Interview Questions.

Question 1. What Is Sap Asset Accounting

Answer :

Asset Accounting Overview. Purpose. The Asset Accounting (FI-AA) element is used for coping with and supervising constant belongings with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing certain facts on transactions regarding fixed belongings.

Question 2. Explain Asset Accounting?

Answer :

The Asset Accounting (FI-AA) sub module in SAP manages a agency’s fixed property, right from acquisition to retirement/scrapping. All accounting transactions regarding depreciation, insurance, and so forth., of property are looked after via this module, and all of the accounting facts from this module flows to FI-GL on a real-time foundation.

You will be able to directly submit (the products receipt (GR), invoice receipt (IR), or any withdrawal from a warehouse to a set asset) from MM or PP to FI-AA. The integration with FI-AR allows in direct posting of sales to the purchaser account. Similarly, integration with FI-AP allows in posting an asset immediately to FI-AA and the applicable vendor account in instances in which the purchase isn't routed via the MM module. You may capitalize the maintenance sports to an asset using settlements thru the PM module. FI-AA and

FI-GL has actual-time integration in which all the transactions inclusive of asset acquisition, retirement, switch, etc., are recorded simultaneously in both the modules. However, batch processing is needed to transfer the depreciation values, interest, and so forth., to the FI module.

The FI-AA and CO integration helps in:

Assigning an asset to any hobby kind. Internal Orders act as a two-way link to the FI-AA:
They assist to gather and bypass on the capital expenditure to assets,
they gather the depreciation/interest from FI-AA to controlling objects. (Note that after there's a state of affairs where the asset master file includes an internal order and a price middle, the depreciation is always published to the internal order and now not to the value center.)
The depreciation and the hobby are exceeded on to the price/profit facilities.
Financial Accounting Interview Questions
Question 3. What Is A Lean Implementation In Fi-aa?

Answer :

A ‘Lean Implementation’ is the scaled-down version of the ordinary FI-AA configuration in IMG, with minimal configuration required to permit asset accounting. This is suitable for small groups the use of the same old functionalities of asset accounting, and also in situations where the Asset Catalog isn't that massive.

You should now not choose lean implementation if:

You need greater than Depreciation Areas
You need to Depreciate In Foreign Currencies as well
You have Group Assets
You want to outline your very own Depreciation Keys/Transaction Types/ Reports
You want a Group Consolidation
Question four. What Are The Kinds Of Assets In Sap ?

Answer :

An asset can be a Simple Asset or Complex Asset. Depending at the requirement, property are maintained with Asset Main Numbers and Asset Sub numbers. A complex asset consists of many Sub-Assets; every of them diagnosed the use of an asset sub variety. You may also use the concept Group Asset in SAP.

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Question five. Explain Complex Assets And Asset Sub Numbers?

Answer :

A ‘Complex Asset’ in SAP is made of many grasp records every of which is denoted by means of an ‘Asset Sub wide variety.’ It is prudent to apply asset sub numbers if:

You need to manipulate the ‘next acquisitions’ separately from the preliminary one (as an instance, your preliminary acquisition turned into a PC, and you are adding a printer later).

You want to control the various elements of an asset one after the other even on the time of ‘initial acquisition’ (for example, an initial buy of a PC where you create separate asset master statistics for the screen, CPU, and so forth.).

You need to divide the belongings primarily based on positive technical qualities (keyboard, mouse,and many others.).

When you manipulate a complex asset, the device permits you to assess the asset in all possible methods consisting of:

For a unmarried sub number
For all sub numbers
For pick sub numbers
Accounts Payable (AUS) Interview Questions
Question 6. What Is Group Asset In Sap? When You Will Use This?

Answer :

A ‘Group Asset’ in SAP is almost like a ordinary asset besides that it may have (any number of) sub-property denoted by Asset Sub numbers. The concept of group asset will become important while you want to carry out depreciation at a set level, for a few unique purposes together with tax reporting. Remember that SAP’s manner of depreciation is usually on the person asset stage. Hence, to manipulate at the organization stage, you need the organization asset.

Once you make a decision to have institution assets, you furthermore may want to have ‘special depreciation areas’ meant for organization assets; you may no longer be able depreciate a group asset using a regular depreciation area. Unlike Complex Assets, you can delete a set asset most effective whilst all of the associated sub numbers have been marked for deletion.

Question 7. What Is Asset Super Number In Sap?

Answer :

The concept of ‘Asset Super Number,’ in FI-AA, is used only for reporting purposes. Here, you may assign some of man or woman assets to a single asset range. By using this methodology, you may be capable of see all of the associated property with the asset amazing number as a unmarried asset (as an instance, brake meeting line) or as individual belongings (for instance, machinery, gadget inside the brake assembly line).

The concept of ‘Asset Super Number,’ in FI-AA, is used simplest for reporting functions. Here, you will assign some of man or woman property to a single asset range. By the usage of this methodology, you may be capable of see all the associated assets with the asset wonderful number as a unmarried asset (as an instance, brake meeting line) or as character property (for instance, machinery, gadget within the brake assembly line).

SAP MM Tutorial Accounts Interview Questions
Question 8. How Do You Create An Asset Accounting Company Code?

Answer :

Define the Company Code in FI configuration, and assign a chart of debts to this Company Code.

Assign a chart of depreciation to this Company Code in FI-AA configuration.

Add important data for the Company Code for use in FI-AA, and your ‘asset accounting Company Code’ is now prepared for use.

Question 9. What Is Depreciation? Explain The Various Types?

Answer :

Depreciation’ is the discount inside the ebook cost of an asset due to its use through the years (‘decline in monetary usefulness’) or due to criminal framework for taxation reporting. The depreciation is generally calculated taking into consideration the economic life of the asset, expected value of the asset on the end of its economic existence (junk/ scrap cost), approach of depreciation calculation (immediately line approach, declining stability, sum of 12 months digits, double declining, and so on.), and the defined percent decline within the cost of the asset every yr (20%, or 15%, and so forth).

The depreciation can both be planned or unplanned. Planned depreciation is one that brings down the price of the asset after every deliberate duration; say each month, until the asset cost is fully depreciated over its life duration. With this approach, you may know what the value of the asset at any factor of time in its active lifestyles. On the opposite, unplanned depreciation is a surprising going on of an occasion or incidence not foreseen (there may be a sudden break out of a fire unfavorable an asset, which forces you to depreciate completely as it's miles no longer useful economically) ensuing in a permanent reduction of the cost of the asset.

In SAP, you'll encounter 3 varieties of depreciation:

Ordinary depreciation, that is nothing but ‘deliberate depreciation.’
Special depreciation, that is over and above ‘ordinary depreciation,’ used typically for taxation functions.
Unplanned depreciation, that's the end result of decreasing the asset value because of thesudden incidence of sure occasions.
SAP SD Interview Questions
Question 10. Define Depreciation Areas?

Answer :

Fixed assets are valued differently for different purposes (commercial enterprise, prison, and so on.). SAP manages those specific valuations with the aid of ‘Depreciation Areas.’ There are various depreciation areas inclusive of ebook depreciation, tax depreciation, and depreciation for value-accounting purposes, etc.

A depreciation area comes to a decision how and for what reason an asset is evaluated. The depreciation area may be ‘real’ or a ‘derived one.’ You might also want to use numerous depreciation areas for a unmarried asset relying on the valuation and reporting requirements. The depreciation areas are denoted by way of a 2-character code within the machine. The depreciation areas incorporate the depreciation terms that are required to be entered inside the asset master records or asset training.

SAP comes delivered with many depreciation regions; but, the depreciation area 01—Book Depreciation is the predominant one.

The other depreciation areas are:

 Book depreciation in group foreign money
 Consolidated variations in nearby/organization forex
 Tax balance sheet depreciation
 Special tax depreciation
 Country-precise valuation (e.G., internet-really worth tax or nation calculation)
Values/depreciations that vary from depreciation place 01 (as an example, value-accounting reasons)
 Derived depreciation place (the difference between e book depreciation and u . S . A .-specific tax depreciation).
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Question 11. How Do You Set Up Depreciation Area Postings To Fi From Fiaa?

Answer :

You need to outline how the numerous depreciation regions want to post to FI-GL.

It can be anybody of the subsequent eventualities:

Post depreciation through ‘periodic processing.’

 Post each the APC (Acquisition and Production Costs) and depreciation thru periodic processing.

Post the APC in ‘real time’ but depreciation through periodic processing.

 No values are posted.

However, you need to make certain that at the least one depreciation region is configured to post values robotically to the FI-GL. Normally, this depreciation region may be 01 (e-book depreciation). For the rest of the depreciation regions, it is able to be configured that they derive their values from this place and the distinction for that reason calculated is routinely published to FI-GL. There can also be situations in which you can define depreciation regions just for reporting functions, and these areas need no longer publish to the GL.

SAP MM Interview Questions
Question 12. What Is An Asset Class Catalog?

Answer :

An ‘Asset Class Catalog’ incorporates all the asset classes in an organization and is consequently legitimate across the Client. Since an asset elegance is legitimate across the Client, most of the characteristics of the asset elegance are defined at the Client degree; but, there are positive traits (together with the depreciation key, as an instance), which can be defined at the chart of depreciation level.

Financial Accounting Interview Questions
Question 13. Is It Possible To Create Asset Classes Automatically?

Answer :

The stipulations for automated asset magnificence introduction include:

Company Code should be assigned to a chart of depreciation
Depreciation regions have already been described
GL account wide variety isn't extra than 8 digits (in any other case you want to assign the training manually)
Also note that you could want to hold the GL account for ‘accumulated depreciation’ manually. The machine maintains the important account assignment only in regards to the depreciation vicinity 01 (e book depreciation). If you need more regions, you can want to do that manually in the IMG.

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Question 14. What Is An Asset Value Date?

Answer :

The ‘Asset Value Date’ is the begin date of depreciation for the asset. The ‘planned depreciation’ is calculated by way of the machine based in this depreciation start date and the chosen ‘depreciation time period’ for that asset. Be cautious with the posting date and asset price date. Both dates need to be in the same monetary yr.

Question 15. What Are The Segments In Asset Master ?

Answer :

Master information phase and Depreciation section.

SAP FICO Interview Questions
Question 16. What Is The Difference Between Coa And Cod?

Answer :

The chart of Accounts is the index of G/L bills.The Chart of Account may be worldwide,united states of america particular or industry specific primarily based on the need of commercial enterprise. The COD is the index of depreciation areas.The COD is only usa unique.

Accounting Basics Tutorial
Question 17. How Many Ways Can You Create The Asset Master Record ?

Answer :

With reference to an asset
Using the range functionality for similar assets.
Through an asset class(AS01).
Accounts and Finance for Managers Interview Questions
Question 18. Is It Possible To Create An Asset Class Automatically?

Answer :

Yes, There are  ways

Create an asset magnificence as regards to an current asset elegance
Generate an asset magnificence via the asset magnificence transaction code(ANKL).
Accounts Payable (AUS) Interview Questions
Question 19. What Are The Types Of Depreciation Methods?

Answer :

Base approach
Decline price method
Maximum method
Multi degree method
Period manage method.
Question 20. How Many Depreciation Areas Can Be Defined For A Company Code ?

Answer :

Depreciation areas are not defined for corporation codes instead depreciation areas are defined for a chart of depreciation, A most f ninety nine depreciation regions can be maintained for a Chart of Depreciation.

Finance Interview Questions
Question 21. What Is Depreciation Key?

Answer :

A key for calculating depreciation amounts.There is a direct link among asset and company code.Which we link among the depreciation key and master document.

Question 22. What Is Asset Class?

Answer :

The Asset elegance is the principle criteria for classifying belongings. Every asset have to be assigned to someone magnificence.The asset elegance is nothing however a set of asset. For example of Asset instructions are Plant & Machinery, Furniture & Fixtures, Computer and so forth.

Question 23. What Is Chart Of Depreciation ?

Answer :

The Chart of Depreciation is a list of Depreciation  Areas arranges consistent with business and prison requirement.

Chart of Depreciation is used a good way to manipulate various criminal necessities for the depreciation and valuation of property. Each business enterprise code is allotted to 1 chart of depreciation.

SAP FI Interview Questions
Question 24. What Do You Mean By Depreciation Area?

Answer :

Methods of calculation of depreciation. An area displaying a valuation of fixed belongings for a selected cause. For example Book depreciation, Income Tax Depreciation, Costing depreciation.

Accounts Interview Questions
Question 25. What Is Account Determination ?

Answer :

One of the most essential capabilities of the Asset class to be set up the relationship among the Asset master file and the corresponding accounts in the wellknown ledger in Financial accounting. This connection is created by the account willpower secret's asset class.