Interview Questions.

Question 1. What Do You Understand By Sap Cost Center? Explain With The Example?

Answer :

A Cost center is described as a factor in an business enterprise that provides to the cost and in a roundabout way provides to profit if the company. Examples include Marketing and Customer Service.

A agency can classify business unit as profit middle, value middle or an investment middle. The easy and straight forward division in an employer can be labeled as fee center as cost is simple to degree.

Question 2. How Do You Create Cost Center In System? What Are The Requirements?

Answer :

To create a value middle in system, you need to outline a value middle hierarchical structure. The shape of Cost middle and its feature rely upon the accounting objective and on the system you need to apply to hold accounting.

SAP CRM Interview Questions
Question three. What Are The Benefits Of Using Cost Center Accounting?

Answer :

Following are the key makes use of to create price centers and performing value center accounting in an agency:

Cost center is used to align overhead fees to sports performed in an organization. It is viable to assign different activity type to a fee middle.
You carry out cost center accounting to control value in the business enterprise and to test profitability of each purposeful place and selection making records.
You can control and analyze the overhead value in an agency and to affirm if they're incurred within the agency sports.
When you plan expenses at price middle, this permits you to check the fee performance at the point when price are incurred inside the business enterprise.
You can without delay assign the fee to fee facilities for merchandise, offerings and market segments that are concerned in acting those sports.
Question 4. What Is Cost Center Hierarchy?

Answer :

In value middle hierarchy, on the top you've got business enterprise which is further divided as consistent with the useful regions. Each Functional vicinity are similarly divided into sub areas and may be further divided as according to sports executed.

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Question 5. What Are The Different Types Of Data In Sap System?

Answer :

In SAP machine, you usually have  forms of information:

1  Transaction records

Transaction facts keeps on changing in machine and is stored in line object tables.

2  Master statistics

 You can use the subsequent functions to create, exchange grasp facts:

Cost Center
Cost Elements
Activity Types
Key Figures
Resources
SAP CRM Functional Interview Questions
Question 6. What Is Cost Element?

Answer :

Cost element is called price relevant object in Chart of Accounts.

Question 7. What Are The Different Types Of Cost Elements?

Answer :

Primary Cost Elements : A Primary value detail is described as elements for which General Ledger Account G/L exists in Finance Accounting FI.

Common primary value element includes:

Personnel Costs.
Material Costs.
Secondary Cost Elements : These elements are maintained in Cost Accounting. To create a secondary value detail, machine checks account already exists in Financial Accounting and if an account exists, secondary value detail can’t be created. 

Common examples of secondary cost elements:

Cost detail for Order settlement.
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Question eight. What Is Direct And In-direct Posting?

Answer :

Cost element class is used to define if you could put up to price detail immediately or not. When you post a fixed amount to a cost elements through bringing up account quantity, it's miles referred to as direct posting. In direct posting, you can post directly to all primary value factors by specifying the account variety. When you may’t input account variety with posting transaction and gadget determines account at the time of posting robotically, this is known as indirect posting.

Question 9. What Is An Activity Type? For Each Work Center What Are Different Activity Types That Can Be Performed?

Answer :

Activity kind is described as pastime done in price middle inside controlling area. For each value center, you perform the following activities:

Activities carried out through the price middle.
Cost are debited to merchandise once they use the activities of the value middle.
In Cost Center accounting, to plan and allocate the sports, machine records quantities which are measured in interest units. Each activity in a cost center incorporates hobby sorts and if the price may be allotted to these interest sorts.
When you create the pastime kinds, expenses of these can be entered manually or this may be calculated in system as per the fee allocated. The fee planning, allocation and manage may be done whilst defining activity or also can be carried out at price middle.
SAP Accounts Payable for Beginers Interview Questions
Question 10. What Is Key Figure?

Answer :

Key figures may be defined as constant values and total values. All the important thing figures that you outline as fixed values they're to be had for positing in full fiscal yr.
Key figures defined as general values are available only for posting within the described duration.
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Question 11. How Do You Define Key Figures In Sap System?

Answer :

Key figures may be described manually or you may also switch it automatically from the records device of SAP machine utility.

Management Accounting Interview Questions
Question 12. What Do You Understand By Resources? What Are The Different Resource Type?

Answer :

Resources are used to carry out amount primarily based fee making plans for fee facilities, orders and WBS element. In SAP machine as in keeping with the available information.

You may select from the subsequent useful resource type:

Type R for overhead fee controlling
Type M represents for Material kind
Type B refers to base planning items
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Question thirteen. What Is The Structure Of Resource Master Data Type?

Answer :

The shape of aid master facts incorporates the following fields:

Resource key.
Purchasing agency.
Resource kind.
Validity length of the resource.
Plant.
Resource units.
Cost detail.
Resource name.
Material.
Base object costing.
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Question 14. What Is The Transaction Code To Create A Cost Center?

Answer :

To create Cost middle, you may use T-code: KS01

Question 15. What Is Cost Center Group?

Answer :

You can divide fee center in fee middle agencies. In machine, it need to have at least one group that consists of all fee facilities and represents the entire business company. This fee middle institution is defined as the same old hierarchy. You can assign greater fee center organizations to the same old hierarchy.

SAP Crystal Reports Interview Questions
Question sixteen. Is It Possible To Assign A Cost Center To Multiple Cost Center Group?

Answer :

No, in widespread hierarchy, you could best assign each value middle to one group.

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Question 17. Why Do We Create An Internal Order?

Answer :

You can create an inner order to screen the charges of a time-confined task or the charges for the production of sports. Internal orders also can be used for the long-term monitoring of costs.

SAP FI Interview Questions
Question 18. What Is Difference Between Investment Order, Internal Order And Accrual Orders?

Answer :

You can create an inner order to display the charges of a time-constrained process or the expenses for the production of activities. Internal orders can also be used for the lengthy-term tracking of costs.
Investment fee related to constant belongings are monitored using Investment orders.
Period-related accrual calculation between charges in FI and the costing-based charges debited in Cost Accounting are monitored the usage of Accrual orders.
SAP CRM Functional Interview Questions
Question 19. What Do You Understand By Profit Center?

Answer :

SAP CO-Profit center is used for managing inner controlling. When you dividing your organisation into profit centers, it allows you to delegate obligation to decentralized devices and permits you to treat as separate agencies in a business enterprise. It additionally lets in you to calculate key figures in price accounting like- ROI, Cash go with the flow, and so forth.

Question 20. Why Do We Create Profit Centers? What Are The Key Components Of Profit Center?

Answer :

The main purpose of creating a Profit Center in Controlling is to analyze the cost of a product line or a commercial enterprise unit.

You can also generate income and loss debts according to Profit Center and also generate stability sheets but Profit center must most effective be used for internal reporting functions.

The key components of a earnings middle consists of- name of the profit center, the controlling vicinity below which it's miles assigned, time period, person responsible for the income center, popular hierarchy, and many others.

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Question 21. What Are The Key Differences Between Cost Center, Profit Center And Internal Order?

Answer :

Cost Center : A Cost center is described as a aspect in an business enterprise that provides to the value and indirectly provides to profit if the organisation. Examples encompass Marketing and Customer Service.

A organization can classify commercial enterprise unit as earnings middle, value center or an investment center. The easy and simple division in an company can be categorized as price center as cost is simple to degree.

To create a price center in gadget, you want to outline a price middle hierarchical shape. The shape of Cost center and its function depend on the accounting objective and at the device you want to apply to preserve accounting.

Cost center is used to align overhead fees to activities completed in an business enterprise. It is viable to assign unique activity kind to a value middle.
You carry out fee center accounting to control cost inside the agency and to check profitability of each purposeful vicinity and choice making statistics.
You can manage and analyze the overhead value in an enterprise and to verify if they're incurred inside the company sports.
When you propose expenses at value middle, this permits you to test the value performance at the point while value are incurred in the agency.
You can immediately assign the value to value facilities for products, services and marketplace segments that are concerned in appearing these sports.
Profit Center : SAP CO-Profit middle is used for coping with internal controlling. When you dividing your organisation into income facilities, it allows you to delegate duty to decentralized units and permits you to treat as separate groups in a company. It additionally allows you to calculate key figures in cost accounting like- ROI, Cash float, etc.Profit Center is part of Enterprise Controlling module and is incorporated with new General Ledger Accounting.

Profit Center Accounting is used to determine income for inner areas of duty. It lets you decide earnings and losses the use of either period accounting or the fee-of-income technique
It lets in you to investigate constant belongings through income center, therefore the use of them as funding facilities. This makes it feasible to enlarge earnings facilities to funding centers.
Internal Order :

SAP CO inner order reveal the parts of the expenses and in few cases, the sales of the employer.
You can create an internal order to monitor the fees of a time-restrained job or the fees for the manufacturing of sports. Internal orders can also be used for the lengthy-term monitoring of fees.
Investment fee associated with fixed belongings are monitored the usage of Investment orders.
Period-associated accrual calculation among costs in FI and the costing-based expenses debited in Cost Accounting are monitored the usage of Accrual orders.
Costs and sales incurred for activities for external companions or for internal sports that do not shape a part of the center business on your enterprise are monitored the use of order with revenues.
Question 22. Why Do We Perform Cost Center Planning?

Answer :

You carry out Cost Center planning to achieve following functions:

To Plan the structure
To control and screen commercial enterprise increase
To perform goal contrast-plan/real or goal/real
Cost middle planning covers following making plans location −
Cost Element
Primary Cost
Secondary Cost
Revenue
Activity Type
Statistical Key Figures
Question 23. What Is The Use Of Period End Closing? What Activities Are Performed As Part Of Period End Closing?

Answer :

Period give up final is work performed at period end as part of cost controlling. To carry out period end last, it's far required to switch the records from other SAP additives. You ought to perform all of the posting in Finance Accounting.

As part of length ultimate, following sports are performed:

Periodic reposting
Accrual cost calculation
Pre-distribution of fixed expenses
Transfer of statistical key figures from the LIS
Overhead calculation
Periodic allocations
Variance calculation
Actual price calculation
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Question 24. What Is The Meaning Of Accrual Calculation?

Answer :

You allocate operating charges differently in price accounting compared to Finance accounting. You can distribute abnormal happening expenses as in line with fee beginning, on the months wherein they may be incurred. And for this reason you may keep away from all irregularities inside price accounting. Cost allocated on this way is referred to as Accrual fee.

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Question 25. How Accrual Calculation Can Be Performed In The System?

Answer :

Accrual calculation may be completed in following way:

Accruals in the Controlling aspect primarily based on the expenses posted.
Accruals within the Financial Accounting component (FI) the usage of habitual entries.
Question 26. What Do You Understand By Variance Calculation In Period End Closing?

Answer :

When actual cost on cost middle isn't like goal fee or making plans became over/underneath, you could see a variance in controlling element.

Retail Management Interview Questions
Question 27. How Do Perform Variance Calculation In Period End Closing?

Answer :

Using Variance calculation, you may examine the actual stability and to discover variance of actual fee from target cost with distinct activity kinds.

To carry out variance calculation, navigate to Accounting → Controlling → Product Cost Controlling → Cost Object Controlling → Product Cost by way of Period or Product Cost by way of Order → Period-End Closing → Single

Functions: Product Cost Collector → Single Functions: Cost Object Hierarchy → Variances → Individual Processing or Collective Processing

SAP Accounts Payable for Beginers Interview Questions
Question 28. What Is Year End Closing? How Do You Perform A Carry Forward Commitment?

Answer :

In year-end ultimate, you can transfer deliver forward to first length of subsequent financial yr and this is accomplished for every Controlling below SAP system.

Question 29. What Is The Use Of Value Field In The Co-pa Module?

Answer :

Value fields are range or cost associated fields in profitability evaluation such as amount, income sales, discount value etc.

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Question 30. What Is The Use Of Account Group Of The Vendor/purchaser Master Records?

Answer :

The number variety of the patron/seller masters
The reputation of the fields in only agency code section
Question 31. What Do You Understand By Product Costing In Sap Controlling?

Answer :

SAP CO-Product Costing module is used to locate the cost of internal price of products. It is also used for profitability and management accounting for production.
While configuring Product Costing, it includes  areas for setting:

Product Cost Planning
Cost Object Controlling
The fundamentals of Product Costing is Cost Center Planning. The aim of cost middle planning is to plot total greenbacks and quantities in each Cost Center in a Plant.

Question 32. What Do You Understand By Cost Center, Profit Center In Controlling?

Answer :

A Cost middle is described as a factor in an employer that adds to the fee and in a roundabout way adds to income if the organization. Examples encompass Marketing and Customer Service.

A employer can classify commercial enterprise unit as income middle, price middle or an investment middle. The easy and simple division in an company can be categorised as cost middle as fee is easy to measure.

SAP CO-Profit center is used for coping with internal controlling. When you dividing your employer into income facilities, it lets in you to delegate responsibility to decentralized devices and permits you to treat as separate agencies in a corporation.

Sap Business One Interview Questions
Question 33. What Are The Segments Of The Customer Master Record?

Answer :

General statistics section
Sales company records section
Management Accounting Interview Questions
Question 34. What Is The Maximum Number Of Posting Periods In Sap?

Answer :

Under GL accounting, you could have a maximum of 16 posting durations (12 everyday plus 4 Special Periods).

Question 35. How Do You 'bring-forward' Account Balances?

Answer :

If you have got already published into the brand new economic yr, you do no longer need to carry-ahead the balances manually. But you may use the diverse ‘carry-forward’ packages supplied by SAP for this undertaking.

Question 36. How Currencies Are Maintained In Sap System?

Answer :

Using 3 individual Currency Code

SAP Crystal Reports Interview Questions
Question 37. How Do You Maintain Exchange Rates In Sap?

Answer :

SAP gives a selection of tools to preserve trade prices on an on-going basis.

The gear consist of:

Exchange Rate Spreads
Base Currency
Inversion
Question 38. What Do You Understand By A Line Item?

Answer :

Line Items include facts referring to account number, quantity, debit/ credit, tax code, quantity, and so on. SAP allows a maximum of 999 line gadgets in a unmarried file.

Question 39. What Is Cost Based Profitability Analysis?

Answer :

It is used to organization the costs and revenues as in step with the cost fields. It is used to make certain that you get entry to always to a entire, brief-time period profitability document.

Question forty. What Is Account Based Profitability Analysis?

Answer :

It is used to provide you with a profitability report this is permanently reconciled with financial accounting.

It is mainly used for buying facts related to income, advertising, product management and corporate making plans departments to support inner accounting and selection-making.

SAP FI Interview Questions
Question 41. What Do You Understand By Posting Key?

Answer :

A Posting Key in SAP is a 2-digit alphanumeric key that controls the access of line objects. SAP comes with many posting keys for meeting the one-of-a-kind enterprise transaction requirements.

Question 42. What Is The Use Of Document Reversal In Sap System?

Answer :

To alternate some of the accounting records relating to an already published document, you could simplest acquire this with the aid of Reversing alternative the unique record and posting a new one with an appropriate statistics.

SAP for Retail with SAP ERP 6.0 Interview Questions
Question 43. What Is Number Range Interval?

Answer :

Number Range is defined as a range of c programming language defined in the gadget so that after files are published, the system assigns a variety of from this variety.

Question forty four. What Are The Different Standard Reports In Sap Co System?

Answer :

SAP CO: Standard Reports : There are diverse general reviews that exists in system for Cost Center Accounting.

1VK Library − This includes report associated with fee accounting and is based totally on complete expenses.
1GK Library − This includes reports for fee accounting systems based totally on marginal costs.
1AB library − This is used to preserve the reports for variance analyses.
1 RU library − This is used to preserve precis reviews associated with common price middle accounting manner.
Question 45. What Are Price Reports? Where Do You Find Them In Sap System?

Answer :

Price reviews in Cost Center accounting are to be had for activity sorts and for hobby based totally costing. Under Activity-Based Costing, charge file are used to offer an overview of the system charges for every business procedure.

 To execute charge document online, navigate to Information Systems → Accounting → Controlling → Reports for Cost Center Accounting → Prices

Question forty six. What Are The Different Line Item Reports?

Answer :

You can use following line item reviews:

Actual line item report
You can show line object reports for archived real fees.
Plan line item record
Question 47. What Is The Use Of Cost Elements Report? How Do You Access Cost Element Reports In Sap System?

Answer :

This report is used to carry out a contrast of the figures in internal and external accounting, show the costs incurred for every item class, and see the cost flows between business enterprise codes.
Navigate to Information Systems → Accounting → Controlling → Reports for Cost and Element Accounting

Question forty eight. What Are The Components In Financial Statement Version?

Answer :

A Financial Statement Version facilitates to define the Financial Statements both the Balance Sheet and Profit & Loss statements.

Question forty nine. Explain The Process Of Profitability Analysis In Sap Co System Co-pa? What Is The Use Of Co-pa?

Answer :

SAP CO-PA is used to analyze the marketplace segments categorized as merchandise, clients, income location, commercial enterprise location, and many others.
SAP CO Profitability Analysis (CO-PA) is used for the evaluation of Market segments, which is assessed according to products, customers, and orders or any aggregate of those or Strategic business units such as income businesses or business areas, with regards to organization's income or contribution margin.