SAP FICO Interview Questions on Implementation and

Configuration
Q1. – What is the relation between an SAP Controlling Area and
Company Codes?
Ans. – Controlling Area may have two types of relationship with company Code:

1. Single Company Code relation

2. Cross Company Code relation

This means you can assign one single controlling area to several different company
codes. Controlling can have relationships with different company codes, either
as, one : one or, one : many.

Controlling Area is the umbrella under which you can store all controlling activities of
cost center accounting, product costing, profit Centre and Profitability Analysis.

Q2. – How many Charts of Accounts can a company code have?

The chart of Accounts is nothing but the list of General ledger Accounts.

Ans. – You can assign two charts of accounts to a single company code.

One is the Operational Chart of Accounts which is mandatory to perform all

operational activities.

Second, we can use (rarely) Country-specific chart of accounts in some

scenarios.

Q3. – What are the options in SAP when it comes to Fiscal Years?
Fiscal Year is nothing but the way financial data is stored in the system.

We can take a maximum of up to 12 periods and 4 special periods. These periods

are stored in what is called the Fiscal Year Variant.

Answer to Question:

You can take the Fiscal Year Variant either as:

 A Calendar Year (Jan-Dec), or

 A Non-Calendar Year (April-March, June –May, etc).

Since you create a Fiscal Year Variant at the client level, you need to assign it to a
company code.

You can define a fiscal Year with 2 digit code. Table for Fiscal Year Variant is
T009.
In SAP ERP (ECC) you can assign two different FYV to the company code and
controlling area. For example, you can assign K4 (Jan-Dec) to the Company code
and V3 (April-March) to the controlling Area.

However, in S4 HANA Finance, you need to assign the same Fiscal Year Variant to
both, company code and the Controlling Area.

Q4. – What is the 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.

Lets us take an example– for the year 2010, the period January ends on 29 th, Feb
ends on 27th and March ends on 29.

For the year 2011, January ends on 30th, Feb ends on 26th, March ends on 30th, etc.
This is applicable to many countries, especially to the USA. Accordingly, we need to
configure the Fiscal Year Variant.

Q5. – How does posting happen in MM during special Periods?

Ans. – There is no posting that happens from SAP MM in special periods. Special
periods are only applicable to the FI module. You need them to make any additional
posting such as closing entries, provisions, which happen during year-end.

Q6. – How many currencies you can configure for a company code?
Ans. – A company code can have 3 currencies.

1. Local Currency/Company code

2. Group currency which is defined at the client level
3. Hard Currency at country level settings in Net weaver (you can define this if
the inflation rate is high).

Q7. – Do we need to configure additional ledgers for parallel

currencies?
Ans. – In case we configure two currencies (Company Code currency and parallel
currency) we do not need an additional ledger. However, if we configure the third
parallel currency and this is different than the second currency type, then we need to
configure an additional ledger.

SAP FICO Interview Questions on FI GL (General

Ledger)
Q8. – Give an example of GL accounts that system posts
automatically through the system. How you define it in the system?
Ans. – Stock Consumption accounts are instances of GL accounts that the system
posts automatically. In the GL account master record, a checkbox exists wherein you
select the automatic posting option. This is called “Post automatically only”.
Q9. – What is an Account Group and where you use it?
Ans. – An account Group controls the data that you need to enter at the time of the
creation of a master record.

Account Groups exist for the definition of a GL account, Vendor and Customer
Master. It basically controls the fields which pop up during master data creation.

Q9. – What is the Field status Group?

Ans. – Field status Group controls the fields which come up when the user does the
transactions. Here, three options are available:

1. You can have the fields only for display

2. You can suppress it
3. Lastly, you can make it mandatory.

Noteworthy, the field status group is stored in the GL master.

Q10. – What is the use of “Document Type” in SAP?

Ans. – A document type is specified at the Header level during transaction
entry and serves the following purpose:

 Document Type defines number range for documents

 Secondly, it controls the type of accounts that you can post to. For Example –
Asset, vendor, customer, GL posting, etc
 Lastly, you can use a Document Type for the reversal of entries.

Q11. – What is the Financial Statement Version?

Ans. – An FSV (Financial Statement Version) is a reporting tool that you use to
extract depict the Final accounts from SAP. Examples are, Profit and Loss Account
and Balance sheet.

Furthermore, you can freely define it to generate the output for various external
agencies like Banks and other statutory authorities. Even you can define multiple
FSV too.

Q12. – What are Validations and Substitutions?

Ans. – Validations/Substitutions in SAP are defined for each functional area eg.
Assets, Controlling, etc at the following levels:

 Document Level
 Line Item Level

You are required to specifically activate and setting them up. Importantly, these are
complex and you should do them only when you really need them. Here you
generally require help from the technical team for this work.
Q13. – Is it possible to maintain plant wise different GL codes?
Ans. – You can maintain the valuation grouping code as per plant and you can
configure it in the MM module. Certainly, you should activate the valuation group
code for this.

Additionally, you can maintain Account codes as per the valuation grouping code
after doing this configuration.

Learn SAP FICO Interview Questions on

Organizational Structure
Q14. – Is the Business area lies at the company code level?
Ans. – The Business area lies at the client level. This means the other company
codes can also post to the same business area.

Q15. – What are the different scenarios under which you may define a
Business Area or a Profit Centre?
Ans. – Though, this is very disputable. However, both the Business Area and Profit
Centres are created for internal reporting. Each has its own merits & demerits.

Many companies nowadays go for Profit centers as they feel that SAP would not
support Business area enhancements in future versions.

For the typical month-end procedures, you need to execute both. Many times
reconciliation becomes a big issue. A typical challenge in both of them is, many
times, you do not know the Business Area or Profit Center of the transaction at the
time of postings. Thus, it makes the process complex for you.