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1. What is FICO?
This is the original module of SAP and its most popular. SAP
started out as an accounting package, then expanded into other
business functions. FICO consists of two major modules –
nancial (FI) and controlling (CO). As with all accounting
packages, you can create a FICO for more than one company.

2. What are the basic steps to using the FI module?


Create a company, set up a general ledger, set up accounts
receivable, set up accounts payable, generate reports, do
monthly closing. The FI module covers the main business
processes.

3. What is the CO module for?


This is the internal accounting module. Free of legal restrictions,
this is designed for managers to make decisions about various
processes within a company. It houses a cost center, internal
order and pro t center.

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SAP FICO Interview Questions

4. What is in the General Ledger?


Just like a manual general ledger, this is where the chart of
accounts is set up, transactions are posted, nancial statements
are set up and generated.

5. What is Accounts Receivable?


This is the customer side of accounting, where the company
receives payment from the customer. This is for regular and one-
time customers. Sales invoices are generated, credit is issued
and controlled, payments received are recorded, and sales tax
charged and tracked.

6. What is Accounts Payable?


This is the vendor side. This ledger handles purchase invoices,
credits and returns, payments to vendors, residual payments,
partial payments, clearing transactions, even automatic
payments.

7. What reports does the FI module generate?


Aside from dunning letters, FI generates thirteen reports. From
the General Ledger you can get a chart of accounts list, account
list, account balances and totals. From Accounts Receivable (AR)
you can get a series of customer reports — master list, balances,
line items, open item analysis and payment history. From the
Accounts Payable (AP) you can get vendor reports – master list,
balances, line items, and open items.

8. Explain the value of creating a cost center?


This is where costs are incurred. It provides information for
overhead cost accounting based on areas of responsibility,

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functional requirements, geographical location, activities,


services provided, and/or allocation criteria.

9. What is internal order?


To make decisions about action planning, monitoring and
allocation of costs, there needs to be a description of the
individual jobs within a controlling area. This covers not only
overhead jobs, but investment orders, accrual costs, and
revenue orders that are not from direct sales.

10. What is a pro t center?


The pro t center is an opportunity to evaluate business practices
and their pro tability. You can compare sales to cost of sales, or
evaluate non-sales revenue (stocks, investments, equity). You
can analyze overhead options. You can analyze ROI, EVA and
cash ow.

11. What is a Company Code and what are the basic


organizational assignments to a company code?
Company Code is a legal entity for which nancial statements
like Pro t and Loss and Balance Sheets are generated. Plants are
assigned to the
company code, Purchasing organization is assigned to the
company code, and Sales organization is assigned to the
company code.

12. What is the relation between a Controlling Area and a


Company code?
A Controlling area can have the following 2 type of relationship
with a Company code
a. Single Company code relation
b. Cross Company code relation
This means that one single controlling area can be assigned to
several di erent company codes. Controlling can have a one is
to one
relationship or a one is to many relationship with di erent
company codes.
Controlling Area is the umbrella under which all controlling
activities of Cost Center Accounting, Product Costing, Pro t
Center and Pro tability

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Analysis are stored.


In a similar way Company Codes is the umbrella for Finance
activities.

13. How many Chart of Accounts can a Company code have?


A single Company code can have only one Chart of Account
assigned to it. The Chart of Accounts is nothing but the list of
General Ledger Accounts.

14. What are the options in SAP when it comes to Fiscal years?
Fiscal year is nothing but the way nancial data is stored in the
system.
SAP provides you with the combination of 12 normal periods and
also four special periods. These periods are stored in what is
called the scal
year variant.
There are two types of Fiscal Year Variant
•?Calendar Year – e.g. Jan-Dec
•?Year Dependent Fiscal Year .

15. What is a year dependent scal year variant ?


In a year dependent scal year variant the number of days in a
month are not as per the calendar month. Let us take an
example:- For the year
2005 the period January ends on 29th, Feb ends on 27th, March
ends on

29. For the year 2006 January ends on 30th, Feb ends on 26th,
March
ends on 30th. This is applicable to many countries especially
USA. Ever year this scal year variant needs to be con gured in
such a case

16. How does posting happen in MM (Materials Management)


during special periods?
There is no posting which happens from MM in special periods.
Special periods are only applicable for the FI module. They are
required for making any additional posting such as closing
entries, provisions. which happen during quarter end or year end.

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17. How many currencies can be con gured for a company


code?
A company code can have 3 currencies in total. They are local
currency ie company code currency) and 2 parallel currencies.
This gives the company the exibility to report in the di erent
currencies.

18. Do you require to con gure additional ledger for parallel


currencies?
Where only 2 currencies are con gured (Company code
currency and a parallel currency) there is no need for an
additional ledger. In case the
third parallel currency is also con gured and if it is di erent than
the second currency type, you would then need to con gure
additional ledger.

19. If there are two company codes with di erent chart of


accounts how can you consolidate their activities?
In this case you either need to write an ABAP program or you
need to implement the Special Consolidation Module of SAP. If
both the company codes use the same chart of accounts then
standard SAP reports give you the consolidated gure.

20. Give some examples of GL accounts that should be posted


automatically through the system and how is this de ned in the
system.
Stock and Consumption accounts are instances of GL accounts
that should be automatically posted . In the GL account master
record, a check box exists wherein the automatic posting option
is selected called “ Post Automatically Only”

21. What is a Account group and where is it used?


An Account group controls the data that needs to be entered at
the time of creation of a master record. Account groups exist for
the de nition of a GL account, Vendor and Customer master. It
basically controls the elds which pop up during master data
creation in SAP.

22. What is a eld status group?


Field status groups control the elds which come up when the

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user does the transactions. There are three options for eld
selection. They are:
Display only
Suppressed
Mandatory
So basically you can have any eld either for display only or you
can totally suppress it or make it mandatory.
The eld status group is stored in the FI GL Master Record.

23. What is the purpose of a “Document type” in SAP?


A Document type is speci ed at the Header level during
transaction entry and serves the following purposes:
•?It de nes the Number range for documents
•?It controls the type of accounts that can be posted to
eg Assets, Vendor, Customer, Normal GL account
•?Document type to be used for reversal of entries
•?Whether it can be used only for Batch input sessions
Document Type is created for di erentiating business
transactions.
Eg
Vendor Invoice, Credit Memo, Accrual Entries,Customer Invoice.
It is a two digit character.

24. What is a Financial Statement Version?


A FSV (Financial Statement Version) is a reporting tool and can
be used to depict the manner in which the nancial accounts like
Pro t and Loss Account and Balance Sheet needs to be
extracted from SAP. It is freely de nable and multiple FSV’s can
be de ned for generating the output for various external
agencies like Banks and other Statutory authorities.

25. How are input and output taxes taken care of in SAP?
A tax procedure is de ned for each country and tax codes are
de ned within this. There is exibility to either expense out the
Tax amounts or Capitalize the same to Stocks.

26. What are Validations and Substitutions?


Validations/Substitutions in SAP are de ned for each functional
area e.g. FI-GL, Assets, Controlling etc at the following levels
1. Document level

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2. Line item level


These need to be speci cally activated and setting them up are
complex and done only when it is really needed. Often help of
the technical team is taken to do that.

27. Is it possible to maintain plant wise di erent GL codes?


Yes. To be able to do so the valuation group code should be
activated.
The valuation grouping code is maintained per plant and is
con gured in the MM module. Account codes should be
maintained per valuation grouping code after doing this
con guration.

28. Is Business area at company code Level?


No. Business area is at client level. What this means is that other
company codes can also post to the same business area.

29. What are the di erent scenarios under which a Business Area
or a Pro t Center may be de ned?
This question is usually very disputable. But both Business Areas
and Pro t centers are created for internal reporting. Each has its
own pros and cons but many companies nowadays go for Pro t
center as there is a feeling that business area enhancements
would not be supported by SAP in future versions.
There are typical month end procedures which need to be
executed for both of them and many times reconciliation might
become a big issue. A typical challenge in both of them is in
cases where you do not know the Business Area or Pro t Center
of the transaction at the time of posting.

30. What are the problems faced when a Business area is


con gured?
The problem of splitting of account balance is more pertinent in
case of tax accounts.

31. Is it possible to default certain values for particular elds?


For e.g.
company code.
Yes it is possible to default values for certain elds where a
parameter id is present.

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Step 1 Go to the input eld to which you want to make defaults.


Step 2 Press F1, then click technical info push button. This would
open a window that displays the corresponding parameter id (if
one has been allocated to the eld) in the eld data section.
Step 3 Enter this parameter id using the following path on SAP
Easy access screen System ??User pro le ??Own data.
Step 4 Click on parameter tab. Enter the parameter id code and
enter the value you want as default. Save the usersettings.

32. Which is the default exchange rate type which is picked up


for all SAP transactions?
The default exchange rate type picked up for all SAP
transactions is M(average rate)

33. Is it possible to con gure the system to pick up a di erent


exchange rate type for a particular transaction?
Yes it is possible. In the document type de nition of GL, you
need to attach a di erent exchange rate type.

34. What are the master data pre-requisites for document


clearing?
The Gl Account must be managed as an ‘open item
management’ . This checkbox is there in the General Ledger
Master Record called Open Item Management. It helps you to
manage your accounts in terms of cleared and uncleared items.
A typical example would be GR/IR Account in SAP (Goods
Received/Invoice Received Account)

35. Explain the importance of the GR/IR clearing account.


GR/IR is an interim account. In the legacy system of a client if
the goods are received and the invoice is not received the
provision is made for the same.
In SAP at the Goods receipt stage the system passes an
accounting entry debiting the Inventory and crediting the GR/IR
Account .Subsequently when an invoice is recd this GR/IR
account is debited and the Vendor account is credited. That way
till the time that the invoice is not received the GR/IR is shown as
uncleared items.

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36. How many numbers of line items in one single entry you can
have?
The number of line items in one document you can
accommodate is 999 lines.

37. A Finance Document usually has an assignment eld. This


eld automatically gets populated during data entry. Where
does it get its value?
This value comes from the Sort key entered in the Gl master
record.

38. How do you maintain the number range in Production


environment?
Do you directly create it in the Production box or do you do it by
means of transport?
Number range is to be created in the production client. You can
transport it also by way of request but creating in the production
client is more advisable.

39. In customizing “company code productive “means what?


What does it denote?
Once the company code is live(real time transactions have
started) this check box helps prevents deletion of many
programs accidentally. This check box is activated just before go
live.

40. What is done by GR/IR regrouping program?


The balance in a GR/IR account is basically because of 2 main
types of transactions

41. Goods delivered but invoice not received –


Here the Goods receipt is made but no invoice has yet been
received from the vendor. In such a scenario GR/IR account will
have a credit balance.

42. Invoiced received but goods not delivered –


Here the Invoice is received from the vendor and accounted for,
but goods have not been received. In such a scenario GR/IR
account will have a debit balance.
The GR/IR account would contain the net value of the above

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two types of transactions. The GR/IR regrouping program


analyses the above
transactions and regroups them to the correct adjustment
account. The balance on account of rst transactions will be
regrouped to another
liability account and the balance on account of second
transactions will be regrouped to an asset account.

43. What are the functionalities available in the nancial


statement version?
In the nancial statement version the most important
functionality available is the debit credit shift. This is more
important in case of Bank overdraft accounts which can have a
debit balance or a credit balance. Thus in case of a debit
balance you would require the overdraft account to be shown on
the Asset side. In case of credit balance you would require the
account to be shown on the Liability side.

44. Is it possible to print the nancial statement version on a


SAPscript form?
Yes. It is possible to print the nancial statement version on a
SAPscript form.

45. How do you con gure the SAPscript form nancial statement
version?
It is possible to generate a form from the nancial statement
version and print the nancial statements on a SAPscript form. In
the customizing for
nancial statement version select the FSV you created and
choose Goto
??Generate form ??One column or Two column form.
You can also copy form from the standard system.

46. Is it possible to generate a nancial statement form


automatically?
Yes. It is possible to generate a form automatically.

47. Is it possible to keep the FI posting period open only for


certain GL codes?

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Yes. It is possible to keep open the FI posting period only for


certain GL codes.

48. How do you keep the FI posting period open only for certain
GL codes?
In transaction code OB52 click on new entries and maintain an
interval or a single GL code for the account type S with the
posting period variant. If the GL codes are not in sequence then
you need to maintain further entries for the posting period
variant and account type S.

49. Can posting period variant be assigned to more than 1


company code?
Yes. Posting period variant can be assigned to more than one
company code.

50. How are Vendor Invoice payments made?


Vendor payments can be made in the following manner:
Manual payments without the use of any output medium like
cheques etc.
Automatic Payment program through cheques, Wire transfers,
DME etc.

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