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SAP FICO Interview Questions

Top 50 SAP FICO Interview Questions & Answers

Have you completed your SAP FICO training courses? Now, are you looking to start your career as an SAP FICO certified consultant?  Planning, preparation, and hard work will take you to a better place!  Here we have come up with the best compilation of SAP FICO interview questions and answers which will help you to do your homework & helps to crack the interview.

Read More: Current Job Opportunities For SAP FICO Certified Freshers In India?

Question 1: What is SAP FICO?

SAP FICO stands for SAP Financial Accounting & Controlling. This comprises 2 modules in which the SAP FI manages the accounting preparation of financial statements, tax planning, etc. and  SAP CO monitors the inter orders, cost sheet, etc. This ERP Solution stores the data compute them and retrieves the result on the based current activity. This SAP FICO Module prevents data loss and also does the proper verification and reporting of data.

Question 2: What are the Different SAP Modules integrated with FI?

The list of other modules to which the SAP FI part is integrated are:-

a) Sales and Distribution

b) HR – Human Resource

c) Material management

d) Planning on pre-production and post-production

e) Good control of the financial transaction

Question 3. What is the element inbuilt in SA FI?

The organization elements used in SAP FICO are:-

a) Company Code

b) Business Area

c) Chart of Account

d) Functional Area

Question 4: What is Posting Key and explain its Control?

The two-digit numerical digital which is used to determine the transaction type is called a Posting Key. And this posting key is used to determine:

a) The account type

b) Types of posting, either- Debit or Credit

c) Field status of the transaction

Question 5: In SPA FICO, what is called the Company Code?

The company Code is used to generate financial statements like profit & loss statements, balance sheets, and so on.

Question 6: Do all Chart Account can have a company code?

We will have one & only Chart of Account for one company which is assigned.

Question 7: How Many Currencies can be configured under one company code?

For one company code, nearly three currencies, i.e. one is a local currency and two are parallel currencies.

Question 8: Is there any options available in SAP for Fiscal Years?

Yes, there is an option named Fiscal year in SAP which is used to store the financial data in the system. In SAP Modules, you will have 12 periods and 4 special periods. And these periods are stored in the fiscal year variant. The format is as follows:

a) Calendar Year: From Jan-Dec, April-March

b) Year dependent fiscal year

Question 9: What is the Function of “Year Shift” in SAP Calendar?

SAP system is not programmed to know what is broken fiscal year. For example:  from April 2020 to March 2021, the SAP FICO system will only understand the calendar year.  For business, a calendar year is not a fiscal year, but the grouping method of the different months of two different calendar years and then one of the calendar year has to be considered as a fiscal year for SAP and the month ends in another year has to be adjusted into the fiscal year by shifting the year by using the sign -1 or +1. This is the function of “Year shift” in the SAP Calendar.

Question 10: Explain Year Dependent Fiscal Year Variant?

In the Year Dependent Fiscal Year Variant, the number of days in a month is not considered as per the calendar month. For instance, in the year 2006, January end on 29th, Feb ends on 26th, etc.

Question 11: How Input & Output taxes are taken care of?

For each country, tax procedures are defined and within the tax, codes are defined.  Also, there is flexibility to either expense out the tax amounts or capitalize the same to stocks.

Question 12: Define Validations and Substitutions in SAP

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

a) Document Level

b) Line item Level

Question 13: List out the Application Areas that Use Validations and Substitutions?

a) FI- Financial accounting

b) CO-Cost accounting

c) AM-Asset accounting

d) GL-Special purpose ledger

e) CS-Consolidation

f) PS-Project system

g) RE-Real estate

h) PC-Profit center accounting

Question 14: What is the Use of Financial Statement Version?

Financial Statement Version is a reporting tool which is used to extract final accounts from SAP like profit and loss account and balance sheet. This Financial Statement Sheet can be used for generating results from various agencies such as Banks and other authorities.

Question 15: Define Field Status Group

This status group controls the fields which come into action when the user does the transactions. In Financial General Ledger, the field status group is stored.

Question 16: Role of FI-GL (Financial- General Ledger) Accounting

To get a clear overview of accounting and accounts, General Ledger Accounting is being used. It performs the recording of all business transactions with all other operational areas like software systems; and also ensures that the Accounting data is always complete and accurate.

Question 17:  Define the Default Exchange Rate Type which is performed on all SAP Transactions?

For all the SAP transactions, the default exchange rate is M (Average Rate).

Question 18: List out the Methods by which the Vendor Invoices are made?

The methods used in vendor invoices are:

a) Manual payment without the use of any output medium like cheques etc.

b) Automatic payments like DME (Data Medium Exchange), cheques, Wire transfer

Question 19:  List out the Problems When Business Area is configured?

Once the business area is configured, splitting of the account balance is more pertinent in the case of tax accounts.

Question 20: What are the customized requirements for document clearing?

The customized requirements for document clearing are to check the items cleared and uncleared. This can be performed by Open Item Management. This manages the outstanding account, i.e. account payable and account receivable.

Question 21: Define Parallel & Local Currency in SAP

Each and every company can have 2 additional currencies, in addition to the company code, and the currency entered into the company code data. The currency entered in the company code is called local currency and the two other additional currencies are called parallel currencies. This parallel currency can be used for foreign business transactions. If you are looking to do international transactions, then parallel currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD CURRENCY.

Question 22: Define the Importance of Good Received and Invoice Received in SAP Modules

Good Received and Invoice Received is an interim account. If the goods are received and the invoices are not received, then the provision is made in SAP as a good receipt. It passes the accounting entry debiting the stock and credits the amount in the GR and IR Account. Likewise, when the invoice amount is received, the vendor account is credited with the amount and the Good Received and Invoice Received is debited.

Question 23: Explain the Situation When you Can Use Internal Order?

To track the cost and other expenses, internal orders are being used as they are proposed to happen over a short-term basis.

Question 24: How to Calculate the Depreciation of the Day?

To calculate the depreciation of the day, you have to switch on the indicator dep. to the day in the depreciation key setup.

Question 25: What is the Organization Assignment in Asset Accounting?

In Asset Accounting, a chart of depreciation is rated as the highest node and this is assigned to the company node. All the depreciation calculations are stored under the chart of depreciation.

Question 26: How Many Charts of Accounts a Company Code Has?

For one company code that is assigned, we can use only one chart of accounts.

Question 27: Can We Calculate the Standard Cost Estimate for a Past Date?

No! There is no possibility to calculate the standard cost estimate for a past date.

Question 28: Define Short End Fiscal Year?

If there is a difference between a typical fiscal year to a non-calendar fiscal year, then it’s known as Short End Fiscal year. This kind of variation can happen when a business comes in a new entry in a particular group.

Question 29: Define the term APP in SAP FICO

APP is called the Automatic Payment program. This is a tool is built by SAP to assist companies for paying to their customers. This tool is very useful to avoid mistakes that can happen if we perform manually.

Question 30: List out a few of the different Submodules in SAO FICO?

a) Banks

b) AP/AR

c) General Ledger

d) Lease Accounting

e) Travel Management

f) Fixed Assets

Question 31: Differentiate Between Field Status variant and Field Status group?

Field status variants comprise of field status groups. These field status groups are used to maintain the General Ledger Account. It also specifies the fields while posting to General Ledger.

Question 32: What are the Common Types of Documents in SAP Financial Accounting?

a) AA described as Asset Posting

b) AN described as Net Asset Posting

c) DR described as Customer Invoice

d) DZ described as Customer Payment

e) KA described as Vendor Document

f) KG described as Vendor Credit Memo

Question 33: Define Tolerances for Invoice Verification

The factor Tolerance helps to figure out whether the tax is shown on the invoice or the payable places matches. In logistics verification, Tolerance is defined as:

a) Quantity variances

b) Small differences

c) Price variances

d) Moving average price variances

Question 34: Define One-Time Vendors?

One time Vendor has a very temporary relationship. This can be used more than once, but it is mostly used for one and two transactions.

Question 35: Define the Credit Control Area in SAP?

To safeguard your company from the risk of bad debts and multiple outstanding receivables, you can always set a credit limit for your customer with the use of the credit-control area in SAP.  By using SAP, you can block the deliveries to your customer based on their credit limit and the account receivable balance in their account.

Question 36: If you want to revalue the production orders using actual activity prices, how would you do it? Is there any configuration setting available?

Yes, there is a configuration setting to be done!

Question 37: What do You Need to do if the activity price is be shown both as fixed or variable?

In case, if you need to plan both the activity – Independent costs are shown as fixed costs and the activity-dependent costs which are called variable costs.

Question 38: How to Configure the System to pick up a Different Exchange rate for a particular transaction?

For this, a specific configuration needs to be done and this includes – Definition of GL, you need to attach a different exchange rate type.

Question 39: Is there any limit for the Number of Line Items on One Single Entry?

Yes, there is a limit! The number of a line items in one document is max. 999 lines

Question 40: In SAP FICO, is it possible to print the Financial Statement in an SAP Script Format?

Yes, it’s possible to get the financial statements printed in an SAP Script Format.

Question 41: Explain Account Group and where it can be used

Account Group has been created at the time of the creation of a master record to control the data that needs to be cleared. This account group exists for the definition of General Ledger Account, Master, and Vendor.

Question 42:  Will Business Area at Company Code Level?

No, Business Area comes at the Client level. And this means other company codes can also be posted to the same business area.

Question 43: Can You Please Explain – in SAP where customer and vendor codes are stored?

Like Business Area, Customer and Vendor codes are stored at the client level. This means by extending the company code view, anyone can view the customer and vendor code. 

Question 44: Define Country Chart of Accounts

It is defined as it contains General Ledger accounts that are needed to meet the country’s legal requirements.

Question 45:  Explain the Standard Stages of SAP Payment Run?

a) Entering of parameters (Vendor Accounts, Company Codes, Payment Methods)

b) Proposal Scheduling – the system proposes the list of invoice paid

c) Payment booking- the booking of the actual payments in the ledger

d) Printing of payment forms & financial statements

Question 46: Explain Value Field in the CO-PA Module?

The value fields are number or value-related fields that help in profitability analysis such as quantity, sales revenue, and discount value.

Question 47: Define Statistical Internal Order?

It is defined as follows: When a dummy cost variable is used to report or analyze the data, then those values or costs is called as Statistical Internal Orders.

Question 48: In SAP FICO, What are the main components involved in Hierarchy?

In the SAP FICO Module implementation, you can see 4 hierarchies and it includes:-

a. Company Code

b. Business Area

c. Functional Area

d. Chart of Account

Question 49: Explain WIP

WIP denotes as Work in Progress. This is labels the asset that is currently under development and it can be customized by the user if required.

Question 50: What is ERP?

This is the complete package with the techniques and advanced concepts used for the implementation of SAP which help to effectively manage the organization and improve the efficiency of the business.

This list of 50 SAP FICO interview questions and answers should help you get a head start on preparing for the job interview. In case, if you require any assistance to prepare yourself for the SAP FICO interview, then you can get professional training from Training Expand, the SAP Training Institute in Hyderabad.

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