SAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. PRAGNA TECHNOLOGIES SAP-FICO INTERVIEW QUESTIONS By Mr. Upendar Reddy - ICWAI 15+ Exp. Real Time Consultant +? PRAGNA Te HNOLOGIES oO 9001:2008 CERTIFIED Address: #406, ri Block, Adithya Enclave, Ameerpet, Hyderabad — 500038. Visit us at www.pragnatechnologies.com Mail id: info@pragnatechnologi mPh: 9246212199, 040-40036678, +1 3602 557 0404, Faculty: M.Upendar Reddy, I.C.W.A.| and SAP Consultant Pear ea Pe eae eer ferer |SAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. 1. Open item management option importance in GL master? For outstanding exp . loan accounts , invoice clearing a/cs, check deposit, check issue we will select..So that it will display in red colour in line item report 2, What is the use of sort key? Used for sort/search line items from all postings done to line item. Sort key will display in line item report under assignment colimn 3. What is global parameters? ‘We can maintain all default assignments like company, chart of accounts, fiscal year variant, FM area etc. in a single screen Company code global setting refer to a set of parameters that needs to be maintained for a company code. As we understand that company code is a legal entity for which books of accounts ced to be maintained. Hence whenever any transaction happens, corresponding, accounting documents need to be posted in the company code. But before posting any document in the company code, below parameters need to be maintained for the company code: 3, What is alternative GL account optior Fso0? Country specific chart of accounts gl number we can assign here or non sap system gl account number 5.How to do foreign currency revaluation? Can you explain configuration steps? Any gl account created with other than company code currency that need to be revaluated periodically. For that configuration required Define Accounting principle Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Assign to ledger Define multi-level methods ~it specifies which exchange rate type is used for revaluation Also controls balance revaluation and also group valuation. Specifies document type to post revaluated entry And also time dependent terms we can maintain Define valuation areas...here we will assign valuation method and also curreney type Assign valuation areas to accounting principles Assign gl accounts for automatic postings. here we are using Tkey KDB/KDF:KDB is used if account is not open item..KDF is used if account is open item.with exchange rate difference key we are mapping GL accounts..ater this exchange rate difference key'we have to assign to Glale 6. What is the purpose of foreign currency revolution? As we have to prepare B/S in our local currency, all gl accounts which are created in other than local currency need to revaluated as per accounting principles 7. What is realised gai or loss and unrealised gain or loss? Realised gain ot loss incurred expenditure or received ineome ‘Unrealised gain or loss is expected income or expenditure 8, FS00required field’s importance? # Field Description 1 GL ‘The numbering scheme for the accounts should Account _be rational and carefully structured. Many Number places will have a hierarchy of accounts that will correspond to the numbering scheme. For instance, assets may start with I, liabilities with 2, short term liabilities with 22, and so on. 2 P&L If the account is marked as P&L, then the Indicator account will be pushed to retained eamings during the year end roll forward. If the account is marked as a balance sheet account, then it will roll forward into the same account. 3 Account ‘The account group controls which fields are Group available for use on the GL master as well as what number interval the account number is in Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. # Field Description Often, the account group is used to help with reporting. 4 Text The short text and long text provide a Fields description of the account. 5 Trading The trading partner on an account will auto Partner populate any posting against the account with the trading partner populated here. 6 — Group account different operational charts of accounts into a common standard across the enterprise. # Field Description 1 Account The curreney of the account. Ifthe Currency currency is the same as the company code's local currency, then any document currency can be used when posting to the account. If not, then document currency must match that of the GL account. This is used primarily with cash accounts. 2 Only balances This setting does not mean what you in local think it means. If this field is flagged, currency any document currency can be used with this account, but the document currency is immediately converted to the local currency and is not recorded in the tables. This setting helps performance and complexity, but that detail is often necessary, 3 Exchange Rate This key will specify where exchange Difference Key rate variances should be posted to. This key may not be necessary for exchange rate differences depending on the configuration. 4 Tax category The tax category will enable the entry of a tax code on postings to this aecount, The type of tax or even individual tax Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. # Field Description can be specified. 5 Posting w/o tax This setting will enable postings to the account without a tax code if the tax category is set. 6 Recon account A reconciliation account is used to type denote the balance that is supported by a subledger. These accounts cannot be posted to, For instance, if the account is a recon account for customers, then inside Of AR, the total sum of the customer postings should match that of the GL account, 7 Alt Account: The alternate account number is open for Number use. For simple migrations, it can be used for legacy account numbers. 8 Tolerance Tolerance groups assign the maximum Group forGL percentage or absolute amount that can Accounts be written off during open item clearing, 9 Open Tem If an account goes through a clearing Managed process where debits and credits should be matched against one another, then it should be flagged as open item managed, This flag should be set for cash reconciliation accounts and any other clearing accounts. It should not be set for reconciliation accounts. Line Item This indicator enables display of the 0 Display accounts line items. That enables reporting of the individual line items in entry view via transactions such as FAGLLO3 or FBL3N. GL view is always line item enabled. Recon accounts, tax accounts, and so on should not be flagged as line item displayed. IL Sort key The sort key controls how the assignment/allocation field is populated in SAP. BSEG has an index by default on this field, so by properly Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. # Field Deseription populating the allocation field, then line item level reports will execute faster. SAP provides a set of different rules for populating the allocation field. This is called the sort key. 1 Authorization The authorization group controls whether Group special security permissions are necessary for posting to this account. Accounting The accounting clerk on the account 3 Clerk assigns responsibility for the account to a particular person. Field Description # 1 Field Status The field status group controls 4 Group what fields are required, optional, and hidden per account. In general, field statuses should be setup to only display the necessary fields per account and not every field. 1 Post If this field is set, the account 5 Automatically cannot be posted to via manual Only transaction. 1 Supplement If this field is set, a post 6 Auto Postings automatically only account can have additional characteristies such as profit center or cost center set manually during posti 1 Planning level This field is used to classify 7 the account's activity into current day cash forecasting 1 Relevant to This field must be set to 8 cash flow enable processing in current Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. day cash forecasting L Commitment This field is used to classify 9 Item the account's activity into current day cash forecasting House Bank The house bank will assign the 0 GL account to a house bank. This field should be set for the confirmed cash account related to a house bank account 2 House Bank ‘The house bank account will 1 Account assign the GL account to a house bank account, This field should be set for the confirmed cash account related to a house bank account, 2 Interest The interest indicator controls 2 Indicator whether the account should be considered for automatic interest calculation, 2 Interest This indicator determines how 3 Calculation often interest should be Frequency applied on the account. 9, Relevant to cash flow option importance? For which GL accounts we select this option? For check updation itis required. for bank accounts we have to select 10. Post automatically option importance? If we select post atitomatically, we can’t post directly/manually in FI..the values we can post from other modules or sub modules e.g raw material stock/petty cash a/c 1 Why we select only balance local currency option in FS00? What is the impact of selecting this option for FCR GL accounts? For all balance sheet gl a/es we have to select..for FCR accounts we should not select 12, How many levels can we ereate GL master? Chart of accounts, company code level Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Information maintaining at chart of accounts level common for all company codes whichever is using same chart of accounts. The information mainlining under company code level is specific to company code only 13. What is fiscal year variant? Types of fiscal year Its financial year or accounting year.as per country legal requirement we have to follow Normal fiseal year and shortened fiscal year variant Fiscal year means accounting year. The accounting year means the period of 12 months for which the companies prepare financial statements normally. Fiscal year variant is used to supply below information to company code: . Start date and end date of financial year of accounting. . Number of normal posting periods and special posting periods. . Number of days in each posting period Types of fiscal year 1, Year Dependent Fiscal Year- A calendar year fiscal year variant, when defined as year dependent, is relevant and valid only for that year. Fiscal year is different from calendar year, number of days in a year is not same each year. Number of days in period can be maintained different for different year. 2.Year independent Fiscal Year- Fiscal year is different from calendar year, same number of days in periods every year. Number of normal periods and special p jods need to be specified in fiscal year va ‘Standard practice is to keep 12 normal periods and 4 special periods. 14, What is the Chart of accounts? Prerequisites for creating COA? Types of COA? Chart of accounts is the list of general ledger accounts used by the organisation. It is compulsory to define the chart of accounts before creating the general ledger master record. ‘There are three type of chart of accounts. 1. Operational Chart pf Accounts: It is the list of the general ledger accounts used by the company code in to which all the daily business transactions are posted. From this Chart of Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. accounts the financial statements are prepared. It is compulsory every company code should be assigned with one operational chart of accounts, 2. Country Specific Chart of accounts: It isthe list of general ledger accounts used to meet, the country specific legal requirements. 3. Group Chart of Accounts: It is the list of general ledger accounts used by the entire corporate group to prepare the consolidated financial statements. The definition of the group chart of accounts is optional. 15, What is portance of document type? The document type controls the follo 2. 1, The number to be assigned to the document. 2. It differentiates the business transactions amioitg the account types and for every account type it differentiates the nature of business transactions. ‘The document types are defined at the client level and are theréfore valid for all company codes. The standard system is delivered with documents types which ean be used, changed or copied ‘We can maintain default exchange rate type for document postings Italso controls inter company transactions It specifies reference and textat doe header level is required or not ‘The number ranges for document types are defined at company code level. 16.What is account group? Similar nature of accounts grouping together e.gGl, Vendor, Customer Itdetermines number range of master records It controls field status while we are creating master records 17. Whatis posting period variant? Explain open n close posting period? Posting period variant is used to open and close periods to post documents for account typesthe posting periods are defined in the fiscal year variant. Postings in SAP are controlled by the ‘opening ‘or ‘closing’ of posting periods. Normally, the current posting period is open for document posting and all other periods are closed. At the end of the period (month), this Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. posting period is closed and the new one is opened for postings. This way it provides better control. We can also assign authorization group, so that we can control postings of users based on authorization. We can open normal as well as special posting periods 18.Posting period variant at company code or client level? Posting period variant defined at client level, it can be assigned to multiple company codes 19.What is the t code for Accruals? App configuration? Can you go through in brief about app configuration steps? The Settings for Automatic Payment program are divided into following Categories: 1. Setup Payment Methods per Country for pymt transaction 2.set up Payment Methods per Company Codes for pymit transaction 3.setup All Company Codes for payment transeation. 4.setup Paying Company Codes for payment transeation, 5. Bank determin: 6. Assign payment method in custome master data Payment Method (Country: In this section we perform the following settings Methods of Payments - Cheques, bank transfers ete Settings for individual Payment Methods - ‘Master record requirements Document Types for Posting Permitted currencies Print Programs Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Payment Method / Company Code: In this section we perform the following settings Minimum and maximum payment amounts Whether payments abroad and foreign currencies are allowed Grouping Options Bank Optimization Forms for payment media All Company Cod : In this section we perform the following settings Inter Company Payment Relationship ‘The Company codes that process payments Cash Discounts Tolerance days for Payments ‘The Customer and Vendor Transactions to be Processed Paying Company €odes:: In this section we perform the following settings 1. Minimum Amounts for Incoming and Outgoing Payments Bill of Exchange Parameters 3. Forms for Payment Advice and EDI Bank determination 1. Ranking Order 2 Amounts Accounts 4. Charges Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. 5. Value Dates ‘What is the importance of next payment run date? If next APP run date is with in our discount terms then invoices will be considered for payment only in the next run otherwise will be considered in this run ‘The next posting date is used in order to check the due dates of the payables, iPan open item is overdue on the date of next posting run it will include in the next payment run, ‘The business effects are, if the overdue items is not paid the company has to pay interest (to vendor ) on the arrears and will not be eligible to get the discounts on the early payment. Next date in APP run determines the date for next payment run, By standard system ask you when to execute next payment run and you specify in there the date. Before that date you can never run the APP run , if you do so the system will give error. The System design produces the error message F0020 once the posting date of next paymentrun is before the posting date you entered in F110.1t also can never be changed in OBAS. Please also refer to OSS Note 1479326. What is the program name for workbench mclassic method? Classic method for check payment isRFFOUS C Work bench for bank transfers FEBRABAN_P. ‘Which payment medium are you using in your previous company? Workbench or classic method? Classic method for check payment isREFOUS_C Work bench for bank transfers FEBRABAN_P What is the purpose of free selection tab in F110 ‘To include or exclude any field either at document level or vendor or customer master level in APP Run Duplicate invoice check box where you maintain? In vendor master data company code level under payment transactions tab Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Ifyou are doing APP for foreign currency payments, what are the additionally settings required in FBZP? Payment method country add currencies payment method in company code and select the following items under foreign payments / foreign currency payment * Foreign business partner allowed * Foreign currency allowed * Customer/ vendor bank abroad allowed Bank determination steps with foreign currency ‘What is the payment terms / use of payment terms? ‘The terms of payment contain information about the discotint offered, rules for deciding when payment and the default payment method. The terms of payment are mentioned in the customer as well as the vendor master records. ‘The automatic payment and will dunning program pick up the vendors as well as the customers due for payment on the basis of the information entered in the payment terms. To calculate the cash discount based on the base line date .bas¢ line date may be document date and posting date ‘The day limit is the date of the month up to whieh the terms of payment being defined are valid The baseline daté eat be defined as'some fixed date of the month or of any of the coming ‘months the discounts to be given if the payment is made within a certain number of days from the baseline date. Mostly businesses will offer a discount if the payment is made fast. In the payment term definition shown below in figure 7, a 5 % discount is offered if the payment is made within 5 days from the baseline date, a 3 % discount is offered if the payment is made within 10 days from the baseline date and the full amount is due after 30 days from the baseline date. Thaye one house bank, want to create one savings account and two current account, how can you configure in SAP? After created House bank, choose the folder Bank account to create bank account for that House bank, you fill the bank account, assign GL account for this bank account, and currency also TCode:FI12 Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. ‘What is the Dunning process? In simple terms DUNNING IS KNOWN as sending 'reminders' to the business partners when they are not making payments as scheduled. In SAP FI, Dunning plays a vital role in Accounts receivables. Dunnitig is Similar to,reminder notice to our business partners for their overduc/open items or outstanding balances. Dunning letter summarizes overdue invoices record and asks for payment to be:made, We configure dunning program for accounts receivable and accounts payable. Dunning Program includes following configuration steps © Dunning Areas. * Dunning procedure, * Dunning level, Dunning area means the client/éompany/compariyycode in which we are working on dunning program. If we don’t want to fun dunning program at Company code level then we can also run dunning program at organizational level like, sales organization. Dunning procedure Controls the path of dimnning to the customer and vendor through the system. We can define our own dinning procedure as per our convenience. Transaction code: FBMP. Dunning leyel defines Dunfinglevels ‘maximum Yare available. As the dunning level increases, text will also change a8 consistent to make payment. Dunnitig.levels, Minimumamotnttof dunning, Dunning charges, Days interval between two dunning levels ete... Grace Period Assign D.procedure to customer MASTER T code:xd02, Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Define Correspondence Types (T. Code ~ 0B77) -Assign Company Codes to Correspondence company Codes Assign Programs for Correspondence Types (B78) -Dunning Run: Transaction Code: F150 Note: Whenever you schedule more than one dunning run a day, the “Identifi¢ation” number must change. The following notes is also useful for running the dunning program To exclude all invoices created for a specific customer fromm the duftning process, display the Business Partner Master Data record for that customer, On the Accounting tabs select Block Dunning Letters. One time customers are dunned at item level What are the entries @ of dunning? No entry will be post because itis a information document for business partner ‘Maximum dunning levels for company code? Maximum 9 dunning levels in sap After completion of all dunning levels customer didn’t pay the amount, how you take care of that invoices? Say, 8 customer is unable to pay for a particular term and you wouldn't want to further retry the payment for that particular invoice, you can choose to stop dunning. As pet bilsiness process can treat it as bad debts Can we send dunning letter in mail? ‘Yes, Sending a mail is not a standard SAP functionality; in order to achieve this nonstandard Functionality we have BTE. This is an enhancement technique (Open Fl) that was developed for Financial Accounting component. This functionality is primarily used in FI in the areas of dunning, Payment advice Customer and Vendor Statement etc. Each of them has their own Function modules which will not interfere with each other Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Application Area: FI — Accounts payable and Accounts receivable ~ Dunning Transaction - FIBF -> Environment > Info systems (Processes) Application of the process BTE event *00001040" — This process BTE is usefull during a dunning run when a dunning notice needs to be sent to the customer by the medium of an electronic form (EMAIL) In customer master general data tab assign email id Dunning Run SAPF150D2-This Program can be used to execute the Dunning form by giving the Run date and identification and the logic in the FM’s can be checked by placing the debugger. - Best way is to check in the debugger FINAA-NACHA — For Communication Medium (I- Internet, 1-Print Out, 2-Fax) FINAA_INTAD ~ Email Address to send the PDF Process the next step by confirming the ‘Send to mail’ dialog, Can you go through Asset accounting configuration in your previous company or implementation project? A. Copy reference chart of depreciation/depreciation areas. Creation of 0% tax codes for sales & purchases. Assign tax code for non-taxable transactions ‘Assign cod to company code. Specify account determination Create sereen layout rules. Create number range intervals. Creation of asset classes. Assignment of accounts for automatic postings Determine depreciation areas in asset class. Specify document type for posting of depreciation. Specify intervals and posting rules. Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Specify rounding of net book value and/or depreciation. Define screen layout for asset master data Define screen layout for asset depreciation areas. Define multilevel method. Define period control method. Maintain depreciation key. Main asset master creation, Sub asset master creation, What is the account determination? Account determination controls Gl a/c updation for all transactions posted to assets like acquisition, sale of asset, profit on sales, loss on sales, loss due to scrapping, transfer, depreciation, revaluation etc. depreciation rea wise we'ean map all'Gl a/es Its assigned to asset class ‘What is the integration point between An FI2. Where you assign GL accounts? When ever we are posting asset transactions then FI document also posts. In TCode:AO90GI accounts assigned by using account determination Prerequisites for creating asset class? Specify account determination Create screen layout rules. Create number range intervals. Which fields you maintain at asset class in OAOA? Asset class creation Specify account determination soreen layout rules, ruifnber range intervals, Status of AUC : No AUC or summary management of AUC Line litem settlement. Investment measure. History status: Manage historically. Do you maintain chart of dep @ Client level or country level? ‘We maintain chart of depreciation at country level. Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. What is multilevel method? Under chart of dep we will create multi Ivel method It controls from which date dep calculating What will be the acquisition year and for how many years and periods we are calculating dep. What is the percentage of dep. And on which amount ie base value depcaleualted What is period control method? It is one of the most relevant method to keep control on the ealeulation of depreciation. Here we mention the different rules for;petiods in case of different scenarios for assets. This method controls the period for which the depreciation is, calculated on an asset during the year. Under this method, we ean specify the period for Which the depreciation should be calculated in ease of : * Acquisition of Asse/Subsequent acquisition + Retirements/Scrap + Sales/Transfers + _ Upward/Downward Revaluation There are some standard methods that fas been provided by SAP e.g. Pro rata at mid period, Pro rataiat period start date, at the start of year or At mid year ete. E.g., If client requires to depreciate.an asset from the First day of the year in which the asset is capitalised, we ean use the method °AC the start of the Year" in case of Acquisition. This method has been explained with the help of one comprehensive example below: Example: A. company wants to charge depreciation as follows. Client follows calendar year from January-December as Accountinig/Fiscal year. 1. In case of Asset Acquisition: Depreciation should start from the First day of the year in which asset is acquired. 2, In case of Asset Addition: Depreciation should start from the Ist day of period of date of addition. Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. 3. In case of Asset retirement: Depreciation should be charged upto Mid period regardless of date of retirement. 4. Incase of Asset Transfer: Depreciation for the full year should be charged by the transferee company. ‘Whaat is deprecation key? Where do you assign dep.key? ‘+ Asset accounting module of SAP calculates the depreciation om Assets based on the configuration done for Depreciation key. Depreciation Key basically contains the calculation methods which in combination control the following: ©. Period for which Depreciation is charged © Method of Depreciation © Scrap value, if any © Planned change in Method of Depreciation We enter a separate depreciation key for each depreciation area in the asset master record. Here, we need to specify the following at appropriate fields\check box = 'No/Name. of Depreciation key Numeric/Alphanumeric, = Maximum Amount method *\ Culoff value key to control the scrap value if no absolute scrap value is maintained in the system. The cutoff percentage rate that is determined ‘on the basis of this eutoff value key is only used by the system when: * There is no absolute scrap value entered in the the depreciation areas of the asset concerned (an absolute scrap value takes precedence over a cutoff percentage rate) = Negative book value is not allowed for the asset + Whether ordinary depreciation should continue to be charged in a year in which special depriciation is also charged on the asset or not? * Set ‘Depreciation to the day’ indicator to allow system to calculate the depreciation according to the number of days the asset is used. Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. If this indicator is set, period control method assigned to depreciation key will be ignored and Asset value date will be considered as the depreciation start date. ALOAYZ, we can assign dep. key for asset class or can assign at the time of asset master creation in ASO1 ‘How many sub asset can u create under main asset? 999 sub assets we can create How you uploaded asset transaction data in you implementation project? TCode:AS91/AS92 and also BDCTCode;SHDB ‘What is the importance of Transaction type? Give me few examples of Transaction type? The transaction type is the base for the assignment of business transaction to a column in asset. 100 is asset procurement , 210 is for asset complete sale & 260 is for asset partial sale. Journal entries are very important at least one entry interviewer may ask definitely Journal entry @ purchase of asset? Asset. Dr Vendor Cr Journal entry @ of Sale of asset Customer Dr Sale of asset Cr. Sale of asset, Dr Asset Cr Acedep Dr Profit on sale of asset\Cr Loss on sal@ of Asset Dr Journal entry @ of Transfer of asset Asset transferee Dr Asset transferor Cr Acedeptransferor Asset Dr Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Acedep Transferee asset Cr Journal Entry @ of scrap of the asset Loss due to serapping Dr Acedep Dr Asset Cr ‘What is the journal entry at the time of dep run? Depreciation Dr Acedep Cr ference between SM35 &SM37? SM35 batch input session execution M37 Batch job execution ‘Where do you to maintain Dep. To the day? We maintain depreciation for the day at depreciation key level(AFAMA), dep run in AFAB, there are four types of dep run methods? Can you explain about those methods? Planned posting run : Every month end planned depreciation run is executed. Repeat : when dep run isalready completed , but since some asset transaction is performed afier depreciation run. Hence, these transaction were not picked up in depreciation calculations. Then depreciation fun is executed in repeat mode to post the delta dep. run Restart: when dep rum couldn’t completed and was stopped in between then dep run can be restarted. Unplanned posting run: It is tsed to post the depreciation resulting from the occurrence of some unforeseen events Which result in reduction of asset value. By using this option we can run depreciation for any period with outsequnce Can you explain Asset year end process? AJAB- To close the asset fiscal year during this run system checks whether all period depreciation posted or not. if there is any errors we cant close fiscal year AJRW-To change the asset fiscal year. Asset balances carry forward to next year What is the process of AUC settlement? Define settlement profile (OK07). Creation of no. ranges for settlement document. Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Creation of AUC Asset master. Posting of AUC acquisition . If Internal order implemented, then actual costs to AUC transferred from 10 Creation new asset master. Line item settlement from AUC to New Asset master. TCode:ATAB Before uploading asset what is process to do implementation project? “Specify asset transfer date IMG-FA-AA-Asset Data Transfer-Parameters For Data Transfer-define transfer date and additional parameters -Change Control of Reconciliation Accounts TCode: OAMK. -Legacy data transfer=2 What is derived depreciation? Derived dep area derives its value from differenge between two real depreciation areas. No dep key is assigned to derived dep area When periodic asset posting (ASKB) is executed at ‘month end then accounting documents posted in corresponding ledger to remove the imbalances between asset sub module and finance module. Creation of Bank Main A/C Creation of GL AVC for bank cheque deposit a/e Creation of GL A/C for bank cheque issue a/e Creation of GL A/C for bank charges a/e Creation of House bank Creation of cheque lot Create and assign business transactions Maintain global settings for Manual and Electronic bank settings Create account symbols Assignment of GL Accounts to account symbols Define keys for posting rules Define posting rules Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Define Variants for manual bank statements ‘Manual bank statement (FF67) Creation of Bank Main A/C Creation of GL A/C for bank cheque deposit a/c Creation of GL A/C for bank cheque issue a/c Creation of GL A/C for bank charges a/c Creation of House bank Creation of cheque lot Create and assign business transactions Maintain global settings for Electronic bank settings Create account symbols Assignment of GL Accounts to account symbols Define keys for posting rules Define posting rules Creation of Transaction Type (Use Standard Format MT940) Assign External Transaction Type to posting rules folder. Assign banks accounts to Transaction Type folder: Import bank statements (FF_5) LSMW? ‘The LSMW (Legaey System Migration Workbench) is a tool based on SAP software that supports single or periodic data transfer from non-SAP to SAP systems (and with restriction from SAP to SAP system). Its core functions are: Importing legacy data from PC spread sheet tables or sequential files. LSMW steps: object attributes source structures Maintain source fields Maintain structure relations Maintain field mapping and conversion rules Maintain fixed values, translations, user-defined routines Specify files Assign files Read data Display read data Convert data Display convert data Create batch input session Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Execute batch input session. How many methods can you use to upload the data? We use the following methods to upload the data. LSMW, BDC, BAPI. In LSMW how many methods are there? ‘Standard bateh/direct input Batch input session BAPI IDoe How do you collect the legacy data from your client? Can you explain the process in detail? By using questioners, excel spread sheets,,we will ask users to prepare speread sheet by giving specific format, what we need in our SAP ssytem Procure to pay Cycle (P2P) with entries? Purchase requisition--> Purchase order--> GR-->IR-->Payment to Vendor. Purchase requisition Purchase order (ME21N) Goods receipt (MIGO) Raw material A/C Dr To GRR Clearing A/C Invoice Verification (MIRO) GRIR Clearing A/C Dr To Vendor A/C Payment to Vendor Vendor A/C Dr To Bank A/C Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Can you go through FIMM integration? When even financial impact arises due to postings in MM module then FI accounting also should post. E.g GR, GI, IR etc Transaction keys in MM mapped with GL accounts by using Valuation class in TCode:OBYC What is Valuation Class? ‘Valuation class is used in automatic account determination, Valuation class is maintained in ‘material master accounting 1 tab. Valuation classes are created by using Account category reference in TCode:OMSK What is Valuation Area? Valuation area is basically the level at which material is valued. Material can be valued either at plant level or at company code level. Hence valuation atea is either plant or company code.If valuation area is set as company code, then the price of material in all plants will be same and material in all plants will be posted to'same set of GL accounts. If valuation area is, set as plant, then material price in each plant can be different and material can be maintained using a separate set of GL accounts.Standard practice is to keep valuation area as plant.If multiple plants to use the same set of GL accounts, then valuation areas (plants) can be grouped together. Valuation areas are grouped together and this group is known as valuation modifier or valuation grouping code What is account category reference (ACR)? ‘The account category reference is a Combination of valuation classes. Precisely one account category reference is assigned 10 a material type ‘What is GR/IR clearing account? Importance of GR/IR clearing account GR IR Clearing Account is an intermediary elearing account in SAP for goods and invoices in transit. It represents Goods Receipt and Invoice Receipt Account. Balance of this GL. account displayed in balance sheet account for which balance is not zero at the end of the period. Goods receipt (MIGO) Raw material AIC Dr To GRIIR Clearing AC Invoice Verification (MIRO) Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. GRIIR Clearing A/C Dr To Vendor A/C Whaat is general modifier? General modifier is used only with three transaction keys (GBB, PRD & KON). General modifier help to post to different GL accounts with the same transaction key. We can also call it as sub classification of TKeys ‘What is the importance of valuation grouping code? ‘Valuation areas are grouped together and this group is known as valuation modifier or valuation grouping code. Using valuation modifier is optional. Benefit of using valuation grouping code or valuation modifier is reduced number of entries to be maintained in OBYC. ‘Depending upon business requirement it may or may not be used in account determination. Standard practice is to keep valuation area as plant.If multiple plants to use the same set of GL accounts, then valuation areas (plants) can be grouped together. GL account to be mapped to this group in OBYC. How you book the difference amount of GR and Invoice receipt? 1. Price difference between PO Invoice with full stock available: PO Price: INR 500 and Qty: 10.Kgs Goods receipts from Vendor to stock: Raw material A/E Dr... ToGRIIR Clearing AVC... INR 5000 INR 5000 Invoice Verification (MIRO) with full stock available GRAR Clearing A/C Dr... Stock A/C Dr... To Vendor AK 2. Price difference between PO & Invoice with Partial stock available: PO Price: INR 500 and Qty: 10 Kgs Goods receipts from Vendor to stock: Raw material A/C Dr. INR 5000 Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. To GR/IR Clearing A/C.............INR 5000 Invoice Verification (MIRO) with Partial stock available GRAR Clearing A/C Di Stock A/C Dr... : Price difference A/C... INR 600 To Vendor A/C. INR 6000 3. Price difference between PO & Invoice with No stock available: PO Price: INR 500 and Qty: 10 Kgs Goods receipts from Vendor to stock: Raw material A/C Dr. e-INR 5000 INR 5000 To GRIIR Clearing A/C. Invoice Verification (MIRO) with No stock available GRAR Clearing A/C Dr... INR 5000 Price difference A/C......... INR 1000 To Vendor AK -aINR 6000 4. Price difference among'standard, POX Tnvoice'with full stock available: PO Price: INR 600 and Qty: 10Kgs Goods receipts from Vendor to stock’ -INR 5000 (Standard price) scceesseesesseseT NR 1000 INR 6000 (PO price) Raw material A/C Dr... Prive difference AVC... To GRIIR Clearing A/C. Invoice Verification (MIRO) with full stock available GRIR Clearing A/C D1 i INR 6000 Price difference A/C... INR 1000 To Vendor AIC.......---++++--INR 7000 Difference between moving avg price (v) and standard price (s)? The standard price or moving average price in material master is used to determine the value of the inventory. Standard price are used for products that do not fluctuate frequently. It is mainly used for FG or semi finished products. Moving average price are used mainly for raw Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. materials that are purchased externally. The advantage of using moving average price for raw ‘materials is that the inventory costs will always reflect the current market price. If the ‘material is valued at a standard price, the difference between the purchase order price and the standard price will go to a price difference account. If the material is valued at a moving average price, the difference between the purchase order price and the moving average price will NOT go to a price difference account. The moving average price will simply be adjusted. In general standard price is used for in-house manufacturing materials ‘What is the two way and three way match? ‘Three way match PO Purchase order (PO) Goods receipts from Vendor to stock: INR 5000 INR 5000 Raw material A/C Dr... To GRR Clearing AC..... Invoice Verification (MIRO) with full stock available ...INR 5000 GRAR Clearing A/C Dr........+ To Vendor A/C. ANR 5000 Two way match PO Purchase order (PO) Note: While doing PO, we need to Select GR non-valuated under delivery tab. Goods receipts from Vendor to stock: (NO accounting document) Invoice Verification (MIRO) with full stock available Raw material A/@Dr. INR 5000 To Vendor AVC... -nINR 5000 What is the entry at of purchase order? No journal entry posted at the time of PO Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Order to cycle (02C) with entries? A. The Order To Cycle With The SD Module In © Delivery (VLOIN) © Billing(VFO1) © Sales Order(VA01) Entries 1. Delivery(VLOIN) Cogs AIC Dr To Stock AIC Cr 2. BillingcvFol) Customer A/C Dr To Sales Revenue A/C Cr @) Customer A/C Dr Discount A/C Dr Rebate A/C Dr To Sales AIC cr FISD integration process? In SD consultant creates sales pricing provedure in TCode:V/08, in that Condition Types contains Access Sequence. Access Sequence we are mapping with Gl a/e in Teode: VKOA. In VKOA 5 different tables are there with different field combination If sales order is a'cost object then we will use condition type KOFK If sales order is not a Cost object then we will use condition type KOFI Whenever billing document posts in SD TCode:VFO1 then with our VKOA configuration one Accounting document posts Customer A/C Dr Discount A/C Dr Rebate A/C Dr To Sales A/C cr What is the pricing procedure? To create any sales document in sap, we need pricing procedure Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. It contains Condition Types and condition types contains Access Sequence Example for condition type PROO,RBO0,HB00,VPRS Example for Access Sequence ERL,ERS,ERB In SD consultant creates sales pricing procedure in TCode:V/08 ‘What is the entry @ of sales order? No journal entry posted at the time of sales order ‘What entry posts at the time of delivery to customer and how it posts? 1. Delivery(VLOIN) Cogs AIC Dr To Stock AC Cr The value flow is SD to MM to FI Integration between SD-MM Teode: VOVS and VOV6 Note: Item cat TAN assigned with MRP Type and Schedule Item Category in VOWS Schedule Item cat assigned with Movement type 601 in VOV6 ‘Transaction keys in MM mapped with GL accounts by using Valuation class in TCode:OBYC What is the new GL function: After ECCS.0 version SAP introduced this New Gl in FICO.many features are there, important funetions are 1. leading and non-leading ledger 2. document splitting, 3, Co-Fi real time integration 4, segmental reporting Difference between leading and non-leading ledger? Leading ledger is always parent company ledger. Its SAP default is OL, Non leading ledger is for local reporting purpose. We can create our own with different fiscal year variant and posting period variant ‘What is the purpose of non-leading ledger? Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Non leading ledger is for local reporting purpose. We can create our own with different fiscal year variant and posting period variant Document splitting functionality? Document splitting is used split line items among segments or profit centres Based on splitting rules line item splits among segments or profit centres ‘What are the Configuration steps involved in document splitting? 1% In this step we need to assign BT & BT variant to document type 1.Classify doe types for document spli For document type KR observe variant & transaction 2.Define document splitting method All Splitting Rule Grouped Under Splitting Method Select 00012- Sap Std Splitting Method Specifies Which Line Item To Be Split & On What Basis To Be Split Splitting Method Along With Splitting Rule, Determines Which Splitting Rule To Be Applied While Posting Document 3.Define Business Transaction Variants Select 0300- Vendor Invoice Click On Accounting Transaction Variant Select Variant 0001- Sta Click On Assign Item Categories 4.Assign business transaction variant for doc type 5.Define Doc Splitting Rule Select 000012 Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Click On Item Cat To Be Edited/Split Observe Categories Select 3000 Vendor Item- Double Click Observe Processing Categories Click On Base Item Categories Observe Processing categories 0 transfer fixed value- this indicator normally used for data imported from external system. in this case we can use default a/c assignment to update a/e assignment field, 1 splitting by base item categories specifies- splitting determined from doc level(based on line item categories) 2 splitting based on current a/e balance- splitting is applied on the basis of a/c balance of the document line item cat. Check tax code: this parameter controls which base item are used for splitting of items to be processed. if the parameter is selected base items are used under selected which have same tax codes on sale & purchases as item be processed. if the indicator is not selected then tax on sale or purchases on line item does not happen the selection of the base item. Cheek cash discount related: this parameter controls while base items are to be used for splitting item. if this indicator is selected base items are only settled. if they are relevant to cash discount, if this notselected all base items are selected, ‘Types of document splitting with examples or entries? 1. Active splitting- it works based on posting rules.at the time of invoice posting Purchase TV Account Dr - 60000 ~ petrl ~segment Purchase WashingmachDr - 40000 — petr2-segment2 Tosundry creditors. - 60000 -petr! -segmentl Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Tosundry creditors. - 40000 -petr2-segment2 2. Passive splitting ~ It works at the time of payment ‘Sundry creditors Dr - petr! -segment! Sundry creditors Dr—petr2 ~segment2 ToBank petrl -segment! To Bank petr2 -segment2 What is Ledger group n representative ledger? Grouping of ledgers called as ledger group. ledger group contains one representative ledger. Each and every ledger group must be assigned with one Tepresentative ledger. Yes, I have very good knowledge on Icloes, for ex: whenever we get issues with idoc error, first we do analysis and find out the causing error, then will reprocess with BD87 or inform user to do in live system. Just Basic knowledge is tequired for flimctional consultants. Display of Idoc : WE02 or WE0S Reprocess of Idec: BD87 Partner profile creation : WE20 ‘Whaat is the t code for reprocess of I Doc? BD87 What is the t code for display of I doc? WEO2 Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Project Interview questions Based on our resume they ask questions about implementation project, ‘What are the cutover activities in your implementation project? After final preparation phase and before GOLivewhatever we are doing comes under cutover activities. Uploading old balances to SAP system, master data and transactional data upload by using LSMW, BDC, and BAPIete In which phase have you been involved in implementation project? From realization phase ‘What is the ASAP methodology? All phases in implementation project. ‘What is the system landscape? Arrangement of server's development-quality-production Presently we have DO1, T01, PO1 and Sandbox (which is Xerox of production system, every 3 months basis team refresh the production system to move all the changes to sandbox and Quality so that we can test anything easily with live data for testing purpose) User exits, FS comes tinder enhancements explain one When business require customised report or development if it require more than 60 hours then it will bean enhancement in my current project: Example: Customer ageing report 1 Effort estimation prepare and send to business super users 2 Functional specification preparation (technical specification will include in the same document) then will submit this to business for approval 3 once we get approval for FSD then do configuration or development in DOI system and. prepare the FUT (functional unit testing) and submit to business. After approval of FUT, the changes will move to QO1 for UAT (user accepting test) 4 once UAT approved then development changes moves to POI system Can you explain two critical issues? Or month end activity critical issues? Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. Can you explain what the month end activities are? Interest calculations, foreign currency valuation, APP, dunning, depreciation calculations Can you explain what the year-end activities are? Gi balance carry forward Vendor, customer carry forward Asset carry forward Copy number ranges Previously or currently I worked for **** project, in that we have category of tickets which is having their own process for their business, 1: Incident: 2. Break fix and 3. Enhancements. For incidents- We have incidents (p3,p4, and p5), first I do analysis and find out the issue by preparing the analysis word documents then send mail to the business users with solution. if there is any configuration is required for existing business then it comes under For ex: FTXP tax code creation OKBS settings FBZP configuration (required to add forms or program) ‘Trading partner creation A090 configuration Enhancement:new development or customisation is required for business, then it comes under enhancement, Faculty: M.Upendar Reddy, I.C.W.A.| and SAP Consultant upendarhSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. For ex: vendor aging report (additional requirement apart from standard) in which we can develop Z t codes with the help of Abap, ZFISPE26 ZFISPE77 For enhancement business approval is required sometimes required to have a meeting with Client (Business Analyst or Functional lead) for new developments. This is my current business process. Based on module tickets are getting assign to team memberswhich we receive from IT support mail box into Outlook, once it get assigned , acknowledge the ticket and save it. Send a mail to business users to for more inputs or information, then change ticket status to hold for customer information, after providing solution close the ticket. Status of tickets in ticketing tool: New Acknowledgement Work in progress Hold for customer information Pending close Close How you handle Transport request between server to server and client to J have handled client to client by using Code: SCC1 Server to server handled by basis consultants after releasing TR in SE10, we will send TR number to Basis guys .basis guys import in other server by using TCode:STMS How to transport Number ranges? Number ranges not possible to transport as itis not storing under any TR.we need to create again in Quality and production servers Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. How to transport Tax codes? Create Tax Code Code: FTXP ‘Tax Code= Keep It Blank Menu-Tax code-Transport-Export Create TR, Select All Save Release TR TCode: SE10 User= Select Customizing Requests Workbench Requests Select Modifiable Expand TR Place Cursor On Sub Task Click On TR Release Place Cursor On Main TR Chick On TR Release log in to other client Copy TR TCode: SCC Source client= TRN Start immediately Enter Check customizing settings copied or not Check Tax COdeTCode: FTXP Menu-tax code-import What is BDC TCode: SHDB ‘Yes | wrote FS document for enhancements in my current project, it’s a client specific FS format;{n that we have to explain the requirement like business case, current functionality requested functionality, process summery, test scenarios, technical information etc. in the FSD and send it to elient for approval. If there is any complexity in the requirement, then took my seniors help to complete the FSD. What is user exit? User exits allow developers to access and modify program components and data objects in the standard SAP System. On upgrade, each user exit must be checked to ensure that it conforms to the standard system. ‘What is WRICEF objects? Faculty: M.Upendar Reddy, I.C.W.A.| and SAP ConsultantSAP FICO INTERVIEW QUESTIONS PEDANT SOFTECH PVT. LTD. WRICEF stands for Workflow, Reports, Interfaces, Conversions, Enhancements, and Forms W stands for workflow.used for designing approval process R stands for Report developments. All the technical objects/developments that deal withprogramming of SAP Reports, It includes different types of reports; Simple reports where yououtput using WRITE statements, Simple ALV reports, ALV Grid, ALV Grid with advancedfunctionality, ete. 1 stands for Interface developments. Interfaces are ALE/IDOCs development. Involves not justABAP programming for IDOCs but also IDOC customization C stands for conversion objects. Conversion refers to BDC prografmmings Data upload fromlegacy system in flat files format to SAP system is done via)Conversion Objects. This involvesuploading data through BDC, LSMW, BAPI, ete Enhancements are User Exits, Customer Exits, BADI's ctepABAP,code that ha&to be written in order to enhance SAP system functionality Forms include SAP Smartforms, SAP Scripts. Technical developmenieshatdéals with fetchingnecessary data from SAP system and displayingin terms oforms for printout are classified asunder Forms What is validation and substitution? In SAP system while posting transaction§\if we Want to.validate Particular field to update to correct area then we can write validation TEode:OB28.saine, way any field need to be substituted by another field then’we willyyrite substitution TCéde:OBBH ‘What is call up point in yalidation’?, At what level we are whiting validation iS\specified by call point e.g: document header level, line item level, complete docuniéut level Get knowledge on basic tables for GL, AP; AR and basic settings? Faculty: M.Upendar Reddy, I.C.W.A.| and SAP Consultant