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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