Tuesday, September 25, 2018


SAP FICO Interview questions below are some SAP FICO Interview Questions & Answers for Experienced & Freshers, you are at right place. There are a lot of possibilities for many reputed organizations in the world. Vintage IT Solutions offers advanced SAP FICO Interview Questions 2018 that helps you in cracking your interview & acquire dream career as SAP FICO Developer.

SAP FICO Interview Questions and Answers Article-1

Q- What is SAP FICO?
A- SAP FICO, FI stands for Financial Accounting and CO stand for controlling. In SAP FICO, SAP FI take cares about accounting, preparing of financial statements, tax calculations etc, while SAP CO take cares of inter orders, price sheet, record sheet, expense allocations etc. This is the software that saves data, and also measures them and recovers the result based on the current marketing situation. SAP FICO prevents data loss and also does the confirmation and reporting of data.

Q- What are the different modules to which 'Financial Accounting' is combined?
A- The different modules to which 'Financial Accounting' is integrated are
a) Sales and Distribution
b) Material Management
c) Human Resource
d) Production Planning
e) Controlling of financial transaction

Q- what is posting key and what does it control?
A- So as to decide the exchange compose which is entered in the line item, a two-digit numerical is utilized known as 'Posting Key'
Posting key determines
a) Field status of the transaction
b) Types of posting. Debit or Credit
c) Account Types

Q- What is the company code in SAP?
A- To create financial statements like Profit and Loss statement, Balance sheets etc. company code is used.

Q- What number of Chart of Accounts can organization code have?
A- You can have one Chart of Account for one company code which is assigned.

Q- For an Organization Code what number of currencies can be configured?
A- There are three currencies that can be configured for an Organization code, one is a local currency and two are the parallel currencies.

Q- Explain options in SAP for Fiscal years?
A- The fiscal year in SAP is the manner in which money related information is put away in the system. In SAP, you have 12 periods and four different periods. These periods are put away in fiscal year variant that is:
a) The logbook Year: From Jan-Dec, April-March
b) Year dependent fiscal year

Q- What is year dependent fiscal year variant?
A- In a year dependent fiscal year variation, the quantity of days in multi-month isn't according to the calendar month. For ex. in the year 2005, month January end on 29th, month Feb closes on 26th etc.

Q- Explain what is approvals and substitutions in SAP?
A- For each functional area in SAP Validation or Substitution is characterized eg, Assets, Controlling and so forth at the below levels
a) Document Level b) Line thing Level

Q- In SAP how input and output taxes are taken into consideration?
A- For every nation, tax methodology is defined, and tax codes are defined inside this. There is an adaptability to either cost out the Tax amounts or capitalize the same on stocks.

SAP FICO Interview Questions and Answers Article-2

Q- What are the application areas that use validation and replacements?
A- a) FI- Financial accounting
b) CO-Cost accounting
c) CS-Consolidation
d) PS-Project system
e) AM-Asset accounting
f) GL-Special purpose ledger
g) PC-Profit center accounting
h) RE-Real estate

Q-In SAP what is the utilization of FSV (Financial Statement Version)?
A- FSV ( Financial Statement Version) is a reporting device. It tends to be utilized to extricate final records from SAP like Profit and Loss Account and Balance Sheet. The different FSV's can be utilized for creating the output of different outside agencies like Banks and other statutory specialists.

Q- Explain field status group?
A'Field status groups' handle the fields which come up when the user does the transactions. In FIGL (Financial General Ledger) master, the field status group is saved.

Q- What is FI-GL (Financial- General Ledger) Accounting does?
A- To get a summary of outside Accounting and accounts, G L (General Ledger) Accounting is used. It does the recording of all business activities combined with all other operational areas in a software system and also guarantees that the Accounting data is always complete and correct.

Q- What is the default exchange rate type which is picked up for all SAP transactions?
A- For all SAP transaction, the default exchange rate is M (Average Rate).

Q- What are the processes by which vendor inventory payments can be made?
A- 1) Manual payment without the use of any output mechanism like cheques etc.
2) Computerized payments like DME (Data Medium Exchange), cheques, Wire transfer.

Q- What are the difficulties when the business area is configured?
A- The difficulty faced when a business area is configured, is splitting of account balance which is more appropriate in the case of tax accounts.

Q- What are the customizing prerequisites For document clearing?
A- The customizing pre-requisite for record clearing is to check the items cleared and uncleared, and this is done by open item control. Open item management controls your excellent account, i.e account payable and account receivable. For example, an inventory item that has not yet been paid is recorded as open account until it is paid.

Q- What is the importance of GR/IR ( Good Received/ Invoice Received) clearing account?
A- GR/IR ( Good Received/ Invoice Received) is an interim account. In the legacy system, if the assets are received and the invoice is not received, the provision is made, in SAP at the goods receipt. It passes the Accounting record debiting the Record and crediting the GR/IR account. So, when an invoice is received the vendor account is credited, and the GR/IR account is debited, the GR/IR will show as un-cleared items till the time the invoice is not received.

Q- What is parallel and local currency in SAP?
A- Every company code can have two additional currencies, in addition to the company code, currency entered into the organization code data. The currency listed in the company code creation is called local currency and the other two added currencies are called parallel currencies. Parallel Currencies can be used in international business transactions. In order to do the foreign transaction, parallel currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD CURRENCY.

Q- Wherever can you use the internal order?
A- To trace the cost, internal orders are used; they are meant to be acquired over on a short-term basis.

Q- Is it possible to calculate discount to the day?
A- Yes, it is possible to calculate the discount, to do that you have to switch on the sign Dep. to the day in the depreciation key configuration.

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SAP FICO Interview Questions and Answers Article-3

Q- In Asset Accounting what are the organizational assignments?

A- In Asset Accounting, chart of depreciation is rated as the highest node, and this is assigned to the company node. Total the reduction calculations are stored under the chart of depreciation.

Q- What is the importance of asset classes? What asset classes are there?
A- The asset class is the main class to classify assets. All asset need be assigned to only one asset class. Example of asset class is Furniture & Fixtures, Plant & Machinery, and Computers etc. The asset class also contains the G1 account, when any asset is procured, the G1 account is debited. Whenever you create an asset master, it becomes mandatory to mention the asset class for which you are creating the required assets. Then, whenever any asset sale occurs, the G1 account associated with the asset class is automatically chosen up and the entry is passed. You can also define the default values for determining the depreciation values and other master data in each asset class.

Q- How capital WIP (Work In Process) and Assets accounted for in SAP?
A- 'Capital WIP' is referred to as Assets under construction in SAP and is represented under specific asset class. Depreciation is not charged under 'Capital WIP' usually. The cost acquired on building a capital asset can be booked to an 'internal order' and into the settlement procedures, and can be posted onto an 'Asset Under Construction'.

Q- What are the main components of the Chart of Accounts?
A- The major components of the Chart of Accounts are:
a) Chart of account key
b) Name
c) Maintain Language
d) Length GL account number
e) Controlling Integration
f) Consolidation-Group chart of accounts
g) Block indicator

Q- What is the credit control area in SAP?
A- To immune your company from the risk of bad debts and multiple outstanding receivable, you can set a credit limit for your customer by using credit control area in SAP. With the support of SAP, you can block the deliveries to your customer based on the credit limit and the accounts receivable balance in their account which is managed by you.

Q- How can you create Credit Control Area in SAP?
A- 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
a) Update
b) Name of the credit control area in SAP
c) Currency
d) Description
e) Credit Limit
f) Risk Category
g) Fiscal Variant
h) Rep group

Q- What is posting period variants?
A- In fiscal year posting period is a period for which the transactions figures are updated. The posting period modifications in SAP is responsible to control which Accounting period is open for posting and assures that the terminated periods remain stable.

Q- Explain in simple terms what is field status and what does it control?
A- Field status group is a group configured in FSV (Field Status Variant) to maintain field status for G/L (General Ledger) accounts. It examines which entries should suppress, display, optional and needed.

Q- What is the short-end fiscal year?
A- A short-end fiscal year results when you change from a normal fiscal year to a non-calendar fiscal year, or another way around. This type of change occurs when an enterprise becomes part of a new co-corporate group.

Q- What is an account group and where it is used?
A- 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 exists for the definition of GL account, Customer Master and Vendor.

Q- Is the business area at company code level?
A- No. The business sector is at client level which means other company codes can also be posted to the same business area.

Q- In SAP, Customer and Vendor code are stored at what level?
A- The Vendor and Customer codes are stored at the client level. It determines that by extending the company code view any company code can use the customer and vendor code.

Q- How are tolerances for invoice verification defined?
A- Tolerance determines whether the payable places matching or tax hold on the invoice. The following are the examples of tolerance can be described for Logistic Invoice Verification.
a) Small differences
b) Moving average price variances
c) Quantity variances
d) Price variances

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SAP FICO Interview Questions and Answers Article- 4

Q- What is a country Chart of Accounts?
A- Country Chart of Accounts contains G/L (General Ledger) accounts needed to meet the country's legal requirements.

Q- What is APP in SAP Fico?
A- The APP stands for 'Automatic Payment Program'; it is a tool provided by SAP to companies to pay its vendors and customers. APP tools support to avoid any mistakes taken place in posting manually. Also, when a number of employees are more in the company, payment through APP becomes more feasible.

Q- In SAP FICO what are the terms of payment and where are they stored?
A- Payment terms are created in the configuration and determine the payment due date for vendor/customer invoice.
They are saved on the customer or vendor master record and are pulled through onto the customer/vendor invoice postings. The payable date can be changed on each individual invoice if needed.

Q- What are one-time vendors?
A- In some companies, particularly the one dealing with high cash transactions, it is not practical to create new master records for every vendor trading partner. One time vendors provide a dummy vendor code to be used on invoice entry and also the information which is usually stored in the vendor master.

Q- In Accounts Receivable, what is the difference between the 'Residual Payment' and 'Part Payment' methods of allocating cash?
A- 'Residual payment' and 'Part payment' are the two methods for allocating partial methods from customers. For example, an invoice for $100 is generated, the customer has paid $70. Now this $70 will be off-set and leaving the remaining balance $30. With residual payment, the invoice is cleared for the full value of $100 and a new invoice is generated for the remaining balances $30.

Q- What is "dunning" in SAP?
A- 'Dunning' is the method by which payment tracking letters are issued to customers. SAP can determine which customers should receive the letters and for which overdue items. Different letters can be printed in SAP depending on the overdue payment date, with a simple reminder. With the help of the dunning level on the customer master, we can know which letter has been issued to the customer.

Q- What is the purpose of the account type field in the GL (General Ledger) master record?
A- At the end of the year, profit and loss accounts are cleared down to the retained earnings balance sheets account. The field contains a sign which is associated to a specific GL (General Ledger) accounts to use in this clear down.

Q- Explain what is happening records and why are they used?
A- Recurring entries can reduce the requirement for the manual posting of Accounting records which do not change from month to month. For instance, an enterprise document can be created which can be scheduled for the last days of each month or whenever an individual wants it. Normally, various recurring entries are created at one go and then processed all together as a batch month end using transaction.

Q- What is a 'Value Field' in the CO-PA module?
A- Value entries are number or value related fields in profitability analysis such as quantity, sales revenue, discount value etc.

Q- What are the statistical internal orders?
A- Statistical internal orders are duplicate cost objects used for reporting and analysis purposes. It necessity be posted to in association with a real object such as a cost center.

Q- For what plans internal orders can be used?
A- You can use internal orders for
a) Overhead Orders: It controls internal jobs settled to cost centers
b) Investment Orders: It controls internal jobs settled to fixed assets
c) Accrual Orders: Offsetting posting of accrued costs calculated in CO
d) Orders with Revenue: It displays the cost checking parts of Sales and Distribution, it does not affect the core business of the company.


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