This is a continuation of the previous post on SAP FICO Interview Questions & Answers. We are constantly providing training Interview Questions explicitly written to acquaint you with the kind of questions you may face during your SAP FICO interview.
FICO Interview Questions & Answers in 2022
What’s with the Trading Partner idea?
The “Trading Partner “concept is utilized to reconcile and settle “inter-company transactions,” both purchases and sales. Typically, this is done by entering the Company ID (rather than an actual Company Code). A specific customer belongs in the ‘trading partners’ tab called ‘Account Control’ inside the customer’s master record. It is also possible to do the duplicate entry within the vendor master record.
What is the Credit Control Area in SAP?
SAP’s ‘Credit Control section’ aids in administering credit management for consumers, and this organizational unit is used in both SD and the FI AR Module. In essence, you can have multiple control areas within the Client, but each Corporate Code can only be associated with one credit control zone. However, you can indeed assign numerous company codes to the credit area.
What is a ‘Country Chart of Accounts? What is the reason you need this?
This chart of accounts, often referred to as the Alternative Chart of Accounts, contains a version for GL needed to satisfy the particular statutory/legal needs of a business that a Company Code operates. Assigning the chart of accounts the Company Code is also an option. The operative and country charts of the report may be identical. In this scenario, it is not necessary to have two charts of accounts.
Suppose the country chart and operational chart of accounts are not the same. In that case, a link must be made by entering the GL account number from the “Country Chart of Accounts” in the GL master record (under the Company Code section) of the “Operative Chart of Accounts” in the field ‘Alternate Account Number’.
Is it possible to assign a single Chart of Accounts’ to multiple Company Codes?
Yes. Multiple Company Codes can be allocated to a single chart of accounts. However, it is not possible; for example, you will not assign numerous charts of accounts to the same Company Code.
How to Assign a Company Code a Fiscal Year Variant
Each of the Company Codes can have one Fiscal Year Variant allocated. OB37:Assign a company code to a fiscal year variant.
What does the System identify a “Posting Period”?
Based on the date in the System making a post The System determines the duration of the document by looking at the date of the document and the year. But, for this to be true, you need to be able to define the fiscal year variation.
What is the System that determines “Posting Periods”?
Making a post based on the date of posting in the System will automatically compute the period based on the date and year on the document. You must be able to define the fiscal year variation for this to happen.
What happens when you post to the Year 2021 while you were in 2022?
In the first place, when you post documents that relate to a prior year, such as 2021, if your in 2022, the posting timeframe should be “open to the system.If a posting is made, the system will apply the following changes to the document’s background:
- carry-forward balances for the current year are already completed and updated if the posting impacts the balance sheet items.
- post has an impact on the Profit and Loss accounts, the system adjusts any loss or profit balances in the Retained Earnings account that have been transferred forward.
What do You Mean by ‘Opening/Closing’ Posting Periods?
Postings SAP can be controlled through the “opening” or closing of posting times in SAP. The post-period for posting documents is usually in full swing while the rest of the times are closed.. At the endduring the time (month) of the month, this post-processing period closes for the month, and the next one is open for postings. This provides greater control.
However, it is possible to keep all time or only select times open.
What is the maximum number of ‘Posting Periods’ that SAP allows?
In the GL account, you may be able to have a maximum of sixteen posting times (12 regulars and the four special periods). However, you can have 366 posting times, as is the case for “special purpose ledgers.”
What is a ‘Special Period’? When should you use it?
Beyond the standard posting times, SAP allows for defining the maximum number of posting times, also called “Special Periods,” as they are used to conduct year-end closing processes.This is done by splitting the final posting period in several (maximum of four) periods.
However, all posts made during these specific hours should be timed to match with the final publishing timeframe.The system cannot automatically calculate the special period based upon the date of posting for the document. The particular time period has to be manually input into the ‘posting date field within the document’s header.
How do you ‘Carry-Forward’ Account Balances?
It is not essential to manually carry-forward funds if you have already moved funds to the new fiscal year. However, you can use SAP’s different carry-forward programs for this purpose.
Can You Explain how ‘Carry-Forward’ Happens in SAP?
Sure. For all Balance Sheet items, the amounts of the accounts will be carried over to the new fiscal year. This includes the assignment of accounts if there are they exist. The same is valid for vendor and customer accounts. The program will carry the loss or profit (in your local exchange rate) into the retained earnings account while the balances of the accounts are reset to zero for accounts for-profit and account for the loss. No further account assignments have been assigned to the accounts.
Do I need a pre-requisite for the ‘Carry-Forward’ activity?
Yes, you can. For accounts that are Profit & Accounts with Loss, you must have identified the Retained Earnings account within the system. Furthermore, you should have specified the “Profit and Loss account ttype inthe master record of each of these Accounts with Profit & Loss.
There aren’t any rules for GL accounts. Vendors and customer accounts.
What is a ‘Parallel Currency’?
In defining the currencies to be used for the Company Code, it is possible to keep the following Company Codes, two more currencies in addition to the local Currency. The two currencies are known as “Parallel Currencies, “which could include:
- Group Currency
- Hard Currency
- Global Company Currency
- Index-based Currency
To convert one Currency’s value to another, you will have to keep the exchange rate for each pair of identified currencies within the system. If parallel currencies are identified in the system, it maintains the ledgers of accounting for these currencies and that of the Currency local to it.
What is a ‘Group Currency’?
The currency is that which is defined at the Client level.
What is the “Translation Factor”?
The relation between two pairs of currencies per exchange rate’ or ‘rate type’ are referred to as the “Translation Factor. ‘For example, the translation factor is 1 when you determine the exchange rate for currencies INR and USD:
Is there a simple method to maintain the Exchange Rates of SAP?
SAP provides a range of tools for maintaining exchange rates regularly. These tools comprise:
- Exchange Rate Spreads
- Base Currency
Please make use of the SAP-provided program, RFTBFF00, for filling in an exchange table by itself by importing an input file into an input format that is multi-cash. It comes from an input file.
What is the meaning of Valuation and Account Assignment for SAP?
It is the link that connects Materials Management with Finance. The value within SAP may be done at the plant level or the code level of the company.If you determine the value of the plant, that means you will be able to have different costs for the same product in various factories. If you set it at the plant level, you will get
at the company level you can set prices for the entire plants. Valuation also includes price Control. Each product is assigned to one of the specific material categories within Materials Management, and every material is valued using a Moving average price or standard prices in SAP. There are two kinds of price control options available.
What is Valuation Class?
The Valuation Class in Accounting 1 View in Material Master is The primary connection between Material Master and Finance. This Valuation Class and the combination of keys for transactions (BSX, WRX, GBB, PRD ) as above determine the GL account used during posting. We can group different materials that have similar properties. Classification of value. E.g., Raw material, Finished Goods, Semi Finished We can identify the following assignments when customizing the software :
All materials of similar material types are assigned to only one valuation class.Different materials that share the same kind of material can be set to other valuation classes, and materials with varying types of material are put into a single value class.
How should electronic bank statements be set up?
The steps to prepare an Electronic Bank Statement are identical except a two cases.of further steps, you’ll find below.
- Create an account symbol to represent the primary bank as well as the sub-accounts.
- Assign accounts to account symbols
- Create keys to posting rules
- Define posting rules
- Create a transaction type
- Assign another type of transaction to the posting rules
- Assign Bank accounts to different types of transactions
Is it possible to change the reconciliation account on the vendor master?
Yes. The reconciliation account can be modified in the vendor master, provided the authorization to change has been established. The rule is that we don’t change your reconciliation accounts.
What is the best way to create a specific GL indicator for Customers?
You may use an existing specific GL indicator ID, or you can create an entirely new one. After creating a new special GL indicator ID, you need to change your chart of accounts as well as your Reconciliation account. As a final step, you must change the unique GL code, and the unique GL code must also be identified as a reconciliation account. Switch on the appropriate commitment and credit limits on the record master.
What is the best way to set up Accounting for assets?
The steps for configuration in short follow:
- Make copies of a chart of the depreciation areas
- Indicate Input Tax for purchases that aren’t tax-deductible
- Assign the area of the depreciation chart to the company code.
- Specify account determination
- Define the number range interval
- Define the asset classes
- Define the depreciation areas posted to the general ledger
- Define depreciation key
How can you alter the financial calendar year within Asset Accounting?
Run the fiscal year change program to open new annual value fields for every asset. This is the year The earliest you can begin this programme is during the current year’s final posting period. To change the fiscal calendar for the entire company code, you must run this programme.
It is only possible to process a fiscal year change the following year if the previous year has been shut down to business. Take note not to mix the program for fiscal year changes with year-end closure to make accounting sense. The fiscal year change can be done only for Asset Accounting because of different technical reasons.
At what level are the FI-MM and FI-SD account setting?
They are on the level of a chart of accounts.Please refer account determination
What are the payment terms that are actually defaulted when the payment is recorded to the customer (accounting view or sale view)?
The payment term on the accounting view of the master will be displayed if the transaction originates through the FI module. If there is an FI invoice sent (FB70) for the buyer, the terms of payment default in the accounting view of the master.
If the purchase is made through the SD module, the payment period appears in the master customer’s sale view. Within the SD module, a sales order is created. In the sales, the payment terms are set to default. Order using the master’s sale perspective.
Where are the payment terms for the vendor master kept?
The terms of payment for the Vendor Master can be managed in two different places i.e. on the Account view as well as the view for purchasing.
This is the payment term that is actually defaulted transaction (accounting view or purchasing view)?
The payment term on the view that shows the financials of the master enters view if the transaction is through the FI module. If the FI invoice is sent (FB60) at the vendor’s end, then payment terms default in the view of the accounting for The vendor master.
The payment term that appears in the purchase view of the vendor master enters the frame if the transaction comes via the MM module. The MM module generates the purchase order, and the payment terms have defaulted on the purchase order using the view of buying the vendor Master.
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