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1. What is the main use of SAP FICO?
We use SAP FICO modules within a company to manage financial tasks
within an international framework of languages and currencies.
SAP FI (Financial Accounting) deals mainly with fixed assets, accrual, cash
journal, tax accounting, general ledger, and other such financial tasks.
SAP CO (Controlling) on the other hand deals with buying orders, stock
sheet, cost sheet, cost assignment and other tasks in this category.

2. In SAP FI what are the components in a hierarchy?

You find four hierarchical components in SAP FI:
a. Company Code
b. Business Area
c. Functional Area
d. Chart of Account

3. What is the significance of financial statements within a

business?
You use financial statements to manage the financial assets of your
company. By creating and handling such financial records, you also create
data that you can use in developing further plans and investments for your
company.

4. What is the use of company code?

You use the company code before generating the profit and loss statements
of your company. While not all employees do not have access to the same
code, you can configure up to 3 different currencies. One of these remains
local, while the other two are considered a parallel.

5. What is the best way to manage transactions originating from

different lines of businesses within a company?
You can create Business Areas in order to differentiate among the different
lines of businesses in the company. Another way can be to create different
company codes for each business line.

6. What do you use Chart of Accounts for?

You use FI COA in order to meet the daily needs of your company as well as
the legal requirements of the country.
The COA has two types:
a. Operating COA: this record is assigned to the company code and
contains all the general ledger accounts.
b. Country COA: this is the list of general ledger accounts required in order
to meet the legal requirements of the country.

7. What is the function of credit control?

You use credit control in order to safeguard your business from
overstretching its financial assets. Generally, you can set a credit limit for
the customers using SAP, when the payment is made after the sale of the
product. In this way, you can restrict the amount that the customer needs to
clear in his/her account before further purchases can be made.
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8. How many fiscal year variants can you use at a time?

The fiscal year variants that you create contain the number of posting
periods in that fiscal year as well as the number of special periods. Up to 16
posting periods can be defined.
Each company code needs a specific fiscal year variant. Thus, while creating
a controlling area, you should also specify that code’s fiscal year variant.

9. What is the field status variant and field status group?

Your field status variants are contained within field status groups. On the
other hand, the field status groups are maintained within the General Ledger
account. You use it to define the fields while you post to the general ledger.

10. What are some of the modules to which FI is integrated?

FI is also integrated into the following modules:
a. Production Planning
b. Human Resource
c. Material Management
d. Sales and Distribution

11. How do you manage input and output taxes?

The country of origin of your company will have tax procedures defined,
having tax codes within them. You can make the choice to either expend the
tax amount or you can choose to capitalize the tax amount into stocks.

12. How can you make vendor payments?

You can use two methods to make the vendor payments:
a. Manual Payment: This is done without the use of a medium such as
cheques.
b. Automatic Payment: This is through DME (Data Medium Exchange)
such as wire transfer or cheques.
13. How do you define ‘Year Shift’?
Within a company, the calendar year does not always match the financial
year. For example, you may need to remove or add certain months. You can
do this using SAP and the procedure is called ‘Year Shift'.

14. What are the major applications of SAP FICO?

SAP FICO has many real-time applications.
a. Handling financial tasks vital to the company
b. Asset and cost accounting
c. Consolidation
d. Real estate
15. What do you understand by WIP?
WIP stands for Work in Progress. You sue this to label an asset that is
currently under development, and that can be customized by the user if
needed.
This list of 15 important SAP FICO interview questions and answers should
help you get a head start on preparing for the job interview.