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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