Sap Fico Interview Questions And Answers
1).Explain the term 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 etc, while SAP CO take cares of inter orders, cost sheet, inventory sheet, cost allocations etc. It is the software that stores data, and also computes them and retrieves the result based on the current marketing scenario. SAP FICO prevents data lost and also does the verification and reporting of data.
2). What are the other modules to which 'Financial Accounting' is integrated?
Ans) The other modules to which 'Financial Accounting' is integrated are
a) Sales and Distribution
b) Material Management
c) Human Resource
d) Production Planning
e) Controlling of financial transaction
3). 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
4). Explain what is posting key and what does it control?
Ans) In order to determine the transaction type which is entered in the line item, a two digit numerical is used known as 'Posting Key'
Posting key determines
a) Account Types
b) Types of posting. Debit or Credit
c) Field status of transaction
5). What is the company code in SAP?
Ans) To generate financial statements like Profit and Loss statement, Balance sheets etc. company code is used.
6).How many Chart of Accounts can company code have?
Ans) You can have one Chart of Account for one company code which is assigned.
7). For a Company Code how many currencies can be configured?
Ans)There are three currencies that can be configured for a Company code, one is a local currency and two are the parallel currencies.
8). What are the options in SAP for Fiscal years?
Ans)Fiscal year in SAP is the way financial data is stored in the system. In SAP, you have 12 periods and four special periods. These periods are stored in fiscal year variant that is:
a) Calendar Year: From Jan-Dec, April-March
b) Year dependent fiscal year
9). What is year dependent fiscal year variant?
Ans) In a year dependent fiscal year variant, the number of days in a month is not as per the calendar month. For example, in year 2005, month January end on 29th, month Feb ends on 26th etc.
10). In SAP how input and output taxes are taken care?
For each country tax procedure is defined, and tax codes are defined within this. There is a flexibility to either expense out the Tax amounts or capitalise the same to stocks.
11). Explain what is validations and substitutions in SAP?
Ans) For each functional area in SAP Validation or Substitution is defined eg, Assets, Controlling etc. at the following levels
a) Document Level
b) Line item Level
12). In SAP what is the use of FSV ( Financial Statement Version) ?
Ans)
FSV ( Financial Statement Version) is a reporting tool. It can be used to extract final accounts from SAP like Profit and Loss Account and Balance Sheet. The multiple FSV's can be used for generating the output of various external agencies like Banks and other statutory authorities.
13).What is a field status group?
Ans)'Field status groups' control the fields which come up when the user does the transactions. In FIGL (Financial General Ledger) master, the field status group is stored.
14).What is FI-GL (Financial- General Ledger) Accounting does?
To get an overview of external Accounting and accounts, G L (General Ledger) Accounting is used. It does the recording of all business transactions incorporated with all other operational areas in a software system and also ensures that the Accounting data is always complete and accurate.
15). What is the default exchange rate type which is picked up for all SAP transactions?
Ans) For all SAP transaction, the default exchange rate is M (Average Rate).
16).What are the methods by which vendor invoice payments can be made?
Ans) a) Manual payment without the use of any output medium like cheques etc.
b) Automatic payments like DME (Data Medium Exchange), cheques, Wire transfer
17).What are the problems when business area is configured?
Ans) The problem faced when a business area is configured, is splitting of account balance which is more pertinent in the case of tax accounts.
18).For document clearing what are the customizing prerequisites ?
Ans) The customizing pre-requisite for document clearing is to check the items cleared and uncleared, and this is done by open item management. Open item management manages your outstanding account, i.e account payable and account receivable. For instance, an invoice item that has not yet been paid is recorded as open account until it is paid.
19). What is the importance of GR/IR ( Good Received/ Invoice Received) clearing account?
Ans) GR/IR ( Good Received/ Invoice Received) is an interim account. In the legacy system, if the goods are received and the invoice is not received, the provision is made, in SAP at the goods receipt. It passes the Accounting entry debiting the Inventory and crediting the GR/IR account. Similarly, when an invoice is received the vendor account is credited, and the GR/IR account is debited, the GR/IR will show as an un-cleared items till the time the invoice is not received.
20). What is parallel and local currency in SAP?
Ans) Each company code can have two additional currencies, in addition to the company code, currency entered to the company code data. The currency entered in the company code creation is called local currency and the other two additional currencies are called parallel currencies. Parallel Currencies can be used in foreign business transactions. In order to do international transaction, parallel currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD CURRENCY.
21). Where can you use the internal order?
Ans) To track the cost, internal orders are used; they are proposed to be incurred over on a short term basis.
22).Is it possible to calculate depreciation to the day?
Ans) Yes, it is possible to calculate depreciation, to do that you have to switch on the indicator Dep. to the day in the depreciation key configuration.
23). In Asset Accounting what is the organizational assignments?
Ans) In Asset Accounting, chart of depreciation is rated as the highest node, and this is assigned to the company node. All the depreciation calculations are stored under the chart of depreciation.
24).What is the importance of asset classes? What asset classes are there?
Ans) The asset class is the main class to classify assets. Every asset must be assigned to only one asset class. Example of asset class is Furniture & Fixtures, Plant & Machinery, and Computers etc. The asset class also contains G1 account, when any asset is procured, G1 account is debited. Whenever you create and asset master, it becomes mandatory to mention the assest class for which you are creating the required assets. So, whenever any asset transaction occurs, the G1 account attached to the asset class is automatically picked up and the entry is passed. You can also specify the default values for calculating the depreciation values and other master data in each asset class.
25).How capital WIP (Work In Process) and Assets accounted for in SAP?
Ans) 'Capital WIP' is referred to as Assets under construction in SAP and is represented under specific asset class. Depreciation is not charged under 'Capital WIP' usually. The cost incurred on building a capital asset can be booked to an 'internal order' and through the settlement procedures, and can be posted onto an 'Asset Under Construction'.
26).What is credit control area in SAP?
Ans)To immune your company from the risk of bad debts and multiple outstanding receivable, you can set a credit limit for your customer by using credit control area in SAP. With the help of SAP, you can block the deliveries to your customer based on the credit limit and the accounts receivable balance in their account which is maintained by you.
27).What is posting period variants?
Ans) In fiscal year posting period is a period for which the transactions figures are updated. The posting period variants in SAP is accountable to control which Accounting period is open for posting and ensures that the closed periods remain balanced.
28). Explain in simple terms what is field status and what does it control?
Ans)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 suppress, display, optional and required.
29).What is short-end fiscal year?
Ans)A short-end fiscal year results when you change from a normal fiscal year to a non-calendar fiscal year, or other way around. This type of change happens when an enterprise becomes part of a new co-corporate group.
30). What is an account group and where it is used?
Ans) 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 group exist for the definition of GL account, Customer Master and Vendor.
31). Explain ‘controlling (co)’ In Sap?
Ans) SAP calls managerial accounting ‘Controlling’ and the module is commonly known as ‘CO.’ The CO module is, thus, primarily oriented towards managing and reporting cost/revenue and is mainly used in ‘internal’ decision-making. As with any other module, this module also has configuration set-up and application functionality.
The controlling module focuses on internal users and helps management by providing reports on cost centers, profit centers, contribution margins and profitability, etc.
32).What is the purpose of "Document type" in SAP?
Ans) TThe purpose of " Document type" in SAP is
a) Number range for documents are defined by it
b) Types of accounts that can be posted are controlled by it, e.g Assets, Vendor, Customer, Normal GL account
c) It is used for the reversal of entries
33).Is business area at company code level?
Ans)No. Business area is at client level which means other company codes can also be posted to the same business area.
34).In SAP, Customer and Vendor code are stored at what level?
Ans)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.
35).How are tolerances for invoice verification defined?
Ans)Tolerance determines whether the payable places matching or tax hold on the invoice. The following are the instances of tolerance can be defined for Logistic Invoice Verification.
a) Small differences
b) Moving average price variances
c) Quantity variances
d) Price variances
36).What is a country Chart of Accounts?
Ans)Country Chart of Accounts contains G/L (General Ledger) accounts needed to meet the country's legal requirements.
37).What is APP in SAP Fico?
Ans) 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 taken place in posting manually. Also, when number of employees is more in the company, payment through APP becomes more feasible
38).In SAP FICO what are the terms of payment and where are they stored?
Ans) Payment terms are created in the configuration and determine the payment due date for vendor/customer invoice. 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.
39). What are one-time vendors?
Ans) In certain companies, especially the one dealing with high cash transactions, it is not practical to create new master records for every vendor trading partner. One time vendors allows a dummy vendor code to be used on invoice entry and also the information which is usually stored in the vendor master.
40).What are the standard stages of the SAP payment run?
Ans)The following steps are the standard stages of the SAP payment run
a) Entering of parameters ( Vendor Accounts, Company Codes, Payment Methods)
b) Proposal Scheduling – the system proposes the list of invoice paid
c) Payment booking- the booking of the actual payments in the ledger
d) Printing of payment forms ,example cheques
41).In Accounts Receivable, what is the difference between the 'Residual Payment' and 'Part Payment' methods of allocating cash?
Ans) 'Residual payment' and 'Part payment' are the two methods for allocating partial methods from customers. For example, an invoice for $100 is generated, customer has paid $70. Now this $70 will be off-set and leaving the remaining balance $30. With residual payment, the invoice is cleared for the full value of $100 and a new invoice is generated for the remaining balances $30.
42).What is "dunning" in SAP?
Ans)'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 dunning level on the customer master, we can know which letter has been issued to the customer.
43).What is the purpose of the account type field in the GL (General Ledger) master record?
Ans) At the end of the year, profit and loss accounts are cleared down to the retained earnings balance sheets account. The field contains an indicator which is linked to a specific GL (General Ledger) accounts to use in this clear down.
44). Explain what is recurring entries and why are they used?
Ans)Recurring entries can eliminate the need for the manual posting of Accounting documents which do not change from month to month. For example, an expense document can be generated which can be scheduled for the last days of each month or whenever an individual wants it. Usually multiple recurring entries are created at one go and then processed all together as a batch month end using transaction.
45).What is a 'Value Field' in the CO-PA module?
Ans)Value fields are number or value related fields in profitability analysis such as quantity, sales revenue, discount value etc.
46).What are the statistical internal orders?
Ans)Statistical internal orders are dummy cost objects used for reporting and analysis purposes. It must be posted to in conjunction with a real object such as a cost center.
47).For what purposes internal orders can be used?
Ans)You can use internal orders for
a) Overhead Orders: It monitors internal jobs settled to cost centres
b) Investment Orders: It monitors internal jobs settled to fixed assets
c) Accrual Orders: Offsetting posting of accrued costs calculated in CO
d) Orders with Revenue: It display the cost controlling parts of Sales and Distribution, it does not affect the core business of the company
48).What is the difference between company and company code?
Ans) A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes. The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.
49).What are substitutions and validations? What is the precedent?
Ans)Validations are used to check settings and return a message if the prerequisite check condition is met. Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.
50).What is a controlling area?
Ans)The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed.
51).What are posting periods?
Ans)The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant.
52).What are document types and what are they used for?
Ans)Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc. Types controls things like type of the account that can be posted to, the number range assigned to it, and required doc header fields.
53). How are tolerance group for employees used?
Ans)Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized persons can make postings.
54).What are posting keys? State the purpose of defining posting keys?
Ans)
Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.
55). What are field status groups?
Ans)Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.
56).In Asset Accounting what is the organizational assignments?
Ans)In Asset Accounting, chart of depreciation is rated as the highest node, and this is assigned to the company node. All the depreciation calculations are stored under the chart of depreciation.
57).How capital WIP (Work In Process) and Assets accounted for in SAP?
Ans)‘Capital WIP’ is referred to as Assets under construction in SAP and is represented under specific asset class. Depreciation is not charged under ‘Capital WIP’ usually. The cost incurred on building a capital asset can be booked to an ‘internal order’ and through the settlement procedures, and can be posted onto an ‘Asset Under Construction’.
58).What is the land scape in sap?
Ans) In every organisation sap landscape involves three servers viz, Development server, Quality server and Production server. Whatever new development we do as per clients requirement is done in development server. Later to test the developed object we move it to quality server for testing and finally once everything goes clear then the object is moved to production server ,production server data is ready for final business use.
59).What are one-time vendors?
Ans)In certain companies, especially the one dealing with high cash transactions, it is not practical to create new master records for every vendor trading partner. One time vendors allows a dummy vendor code to be used on invoice entry and also the information which is usually stored in the vendor master.
60). What are the standard stages of the SAP payment run?
Ans)The following steps are the standard stages of the SAP payment run
- Entering of parameters ( Vendor Accounts, Company Codes, Payment Methods)
- Proposal Scheduling – the system proposes the list of invoice paid
- Payment booking- the booking of the actual payments in the ledger
- Printing of payment forms ,example cheques
61). Difference between Depreciation ,Accumulated Depreciation and APC? What is APC?
Ans)Depreciation – a decrease in the value of an asset due to wear and tear
Accumulated Depreciation – the total amount of depreciation calculated on a particular asset.
APC – refers to Asset transactions other than depreciation
62).What is a special GL transaction?
Ans)The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of exchange, Interest payable , aqusition
63). What Is Ides?
Ans)International Demonstration and Education System. A sample application provided for faster learning and implementation.
64). Explain Open Sql Vs Native Sql?
Ans)ABAP Native SQL allows you to include database-specific SQL statements in an ABAP program. Most ABAP programs containing database-specific SQL statements do not run with different databases. If different databases are involved, use Open SQL. To execute ABAP Native SQL in an ABAP program, use the statement EXEC. Open SQL (Subset of standard SQL statements), allows you to access all database tables available in the R/3 System, regardless of the manufacturer. To avoid conflicts between database tables and to keep ABAP programs independent from the database system used, SAP has generated its own set of SQL statements known as Open SQL.
65). What Are Datasets?
Ans)The sequential files (processed on application server) are called datasets. They are used for file handling in SAP.
66).What Is The Difference Between Olap And Data Mining?
Ans)OLAP - On line Analytical processing is a reporting tool configured to understand your database schema, composition facts and dimensions . By simple point-n-clicking, a user can run any number of canned or user-designed reports without having to know anything of SQL or the schema. Because of that prior configuration, the OLAP engine “builds” and executes the appropriate SQL. Mining is to build the application to specifically look at detailed analyses, often algorithmic; even more often misappropriate called “reporting.
67). What Is "extended Star Schema" And How Did It Emerge?
Ans)The Star Schema consists of the Dimension Tables and the Fact Table. The Master Data related tables are kept in separate tables, which has reference to the characteristics in the dimension table(s). These separate tables for master data is termed as the Extended Star Schema.
68).What Is Bex?
Ans)Bex stands for Business Explorer. Bex enables end user to locate reports, view reports, analyze information and can execute queries. The queries in workbook can be saved to there respective roles in the Bex browser. Bex has the following components: Bex Browser, Bex analyzer, Bex Map, Bex Web.
69).What Is Extractor?
Extractors is a data retrieval mechanisms in the SAP source system. Which can fill the extract structure of a data source with the data from the SAP source system datasets. The extractor may be able to supply data to more fields than exist in the extract structure.
70).What Is Posting Key And What Does It Control?
Ans)These are special classification keys. Two character numerical key it controls the entry of line items. Posting key determines Account type, Debit/credit posting, Field status of transaction.
71).What Is A Transaction?
Ans)A transaction is dialog program that modify data objects in a consistent way.
72). What Is Pbo And Pai Events?
Ans)PBO- Process Before Output-It find out the flow logic before displaying the screen. PAI-Process After Input-It find out the flow logic after the display of the screen and after receiving inputs from the User.
73). What Is A Abap/4 Module Pool?
Ans)Each dynpro refers to exactly one ABAP/4 dialog program. Such a dialog program is also refer as a module pool, since it consists on interactive modules.
74)What Is To Be Defined For A Push Button Fields In The Screen Attributes?
Ans)A function code has to be defined in the screen attributes for the push buttons in a screen.
75).How The Function Code Handles In Flow Logic?
Ans)When the User selects a function in a transaction, the system duplicate the function code into a specifically designated work field called OK_CODE. This field is Global in ABAP/4 Module Pool. The OK _CODE can then be calculated in the corresponding PAI module. The function code is always passed in exactly the same way, regardless of whether it comes from a screen’s pushbutton, a menu option, function key or other GUI element.
76). What Controls The Screen Flow?
Ans)The SET SCREEN and LEAVE SCREEN statements controls screen flow.
77). The Function Code At Presently Active Is Determined By What Variable?
Ans)The function code presently active in a Program can be determined from the SY-UCOMM Variable.
78).Will Pricing Be Changed For Mysap Business Suite On Linux?
Ans)Standard pricing for mySAP Business Suite applies also to mySAP Business Suite on Linux.
79) How Do I Set A Flag For A Field In Any Table?
Ans)Create a char field of length 1. for example field STAS-LKENZ is Deletion Indicator. It means that if the value in the field is ‘X’ then that record has been deleted.
80).What Is The Use Of 'outerjoin'?
Ans)With the use of outer join you can join the tables even there is no entry in all the tables used in the view. In case of inner join there should be an entry in all the tables use in the view.
81). How Can I Copy A Standard Table To Make My Own Z_table.
Ans)Go to transaction SE11. Then there is one option to copy table. Press that button. Enter the name of the standard table and in the Target table enter Z table name and press enter.
82).hich Transaction Code Can I Used To Analyze The Performance Of Abap Program.
Ans)TCode AL21.
83). How Do You Get Output From Idoc?
Ans)Data in IDOc is stored in segments, the output from Idoc is obtained by reading the data stored in its respective segments.
84).What Are Client Dependant Objects In Abap/sap?
Ans)SAP Script layout, text element, and some DDIC objects.
85).What Is Pf-status?
Ans)Pf status is used in interactive report for enhancing the functionality. If we go to se41, we can get menus, items and different function keys, which we are using for secondary list in interactive report.
86). What Are The Difference Between Interactive And Drill Down Reports?
Ans)ABAP/4 provides some interactive events on lists such as AT LINE-SELECTION (double click) or AT USER-COMMAND (pressing a button). You can use these events to move through layers of information about individual items in a list. Drill down report is nothing but interactive report…drilldown means above paragraph only.
87).What Is Runtime Analysis? Have You Used This?
Ans)It’s checks program execution time in microseconds. When you go to se30.if you give desired program name in performance file. It will take you to below screen. You can get how much past is your program.
88).What Is Internal Recruitment ?
Ans)Internal recruitment is search for internal applicants. when you integrate with personal development, you can use profile match up which help to search for resources internally. Also In recruitment it is represented by ‘P’ as Person and ‘AP” as external person.
89). Which Function Type Has To Be Used For Using "at Exit-command" ?
Ans)The SAP Gateway process communicates with the clients based on the TCP/IP Protocol.
91).What Is A Spool Request?
Ans)Spool requests are produce during dialog or background processing and placed in the spool database with information about the printer and print format. The real data is places in the Tem Se (Temporary Sequential objects).
92).What Are Special Types Of Log Records?
Ans)V1 and V2. V1 must be processed before V2. But, we can have more than one V2 logs.
93).Explain What A Transaction In Sap Terms.
Ans)In SAP terms, a transaction is series of logically connected dialog steps.
94).Do You Require To Configure Additional Ledger For Parallel Currencies?
Ans)Where only 2 currencies are configured (Company code currency and a parallel currency) there is no need for an additional ledger. In case the third parallel currency is also configured and if it is different than the second currency type, you would then need to configure additional ledger.
95). What Is The Basic Difference In Customizing In Profitability Analysis As Compared To Other Modules?
Ans)In PA when we configure the system i.e. creating operating concern, maintain structures no customizing request is generated. The configuration needs to be transported through a different transaction called as KE3I.
96). Once You Have Captured All The Costs And Revenues How Do You Analyze Them?
Ans)The costs and revenues which we have captured in the above manner are then analysed by writing reports using the Report Painter Functionality in SAP.
97). How Do You Configure The Assignment Of Variances From Product Costing To Copa Module?
Ans)The variance categories from product costing along with cost element is to be assigned to the value fields in COPA
98).What Is The Configuration Setting To Be Done For Posting The Accrual In The Actual Costing Run?
Ans)In transaction code OBYC select transaction key LKW and maintain the balance sheet account for accrual.
99). What Is The Basic Difference In Wip Calculation In Product Cost By Order And Product Cost By Period (repetitive Manufacturing)?
Ans)Generally in product cost by order, WIP is calculated at actual costs and in product cost by period WIP is calculated at target costs.
100). How Do You Prevent The System From Calculating The Cost Estimate For Raw And Packing Material When You Run A Standard Cost Estimate For The Finished Goods?
Ans)To prevent the system from calculating cost estimates for raw and packing material, you need to select the “No costing” checkbox in the costing view of the material master.
