SAP FI-CO Technical Interview Questions

By: shobha kumari | 23 Jan 2012 8:47 am SAP FI-CO Technical Interview Questions 1 1. Tell me about FI Organizational structure? Ans: Client | Operating Concern | Controlling area1 Controlling Area 2 | Co. Code 1 Co. Code 2 | Bus area 1 Bus area2 Bus Area3 Bus Area 4 2. How many Normal and Special periods will be there in fiscal year, why do u use special periods? Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for posting tax and audit adjustments to a closed fiscal year. 3.Where do you open and close periods? Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr. Code. OB52. 4.What do you enter in Company code Global settings? Ans: 4 digit Alphanumeric key. Name of the company City Country Currency Language Address 5.What is document type, and what does it control? Examples. Ans: Document type is nothing vouchers containing line items. Several business transac! tions can be identified within a particular document type. It controls the document number ranges. It controls the Header part of document IT controls the line item level of the document Helps filing of physical document 6. What is posting key and what does it control? Ans: These are special classification keys. Two character numerical key it controls the entry of line items. Posting key determines Account type, Debit/credit posting, Field status of transaction. 7. What is field status group, what does it control? Ans: FSG is mandatory field in ! GL Creation. You use this field to define which fields are

displayed when you post business transactions to a G/L account. A field may have one of the following statuses. - Suppressed - Display - Optional - Required 8. What is chart of account and how many charts of accounts can be assigned to a company? Ans: Chart of account is a list of all G/L accounts used by one or several company codes. For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a Company code. You have to assign a chart of accounts to each company code. This chart of accounts is the Operating chart of accounts and is used for the daily postings in this company code. You have the following options when using multiple company codes. You can use the same chart of accounts for all company codes If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country. In addition to the operating chart of accounts, you can use two additional charts of accounts If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries. The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the co! mpany codes which use different charts of accounts together or separately. 9. What does definition of a chart of account contains? Ans: chart of account key Name Maintenance language Length of the GL Account Number Controlling Integration Group chart of accounts (Consolidation) Block Indicator 10. Can one COA be assigned to several companies? Ans: yes. One COA can be assigned to several companies. 11) What is account group and what does it control? Ans: Account group determines which fields you can configure on the G/L master record. It is necessary to have at least two one for B/S and another one for P&L a/c. It controls the Number ranges of GL A/C. The status of fields of the master record of GL belongs to company code area. 12) What is reconciliation account; can you directly enter documents in that a/c? Ans: When you p! ost items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger.

We can’t use reconciliation account for direct postings. 13) How do you control field status of GL master records and from where do you control! Ans: Field status variant is maintained all FSGs. 14) What are the segments of GL master record? Ans: - COA Segment A/C group Nature of account Short text GL a/c long text Trading partner Group Account Number - Company code segment Account currency Tax Reconciliation a/c for a/c type OIM,LID,FSG. 15) What does Field status group assigned to a GL master record controls? Ans: It controls the account assignments that are made to the account. Specifically the field status group controls whether postings to cost centers, internal orders, profitability segments and so on are required, not allowed (suppressed), or optional. 16) What is Country and operational chart of account? Why do you use group chart of account? Ans: Operational chart of account – Day to day activities It is mandatory. Country COA – It’s used for legal specific requirement of each country. It’s additional and optional. Group COA used for consolidation of Company codes. This is for group consolidation purpose. 17) What are all the segments in a Customer/Vendor master record? Ans: Segments in Customer Segments in Vendor - General Data segment General data segment - Company code segment Company code segment - Sales area segment Purchasing organization Segment 18) What is open line item management? What do you mean by clearing open line items? Ans: Open item management is further reconciliation function. OIM allows you to display the open and cleared items and amounts in an account. OIM should be used if an offsetting entry is made for every line item posted in the account. The a/c is reconciled and cleared against another account. Ex. Salary clearing account and GR/IR Clearing account. 19) What is residual payment and part payment? Ans: Residual payment it clears original invoice with incoming amount and create new line item for remaining outstanding amount. Partial payment it leaves the original invoice amount and creates new line item for incoming amount.

20) What is internal and external number ranges? Ans: Internal Number Ranges: Doc. No will be provided by the system automatical! ly in serial

the value flow gets passed on to FI at the time of goods movement. or a planned SO). 2. please correct me. During the time between the invoice being created and delivery of goods. the GL accounts updated when there is a movement of goods. in order to accommodate this timing difference. In the case of SD. No will be given manually by the end user. etc tabs where the system helps to post the necessary stock values into the appropriate GL accounts. What is GR/IR?What journal entries we should pass for this? The GR/IR – the goods receipt/Invoice Receipt account is used to post to whenever goods that are not yet invoiced have been received or when invoices arrive b4 the the delivery of goods. the baseline date helps to pick the relevant invoices for payment.order allotting the next available progressive number. How can be or in what way baseline date is important in Automatic Payment Program run? The Baseline date is used to calculate the due date by taking into account the payment terms. The number must be in numerical. can we give cost centre / production order at time. may have different currencies. 3.VKOA 6. after which it is passed on to create a purchase order (this could either happen based on the requirements on the SO. Difference between Depreciation . a GR/IR account is maintained temporarily to record the flow . While posting transaction. On the APP. What are the accounting entries take place in MM and SD? Value from MM to FI is defined in OBYC…. the impact on FI happens only at the time of billing.Accumulated Depreciation and APC? What is APC? Depreciation – a decrease in the value of an asset due to wear and tear Accumulated Depreciation – the total amount of depreciation calculated on a particular asset. there can be a timing difference. You can assign 2 or more company codes to one controlling area as long as the chart of accounts are same. During the APP run when invoices are pulled into the run. 7. . SAF FI Technical Interview Questions 2 Questions are answer best of my knowledge. Number may be an alpha numeric. Can we assign one Controlling area to two different Company Codes (but the company codes having different fiscal years/different currencies Company code should have same financial year. then make sure that the number of period remain the same. SD-FI . the system checks the ‘Next Payment Date’ before picking the invoices to be paid. Furthermore. External Number ranges: Doc. APC – refers to Asset transactions other than depreciation 4. if you have different fiscal year variant in the company code. System will not lock no automatically in this case.anyone………… 1. helps to determine. on the material master the flow of values are assigned on the Costing. if I am wrong. 5. Please tell me the procurement cycle how it works? Procurement cycle – a sales order is placed on a requirement made by a customer. User can pick the number randomly. acctg..

Cost center entry would be statistical. You can use Data Transfer Workbench or write abap for it. but in such situation cost centre will be real and production order is stastical. Cost Centers defined. After entering a document can you delete the entry? Can you change the document? Which fields’ can/not is changed? Document header cannont be changed. Then Cost center need to be uploaded. If you are talking about CO Master data. 12. 14.: Brief about the project you did: w. only if you want to change the document the reseversal entry. base line date is the due date. The Enterprise Structure with regard to the no. PCtr. How many were in your module team. aqusition 13. any Business Areas or Profit Centers defined. What’s your role in the project with respect to the activities you partook in the project. Any issues you’d solved during ‘Support’ phase? Questions on conceptual understanding: a) SAP R/3 definition and 3-Tier Architecture b) ‘Real time integration’ advantage of SAP c) ASAP methodology d) Solution Manager e) Client / Company / Company Code / Business Area f) Business Area vs Profit Center Approach . What modules were implemented.t. What is a special GL transaction? The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of exchange. What does document header control? Field status. If you assign both cost center and Prd Order then since Prod. How many statistical objects can be selected in when you post an FI document? Where CCtr. 8. When did they Go-Live?. OM are active? FI/CO Interview Questions Implementation exp. if you would like to filter the open item based on the city 10. What is base line date? Why is that used? Can this be changed? For paymentterms it is used. How many plants they had. What’s the period of the project. this can resolved through ranking order and bank optimization in FBZP. 11. after posting the document you cannot change. Can we run Payment Programe giving ( Hdfc vendor detailes ) City bank in Payment run programe? Yes can be possible . Who were the implementers.Yes it is posiiable . What’s the implementation team size.r. Which Master data uploads will be done? The question is not very clear. How do you reverse cleared documents? By doing reversal posting. 15. Order are real co object. 9. You use use further selection in proposal paramater. of Company Codes. the main activity of the client. Interest payable .

This is normally created by means of AUC and you go on adding cost to the AUC as and when you incurr exp.s (100.). Structure for FI u) Org. Key.For ex. Dalal . Codes to Annual Return b) FI-MM Integration (OBYC configuration with particular reference to Off-Setting entries) c) FI-SD integration d) Down Payments transactions e) Interest – Balances / Arrears f) Asset Accounting: Asset Class. A/R. Sub-Asset. Group Asset. say addition to the office building. Associated with it like customs.g) How effective will be the Financial Statements generated through Business Areas h) With Holding Taxes vs Extended WHT i) Field Status Concepts (G/L master fields controlled through Account Group and Document entry through Field Status Group set in the G/L master) j) Special G/L transactions k) Open item management l) Reconciliation Accounts m) Subsidiary Ledgers n) Sort key o) Negative Postings Allowed p) Special periods q) Only balances in local currency r) Important Posting keys for G/L.For ex Say a computer. A/P. Therefore APC incudes any external acquisition or internal construction of exp. Dep. *-. freight which you add and arrive at total cost of acquisition for capitalisation of the asset. Transaction No. Areas. 210 – Retirement with Revenue. Transaction Codes. octroi.Marazban D. In OADB under 01 deprn area Acquisition & prod Cost tick is activated. etc.External acquisition. Structure for CO v) Product Costing: How the values flow in the system Configuration: a) Extended With Holding Taxes configuration steps – right from creation of WH Tax Types. Stock Entries s) Assessment vs Distribution t) Org. which needs to be capitalised. Acquisition means any asset which you may acquire/ purchase externally. Main Asset. Dep. AA. General questions: a) Educational Background b) What influenced you to go in for SAP career? c) Functional Career d) Present earnings vs Expected pay e) Inclination to relocate What is APC? APC stands for Acquisition and Production costs. Imp. for the same. It includes invoice price and other related exp. The total cost which you incurr for the acquisition of the computer including installation will be your APC Production cost means any asset which is created internally within the organisation.

QA (quality analysis) and Development are clients in Training and Production system. What is a CATT ? CATT means Computer Aided Test Tool. execute and actual SQL statements and the duration time for each step in a procedure. Pl.r. implementation side and other questions plz. The Enterprise Structure with regard to the no. from an application to modify master data. What is a variant ? When executing a program. What’s the period of the project. How many were in your module team.: Brief about the project you did: w. different selection parameters may be used.This is umapathy. I have intereview tomorrow. a user can follow the routine through each step. Any issues you’d solved during ‘Support’ phase? What is a breakpoint ? Breakpoint is used to help the user scrutinize how the system behaves at a certain point in the ABAP code. It is SAP's tool for processing transactions automatically.. What’s the implementation team size. These selection parameters are stored in the SAP system as variants. if anybody have taken interview with any company. of Company Codes. how will be the interview. How the questions will be on configuration. When did they Go-Live?. the main activity of the client. What is a user exit ? User exit is a point in an SAP program at which a customer's own program can be called. User exits allow developers to access program components and data objects in the standard system. any Business Areas or Profit Centers defined. prepare yourself on the following broad lines: Implementation exp. kindly let me know what the questions they will be asking. Who were the implementers. What is master data ? . What’s your role in the project with respect to the activities you partook in the project. What modules were implemented. How many plants they had. What is an authorization ? Authorization gives an SAP user permission to perform a given set of transactions. What is a SQL trace ? SQL trace records all open. which are used and managed directly via customizing. prepare. fetch. At that point the system goes into debug mode. Cost Centers defined. Who is a user ? Anyone who is given access to the SAP system by the system (basis) administrator is known as a user.t. such as a mass maintenance of the material master in EXCEL. share with me. CATT is used in bringing in data. Many clients can be found in each system. There are two types of user exits user exits that use includes (customer enhancements that are called from the program) and user exits that use tables. What is a client ? Client in a SAP work environment is the highest organizational structure. This breakpoint is useful in investigating how routines and requirements function. By accessing the routine source code and setting a breakpoint at its execution point.

and the sales division. In the SD document. It is linked to an ABAP report program as one of the program attributes. What is a sales area ? Sales area is a segment that combines the sales organization.Master data is used in an SAP system to represent the basic components of a procedure and to ensure data integrity throughout the SAP business process. What is a logical database ? Logical database is an ABAP program that combines the contents of database tables. a project management software tool that is used on SAP implementations to guide the project through different phases. What is a batch input ? Batch input facility in SAP is a convenient tool for capturing data into SAP or updating large . This gaurantees that one common record is accessed for different procedures. and logistic modules : Sales and Distribution (SD). ASAP can take a project from the designing of the "blueprint" through to "going live". What is a user profile? User profile is a set of authorizations that enable user access to certain parts of the SAP system.Human Resources (HR). What is an ABAP Query ? ABAP Query is a reporting tool that uses a logical database (LDB). What is the IMG ? IMG is Implementation Guide that SAP system developers use to customize the client they are working in. debug and test applications for effeciency. It supplies the report program with a set of hierarchically structured table entires derived from different database tables. What is the ABAP Workbench? ABAP Workbench is SAP's graphical programming environment. and data for the schedule line level is stored in table VBEP. and Production Planning (PP). What is ASAP ? ASAP is Accelerated SAP. design screens.a customer master record may be referenced by more than one functional module : FI (financial) and SD (sales and distribution). What is a functional area ? Functional area is assigned to the query. It is the representation of a logical database or tables with their respective table joins. Accelerated SAP is SAP’s total processoriented solution for accelerated implementation and continuous optimization of R/3. the distribution channel. or combined tables to form a report. This saves the developer from having to program the data retrieval. It is used to write ABAP code. what are the three levels of a sales document? Each sales document comprises of three main levels and each level is represented by a table that holds the data for that level. What is a requirement ? Requirement is a portion of code that is used to determine if a function or formula should be executed. Plant Maintenance (PM). individual table. Quality Management (QM). data for the item levels is stored in table VBAP. What are the core modules of SAP ? The core functional modules in SAP R/3 are Financial Accounting (FI) usually in combination with Controlling (CO) or Treasury (TR) . create user interfaces. Example . obtain database information. Data for the header level is stored in table VBAK. This defines which tables and fields the query can reference. Materials Management (MM).

Organization Definition b. Contains documentation for the configuration of applications c. users and authorization b. control. 3. Tick the correct answer The procedure model a. import the merged file. What is an SAP GUI ? GUI means Graphical User Interface. What is LIS ? LIS is Logistics Information System. GUIs in SAP R/3 differ from version to version of SAP FICO Questions Courtsey of ZZ: 1.amounts of information in SAP transactions. Create a spreadsheet or word processor document containing all the data to be captured or changed. Global settings c. Provides steps required for creating clients. They are flexible tools for collecting. . True/False 4. and execute the batch input in SAP. and monitor business events at different stages in the decision-making process. LIS consists of following information systems Sales Information System Purchasing Information System Inventory Controlling Shop Floor Information System Plant Maintenance Information System Quality Management Information System These information systems can be used to plan. OSS is a database of notes on known issues and their remedies. OSS can be used to obtain quick responses from the SAP help desk representatives. upload the file into SAP. Any user with a logon name and password can access this information. you know what data is required. aggregating. Finally. Transaction codes d. It is responsible for the graphical layout of the SAP software. Provides Planning basis for implementation project. The simplest way to utilize batch input is by : 1) Record the batch input for the transaction used to enter the data in SAP. Accounting functions 2. What is OSS ? OSS is an Online Service System which can be used to access information about a module in a given release. Business Area is set up within organization structure and is linked to the Company Code. Tick the incorrect answers FI configuration is divided into the following levels a. Then mail merge the exported text file with the data in a word processing program. From the recording. and analyzing data from the operative applications. Views within IMG allow for grouping of transactions based on various criteria. 2) Then export the batch input recording to a text file. administration and registration of new users.

If the Currency key of a Balance Sheet Account is not same as the Local Currency then the monthly debits and credits are stored only in the specified foreign currency. Flexibility to reflect complex organizational structure. True/False 16. True/False 17. Possibility to consider future changes in organizational structure. What are the two types of creating a Master Record? Ans. at COA level then at Co. : Centrally. When creating a Customer Master Record the monthly debits and credits are entered at the Client level. True/False 10. Customer created in one company code can be allocated to several Credit Control Areas. Tick the incorrect answer Benefits of Organizational Structure in SAP R/3 are a. True/False 13. d. True/False 8. What is a Data Transfer Rule in the context of Sample Accounts? 15. Parameters for processing accounting data is must when creating a Company Code. Only one vendor master record is defined for a client having four different companies.e. Separation of data into different functional modules 9. b. True/False 7. True/False 6. One customer can belong to multiple dunning areas. True/False 14. What is the third level of information contained in a Vendor Master Record when a Vendor is maintained centrally? Purchasing Information . Step-by-step i. Customer and Vendor Master records can be accessed from the IMG side. Code level. True/False 11.True/False 5. c. Posting to a Blocked G/L master record gives a warning and then lets the user post to the master record. Data entry during creation of a transaction is minimized. Master records may be assigned to an Account Group. 12.

Ledger 28. In the SAP system multiple documents are created for every business transaction. Controls the account types that can be posted to the document d. Account Type b. the G/L master record must have the same currency as the foreign currency bank account. Data entry screen for line items . Assigns the document Number c. In SAP only one posting period is allowed to remain open at any point of time. Number Ranges must be defined for a Document Type. In SAP for each payment term you can define up to 3 individual levels. True/False 27. Account Number c. "Company Code" and "Activity Type" 20. Tick the correct answer a. 25. Maximum of how many posting periods can be defined in SAP? 16 in FI and 366 in Spell. To manage foreign Currency bank accounts. c. Do you need to maintain line item display of a Vendor Reconciliation Account? Yes/No 21. What are the three levels of controlling screen layout of a Master Record? Field status of "Account Group". True/False 22. Tick the incorrect answer Document type a. Distinguishes between the type of business transactions b. Used as a sort Criteria e. Sample Document Number Range is associated with a Document Type 26. Debit or Credit Entry d. Recurring Document Number Range is not associated with any Document Type. True/False 23. None of the above.18 Which field in the Customer Master Record controls the One Time Accounts? Account Group 19. b. True/False 24. Tick the incorrect answer Posting Key specify a.

To maintain the document flow from one functional module to another c. There is only one validation table defined per Company Code. To control the layout of the subsequent screen based on the data entered in the first screen. True/False 38. Allocation field in Document Line Item is used for a. Tick the correct answer Sub-Screen Processing is used a. What are the levels of controlling layout of a Document Entry screen? Field status of "Posting Key". For referencing another document.29. 31. Are validations and Substitutions module specific? Yes/No 39. What is a Call Up point? Call up point is a point within a document where a validation or substitution is called. To display all the referenced documents of the existing documents. Controlling the screen layout. Delete etc. Activities like Create. True/False Company Level 30. Tick the incorrect answer . Each Inter Company Transaction generates three documents . Company code etc. For sorting of documents d. 36. FI). Customer. To control the layout of the screen on which the data is entered.e. 40. Tick the correct answer. True/False Several Authorization Objects(i. 37. What are the two types of "Fields" defined in SAP for authorization purpose? Ans. Change. Is it a must to associate all revenue and loss accounts to a retained earning account? Yes/No 32. b. Allocating amount to different cost centers c.: Operational Object like transaction table. There can be only one Authorization Object defined for an Object Class. True/False 33. "G/L account master record". (Posting Key controls the Layout of the subsequent screen) b. d.g. 34. Field Status Group of a posting key is defined at the Client Level. A validation can be called at document header level or at the line item level. 35. Account authorization) can belong to one Object Class(e.

Clearing is the process of a. None of the above. Which all fields in a Recurring Document can be changed a. Residual Payment c. Posting Keys b. It can contain multiple company codes b. A partial payment can not refer to more than one open items. 42. Posting a document b. The process of clearing open items for a customer who is also a vendor of the company is called a. Line Item amounts d. Tick the correct answer/answers a. Account c. Transfer with clearing d. Which of the following statements is incorrect for Account Assignment Model. None of the above 45. c. Partial Payment results in clearing the original invoice and creating a new open item for the difference between the payment and the original invoice. The transaction currency can be different from the currency defined in the Account assignment Model. Residual payment leaves the original invoice intact and creates a negative amount in the account for the amount of partial payment. Ability to change all the fields d. Difference between a Parked Document and a Held Document is: The Parked document gets a document number based on the user ID where as the Held Document gets the document . Partial Payment b. Vendor Clearing 43. b. Matching Debit Entries to Credit Entries d. More number of line items can be added 44. a. Taking the account balances of Profit and Loss Accounts to Retained earning Account. Creation of the recurring reference document updates transaction figures of the associated accounts. c. True/False 46. Clearing Open items d. d. Preliminary posting is posting of incomplete documents before extensive entry checks. 41. Can the cross company transaction be parked? Yes/No 47. True/False 46.

It determines the fields according to which the line items are totaled. Only system can populate the Allocation Field. For example one update group can specify what credit statistics such as open order value. True/False 48. You must assign Company Codes to Credit Control Area. 58. business area/month. open delivery value. Which field in the master record determines the way in which the line items are sorted? Ans. the line items of an account can be totaled and separated by : document type/document date. combination of accounts or company codes 56. List of pending jobs b. Tick the elements that needs to be configured for automatic credit checking a. 55. True/False 57. A document posted in MM and SD can be reversed in FI. or year/month/posting date. totals variant. No of Employees and their job status d. What determines the document fields that can be changed? Document Update Rule 49. List of scheduled jobs c. What does GAAP rule specifies in context of Document Update Rule? Account. or open invoice value are updated based upon what document is being posted.number assigned in the same way as in the standard document posting function. or lists? Yes/No 54. Credit Group b. An Update Group is assigned to a credit control area which affects how the accounts are updated. For example. Amount and Posting keys can not be changed for a posted document 50. Sort Key 52. What are Total Variants? Ans. Can you create customized line layout. Tick the correct answer A "Work List" is a. What is an "Update Group" in context of Credit Management? Ans. For each Total Variant up to three fields can be specified. Credit Control Area . True/False 53. True/False 51.

Posting Date 62. Company Code level c. Identify the Dunning procedure c. Date of Payment run. Risk Category d. Client level b. In SAP which one of the followings is not a type of payment advice? a. Payment method parameter level d. Blocked accounts 67. Bank parameter level 66. Dunning Keys are used to a. The due date for dunning is calculated from which date? a. Tick the incorrect answer Payment program is controlled at a. Bank Advice d. Company Code parameter level c. Can a customer be dunned twice within the same Dunning Interval? Yes/No 61. Can a customer receive dunning letters from two dunning areas? Yes/No 63. List the customers under same dunning area d. Document date b. EDI b. Lockbox Advice c. Baseline date c. Mark specific items that should not trigger specific dunning levels b. Country level . Value Date d.c. Tax codes are set up at the a. Payment method must be defined at the country level before it is specified at the Payment program level. All of the above 64. Client parameter level b. Group Level d. Next posting date. Dunning letter 60. True/False 65. None of the above 59. What are the criteria based on which the open items to be paid are selected? Ans.

Tax Jurisdiction codes are tied to customer/vendor master records. This is more complex. What are the criteria considered by SAP when archiving a document? Ans. True/False 76 Multinational corporations can issue P&L statements and B/S in up to 4 currencies. What is a tax jurisdiction code and where it is set up? Ans. This minimizes the burden of determining the appropriate tax information on a purchase order or invoice for a PO creator or Accounts Payable Clerk. Light Mode: Only the absolute minimum amount of information required to create a field is entered. 1. After a field is been entered a subscreen is generated to build the particular posting screen and to position the new field. To define a new tax code the following must be specified a. 73. This is recommended for implementations crossing multiple tax jurisdictions. Using tax jurisdiction codes allows the user of fewer tax codes and easier tax determination by deriving tax information from the master record. 75. True/False Ans. When posting document in FI. Where are the data to calculate tax are defined in SAP? Ans. it is permanent and can not be deleted. Line item when posting a document 2.68. Tables controlling automatic postings 69. Explain the two steps of adding a field to a Coding Block. Can the taxes on parked document be calculated? Yes/No 72. Country definition table 4. True/False 74. 3 . 71. The longest of Minimum days in the system. G/L Account Master 3. Posting key c. G/L tax accounts 70. if only one line item has a business area. Tax Code table 5. Tax Type b. the system will automatically populate the blank records in the other line items. Expert Mode: More detailed data dictionary and table information to be entered to create a new field. Life by Document Type and Life by account determines the life of any document before it is archived(These are to be configured). Ans. Once a change is made to the coding block. Tax Jurisdiction codes are used in conjunction with tax codes to further specify the taxes applied to a purchase.

If all the companies have the same currency. If the company codes do not have the same currency. after that all the allocations are behind the scenes. Can a financial statement structure be deleted from the system. A controlling area can encompass one or more company codes. then the object currency inherits the currency of the company code. Describe the possible options for a controlling area . CO relates more to indirect and overhead costs. These company codes may have different currencies. The controlling area is assigned a currency. which don't affect G/L. but can also support multiple company code currencies. These costs hit the G/L once. Index currency is used in high inflationary environment. but they must use the same chart of accounts. True/False 81. In GLIS from the business ratio field can you drill-down to the line item level? Yes/No CO CO Interview Questions Again courtsey of ZZ: Cost center accounting 1. reconciliation accounts other than reconciliation account for customer and vendor 80. True/False Ans. Which field determines where to post the exchange rate differences of foreign currency during revaluation? Ans.77. True/False Ans. Exchange rate difference key in G/L Account master records 79. The special G/L transactions per customer/vendor are tracked in the customer and vendor reconciliation accounts. then the object currency is freely definable (if currency type 10 is used). A special G/L transaction is defined by the special G/L indicator and the account type.? Yes/No 82. 2. . Describe how cost center accounting differs from financial accounting? CO is for internal reporting where FI is more for external legal reporting. Hard Currency 78.company code relationship Put emphasis on the option you have in terms of different currencies.

Conversions in CO use the average exchange rate (M). In cross-company-code accounting with different currencies.g.define types of costs Activity type . to create separate scenarios with When calling up the planning . Define the relationship between the chart of accounts and cost elements in cost center accounting.5. changes can be made to all plan versions This includes copying these planning versions. Secondary cost elements are costs resulting from the internal exchange of activities. 26. Is it possible to plan on cost centers in more than one plan version . What are the three types of currencies used in cross-company-code accounting and what conversion rates are used? Each CO document is updated in three currencies. 6. In cross-company-code accounting involving different currencies. these are designated the document currency. Discuss the cross-company controlling? Cross-company-code controlling enables cross-company transfers and reports to be made in CO. They exist solely within Controlling.allocation basis for distribution and assessment 12. cost center) inherits its currency from the company code.units of measure for allocating activities Statistical key figures . The chart of accounts contains all G/L accounts for financial accounting and all primary cost elements for cost accounting. Define the types of master data that exist in cost center accounting? Cost center . 15. and do not exist in the G/L. when planning for cost centers. What is the difference between primary and secondary cost elements? Primary cost elements are costs that originate outside of the company (posted to G/L). the company code currency and the controlling area currency. Secondary cost elements are not contained on the chart of accounts.units of a company that incur costs Cost element . the CO account assignment object (e. 8. but increases the organizational overhead at the cost center.elaborate youranswer? Yes.

all costs to be allocated are totaled and the sender is credited with this assessment cost element while all receivers are debited with a portion of assessment costs. all receiving cost objects are debited with a portion of an original cost element that had been posted to a sending cost center. The original cost elements are totaled and posted to a secondary cost element (assessment cost element). and line items are produced for sender and receiver. Thus the activities are directly allocated to the cost centers. Assessments can include all or a portion of costs from the sending cost center. What is the difference between direct and indirect activity allocation? With direct activity allocation an individual activity confirmation takes place. with receiver cost center getting information on sender cost center. Discuss how assessment for cost center allocation is used in the system. Activity volume not known: This uses management units to provide an actual activity quantity to the sender cost center using statistical key figures so that the system can calculate an operating . In assessment. The purpose of indirect activity allocation is to automatically allocate planned and actual activities. The total actual volume is manually entered for the sender and allocated to the receiver cost centers (or orders) based upon some planned/actual quantity/ statistic.screen you will be asked to enter the plan version number. Primary postings are pooled in a cost center and allocated out at the end of the period specified by user. 33. 31. 40. In a distribution. This could be all costs or a portion of the costs (both primary and secondary that had been originally posted to the sending cost center). This portion is determined as part of configuration. There are two kinds of indirect activity allocation. Within the sending cost center. 39. Receiver line items contain information about the sending cost center. a secondary assessment cost element is used. primary and secondary postings are allocated at the end of period according to a user defined key. What are the two allocation categories for indirect activity allocation? Activity volume known: The planned and actual activity volume is known. Discuss how distribution for cost center allocation is used in the system. Line items for sender and receiver are provided. Designed for cost center settlement. Original cost elements are retained. 30. Distinguish between the two cost allocation techniques: assessment and distribution.

Allocated each month to a cost center.rate for the target cost calculation. 42. Individual . Give examples of each.Collects costs of a one-time business activity (Christmas party. small repairs orders). 3. the actual cost are apportioned by cost element to the activity type based on the target costs or target quantities. What is a statistical order? Why would you use one? A statistical order collects costs for informational purposes and does not settle costs against another object. 4. 43. 9. it is used to collect the costs of regularly occurring activities (maintenance order. Standing . capital spending order). the actual costs are split based on the equivalence numbers for the activity type. the target cost of the cost element group is used as the first splitting step. 2) In the second stage. Define and contrast individual orders and standing orders. What are the two stages which splitting actual costs based on the activity type occurs? The actual costs are split in two stages (1st stage is not necessary in planning): 1) In the first stage. If the splitting rules are not defined. the remaining costs on the cost center level are apportioned to the activity types according to the splitting rules (user defined). Therefore. In what two ways can an internal order be processed? An order can be processed individually or with collective processing. Typically. it is necessary to split (apportion) the actual costs to each activity type. If no costs exist for a cost element. What are the primary functions of an order? 1) Quantitative control of input factors and sales performance (sales and production order). An example of this is that . in order to compare target versus actual costs on activity types and to display variances for each activity type. a statistical order could collect data that also was posted to a cost center. What is actual cost splitting and its purpose? Actual costs can only be posted to cost centers within cost center accounting. Internal orders 2. 2) Monitors costs and supports decision making (Internal overhead orders and capital spending orders). An example would be one car in a fleet of cars. You would use this to track costs in a separate fashion without double counting them.

not the master data. This changes the status of an order. 17. asset. These can be chosen from an order.cost center. project. What is a selection variant and what is it used for within CO? A selection variant is SAP or user-defined to select orders. (This is not the same as choosing an order group. 18. whether a selection rule can be used and what default values will appear in the fields.) 10. 12. 2) Internal receivers . the profit center is always statistical. they can reach the entry of the distribution rule via the Settlement rule function. network. What can an order be settled to? 1) External receivers . If the order or other object is not marked for statistical postings. profitability segment . What is a list variant? A list variant defines which master data fields can be maintained for collective processing. whether a status profile can be used. 13. Users can enter recipient cost centers in the list screen or alternatively.G/L Account. The variant chosen determines which master data fields are offered for selection of collective processing. order. What options do you have for additional account assignments within a CO posting and when would you get a statistical posting? There can be two additional account assignments excluding business areas and profit centers. or profitability segment. Describe briefly the collective automatic processing of internal orders. This allows you to select a group of orders so that you can change them all quickly and accurately. project. 22. Automatic collective processing is used to release orders or settle them.it is possible to call all orders which have already been released but not yet have a settlement rule. You set tolerances for these availability controls. Manual collective processing requires the use of a list variant and allows changes to be made to the order master data. Funds Reservations must be manually reduced by the user. What are the different commitment types the system can record for an internal order? For which type do you have to perform a manual reduction? Purchase Requisition Purchase Order The availability control allows you to warn a user if/when budget is exceeded.

Profitability Analysis 1.27. T F Sales information is received into PA at the time the Billing Document is released. The data model and functionality defined for specific business requirements are available. What is hierarchical settlement? The settlement hierarchy is used to ensure that settlement of orders is occurring in the right sequence. This allows for more freedom with CO postings. __________________ is the organizational unit within Profitability Analysis. The hierarchy is setup in the settlement parameters. and each order can be given a number from 0 to 999 allowing up to 1000 orders in the hierarchy. and the ability to reconcile back to FI. ___________ is performed when values are estimated within Profitability Analysis. What is a Reconciliation posting? A reconciliation posting is used to transfer costs to financial accounting which were made across company code or business area boundaries in controlling. Costs in cost center accounting are assessed to Profitability Analysis through assessment cycles that specify which value field(s) will be affected. T F There are 2 kinds of Profitability Analysis: Cost Based and Value Field Based T F Derivation is used to define values for non-system delivered fields. . and which characteristic values will be affected 3. It is primarily an information source. 5. The orders are settled in descending order highest number first. then you want to make sure that order B is not settled before A. (Valuation) 4. T F Derivation can be multi-level but not multi-dimensional. T F There are 4 tables created by the system when an operating concern is generated. who the sender cost center(s) are. 2. An example would be if order A is settled to order B and this is settled to order C. 28. T F The primary source of input to Profitability Analysis is the Sales and Distribution module. T F The Profitability Analysis portion of the Controlling module can not be used as a stand alone system. T F A profitability segment is a combination of characteristics and value fields. which cost element(s) will be summed and transferred via a secondary cost element. otherwise you will not be able to settle order A to order B because it will be closed. What is the reconciliation ledger? The Reconciliation Ledger is a Standard Ledger configured and delivered by SAP. 29. Describe how costs in Cost Center Accounting are transferred to Profitability Analysis.

Formulas can be used in __________sets and in ____________sets. key figures. actual and planned values do not have validity periods. A profitability segment is a unique combination of characteristic values. T F A single characteristic set can have one single characteristic set combined with another single characteristic set. T F In Report Painter. T F A Report Painter report can be converted to a Report Writer report by naming the Report Painter report as a model for the Report Writer report. data) 6 T F In Report Writer. In Report __________ a user can create a report without understanding the creation of sets. A ___________ is a collection of characteristics. (library) 4. Explain the relationship between Controlling Area and Operating Concern within the Controlling module.(Operating Concern) 6. (Painter) 3. 5. . T F The user can define texts that utilize variables. or multiple Controlling Areas can be assigned to one Operating Concern. 7. Report Painter and Report Writer 1. All reports are assigned to it. (basic. the elimination of internal business volume is supported. The Operating Concern can be defined to have a 1 to 1 relationship with the Controlling Area. One Controlling Area cannot be assigned to more than one Operating Concern 7. 2. T F Report Writer and Report Painter both generate ABAP reports. How are subtotals formed in Report Writer? Subtotals are formed for each set. T F Downloading reports from Report Painter to the PC is possible. An example for the characteristics Sales Area and Distribution Channel would be North (Sales Area) Wholesale (Distribution Channel). T F Report Writer can not be used with the Controlling module. T F The point at which a row and a column cross is called a cell. T F Libraries are used in both Report Painter and Report Writer. T F A basic set can be made up of values from various fields/characteristics. and predefined columns for a specific table. T F Report Writer is a graphical reporting tool and is therefore easier to use to write reports. Define and provide an example of a profitability segment within Profitability Analysis. The hierarchy of the set determines how many subtotals are formed.

is a vendor in the companies Taco Bell and Frito Lay. All fields at the client and company code level for customer/vendor master records can be designated either suppressed. and sales (if maintained centrally). you are able to keep similar accounts numbered distinctly. optional. 2) Establishes the screen layout for customer/vendor master records. However. payment methods are different at the company level. Taco Bell and Frito Lay. Sales information would be different in each company code as well. This is an example of how all information is the same for ABC at the client level. company code. you define it once for your client Pepsi Co. in Taco Bell the customer has different dunning areas. required or mandatory.300.000-500. some vendors may not use dunning areas. if you have one customer named ABC Co. (data) What are the 3 levels that a customer master record can be maintained at? Why do these three levels exist? Give an example of the information stored on these levels. Of course. All the sets contained in a _________-characteristic set refer to the SAME characteristic. Client. One-time customers might be 400. For example customers are 1-100. Using _________ sets you define which value fields or quantities are shown in a report. so you would establish a separate account group for those vendors. but different at the company code level. Exists so that you can tailor the customization at each level.8.. In the above example. (characteristic) 9. and the payment terms. See the example given above. Of course. What are the two purposes of the customer/vendor Account Group? Give an example of how the Account Group is used. That customer exists in two companies of the client. Adds more flexibility to the structure of a master record.a number range is assigned to an account group. if ABC Co.000 . 1) Establishes number range of the customer/vendor master records .000. where the dunning fields are suppressed.000. A _________ is a single field or column of a database table. For example.000. Adds more flexibility to the structure of a master record. Exists so that you can tailor the customization at each level. banks. This adds flexibility. For example. purchasing information would be different in each company code as well. (single) 10. vendors might be 200. payment terms than in Frito Lay. What are screen layout link rules? Why are screen Layout link rules used for customer/vendor master records? Why are they used for line items? . What are the 3 levels that a vendor master record can be maintained at? Why do these three levels exist? Give an example of the information stored on these levels. under the client Pepsi Co.

and the activity/transaction level. bank account. when you are running the payment program. For a customer. All of the accounts in a house bank are referred to as bank accounts and are named with an account ID. company code level. and account ID. house bank. Each bank account must contain a respective G/L account. mandatory. True. optional.Since the same information can be designated required. bank key. When setting up number ranges for account groups of customer/vendor master records. bank ID. What is the document principle in SAP? Every transaction in SAP creates a document. . optional. and the field status group of the G/L master record. What are payment terms? Why are they used? How are they define in SAP? Payment terms define how you deal with a customer/vendor in terms of payment. the bank must first exist in the bank directory. the same information can be designated required. it defines when a customer must pay you. T or F. it defines when you must pay the vendor in order to receive discounts. universally recognized bank key. The terms can be set up with 3 terms. suppressed in 2 different places. suppressed in 3 different places. and due date for net payment. mandatory. In order to establish house banks. The bank directory is the repository in SAP that contains all of the banks. which are banks in which your company does business. These 2 places are at the posting key level. It can be downloaded into the system or manually keyed in. These 3 places are at the account group level. cash discount term 2. Each G/L account must contain the house bank and account ID. the link rules determine which designation rules out over another. For line items. Draw a picture if necessary. True. Number ranges may overlap for sub-ledger accounts. which are usually cash discount term 1. Describe the relationship between all of these and G/L accounts. Define bank directory. Account Groups are mandatory when creating a sub-ledger account. you cannot create one that overlaps with an existing number range. it is accurately reflected in the corresponding G/L account. The link rules determine which designation rules out over another. in order to receive discounts. and has a distinctive or unique. This is a means of documenting all transactions. The house bank is named with a bank ID. When a payment is made. This allows SAP to maintain the bank books accurately. Account Groups are always mandatory when creating customer/vendor master records. T or F. For example. you specify the bank accounts that you are paying out of. For a vendor.

account and amount. and also which accounts are open for posting within these periods. For example.being able to trace your actions in the system. how that relates to the calendar year. fiscal year variants. customer payment. All line items must at least consist of a posting key.is it a sales related transaction? is a special g/l transaction? what is the reversal posting key? What are automatic line items? How are they configured in the system? Give some examples of automatic line items.posting keys are designated for specific account types 3) field status . Ie. if your fiscal year runs from July to June. Some document types are only for asset accounts.you specify the account types that may be posted to. through a fiscal year variant. Is it a general ledger accounting document.by all of the above. There is a .each document type is assigned a number range 4) and is used as a sort criteria . Define posting periods.you specify the type. Examples include discount expenses. you are grouping the documents or sorting them accordingly. Draw a picture if necessary. you need to define. There are certain activities defined at the Chart of Account level in FI that create automatic line items. Ie. revenue from over/under payment. company codes and the relation between each. 2) controls which account types may be posted to . Posting periods define which periods are open for posting documents. Some are only for vendor accounts.how are the line items going to look if you use this posting key?? 4) other properties . 3) assigns the document number . etc. so that SAP can interpret your fiscal year. What do document types control? What is their function? Document types: 1) distinguish between the types of business transactions . taxes. in relation to the calendar year. etc. They control: 1) debit or credit entry? 2) what account type . Fiscal year variant define what your posting periods are. Fiscal year variants and posting periods are assigned to a company code. What are the two pieces of a document? What must all line items consist of ? Header and line items. What is a posting key? What does it control? Posting keys determines how line items are entered.

Composite profile is assigned to a user and contains one or several profiles. Customer Two can only post a 1% difference b/c they are a new customer and haven't established credibility. for a particular value. Similar authorizations can be grouped in to object classes . An example would be. draw a picture if necessary. This is a control or authorization mechanism. and contain details of clearing procedures. authorization. What are employee tolerances? Why do they exist? Give an example. This would be a necessary field located in the line item layout. field. you wouldn't want a brand new clerk to be able to post more than $100. value. So a line item layout would be made that did not include these fields.000 and wouldn't want them to post an incoming payment that was 10% less than the total.such as an SD object class. This determines which G/L account is hit when the automatic line item is generated. authorization object. Define composite profile. and usually you must specify a G/L account to correspond with these. maybe the value date or dunning areas are not important for a group of Accounting clerks to see. Line items are displayed in the order designated by the allocation field. and object class. and FI object class. Describe the relationship between each. An example would be: Customer One can post a 5% difference b/c they've been a customer longer and are more credible. it may be typical that clerks always retrieve line items according to the posting date. In the same concept . They control the maximum amount that employees are allowed to post. profile. The sort key specifies the fields that the line items are sorted by. allocation field. What are customer/vendor tolerances. For instance. Describe the relationship between the two. They control the maximum payment difference allowed for customers/vendors. All control the maximum payment difference that employees are allowed to post. The allocation field is populated by the sort key. All users must be allocated to an employee tolerance group in order to post.3-character system-specific code in SAP that corresponds with each of these activities. specify how to post residual items from payment difference. The profiles contain the authorizations or allowed activities that a person may perform on an object. Why do they exist? Give an example. Define sort key. Also. Why would a project team want to configure its own line item layout? Why would a project team want to configure its own fast entry structure? Some fields are more relevant for some customers than others.

Credit management is hugely integrated with SD. If a business decision is made to write off damaged goods to a G/L account then all payment advices with that reason code specified will cause differences to be written off to the G/L account. What is a Credit Control Area? Where does it fall in the organizational structure? Credit Control Area is the highest hierarchial level in Credit Management. the clerk only needs to enter the payment advice in order to clear. It falls below the client level. specifications can be made for each customer individually. Basically credit checks can be performed for customers throughout the sales cycle. T or F The credit for a customer can be checked at various points along the sales cycle? True. reasons for underpayment. You create credit control areas and assign companies to them. Then. any customer assigned to that credit control area. For each customer.What is credit management? Why is it used in SAP? The SAP functionality that allows you to maintain credit for customers on various levels. you specify the maximum limits across all credit control areas and per credit control areas. What is a reason code? Why would a reason code be used? Give an example. automatic credit checking. . It is used for the automatic search and matching of open items during the clearing process. such as amount. The reason code specifies the reasons for over or under payment. On the next level. A payment advice contains information about an incoming payment. payment date. and document number. Instead of matching an incoming payment against the open items manually. What is a payment advice? Why would one be used? Give some examples of payment advices. based on the customer's creditworthiness. customers can span Credit Control Areas since the same customer can exist in more than one company code. It also determines if the difference will be written off to a G/L account. Then on the lowest level. above companies. What are the levels of configuring credit management for a customer? First. Each company can only be assigned to one credit control area. An example would be a reason code set up for damaged goods. How is FI credit management integrated with SD? You can set up risk categories. and update groups to check invoices as they proceed throughout the sales cycle. you specify the current limit across all credit control areas and the current limit per credit control area. a credit limit can be assigned to a credit control area. will have that limit. Obviously.

baseline date in open items Why are separate dunning levels supported by SAP? What is the purpose of the levels? Because you may want to specify amounts. code. False.T or F The FI module does not currently support Lockbox functionality.such as company code. Data in master records .such as address and payment terms Basic parameters . Why would you use Dunning Areas? Give examples. house bank 2)Configuration . you may send a differently worded letter for your plastics buyers than your electronics buyers. texts depending on the number of days an amount is outstanding. interest On-line parameters .payment terms. For example. levels. They system evaluates all open items based on payment terms and days outstanding to decide if the item is due. you would want to send a firmer letter to customer when they become more overdue. payment methods in co. False.payment procedure includes banks. Dunning areas are used when you want run different procedures for different groups of customer/vendors. What does the payment program do? Payment program is the procedure whereby payments are made to customer/vendors for outstanding amounts. What are the 4 necessary inputs for running the dunning program? Define each and give examples of the data in each. T or F You may not change the dunning letters that are shipped with SAP. codes 3)On-line parameters .dunning procedure such as texts. payment methods in country. range of customers/vendors OI . 1)Master Records . They can be edited with SAPSCRIPT. charges. For example. charges.things you specify when running the program like the company code.includes payment methods. What are the 4 necessary inputs for running the payment program? Define each and give examples of the data in each. What is dunning and why is it used? Dunning is a process whereby customer and vendors can be sent late notices for overdue amounts. you would send a different letter to your more reliable customers. Also. The procedure automatically clears outstanding items and updates the corresponding bank accounts to reflect outgoing payments. than for brand new customers b/c the reliable letter may be more friendly. specifications for sending and paying co. the payment method .

if the payment program will not be run again in time to get the maximum discount then the amount if paid. bank accounts you are paying or receiving money from. its significance in sap? In APP why we will give the next run date (in general we willgive tomorrow's date as next run date) even though it is optional ? Difference b/w grace period and minimum days in arrears in dunning configuration? Where group chart of accounts assigned. What are the 3 levels that the payment program in configured at? Give examples of the data that is configured on each level? Company Code . The amounts. the payment terms.must specify payment methods for in the country and in the company code. The payment method in the open item. and their rank order per payment method Payment Methods . Then each open item is looked at individually by the system. If you are always maximizing. T or F The payment method must be configured for a country before it can be configured for a paying company? True. Describe how SAP decides which open items must be paid by the payment program. If you specify to always minimize the discount. required fields to maintain master data in sap?   .4)OI -open items. you specify whether you want to always maximize your cash discounts. why it is used in sap? While maintaining depreciation key why we will assign all the methods( declining balance method.specify your paying and sending company codes Bank . Useful interview question in FI-CO               What is GR/IR account. First. how the wire transfer method will be configured ? What is business process of the client? What are the min. Also configure the balances in the accounts. the amount will only be paid when the program will not be run again before the net amount is due (the third payment tier). period control method) to one depreciation key even though system will calculate dep. If the payment program will be run again before the first payment tier expires. or always minimize.specify your house banks. then the amount will be paid at the next run. In particular. the payment terms are evaluated. the program looks at the first payment tier. what is purpose and use of country specific chart of accounts in sap? What warning the system will give while we configuring asset accounting in live system? What is smoothing and depreciation cycle in asset accounting? What is the organizational structure in asset accounting? What is account clearing? What is period end and month end? What is use of asset sub number . for one method only? In APP .

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