few more are here

1. What controls the Customer/Vendor master records field status?

2. What are all the segments in a Customer/Vendor master record?

3. What is residual payment and part payment?

4. How to calculate interest on customers, what is customization to be done to

calculate interest on customers.

5. How we can delivery the stock to Customer with out invoice creation.

6. Explain the order creation of automatic payment programme in AR/AP

7. How you configure AR/AP reconciliation ledger.

8. Explain dunning procedure.

9. How do you customize a vendor account which is also happen to be a customer.

10. How do you configure sales discount and tax on sales/purchase.

AR

How does Dunning Work?

When can interest be calculated?

Explain how payment terms work?

How can you enter cash against a customer?

Explain the aging process?

Provide me an overview of the order to cash process, from SD to receiving cash in AR?

AP

How do you configure the payment process?

What controls should be in place for Segregation of Duties?

How can I see how much a Vendor is owed?

Explain what is meant by three way matching?

How do you reverse a MIRO invoice?

How do you pay a vendor in a foreign currency?

<b>Real time Questions</b>

1. Tell me Some of AS IS sceniours you have come accross in your projects (related to FICO modul)

2. Tell me some expamples of Gap Analysis that you have come accross in your respective module
ie in FICO

3. Tell me some of expample of BPR

4. Tell me some of the expample for Enhancements you have done in your projects

5.Tell me some of the Tickets which you have faced (FI-SD) FI-MM)

FI-GL

Give some examples of GL accounts that should be posted automatically through the system and
how is this defined in the system.

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

What is a Account group and where all 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 definition of a GL account, Vendor and Customer master. It
basically controls the fields which pop up during master data creation.

What is a field status group?

Field status groups control the fields which come up when the user does the transactions. The
options available are one can have the fields only for display or one can suppress it or make it
mandatory. So there are three options basically.. The field status group is stored in the FI GL Master

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

A Document type is specified at the Header level during transaction entry and serves the following
purposes :

It defines 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

What is a Financial Statement Version?

An FSV(Financial Statement Version) is a reporting tool and can be used to depict the manner in
which the final accounts like Profit and Loss Account and Balance Sheet needs to be extracted from
SAP. It is freely definable and multiple FSV's can be defined for generating the output for various
external agencies like Banks and other Statutory authorities.

How are input and output taxes taken care of in SAP ?

A tax procedure is defined for each country and tax codes are defined within this. There is flexibility
to either expense out the Tax amounts or Capitalise the same to Stocks.

What are Validations and Substitutions ?

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

1. Document level

2. Line item level

These need to be specifically 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.

Is it possible to maintain plant wise different GL codes?

The valuation group code should be activated. The valuation grouping code is maintained per plant
and is configured in the MM module. Account codes should be maintained per valuation grouping
code after doing this configuration.

Is Business area at company code Level?

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

What are the different scenarios under which a Business Area or a Profit Center may be defined?

This question is usually very disputable. But both Business Areas and Profit centers are created for
internal reporting. Each has its own pros and cons but many companies nowdays go for Profit 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 Profit Center of the transaction at the time of posting.

What are the problems faced when a Business area is configured?

The problem of splitting of account balance is more pertinent in case of tax accounts. Also SA
Is it possible to default certain values for particular fields? For e.g. company code.

Yes it is possible to default for certain fields where a parameter id is present. Go to the input field to
which you want to make defaults. Press F1, then click technical info push button. This open a
window that displays the corresponding parameter id (if one has been allocated to the field) in the
field data section. Enter this parameter id using the following path on SAP Easy access screen
System &#56256;&#56518; User profile &#56256;&#56518; Own data. Click on parameter tab. Enter
the parameter id code and enter the value you require to default. Save the usersettings.

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)

Is it possible to configure the system to pick up a different exchange rate type for a

particular transaction ?

Yes it is possible. In the document type definition of GL, you need to attach a different exchange rate
type.

What are the Customizing prerequisites for document clearing?

Account must be managed on the open item management. This tick 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)

Explain the importance of the GR/IR clearing account.

GR/IR is an interim account. In 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 .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.

How many numbers of line items in one single entry you can have?

No of line items in one document you can accommodate is 999 lines.

In Assignment Field in the Document you get some reference, which comes from where?

This is on the basis of Sort key entered in the master.

How do you maintain the number range in Production environment? By creating in Production or by
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

In customizing “ company code productive “ means what? What it denotes?

Once the company code is live this check box helps prevent deletion of many programmes
accidently. This check box is activated just before go live..

Accounts

Accounts Receivable and Accounts Payable

At what level are the customer and vendor code stored in SAP?

The customer and vendor code are at the client level. That means any company code can use the
customer and vendor code by extending the company code view.

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.

How do you configure the automatic payment program?

The following are the steps for configuring the automatic payment program:-

Step 1 Set up the following:

Co. code for Payment transaction

Define sending and paying company code.

Tolerance days for payable

Minimum % for cash discount

Maximum cash discount

Special GL transactions to be paid

Step 2 Set up the following:

Paying company code for payment transaction

Minimum amount for outgoing payment

No exchange rate diff

Separate payment for each ref

Bill/exch payment
Form for payment advice

Step 3 Set up the following:

Payment method per country

Whether Outgoing payment

Check or bank transfer or B/E

Whether allowed for personnel payment

Required master data

Doc types

Payment medium programs

Currencies allowed

Step 4 Set up the following:

Payment method per company code for payment transactions

Set up per payment method and co. code

The minimum and maximum amount.

Whether payment per due day

Bank optimization by bank group or by postal code or no optimization

Whether Foreign currency allowed

Customer/Vendor bank abroad allowed

Attach the payment form check

Whether payment advice required

Step 5 Set up the following:

Bank Determination for Payment Transactions

Rank the house banks as per the following

Payment method, currency and give them ranking nos

Set up house bank sub account (GL code)

Available amounts for each bank

House bank, account id, currency, available amount

Value date specification

Where do you attach the check payment form?

It is attached to the payment method per company code.

Payment terms for customer master can be maintained at two places i.e. accounting view and the
sales view. Which is the payment term which actually gets defaulted in transaction?

The payment term in the accounting view of the customer master comes into picture if the
transaction originates from the FI module. If an FI invoice is posted (FB70) to the customer, then the
payment terms is defaulted from the accounting view of the customer master.

The payment term in the sales view of the customer master comes into picture if the transaction
originates from the SD module. A sales order is created in the SD module. The payment terms are
defaulted in the sales order from the sales view of the customer master.

Payment terms for vendor master can be maintained at two places i.e. accounting view and the
purchasing view. Which is the payment term which actually gets defaulted in transaction?

The payment term in the accounting view of the vendor master comes into picture if the transaction
originates from the FI module. If an FI invoice is posted (FB60) to the Vendor, then the payment
terms is defaulted from the accounting view of the vendor master.

The payment term in the purchasing view of the vendor master comes into picture if the transaction
originates from the MM module. A purchase order is created in the SD module. The payment terms
are defaulted in the purchase order from the purchasing view of the vendor master.

Explain the entire process of Invoice verification from GR to Invoice verification in SAP with
accounting entries?

A goods receipt in SAP for purchased material is prepared referring a purchase order.

When goods receipt is posted in SAP the accounting entry passed is:-

Inventory account Debit

GR/IR account credit

A GR/IR (which is Goods receipt/Invoice receipt) is a provision account which provides for the
liability for the purchase. The rates for the valuation of the material are picked up from the purchase
order.

When the invoice is booked in the system through Logistics invoice verification the entry passed is
as follows:-
 GR/IR account debit

Vendor credit

How are Tolerances for Invoice verification defined?

The following are instances of tolerances that can be defined for Logistic Invoice Verification.

c. Small Differences

d. Moving Average Price variances

e. Quantity variances

f. Price variances

Based on the client requirement, the transaction can be “Blocked” or Posted with a “Warning” in the
event of the Tolerances being exceeded.

Tolerances are nothing but the differences between invoice amount and payment amount or
differences between goods receipt amount and invoice amount which is acceptable to the client.

Can we change the reco account in the vendor master? If so, and how? What is the impact on the
old balance?

Reconciliation account can be changed in the vendor master provided that authority to change has
been configured. Also any change you make to the reconciliation account is prospective and not
retrospective. The old items and balances do not reflect the new account only the new transactions
reflect the account.

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

 Sales and Distribution

 Material Management
 Human Resource
 Production Planning
 Controlling of financial transaction

3) In SAP FI what are the organizational elements?

Ans:

The organizational elements in SAP FI are:

 Company Code
 Business Area
 Chart of Account
 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

 Account Types
 Types of posting. Debit or Credit
 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:

 Calendar Year: From Jan-Dec, April-March

 Year dependent fiscal year

9) What is a ‘year shift’ in SAP calendar?

Ans:

SAP system does not know what is broken fiscal year e.g April 2012 to March 2013 and only
understand the calendar year. If, for any business, the fiscal year is not a calendar year but the
combination of the different months of two different calendar year and then one of the calendar year
has to classified as a fiscal year for SAP and the month falling in another year has to be adjusted
into the fiscal year by shifting the year by using the sign -1 or +1. This shift in the year is known as
‘year shift’.

Example: April 2012 to Dec 2012 is our first calendar year, and Jan 2013 to March 2013 is our
second year, now if you are taking April-12 to Dec-12 as your fiscal year, then Jan-13 to March-13
automatically becomes the second year, and you have to adjust this year by using -1 shift, and vice
versa if the scenario is reversed, here you will use +1 shift.

10) 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.

11) How taxes are taken care of in the SAP FICO?

Ans:

One of the major issues is Tax Slabs are not similar in all the countries. Also, there are additional
taxes applicable there. SAP FICO has tax procedure already defined in it for various nations and the
users are free to get the information regarding the same. The Tax amounts can be sent to stocks by
default or the users are free to make challenges in them as per their need and convince. Thus, taxes
are not an issue with the SAP FICO.

12) What do you know about the Substitutions and validations in SAP?

Ans:

They are generally defined assets for the different functional area. They can be accessed through
two options and they are Document level and the line level. 

13) What are the major applications of SAP FICO you are familiar with?

Ans:

SAP FICO has some major applications for which it is actually known. It is widely considered I
Financial accounting for handling a lot of tasks that matters to the organizations. In fact, all that
matters in the accounting can easily be managed with this approach. It also has applications in the
Asset and Cost Accounting. The Project system accounting can also be managed through it in a
reliable manner. The users are free to consider it for the purpose of Consolidation. In addition to this,
SAP FICO has large scale application in the Real Estate which is one of the emerging domains
across the globe in the present scenario. 

14) What is WIP in SAP FICO?

Ans:

It stands for Work in Progress and basically defines the status of the asset that is under
development mode in the SAP FICO. It is possible for the users to customize it if required.

15) Can you name a few methods with the help of which the vendor invoice payments can be
taken care of?

Ans:

There are options for manual payments that can be made either in cash or through cherubs. Other
options include electronic transfer. The SAP FICO keeps a close eye on all the transactions made
through the latter option when the same is integrated with the accounts.

16) What exactly posting key is in FICO and what is its significance?
 Ans:

It is basically an approach that enables users to determine the transaction type among the various
possible options in the domain. Generally, it is a two digit number when is entered during defining of
item. It simply give idea about the type of posting which can either be credit or debit as well as the
type of accounts. Also, the status of transactions can also be recorded through it. 

17) What is the significance of financial general ledger accounting?

Ans:

It is used whenever there is a need for the organization to access the external accounts. It simply
incorporate all the financial transactions of a business made within a specific time period. The users
are free to keep up the pace simply even when the operational areas needs core accounting skills or
have problems associated with them. 

18) What are the biggest benefits that you can have with the SAP FICO?

Ans:

There are certain benefits and a few major ones are spotlighted below:

 One of the major benefit is accounting data is always correct. The users doesn’t need to
worry about this
 There is no upper limit on handling the accounts. Any number of accounts can be managed
 It is useful in auditing as an eye can be kept on the transactions made by the business
 It make sure of financial transparency
 The detailed information about the expenses can be prepared and the same can then be
considered for the purpose of preparing the future budgets
 A lot of time and money can be saved
 The users can make sure of financial outputs that can be trusted in the long run

19) What is Financial Statement version in the SAP FICO?

Ans:

It is basically a tool that is used for reporting. All the financial accounts can be extracted through it
along with all the relevant information required by the users. It is possible to deploy it for the purpose
of generating the outcomes of different agencies associated with a business. The same information
can then be passed to the concerned authorities for the betterment. 

20) Tell something you know about a field status Group?

 Ans:

When transactions are done, there are often fields which come up, this option is used or is enabled
when they are not required while handling the tasks.

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21) Describe the short-end fiscal year?

Ans:

The short-fiscal year is the result of the process when the user changes from the fiscal year to non-
fiscal year or do the other way around. Such big changes take place when an organization becomes
a part of the co-corporation group.

22) What is the role of “document type” in SAP FICO?

Ans:

The primary role of document type is to define the number range of documents, types of accounts
that are controlled by it and reversal of entries.

23) In SAP, customer and vendor codes are stored at which level?

Ans:

When it comes to storing customer and vendor codes in the SAP, they are carefully stored at the
client level. Moreover, it also means that extending the company code any organization can leverage
the customer and vendor code.

24) Explain the tolerance for the invoice verification?

Ans:

Tolerance defines whether the accounts or tax hold are on the invoice or not. Here are some of the
common examples of tolerance that can be further defined in logistic invoice verification: –

 Small differences
 Quality variance
 Price variance

25) What are the country charts of accounts?

Ans:

Country charts of accounts contain the general ledger accounts that are necessary to meet the legal
requirements of a country.

26) Describe the concepts of one-time vendors in SAP FICO?

Ans:

For companies that deal with the high cash transaction, it is not practical to create the transaction
code for each trading vendor. Therefore, the one-time vendor provides the one- time code for a
vendor that can be used to make transactions and store the information.

27) Define the dunning in SAP?

Ans:

Dunning refers to the process through which the payment chasing letters are issued to the
customers. SAP is responsible to determine which letter will be issued to which customer for which
overdue.

28) What information do users need to provide while creating the credit area?

Ans:

The user who is creating the credit area in SAP needs to provide the description, controller name,
currency, and risk category. Once done, they need to fill the fiscal variant to complete the credit area
creation which will limit down their credit.

29) What is posting period variants?

Ans:

Posting period variants refers to the time frame in which the transaction figures should be updated. It
usually depends upon the control accounting period.

30) What is field status?

Ans:

The field status refers to a method that is used to maintain the general ledger accounts in the SAP. It
generally controls the fields which provide information to other primary accounts.
31)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.

32)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.

33)Define relationship between controlling area and company code?

Ans:

A controlling area may include one or more company codes which must use the same operative
chart of accounts as the controlling area. A Controlling Area can contain multiple company code
assignments but a single company code can be assigned to only one controlling area.

34)What is a fiscal year variant?

Ans:

Fiscal Year is a period of 12 months and SAP provides 4 special periods to posting adjustment
Entries. Fiscal year determines posting periods. Posting periods are used to assign business
transactions. Fiscal year may be year dependent or year independent.

35)What are special periods used for?

Ans:

The Special periods in a fiscal year variant can be used for things like posting audit or tax
adjustments to a closed fiscal year.

36)What do you mean by year dependent in fiscal year variants?

Ans:
Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st Dec
(where posting periods and the calendar months are equal)

Year Independent: the financial year is different from calendar year Starting from 1st April to 31st
March (where the posting period months are not equal to calendar year months)

37)What are shortened fiscal year? When are they used?

Ans:

Shortened Fiscal Year: a financial year, which has less than 12 periods.

38)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.

39)What are document types and what are they used for?

Ans:

Document type is the identifier of different 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.

40)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.

41)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.

42) Why would you use SAP FICO over other approaches?

Ans:

Employers ask this question to measure how well you understand the advantages of using SAP
FICO. Your answer should show why SAP FICO is helpful in a financial career and how it could
provide advantages that similar programs may not offer.

Example: “SAP FICO tends to be more flexible than other approaches. It gives you more options for
accounting integration and control, which is often missing in other systems. Unlike some other
approaches, SAP FICO also lets you control financial statements that include multiple currencies.”

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43) Why are financial statements necessary for a company?

Ans:

Companies need accurate financial reports to run smoothly. When answering this question, show
the interviewer you understand how, why and when to generate financial statements. Explaining why
financial reports are important to a company will help you assure your potential employer that you
have the expertise needed to manage their financial data with minimal supervision.

Example: “Financial statements allow a company to track how much they spend on specific
transactions. These reports are beneficial since you create a digital record you can refer to in the
future. Having electronic documents makes it easier to prepare and send them when the company
needs to make decisions or plans. The ability to create electronic documents makes SAP FICO
especially useful.”

44) What does Year-Dependent Fiscal Year mean?

Ans:

When using SAP FICO, know how to create and monitor fiscal year reports for your company, which
could span any 12-month period. Your answer to this question should show that you know how this
term applies to SAP FICO. Consider also giving an example of how it might affect a company’s
financial statement.

Example: “Year-Dependent Fiscal Year is a useful function in SAP FICO systems that lets you
generate and review financial reports for a specific fiscal year, which may be different from that
calendar year. For example, not all months have 30 working days in a fiscal year. Based on various
projects they are working on, an organization might need to end the month a few days early. One
month might only have 20 days according to the Year-Dependent Fiscal Year.”

45) What are some common reasons for errors in accounting, and what impact can they have
on an organization?

Ans:

You may encounter some errors when using SAP FICO, so let your interviewer know that you can
recognize the more common ones and what to do about them. When giving your answer, list some
examples of common errors that a user can make in SAP FICO.

Example:“Errors occur in SAP FICO for many reasons. It can be easy for the user to make a
mistake, as even entering one number wrong will cause many issues in the organization. This
mistake can lead to false information about profits and losses. Errors may also occur due to a fault in
the system, accounting mistakes, bills or claims that are prepared incorrectly and failure to update
sheets. To help prevent these types of situations, anyone who works in SAP FICO should carefully
check their work before submitting it.”

46) How do you take care of taxes in SAP FICO?

Ans:
You can configure taxes in SAP FICO and many finance careers will require you to do so. When you
answer this question, show the interviewer you thoroughly understand how you can complete taxes
using this system.

Example: “Every company needs to configure their taxes according to their country, which you can
easily do with SAP FICO. Additional taxes are also applicable in different countries. SAP FICO
defines its tax procedure for different nations, so if I ever need to determine additional taxes in other
countries, I can look them up in the SAP system.”

47) What major applications of SAP FICO do you know?

Ans:

SAP FICO comes with multiple applications, so familiarize yourself with some of the system’s most
common features before your interview. This will help you assure your potential employer that you
can transition easily into a position that requires regular use of the SAP system.

Example: “I try to stay up-to-date with SAP FICO as a whole, but I became especially familiar with
accounts receivable statements in my last position. I can quickly generate reports that track new
customer accounts, down payments and monthly invoices.”

48) Explain the purpose of Document type in SAP?

Ans:

It is used to define the range of documents. It is used to control the types of accounts like assets,
customers, etc. Moreover, it is also used for the reversal of entries. 

49) What is APP in SAP Fico?

Ans:

Automatic Payment Program or APP is a tool given by SAP to companies for paying to their
customers. It is a very useful tool used to avoid mistakes that can happen if perform manually. 

50) Where do we use SAP FI?

Ans:

SAP FI module is used to manage financial accounting data in multiple companies, languages, and
currencies. This module is mainly deal with the components like Inventory, Cash Journal, Accrual,
 Inventory, Fixed asset, Tax accounting, Account receivable and payable, General Ledger, Parallel
valuations, financial statements, Master data governance, and Fast close functions. 

51) Do you know about different submodules in SAP FI?

Ans:

 Banks
 AR/AP
 General Ledger
 Travel Management
 Lease Accounting
 Fixed Assets, etc.

52) How can internal orders be used?

Ans:

We can use the internal orders for:

 Investment orders: In this, we can monitor internal jobs related to fixed assets.
 Overhead orders: In this, we can monitor those internal jobs that relate to the cost center.
 Accrual orders: In this, the accrued cost is calculated in CO as per offsetting posting.
 Orders with Revenue: In this, we only calculate the cost controlling parts of sales and
distribution. 

53) What are the advantages of using Business areas in a company?

Ans:

When we use the business area, it becomes easy to configure. For this, we need to attach the
company code along with other information in the business area. Moreover, with the usage of
business areas in control, we can create a balance sheet, profit, and loss statement, and more
ledger accounts for business areas. Thus, business areas are used for management accounting in
some companies. 

54) How can we manage the credit limit for the customer in FI?

Ans:

With the help of credit control in FI, it is possible to find out the credit limit for the clients. It is used in
application components (sales and distribution, Account receivable) for credit management. We can
use the credit control in this way- User exit- Distribution channel-Customer master- Company code.
 55) How can you create Credit Control Area in SAP?

Ans:

By using transaction code OB45 or path you can create Credit Control Area in SAP

SPRO> enterprise structure >maintain structure>definition>financial accounting>maintain credit

control area and then enter the following description

 Update
 Name of the credit control area in SAP
 Currency
 Description
 Credit Limit
 Risk Category
 Fiscal Variant
 Rep group

56) 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.

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 57) 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.

58) 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.

59) 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.

60) What is the purpose of “Document type” in SAP?

Ans:

The purpose of ” Document type” in SAP is:

 Number range for documents are defined by it

 Types of accounts that can be posted are controlled by it, e.g Assets, Vendor, Customer,
Normal GL account
 It is used for the reversal of entries

61) 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.

62) 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.

63) 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.

 Small differences
 Moving average price variances
 Quantity variances
 Price variances

64) How Does Firstlogic’s Global Data Quality Connector For Sap Systems Work?

Ans:

Firstlogic’s Global Data Quality Connector is integrated at the BASIS layer and communicates with
the SAP Applications via TCP/IP leveraging SAP’s Remote Function Call (RFC) interface. As users
make postal validation inquiries in either batch or real-time, calls are made outside of the SAP
Application to Firstlogic’s RFC Server. Once the customer’s address has been received by
Firstlogic’s technology, our Information Quality Suite parses, standardizes, and corrects records
according to configurable business rules and local postal authority standards.

To ensure your customer view is optimized, Firstlogic’s technology catches duplicates at the point of
entry; not after redundant information has infected your SAP Environment. Before any customer,
vendor, or business partner is committed to the database, Firstlogic’s Information Quality suite will
immediately inspect the data upon input. The connector scans the entire database for duplicates and
assigns a similarity match score to potential duplicates. At that point, the user can determine
whether the entered record is unique or a duplicate that should be eliminated from the system. In
addition, convenient Error Tolerant Searching is available for prompt and precise address
recognition. This improves transaction processing, saves time locating records, and optimizes
system efficiency.

65) What Are The Benefits Of A Data Quality Solution?

Ans:
The biggest benefit is the confidence you have that your data is accurate. A data quality solution
also allows you to: Manage customer data in different formats initially residing in separate databases
Build and maintain successful relationships Better understand and service your customers Enhance
knowledge management and business intelligence initiatives with reliable and accurate information
Deliver clean, reliable data throughout your expanding information supply chains to all varieties of
operational and analytical applications throughout your enterprise.

66) Will First Logic’s Global Data Quality Connector For Sap Manage My International Data?

Ans:

Yes. Built on a global framework capable of validating address information for over 190 countries in
a single processing pass, First logic’s Global Data Quality Connector for SAP allows you to identify
country names, format and standardize addresses, correct missing address information, and assign
postal codes for each respective country. Furthermore, First logic’s Easy IQ technology offers the
ability to complete/populate addresses with minimal data or offer suggestions for possible matches.
This easy address system is ideal in call centers or any transactional environment where data needs
to be cleansed at the point-of-entry. The software improves real-time transactions for your call
centers, sales, and support centers by providing accurate address data for your customer-facing
employees. How easy is it to maintain First logic’s Global Data Quality Connector for SAP after
implementation? Ongoing maintenance should be minimal. Once the solution is implemented and
configured, typically maintenance will only be required when you receive postal directory updates,
upgrade to a new data quality release, or decide to change your application or business rules.

67) Can I Integrate A Data Quality Solution Within Other Software Applications?

Ans:

Data quality solutions can be fully integrated into CRM, ETL (Extract Transform Load), ERP, or BI
solutions and have the advantage of being “seamless” to the end-user – reducing the learning curve,
as well as decreasing the implementation time frames. Your data process flow should not have to be
modified to add a new data quality solution. Through integration and strategic partnerships, you are
assured that you are getting a best-of-breed solution. However, keep in mind it is not absolutely
necessary for the solution to be fully integrated. First logic also provides tools that your organization
can easily integrate on your own, and oftentimes stand-alone solutions may be more effective for
specific projects.
68) Is Linux Supported As A Frontend Platform?

Ans:

The “SAPGUI for the Java Environment” can be downloaded from the SAP FTP servers. This project
(formerly known as PlatinGUI – platform-independent GUI) started in spring 1998 with the following
objectives: build one GUI for all platforms (macOS, Linux, OS/2, Win32, AIX, HP/UX, Solaris, Tru64
…) provide Control-Enabling with Java Beans create a new, flexible GUI-architecture support web
browser integration.

69) Which Server Configurations Of mysap Business Suite Will Be Supported On Linux?

Ans:

SAP supports mySAP Business Suite on Linux for database and application servers in
homogeneous and heterogeneous environments. Please get in contact with your hardware partner
for system sizing and similar.

70) Will A Customer Get Support When Recompiling The Linux Kernel Or Using 3rd-party
Software That Modifies It?

Ans:

Usually there should be no need for recompiling the Linux kernel when using SAP software on Linux
since the supported Linux distributors are shipping optimized kernels for the respective hardware
architectures with revised and tested drivers. Any modification to the tested environment would
furthermore make it nearly impossible for the Linux distributor to track a problem down. The same
applies to 3rd party software that modifies the Linux kernel and is distributed only in a closed, binary-
only, way. Therefore the following can’t be supported: Recompiling the Linux kernel, with or without
source modifications Loading of 3rd party binary Linux kernel modules which have not been shipped
by the Linux distributors Loading of any unsupported Linux kernel modules Loading of any closed
source drivers.

71) Which Databases Are Supported For my sap Business Suite On Linux?

Ans:

Supported databases for mySAP Business Suite on Linux are IBM DB2/UDB, Informix, Oracle, and
SAP DB/MaxDB.
72) Which Releases Of mysap Business Suite Are Supported On Linux?

Ans:

MySAP Business Suite on Linux is generally available for use in a productive environment starting
with release 4.0B.

73) What Are The Main Reasons For Sap Customers Choosing Linux?

Ans:

Each SAP customer has a unique set of reasons for running SAP on Linux, depending on the very
specific customer’s SAP scenario. Among many reasons customers decide for Linux as the
operating system of choice, because they seek increased Flexibility, Scalability with different sized
commodity, or even large former Unix or mainframe systems, Freedom of choice for technology
vendors, Replacing larger Unix-based SAP servers.

74) Will Pricing Be Changed For my sap Business Suite On Linux?

Ans:

Standard pricing for mySAP Business Suite applies also to mySAP Business Suite on Linux.

75) Where Can I Get Linux For my sap Business Suite?

Ans:

Linux distributors like Debian, Mandrake, Red Hat or SUSE offer Linux together with a set of other
software packages, installation routines, documentation, and support. Whereas there is a de-facto
standard for the Linux kernel itself, the distributions differ in other areas, especially in the
administration area.

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76) Where Can I Get The Mysap Business Suite On Linux?

Ans:

You can order the mySAP Business Suite on Linux just like mySAP software on any other platform.
If you are an SAP customer already, there will be no additional charges. From Release 4.6 onwards,
the mySAP Business Suite on Linux is part of the standard delivery.
 77) Can I Execute User Exits? If Yes, How?

Ans:

Yes you can. after finding the user exit, you need to use, goto CMOD adds your user-exit to your
project. Then activate the FM which you require. Now go into that function module there will be an
Include program wit name ZX*. Double click on it, it will ask to create an object, answer it Yes and
then write your code in it.

78) When Entering Foreign Currency Fi Transactions Describe The Various Ways In Which
The Exchange Rate Is Derived By SAP?

Ans:

The exchange rate can be entered through the following:

 Directly on the document header.

 Derived from the exchange rate table.
 Indirectly, by entering the explicit local currency amount so the system is forced to use a
specific exchange rate.

79) What is the parallel and local currency in SAP?

Ans:

Each company code will have two Extra currencies, in addition to the company code, currency
entered the company code data. The currency entered within the company code creation known as
local currency and therefore the other two additional currencies are called parallel currencies.

80) What is the short-end fiscal year?

Ans:

A short-end fiscal year results once you change from a normal fiscal year to a non-calendar fiscal
year, or another way around.

81) What is the report painter?

Ans:

The report painter is a default SAP reporting tool for the controlling module. It helps SAP to generate
reports at a faster rate.
82) Can We Change The Reconciliation Account In The Vendor Master?

Ans:

Yes, the reconciliation account can be changed in the vendor master provided that the authority to
change has been configured.

83) How Is Bank Reconciliation Handled In Sap?

Ans:

First of all the payment made to a vendor is posted on an interim bank clearing account.
Subsequently, while operating reconciliation, an entry is posted to the Main bank account. One can
do bank reconciliation either manually or electronically.

84) What Are Terms Of Payments And Where Are They Stored?

Ans:

Payment terms are formulated in configuration and resolve the payment scheduled date for
client/Vendor inventory postings. The planned date obtained via the payment is often modified on
the individual bill if required.

85) What Are Exchange Rate “factors”?

Ans:

Exchange Rate factors are the relation between one currency and another to which an exchange
rate is enforced. For example, you may define the Indonesia Rupiah to US$ factor as 10000: 1.
Combined with an exchange rate of 0.95 this would equalize to 9500 IDR to 1 USD.

86) What is the importance of asset classes? What asset classes are there?

Ans:

The asset class is the main class to categorize assets. Every asset must be designated to only one
asset class. Example of the asset class is furniture and fixtures, plant and machinery, and
computers, etc. The asset class also contains G1 account which is debited. Whenever you create an
asset master, it becomes mandatory to mention the assets class for which you are generating the
required assets. So, whenever any asset transaction takes place, the G1 account connected to the
asset class is automatically picked up and also the entry is passed.
87) What is a ‘Value Field’ in the CO-PA module?

Ans:

Value fields are numbers or value related fields in profitability analysis such as quantity, sales,
revenue, discount value, etc.