Are you planning to attend an interview for the SAP FICO Developer role but are confused about how to crack that interview also what would be the most probable SAP FICO Interview Questions that the interviewer may ask? Well, you have reached the right place. Tekslate has collected the most frequently asked SAP FICO Interview Questions which are often asked in multiple interviews.
In this article, we will cover the following:
Ans: SAP FICO stands for FI ( Financial Accounting) and CO (controlling). In SAP FICO, SAP FI takes care of accounting, preparation of financial statements, tax computations, etc, while SAP CO takes care of inter orders, cost sheets, inventory sheets, 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 loss and also does the verification and reporting of data.
Ans: SAP Financials accounting module enables you to manage financial accounting data within an international framework of multiple companies, currencies, and languages. SAP FI module mainly deals with the below financial components.
Ans: SAP FI Accounts Receivable component records and manages the accounting data of all customers. It is also an integral part of sales management.
All postings in Accounts Receivable are also recorded directly in General Ledger. Different G/L accounts are updated depending on the transaction involved (for example, receivables, down payments, and bills of exchange).
Ans: A controlling area may include one or more company codes that must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.
Ans: Sales Returns in SAP FI are used to manage full products that the customer has returned due to a complaint. These are used in the consumer goods industry.
All returns are related to quality defects and not incorrect deliveries. The path that the returned merchandise takes often has to be tracked in detail. The returned item has to be sent for inspection.
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Ans: The Controlling Area is the central organizational unit within the CO module. It is representative of a contained Cost Accounting envy where costs and revenues can be managed.
Ans: A controlling area may include one or more company codes that must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.
Ans: Fiscal Year is a period of 12 months and SAP provides 4 special periods for posting adjustment Entries. The fiscal year determines the posting periods. Posting periods are used to assign business transactions. The fiscal year may be year-dependent or year independent.
Ans: The Special periods in a fiscal year variant can be used for things like posting audits or tax adjustments to a closed fiscal year.
Ans: The document type is the identifier of different account transactions like SA for G/L, AA for Asset Accounting, etc. The doc. Types control things like the type of account that can be posted to, the number range assigned to it, and required doc header fields.
Ans: Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment-type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.
Ans: The organizational elements in SAP FI are:
Ans: To generate financial statements like Profit and Loss Statement, Balance sheets, etc. company code is used.
Ans: For each country, tax procedure is defined, and tax codes are defined within this. There is a flexibility to either expense out the Tax amounts or capitalist the same to stocks.
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Ans: 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
Update
Ans:
Ans: A short-end fiscal year results when you change from a normal fiscal year to a non-calendar fiscal year, or the other way around. This type of change happens when an enterprise becomes part of a new co-corporate group.
Ans: The purpose of “ Document type” in SAP is
The number range for documents is defined by it
Types of accounts that can be posted are controlled by it, e.g Assets, Vendor, Customers, Normal GL account
It is used for the reversal of entries
Ans: Tolerance determines whether the payable places a matching or tax hold on the invoice. The following are the instances of tolerance that can be defined for Logistic Invoice Verification.
Ans: PP stands for the ‘Automatic Payment Program’; it is a tool provided by SAP to companies to pay its vendors and customers. APP tools help to avoid any mistakes that take place in posting manually. Also, when the number of employees is in the company, payment through APP becomes more feasible.
Ans: Payment terms are created in the configuration and determine the payment due date for vendor/customer invoices.
They are stored on the customer or vendor master record and are pulled through onto the customer/vendor invoice postings. The due date can be changed on each individual invoice if required.
| Checkout our Blog on SAP FICO Tutorial |
Ans: ‘Capital WIP’ is referred to as Assets under construction in SAP and is represented under a specific asset class. Depreciation is not charged under ‘Capital WIP’ usually. The cost incurred on building a capital asset can be booked to an ‘internal order’ and through the settlement procedures, and can be posted onto an ‘Asset Under Construction’.
Ans: ‘Dunning’ is the process by which payment chasing 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 a dunning level on the customer master, we can know which letter has been issued to the customer.
Ans: Value fields are number or value-related fields in profitability analysis such as quantity, sales revenue, discount value, etc.
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