SAP fico Question Answers
SAP FICO Interview Questions and Answers
Questions are as follows:
1. Explain the term SAP FICO?
This is the most frequently asked SAP FICO Interview Questions and Answers among all. SAP FICO is a fundamental key purpose of SAP ERP Central Part that helps businesses to handle all of their financial information. SAP FICO enables businesses to keep a detailed record of their business transactions. SAP FICO is designed to assist firms in generating and managing financial reports for tracking and analysis, and in successful company management and judgment.
SAP ERP Central Component is an online ERP system that is also known as “SAP ERP.” SAP FICO assists ECC with economic management and cost. It is split into two categories: finance and control. Each and everyone is being used in a certain financial transaction. SAP FI is responsible for comprehensive financial statements and reporting, whereas SAP CO is responsible for cost evaluation and organizing. SAP FI and SAP CO were launched as different modules at first, but they are now so intimately connected that several people are referring to them all as equal.
2. List down the skills needed in SAP FICO?
A total of five years of expertise in financial assistance programs is required.
Accounting information, technical services, sales, financial management, and Asset Accounting experience are all desirable.
In-depth knowledge of accountancy business operations is required.
3. What are the organizational elements in SAP FI?
The organizational elements are as follows:
- Business Code
- Business Sector
- Chart of Accounts
- Area of Function
4. What does the posting key control and what is it?
A two statistical code called as the ‘Posting Key’ is analyzed to evaluate the transaction type that is recorded in the budget item.
The key to posting depends
(a) Types of Accounts
- b) Different types of posting Credit or debit card
- c) Transaction field status
5. List down 3 advantages of SAP FICO
- Credit management and receivables can be automated with the SAP FI component.
- SAP FI improves the account receivable and payable procedures by making bill transactions simple
- For making key decisions, various SAP components such as Material management and Operational planning can be connected to SAP FICO.
6. What are the fiscal year alternatives in SAP?
In SAP, a fiscal year refers to how financial information is located in the platform. There are 12 periods and four unique times in SAP. These dates are saved in the fiscal year format, which is:
- a) Calendar Year: January to December, April to March
- b) Fiscal year is dependant on the year
7. What is an SAP calendar’s ‘year shift’?
SAP just understands the chronological year and has no idea what a broken fiscal year is (e.g. April 2012 to March 2013). If a company’ financial year is not a calendar year however a mixture of the distinct months from two separate calendar years, SAP must classify one of the calendar years as a fiscal year, and month from some other year must be modified into the financial year by moving the year using sign -1 or +1. The annual shift is the term for this change in the calendar year.
8. What is the difference between validations and substitutions in SAP?
Validation or substitution is specified at the following places for each business function in SAP, such as Accounts, Controlling, and so on.
- a) Documentation
- b) Level of the line item
9. What is the definition of a field status group?
‘Field status groups’ manage the variables that appear whenever a user performs a deal. The field status category is contained in the Financial General Ledger master.
10. What is the kind of preset exchange rate that is used in all SAP transactions?
The standard currency rate for all SAP transactions is M. (Average Rate).
11. What issues arise when a business area is set up?
When a business area is established, the issue of checking account separation arises, which is especially evident in the context of tax accounts.
12. In SAP, what is the difference between parallel and local currency?
In contrast to the business unit, each content type will have two other currencies added to the business code information. The currency used to create the company code is referred to as local currency, while another two currencies are referred to as parallel currency. They are a type of currency that can be utilized in international commercial operations.
Parallel money can be utilized to conduct international transactions. Group currency and hard currency would have been the two simultaneous currencies.
13. Is it possible to determine depreciation on a day-by-day basis?
Yes, depreciation can be computed; however, you must turn on the indication Dep. to a day in the depreciation, keys settings to do so.
14. What are the organizational responsibilities in Asset Accounting?
The top nodes in Asset Accounting are the graph of depreciation, which is allocated to the business node. All depreciation estimates are saved in the depreciation graph.
Advanced SAP FICO Interview Questions and Answers
15. In SAP, how are investment WIP and assets handled for?
In SAP, ‘Capital WIP’ is known as Asset under Development and is characterized by a particular asset class. Depreciation is normally not levied on ‘Capital WIP.’
The expense of constructing a financial product can be recorded on an ‘internal order’ and tracked via settlement systems, as well as published to an ‘Item Under Development.’
16. In SAP, what is the credit control region?
You can create a line of credit for your client in SAP’s credit management area to protect your firm against bad loans and numerous outstanding receivables. You can use SAP to stop delivery to your customers based on their credit limit as well as the accounts payable amount in the accounts that you keep track of.
17. What is posting period variants?
The post period of a financial year is the time when the activity numbers are revised. SAP’s post period variations are responsible for determining which Accounting period is available for post and ensuring that the restricted period are matched.
18. What is a fiscal year with a short end?
When you switch from a regular fiscal year with a non-calendar fiscal year, or vice versa, you have a short-end fiscal year. When a company joins a new co-corporate organization, it undergoes this type of transformation.
19. What is an account group, and where does it come into play?
An account category is being used to restrict the information that allows the user to enter when creating a master record. Account groups are used to define GL accounts, Client Master Accounts, and Supplier accounts.
20. What is the function of SAP’s “Document type”?
In SAP, the term “document type” refers to a type of file.
- a) It defines the number range for files.
- b) It regulates the accounts which can be published, such as resources, vendors, customers, and normal GL entities.
- C) it’s a tool for reversing entries.
21. How are invoice verification limits determined?
The payable’s tolerances affect whether the bill is subject to a verification or taxation hold. For Logistics Invoice Verification, the following sections of tolerances can be provided.
- a) Minor variations
- b) Price variations based on chart patterns
- d) Variances in quantity
- d) Price discrepancies
22. What are the payment conditions in SAP FICO, and where are they archived?
Paying terms are defined in the setup and govern when a supplier or customer invoice is paid.
They’re saved on the consumer or vendor master account and then pulled through the client or supplier billposting. If necessary, the final payment on each invoice can be modified.
23. What do you mean by one-time vendors?
It is not possible to create primary records for each supplier trade partner in only certain firms, particularly those working with big-money transfers. One-time suppliers permit the use of a fake vendor code on bill input as well as the data that is normally saved in the vendor master.
24. What are the phases of a typical SAP pay cycle?
The typical steps of an SAP payment run are as follows.
- a) Specifying variables
- b) Proposals Schedule – the pattern recommends a list of invoices that have been paid.
- c) Transaction filing- it relates to the procedure of recording actual payments in the ledger.
- d) Print of payment forms, such as check examples
25. What are repeating entries?
Accounting records that do not alter from month to month can be automatically posted using repeating entries. An expenditure record, for instance, can be prepared and planned for the last days of the month and whenever a person desires. Several recurring items are generally done concurrently and then handled as a batch end of this month utilizing the procedure.
26. In the CO-PA modules, what is a ‘Value Field’?
In financial performance, price fields are numerical or price-related fields such as volume, total sales, discounted value, and so on.
27. What are the internal statistical orders?
Internal statistical commands are dummy cost items that are used for analysis and reporting. It is linked to an actual item, such as a business unit.
28. What are the uses of internal orders?
Internal orders can be used for a variety of purposes.
- a) Overhead Orders: It keeps track of inner jobs that are assigned to cost centers.
- b) Investment Orders: It keeps track of internal tasks that are assigned to capital assets.
- b) Accrual Orders: Accounting for accumulated expenses estimated in CO.
- d) Orders with Revenue: It shows the expense aspects of Marketing and Services, but it has little bearing on the business’s primary operation.
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