and so on. You can also call the accounts in a manner that it's far without difficulty understandable. The ‘Account ID’ is referenced in the patron/supplier master file and it is used within the fee software by the device.
For every ‘account ID’ you may additionally specify the bank account wide variety (most duration of this identifier is eighteen characters). You may additionally name this in this kind of manner that it's also without difficulty understandable.
For every ‘bank account quantity’ so described in the ‘house bank,’ you want to create a GL account grasp document, and even as doing so that you will contain the ‘house financial institution identity’ and the ‘account identification’ in that unique GL grasp document.
Management Accounting Interview Questions
Question 8. Explain A ‘sales Cycle’ In Sap?

Answer :

‘Sales Cycle’ comprises all sports which includes citation/inquiry, income order, delivery, billing, and series.
The following are the diverse methods within SAP that whole a sales cycle:
Typically, the following are the files created all through a sales cycle:

Inquiry
Quotation
Sales Order
Delivery Note
Goods Issue
Order Invoice
Credit/Debit Note
Question nine. Explain ‘automated Account Assignment’ In Sd?

Answer :

During items problem in the sales cycle, the gadget is generally configured to update the applicable GL money owed mechanically and to create the applicable accounting files. This customization in IMG is also known as fabric account undertaking and is carried out through a number of steps as certain underneath:

1. Determine ‘valuation stage’ (Company Code or plant).
2. Activate ‘valuation grouping code’ and hyperlink it with the ‘chart of debts’ for each ‘valuation place.’
3. Link ‘valuation magnificence’ with ‘cloth type’ (FERT, HAWA, HALB, and so forth.) with the ‘account class reference’ (aggregate of valuation lessons).
Four. Maintain ‘account change codes’ for ‘motion kinds.’
five. Link ‘account change codes’ with ‘method keys’ (transaction/event keys).
6. Maintain a GL account for a given mixture of ‘chart of money owed’+ ‘valuation grouping code ‘+’ account amendment code ‘+’ valuation instructions.’ 

The process of Automatic Account Determination is as follows:

1. Depending on the ‘plant’ entered at some stage in items trouble (GI), the ‘Company Code’ is decided with the aid of the gadget which in turn determines the relevant ‘Chart of Accounts.’
2. The plant as a result entered in items trouble determines the ‘valuation elegance’ and then the ‘valuation grouping code.’
3. The ‘valuation magnificence’ is decided from the ‘material grasp.’
four. Since the ‘account change code’ is assigned to a ‘procedure key’ that's already connected to a ‘motion type,’ the ‘transaction key’ (DIF, GBB, AUM, BSX, etc.) determines the ‘GL account’ as posting transactions are predefined for each ‘motion kind’ in ‘stock management.’

Taxation Interview Questions
Question 10. How Many ‘dunning Levels’ Can Be Defined?

Answer :

You may additionally define up to nine dunning levels. If there is handiest one dunning level, then it's far known as a ‘fee reminder.’

 

Question 11. What Is A ‘credit score Check?

Answer :

‘Credit Check’ is described for any valid combination of the following:

Credit manipulate location
Risk class
Document credit group
Finance Interview Questions
Question 12. Differentiate ‘static Credit Check’ From Dynamic Check?

Answer :

Under ‘Static Credit Check,’ the machine calculates the credit exposure of a specific patron as the whole of:

Open order (shipping not but done)
Open transport (fee of deliveries but to be invoiced)
Open billing documents (not transferred to accounting)
Open items (AR object not yet settled through the patron)
Customer’s credit publicity is not to exceed the set up credit restrict.
The ‘Dynamic Credit Check’ is break up into  parts:

Static restrict: Total of open objects, open billing, and open shipping values.
Dynamic restriction (Open Order Value): The fee of all undelivered and partially introduced orders totalled and saved on a time-scale inside the destiny (10 days, 1 week, and so on.) called a ‘horizon date.’ During the ‘dynamic credit test,’ the machine will ignore all orders past the ‘horizon date.’ The sum total of ‘static’ and ‘dynamic’ limits need to now not exceed the credit score restriction set up for the purchaser.
Financial Accounting Interview Questions
Question 13. List The Reports In Credit Management?

Answer :

SAP provides you with the following Reports in Credit Management:
 RFDKLI10 Customers with lacking Credit Data
 RFDKLI20 Re-corporation of Credit Limit for Customers
 RFDKLI30 Short Overview of Credit Limit
 RFDKLI40 Overview of Credit Limit
 RFDKLI41 Credit Master Sheet
 RFDKLI42 Early Warning List (of Critical Customers)
 RFDKLI43 Master Data List
 RFDKLI50 Mass alternate of Credit Limit Data
 RVKRED06 Checking Blocked Credit Documents
 RVKRED08 Checking Credit Documents which reach the Credit Horizon
 RVKRED09 Checking the Credit Documents from Credit View
 RVKRED77 Re-agency of SD Credit Data

Question 14. How Does ‘partial Payment’ Differ From ‘residual Payment’?

Answer :

When processing the ‘incoming price’ to use to one or more of the ‘open objects’ of a client, there can be a scenario in which the incoming charge is more than the ‘tolerances’ allowed. In this case, you could nevertheless cross ahead and method the fee by means of resorting either to a Partial Payment or a Residual charge.
A Partial payment results in posting a credit to the patron’s ‘open item,’ but leaves the authentic item intact. As a end result, no open item is cleared. During partial price, the gadget updates the ‘invoice reference’ and ‘allocation’ fields. In assessment to a partial fee, the Residual fee clears the unique ‘open item’ against which the payment is applied. However, seeing that there aren't sufficient quantities to clean the complete open object, the gadget creates a brand new open object, that's the distinction between the authentic invoice item and the charge applied. Note that the new bill/open item created by way of the machine will have the brand new report date and new baseline date although you can trade those dates.

Question 15. What Differentiates One ‘dunning Level’ From Another?

Answer :

The ‘Dunning Level’ determines the ‘dunning text’ and (if one is needed) a ‘special dunning form.’ The ‘dunning software’ determines what ‘dunning stage’ must be used in the ‘dunning run.’ The dunning degree so decided is saved inside the master record of the account while the ‘dunning letter’ is printed. The dunning level can also determine whether or not there may be some ‘dunning expenses.’

VAT Interview Questions
Question sixteen. Describe ‘lockbox’ Processing?

Answer :

‘Lockbox’ processing (configured in the FR-TR module) of incoming bills is used predominantly within the United States. Here, the bank gets the assessments from customers as incoming payments, creates charge recommendation for every of these consumer check bills, and informs the payee of the charge, in BAI file layout. This lock container report is despatched to the payee who imports the information into the gadget using this digital document. The system updates the payments into the GL via way of ‘batch input’ processing.

Question 17. How Can ‘motive Codes’ Help With Incoming Payment Processing?

Answer :

‘Reason Codes’ configured in the machine help to deal with the ‘fee variations’ of person open gadgets in an bill (either using fee or advice or inside the normal course). To each of the purpose codes, you'll define the ‘posting policies’ and the GL accounts inside the IMG. Once completed, when there's a fee distinction against a particular open object, the system seems for the reason code:

When the ‘charge-off indicator’ has been set for this reason code, then the device posts the payment distinction to a GL account. When this indicator isn't always set, then a brand new open item is created for the charge difference.
When ‘disputed object indicator’ has been set, then the machine ignores these line gadgets whilst counting for the consumer’s credit score restriction.
Computerised Accounting Interview Questions
Question 18. What Is ‘dunning’ In Sap?

Answer :

The SAP System allows you to ‘dun’ (remind) commercial enterprise partners mechanically. The machine duns the open gadgets from commercial enterprise associate bills. The dunning application selects the late open objects, determines the dunning stage of the account in question, and creates dunning notices. It then saves the dunning information determined for the objects and money owed affected. You can use the dunning software to dun each clients and carriers. It may be vital to dun a supplier inside the case of a debit balance as a result of a credit score memo. Dunning is administered via a Dunning Program, which uses a dunning key (to restriction the dunning degree per object), a dunning procedure, and a dunning vicinity (if dunning isn't accomplished at the Company Code stage).

SAP FICO Interview Questions
Question 19. What Is A ‘dunning Procedure’?

Answer :

SAP comes equipped with a number of or ‘Dunning Procedures,’ which you can copy, or you can create your personal:

A dunning technique controls:

 Dunning c program languageperiod/frequency
 Grace days/minimum days in arrear
 Number of dunning tiers (at least one stage)
 Transactions to be dunned
 Interest to be calculated at the overdue items
 Known or negotiated depart, if any, which needs to be considered while deciding on the past due gadgets
 Company Code information together with

(a) Is dunning in keeping with ‘dunning area’?
(b) Is dunning consistent with ‘dunning stage’?
(c) Reference Company Code,
(d) Dunning Company Code, etc.
Dunning paperwork/media to be decided on for the dunning run

Question 20. What Is The ‘dunning Area’?

Answer :

The ‘Dunning Area’ is optionally available and is needed simplest if dunning is not completed at the Company Code level. The Dunning vicinity can correspond to a sales department, income enterprise, and so on.

SAP FI Interview Questions
Question 21. Can You ‘dun’ Customers Across ‘clients’ In A Single ‘dunning Run’?

Answer :

No. All the statistics processing is accomplished consistent with Client.