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SAP FICO Interview Questions and Answers For Freshers and Experienced

SAP FICO Interview Questions and Answers

  1. Explain the term SAP FICO?

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.

  1. In SAP FI what are the organizational elements?

The organizational elements in SAP FI are:

  1. a) Company Code
  2. b) Business Area
  3. c) Chart of Account
  4. d) Functional Area

    3. Why the financial statements are important for any business?

Well, it simply enables them to keep an eye on the purposes for which a specific amount sent including all its information. The users can simply keep a digital record of all the funds received or transferred to any other account. This enables those to prepare documents for the future on which some important plans and decision-making strategies are based on. Financial statements also enable the business to get the reduction in taxes in a few cases. In addition to this, the users can access the record of all the financial transactions anytime the same is required.

  1. Can you name a few modules with which it is possible for the users to integrate the financial accounting?

There are several useful modules where it is possible for the users to consider this approach in an integrated manner. These include Material Management, Sales & Distribution, Production Planning, financial transaction management, as well as the Human resource. 

  1. What is the company code and when it is used? What is the limit on the currencies which you can configure?

It is basically a code that needs to be entered in the system when it comes to generating the Loss or the profit statements. It is not always necessary that all the employees are given access to the same. It is possible for the users to configure up to 3 currencies and among which one generally remains local and other can be considered as parallel. 

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  1. What is the financial accounting?

SAP FI stands for Financial Accounting and it is one of an important module of SAP ERP. It is used to store the financial data of an organization. SAP FI helps to analyze the financial condition of a company in the market. It can integrate with other SAP modules like SD, PP, SAP MM, SAP SCM etc.

  1. What is General Ledger in Finance accounting?

A General Ledger contains all the transaction details of a company. It acts as the primary record to maintain all accounting details. Common general ledger entries are customer transactions, purchases from vendors, and internal company transactions.

  1. What is the difference between field status variant and field status group?

Field status variant will have filed status groups. A filed status group is maintained in GL account and It defines the field’s while posting to the GL.

  1. Which scenarios you can use document reversal?

You can also reverse an incorrect document and can also clear the open items. A document can only be reversed if −

It contains no cleared items

It contains only customer, vendor, and G/L account items

It was posted with Financial Accounting

All entered values (such as business area, cost center, and tax code) are still valid

  1. How do you define credit control area in FI?

T-code: FD32

  1. What is dunning in FI? What is the requirement of using Dunning?

In SAP FI, If the customer misses the payment for the outstanding invoice by payment due date You can generate dunning letter using SAP FI and send it to customer address for reminding the customer outstanding payment.

Requirement −

The dunning system enables to trace liable customers who have not paid their open invoices within a given time span. It enables you to handle the process from, for example, sending a reminder to customers of their outstanding payments through to referring such customers to collections agencies.

The dunning system covers below documents −

Open A/R invoices, including invoices that are partially credited or partially paid

Invoices that include installments

A/R credit memos

Incoming payments that are not based on invoices

  1. What is the use of FI-Asset Accounting component?

The FI-Asset Accounting (FI-AA) component is used for managing the fixed assets in FI system. In Financial Accounting, it serves as a subsidiary ledger to General Ledger, providing detailed information on transactions involving fixed assets.

Integration with other components −

As a result of the integration in the SAP System, Asset Accounting (FI-AA) transfers data directly to and from other SAP components.

  1. How do you perform Profitability analysis in SAP CO? What are the different types of profitability analysis?

SAP CO-PA is used to analyze the market segments classified as products, customers, sales area, business area, etc.

SAP CO Profitability Analysis (CO-PA) is used for the evaluation of Market segments, which is classified according to −

Products, customers, and orders

Or any combination of these

Or Strategic business units such as sales organizations

Or business areas, with reference to a company’s profit

Or contribution margin

There are two types of Profitability Analysis are supported −

Costing-based

Account-based

Costing-based Profitability Analysis −

It is used to group the costs and revenues as per the value fields. It is used to ensure that you access at all times to a complete, short-term profitability report.

Account-based Profitability Analysis −

It is used to provide you with a profitability report that is permanently reconciled with financial accounting.

It is mainly used for getting information related to sales, marketing, product management and corporate planning departments to support internal accounting and decision-making.

  1. What are the options in SAP for Fiscal years?

The 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:

  1. a) The calendar Year: From Jan-Dec, April-March
  2. b) Year dependent fiscal year

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  1. What is a ‘year shift’ in SAP calendar?

SAP system does not know what broken fiscal year e.g is 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.

  1. Explain what is validations and substitutions in SAP?

For each functional area in SAP Validation or Substitution is defined eg, Assets, Controlling etc. at the following levels

  1. a) Document Level
  2. b) Line item Level

 

  1. In SAP what is the use of FSV (Financial Statement Version)?

FSV (Financial Statement Version) is a reporting tool. It can be used to extract final accounts from SAP like Profit and Loss Account and Balance Sheet. The multiple FSV’s can be used for generating the output of various external agencies like Banks and other statutory authorities.

  1. What is a field status group?

‘Field status groups’ control the fields which come up when the user does the transactions. In FIGL (Financial General Ledger) master, the field status group is stored.

  1. What is parallel and local currency in SAP?

Each company code can have two additional currencies, in addition to the company code, currency entered to the company code data. The currency entered in the company code creation is called local currency and the other two additional currencies are called parallel currencies. Parallel Currencies can be used in foreign business transactions. In order to do an international transaction, parallel currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD CURRENCY.

  1. What is the difference between company and company code?
    A company is
    the organizational unit used in the legal consolidation module to roll up financial statements of several company codes.
    The Company Code is the smallest organizational! Unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.
  2. What is a controlling area?
    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.
  3. What are special periods used for?
    The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments to a closed fiscal year.
  4. WHAT ARE THE OPTIONS IN SAP FOR FISCAL YEARS?

The 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:

  1. a) The calendar Year: From Jan-Dec, April-March
  2. b) Year dependent fiscal year

 

  1. Tell something you know about a field status Group?

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. 

  1. Tell something about the credit control area in the SAP?

The credit control is in the SAP enable the organization to impose a strict upper limit on the credit for the customers. This can be done by using the option controls are in the SAP. It simply makes sure of avoiding the situation such as risk of bad debts and outstanding receivables. 

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Comments (2)

  1. N Umesh Reddy
    September 29, 2018 at 3:18 pm Reply
     

    Interview questions send me sir

    1. Icon IT Inc Support
      September 30, 2018 at 5:01 am Reply
       

      Hi Umesh Reddy,

      Thanks for writing to us.

      Follow our blog you can get an idea about interview questions what you are looking for.
      Follow the link http://www.iconitinc.com/blog/
      I would like to request you to go through the course page and read the details of the course for the better understanding.

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