Few SAP FICO Interview questions & answers

1. If we have multiple assets. Can we depreciate only one asset?

Yes, it is possible to depreciate only selective assets. In the asset master AS02, there is an
option for “asset shut down”. If the user ticks this option SAP stops calculating depreciation
for such assets. In this feature, there is also a possibility of maintaining this “asset shut
down” tick for a specific period & restart calculating depreciation when required.

2. What is base line method and decline balance method?

Base line method is a straight-line depreciation method, wherein the depreciation is either
calculated based on a defined percentage or defined life, which has to be maintained in the
asset master. For an example, acquisition value an asset is Rs. 10,000 and life of the asset is
maintained as 20 years. System will calculate depreciation @ Rs. 500 every year for 20 years.

Declining balance method however is also referred as Written down value method. For
example, if 10% declining balance method is chosen, in the first year, the depreciation will
be calculated @ Rs. 2,000. In the second year, the base for calculation of depreciation will
be Rs. 18,000 and depreciation will be Rs. 1,800.

3. Why do we need to run jobs/ job overviews?

There are some transactions that are mandatorily run as a background job e.g. depreciation
posting AFAB, ASKB. Otherwise, the transactions which need significant time to run are
often run in background. Also, user can schedule jobs which need significant time such as
automatic clearing at night time, when system load is low. The results can be checked after
completion from SM37, in which a spool is created.

4. What is open item management?

I have written an article on Facebook earlier which explains open item management in
detail. You can check my post in this group.
https://www.facebook.com/groups/SAPFICOConsultants/permalink/10157044972729072/

5. How you will upload asset data

Upload of asset data is done in two steps:

Step 1: Upload in Assets module: The first step is identification of asset master data. Make
sure that the Gross Block and Accumulated depreciation is identified for each asset master
and the summation tallies with the balance in respective GL accounts in the legacy system.
 Assets should be further segregated into different asset classes. Once this ready, asset
legacy data can be created from transaction AS91. Simultaneously, the balance of Gross
Block and Accumulated Depreciation on the cut over date can be uploaded. This step
updates the balances in asset module; however, it does not create a financial entry.

Step 2: Upload in GL account: As the GL accounts for Gross Block and Accumulated
Depreciation cannot be posted manually, there is a specific transaction code “OASV”
through which the financial entry is posted. Financial entry is posted for all asset combined
for each asset class. For example, all Furniture & Fixture asset balances will be combined
and posted into the GL in a combined entry. The financial entry for the upload will be as
below:

Gross Block Furniture & Fixtures A/c Dr.

Legacy Balance upload (Fixed Assets) A/c Cr.

Legacy Balance upload (Fixed Assets) A/c Dr.

Accumulated Depreciation Furniture & Fixtures A/c Dr.

After Step 1 & 2, check that the balances in FI & Asset module are matching. FI balance can
be checked from S_PL0_86000030 and asset balance from S_ALR_87011990

6. What is the concept behind available amount in APP?

The available amount represents the maximum amount that can be paid out from the APP
per entry. This is similar to the process followed by banks for cheques that a given set of
signatories cannot sign a cheque above a certain amount. System will not allow user to
process the APP transaction for more than the available amount.

7. The user is posted wrongly depreciation for 10 assets and the financial year is closed. Then
how you will rectify the issue, what is the process to reset?

If the financial year is closed, the rectification can be done in the next financial year. For
reversing the excess depreciation that has been posted, use transaction ABSO and
transaction type 700. The financial entry will be generated at the time of posting of
depreciation (AFAB).

8. Payment documents while posting through APP got terminated due to server shutdown.
How to start the terminated payment run?
 You can again run F110 & select the same run id and run date. Thereafter, schedule
payment run again. Doing a drop down for identification, all the payment runs for a
particular date can be displayed.

9. What is the impact on the old balance when the reconciliation account in the vendor master
is changed?

Vendor reconciliation account cannot be changed unless the vendor has NIL open items.
After the reconciliation account is changed, the old balances appear in old reconciliation
account. Since the old entries are already, it does not have any problems in balance
reporting.

10. Is it possible to mention purchase organization in vendor master after the posting, if yes,
then how??

Yes, purchasing organization can be updated in the vendor master after posting. The basic
concept of mentioning purchasing organization in a vendor master is to enable it for MM
module (extend it to MM module). You can update purchasing organization to an existing
vendor from transaction code XK01 or MK01. Do remember to put the same vendor account
in “reference”.

11. At the time of vendor/customer master data uploading, how to upload the opening balance
of vendor/customer.

Balances of vendors & customers should be uploaded line by line, i.e. all the open items in
legacy system should be uploaded as open items in SAP. While uploading, make sure to fill
the purchasing or sales invoice number in reference field. This will help in future clearing,
when while receiving payment or making payment, the relevant open items will be cleared.
Remember to upload the baseline date.

12. At the time of data uploading how we confirm that the data, which we have uploaded is
correct?

Legacy balance upload GL accounts are created for opening balance upload. Ideally, at least
5 legacy balance upload GL accounts should be created, for:

 Legacy balance upload Vendors

 Legacy balance upload Customer
 Legacy balance upload Fixed Asset
 Legacy balance upload Inventory
 Legacy balance upload GL accounts

Once the upload is done, the closing balance put together in all these accounts should be
zero, which will confirm correct upload. You can pass a JV for making the balance in all these
accounts once your uploading activity is over.
 13. Is it possible to make multiple cash journal with different currencies to be posted in one
Cash GL account with local currency?

Yes, technically, this is possible, however better practice is to maintain separate GL account
for separate cash journals.

14. How do you maintain multiple shift depreciation in asset master?

While creating a Depreciation Key, user can select the option of multiple shift & increasing the
depreciation. In the asset master, under time dependent data, user can define shift factor.

15. What do you understand by WRICEF?

A typical SAP implementation involves different types of custom developments in order to

address various business requirements. Custom developments in SAP implementation projects
can be broadly classified into six distinct categories of development types: workflow, report,
interface, conversion enhancement, and forms (WRICEF).

16. While creating asset master we have two options. One is using asset class and another one is
using an existing asset master. Here my question is what default values to be provided by asset
class and existing asset master to newly created asset master?

If you create a new asset with reference to an existing asset master data, all the data of existing
asset gets copied to the new asset code and user makes the changes while creating the new
asset code. If you create a new asset with reference to an asset class, only default account
assignments to the asset class such as depreciation key gets copied over.

17. What is foreign currency valuation? Why do we need to maintain ratios?

According to IAS 21, a foreign currency transaction should be recorded initially at the rate of
exchange at the date of the transaction. At each subsequent balance sheet date, the foreign
currency monetary amounts should be reported using the closing rate. Vendor and customers
fall under the category of monetary items. Transaction code FAGL_FC_VAL is used for post the
foreign currency valuation. A separate exchange rate type should be maintained for doing
foreign currency revaluation and the exchange rate ratio with that exchange rate type should be
maintained in OB08 for the relevant closing date.

18. Asset acquired last year and useful life is 10years now client said it's 6years only. How will you
manage at the time of depreciation?

As 1 year of expired useful life has already expired, you can maintain 5 years as the new life in
the asset master. System will depreciate the balance remaining in the asset over the next 5
years.

19. Acquisition assets are Rs 100000 and account depreciation is 10000. what are the entries if I
sale the asset for customer 120000?
 In the above transaction, the Net book value is Rs. 90,000 and the asset has been sold at Rs.
1,20,000, thereby giving a profit on disposal of Rs. 30,000. Following will be the accounting
entries. This has to be done from transaction code F-92 and user has to do only 2 entries (first 2)
and other entries (3, 4, 5, 6) are created automatically by the system. While doing F-92, tick the
box “asset retirement” which appears after the Asset clearing account is entered.

Customer A/c Dr. 1,20,000

Asset clearing A/c Cr. 1,20,000
Gross block Cr. 1,00,000
Accumulated Depreciation Dr. 10,000
Profit on disposal of assets Cr. 30,000
Asset clearing A/c Dr. 1,20,000

For simplification, GST is excluded from the above entry. If GST is also there, then customer will
be debited with the GST amount and GST payable account will be credited. The relevant tax
code should be filled in F-92.

20. A company have different branches in different states and have bank a/c in each state under
SBI then should we create one house bank or create house bank for each branch a/c

Creation of multiple house banks for each separate account number is a good practice. While
doing FBZP, the ranking order can be set up for house bank. According to this ranking order, the
house bank is picked during APP. For doing branch wise APP, user can fill the house bank in
vendor masters or at the time of transaction (FB60 or MIRO).