8 Tips To Ace Your SAP FICO Interviews | The Ultimate Guide!

SAP FICO is a module of SAP that helps companies to manage their financials. It is a very popular module and many companies use it as the backbone of their financial operations. The interview process for SAP FICO is tough and the questions are often conceptual.

In this article, we will go over a list of the 20 most commonly conceptually asked questions for SAP FICO interviews, which should give you a good idea of what to expect from a job interview. SAP FI job interview questions and answers can help you prepare for job interviews and get hired.

Here are some of the most frequently asked questions in SAP FICO interviews.

In SAP, define ‘Financial Accounting (FI)

The SAP module “FI (Financial Accounting)” is the mainstay, and documents collect and process financial transactions or other information in real-time to provide the inputs required to outside (statutory) reports. The module is interconnected into other SAP modules (such as Material Management (MM) and the Sales & Distribution (SD), Human Resources (HR), Production Planning (PP) and Controlling (CO) and so on.). The module FI contains several submodules which are tightly connected.

SAP FICO interviews questions
SAP FICO interviews questions

In FI, what are the most important ‘Organizational Units ?

  • Company
  • Company Code

Which are Submodules in the FI?

FI-AA Asset Accounting

Integrated with FI-GL, F-IAR, and FI-AP. This module, along with CO, MM, PP, and PM, is in charge of the financial side (depreciation, insurance, etc.) of the asset throughout its entire lifespan beginning with the acquisition of assets and finishing with scrapping or selling.

SAP FICO Asset Accounting
SAP FICO Asset Accounting

FI-AP Accounts Payable

Integrated with FI-GL, FI-AA as well as FI-TR, FI-GL, and MM This submodule handles transactions with vendors through linking to the management of assets, material accounts, travel administration, and so on. Notable is the “payment program” for paying vendors.

FI-AR Accounts Receivable

Integrated with FI-GL, FI-AA as well as FI-TR, MM, and SD, this module manages customers and receivables and also integrates receivables, and integrates with SD. This is famous for its credit management functions. and the “dunning” program.

FI-BL Bank Accounting

It entails the management of bank master data as well as cash balance management (check and bill of exchange management)

FI-FM Funds Management

Funds Management is responsible for budgeting all revenues and expenditures for individual responsibility areas, monitoring future fund movements in relation to the available budget, and preventing budget overruns. By entering releases, supplements, returns, and transfers, you can adapt the budget to changing conditions.

sap fi interview question

Accounting with the FI-GL General Ledger

This submodule is integrated into all the other submodules in FI as well as outside FI. The purpose of G/L accounting is to provide a complete picture of external accounting and accounts. When all business transactions (main posts as well as internal accounting settlements) are recorded in a software system that is fully integrated with all other operational areas of a company, accounting data is always complete and accurate.

Special Purpose Ledger (FI-SL)

The Special Purpose Ledger allows you to create ledgers for reporting reasons. These user-defined ledgers can be preserved as general ledgers or subsidiary ledgers, and account assignment objects can be added to them. SAP dimensions from various applications (for example, account, cost center, business area, profit center) or customer-defined dimensions can be used as account assignment objects (for example, region).

FI-LC Legal Consolidations

This module assists in the primary job of combining the financial results from the groups to produce an overall result for the entire group. provides consolidated financial data ( This module is almost depreciated Now ). A corporation will have many business areas, and a corporation will have many companies within that group. As a result, this module assists in viewing all of their business areas and companies as a single financial statement. This module assists the organization in gaining a clear picture of its overall financial position.

FI-TM Travel Management

One of the integration points of SAP Travel management, along with HR module connectivity, is uploading travel and expense data to FI.

What does it mean to have a Company Code ? What makes it different from a company?

“Company Code” in SAP represents the least of organizational units in which you are able to draw individuals. The Financial Statements (Balance Sheet and Profit and Loss Account) for your external legal reporting. The 4-character alphanumeric code is used to identify it. The process of creating the Company Code is obligatory; you must possess at minimum a Company Code defined in the system, in order to Implement the FI.

Define the FI submodules from which Simultaneous Postings are obtained by FI-GL.

  • Accounts Receivable (FI-AR)
  • Accounts Payable (FI-AP)
  • Asset Accounting (FI-AA)

What is a ‘Business Area’?

Business Areas correspond to distinct business segments within a company and can cross over various Company Codes for different companies (for instance products lines). They also can represent a different area of responsibility (for instance branch units, for instance). These are the places where you have authority (for instance, branch units). Business areas (such as branch units) are not required areas of responsibility in SAP. The financial statements created for each business area are used for internal reports. You’ll need to insert a check into the checkbox of the configuration of the company that you wish to allow Business area financial statements

What is a Chart of Accounts?

A Chart of Accounts is a list of general ledger accounts used in some or all Company Codes. All the GL accounts within a chart of accounts will include the account’s number as well as a name, and possibly control information. The way the GL account is set up is determined by the control information.

What does it mean to have a Operating Chart of Accounts ?

This chart is utilized to post daily updates and is also referred to as an “Operative” or Standard’ Chart of Accounts. Chart of Accounts. Both FI and CO make use of charts of accounts. Both CO and FI use. It is required that the chart is in place. A Company Code’ is assigned to each account.

What are the Key Elements of a Chart of Accounts?

Chart of Accounts includes the following elements: Key to the chart of accounts

  • Name
  • Maintenance language
  • The GL Account Number
  • Controlling integration
  • Chart of Accounts for Groups (consolidation)
  • Block indicator

What is the difference between a fiscal year and a fiscal year variant ?

The accounting year, which normally lasts 12 months, is referred to as a “fiscal year.” Financial statements are created to represent financial statements for a given year. In SAP, a “Fiscal Year” Variant is used to describe the word fiscal year. In the conventional SAP system, all Calendar Year Fiscal Year Variants will be referred to as K1.K2, etc.

The fiscal year could be different from the year of the calendar. In the typical SAP system, the fiscal year is the Different fiscal years that are not calendar-based are identified as V1, V2, etc. It is likely that the year could not be longer than 12 months which is known as a ‘Shortened Fiscal Year

What is a ‘Posting Period’?

In SAP, the fiscal year is divided into numerous ‘Posting Periods,’ each having its own start and end date. Only until the ‘posting period’ has been set within the system is it feasible to post papers. In most cases, there are 12 posting times. A posting period might last anywhere between one month and a year.

What exactly is a’Posting Period Variant’?

A Posting Period Variant can be used to open and close posting periods for multiple Company Codes at the same time. You can define a posting type and link it to multiple Company Codes. The date of the period’s beginning and closing is simplified because the posting period variety is dependent on the Company Code. Instead of utilizing separate Company Codes to open and close, use a single Company Code. All that is required is to close or open the posting option.

What exactly is a ‘Special Period’? When should you employ it?

Beyond the standard posting times, SAP allows for defining up to four additional posting timeframes, and these are often referred to as “Special Periods” as they are utilized for closing-off activities at the end of the year.

This is accomplished by dividing the posting period that ended into multiple (maximum 4) periods. However, each of the postings during these times must be within the final posting period.

The special period is not automatically calculated by the system based upon the date of publication of the document. The special period must be manually entered into the “posting period’ field. The header of the document.

What exactly is a ‘Special Purpose Ledger?’

Reports make use of Special Purpose Ledgers (FI-SL). These are basically ledgers created by the user that can be kept either as GL or subordinate ones, with different accounts assigning objects (with SAP-dimensions like cost center or profit center, business area, etc.or dimensions specified by the customer, such as area, region, and so on.

This feature, once defined, allows you to create reports at various levels. It is recommended that you collect the information first and then combine it to compute the sums. This could be accomplished by utilizing an additional report. This feature is available and will have no impact on SAP’s functionality if used.

What is the procedure for creating a new ‘Fiscal Year’ in the system?

There is no reason to start the upcoming fiscal year in a different way. When you post a transaction to the new fiscal year the fiscal year will be opened automatically. Also, the new fiscal year is opened automatically when you execute the balance carry forward program. But, you must be able to

  • the appropriate posting period in the soon-to-be-started fiscal year,
  • If you’re working on a year-dependent range of numbers assignment, you’ve finished the document range assignment.
  • If you follow the year-dependent assignment, you’ll see a new fiscal year version. The fiscal year is a subset of the calendar year.

How do You Maintain ‘Currency’ in SAP?

Currency (the legal payment method within a country) is represented in SAP by a three-character Currency Code that adheres to ISO standards. USD (United States Dollars), INR (Indian Rupee), GBP (Great Britain Pound), and so on are examples of different currencies. In this arrangement, each currency code has its own validity term. SAP creates a currency based on the IMG route: General settings > Currency > Types of exchange rates to check

What is a ‘Local Currency’?

When you are defining the Company Code, you also must mention the currency you will keep the financial accounting accounts or ledgers. The currency you select is referred to as the Local Currency. This is also called “Company Code Currency.”

What is an ‘Automatic Posting’?

When you publish documents using SAP it is possible when the system adds other item lines (such as tax or cash discount, gains/losses from foreign exchange transactions etc.) in addition to the ones you’ve included in the document. Because it calculates them for you automatically, this can help you save time.But, you must specify the accounts you would like the system to post automatically to, this ensures that no manual postings are permitted to these accounts.

What is an ‘Intermediate Bank’?

In SAP, intermediate banks, as well as partner and house banks, are used to process or receive payments from overseas partners. The bank chain, which may include one house bank, a partner bank, and a total of intermediary banks, enables payment processing involving an intermediary bank.

What is ‘Payment Advice’?

Payment Advice aids in the automatic search for ‘open items’ during the ‘clearing’ process in order to identify the correct match for an incoming payment. This is possible due to the number ‘payment advice’ instead of specifying the parameters on the screen for selecting.’Typical payment advice could include information such as the document’s number and amount, the currency used as well as the reason for underpayment, etc. Payment advice falls into diverse types. The first two digits of the Payment advice numbers can help distinguish one payment advice from the other.

We will continue to post many more questions and answers to make life easier for beginners.

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