Q1.

What do you know about SAP

FICO?
• SAP FICO stands for Financial Accounting and controlling.
It is one of the important tools which is useful in preparing
the statements about the finance related to an organization or
company or a business. SAP FICO consists of two modules,
SAP Finance (FI) and SAP Controlling (CO), each of which
is used for specific financial processes .
Q2.What are the important Sub modules of
SAP FI?
• The important sub-modules of SAP financial accounting are
• General Ledger -FI-GL
• Accounts Receivable -FI-AR
• Accounts Payable -FI-AP
• Asset Accounting -FI-AA
• Back Accounting -FI-BA
Q3. What are the other modules to
which FI is integrated?
• The other modules to which FI is integrated are
• Sales and Distribution (SD)
• Material Management (MM)
• Human Resource (HR)
• Production Planning (PP)
• Controlling.
Q4. What are the organizational elements in
SAP-FI?
• Company Code

• Business Area

• Chart of Account

• Functional Area
Q5.What is the company code in SAP?

• Under company code you can generate individual

financial statements like profit & loss account and
balance sheets.
Q6.What are the different Types of COA in
SAP FICO?
• Operating COA: Operating COA for an organization contains
all the General ledgers that it uses in a day to day posting.
• Country Specific COA: General Ledger accounts in country
specific charts of accounts are created to fulfill legal
requirements of a particular country.
• Group COA: General Ledger accounts created under a group
chart of accounts are used by the entire corporate group
Q7.What are the options in SAP for
Fiscal years?
• Fiscal year in SAP is the way financial data is stored in the system. In SAP, you
have 12 periods and four special periods.
• These periods are stored in fiscal year variant that is:
1.Calendar Year: From Jan-Dec, April-March
2.Year dependent fiscal year
• In Indian -12 posting periods (April – March) with 4 Special Periods – V3
• In US -12 posting periods (Jan – Dec) with 4 Special periods – K4
• Some other companies follow posting periods from July – June or October to
September with 4 Special periods.
Q8.What is year dependent fiscal year
variant?
• In a year dependent fiscal year variant, the number of
days in a month is not as per the calendar month. For
example, in year 2019, month January end on 29th,
month Feb ends on 26th etc.
Q9.What is posting period variants?

• In fiscal year posting period is a period for which the

transactions figures are updated. The posting period variants
in SAP is accountable to control which accounting period is
open for posting and ensures that the closed periods remain
balanced.
Q10.What is Shortened Fiscal Year?
• If the number of periods in a fiscal year is less than
number of periods in the calendar year then it is called
a shortened fiscal year. It is used in situations when a
fiscal year should be shorter than 12 months.
Q11.What is field status?
• Field status group is a group configured in FSV -Field Status
Variant to maintain field status for G/L (General Ledger)
accounts. It controls which field should suppress, display,
optional and required.
Q12.Define field status group?
• Field status groups control the fields which come up when
the user does the transactions. In FIGL (Financial General
Ledger) master, the field status group is stored.
Q13.What is Posting Key?
• Posting Key is a 2-digit numeric key. To control the entry of
document line items in a FI Transaction. Posting key
determines.
• Account Types (A, D, K, M, S).
• Types of posting. Debit or Credit.
• Field status of transaction.
Q14. What is Document type in
SAP?
• The document type is a key that is used to classify accounting
documents and distinguish between business transactions to be posted.
the document type is entered in the document header and applies to the
whole documents.
• The purpose of Document type in SAP is
• Define Number range for documents
• Controlling the posting to account types e.g. Assets, Vendor,
Customer, Normal GL account
• It is used for the reversal of entries
Q15.What is the main use of SAP
FICO?
• We use SAP FICO modules within a company to manage financial
tasks within an international framework of languages and currencies.
• SAP FI is used for Fixed Assets, tax accounting, General Ledger,
Accrual, Cash Journal and other financial tasks.
• SAP CO (Controlling) used for Cost Sheet, Buying orders, Stock, Cost
assignment etc.
 SAP FICO
Account Payable(AP)
Interview Questions & Answer
What is Accounts Payable?
• Accounts payable is any sum of money owed by a business to its
suppliers shown as a liability on a company's balance sheet. In simple
words, when you buy goods or services with an arrangement to pay at
a later date, such amount till it is paid is referred to as accounts
payable.
• Accounts payable is also called as bills payable and the total amount
that a company is liable to pay is shown as liability under the head
‘sundry creditor’ in the balance sheet.
Q2.What are segments in Vendor
Master ?
a. General Data segment

b. Company code segment

c. Purchase Organisation segment

Q3. What is Vendor Account
Group ?
• Vendor Account Group is to bifurcate the
vendors like FI Vendors, MM Vendors, Foreign
Vendors, Domestic Vendors.
Q4. What are the steps for creating
Vendor ?
1. Account Group of Vendor
2. Create Number ranges for Vendor account.
3. Assign number ranges for vendor account group.
4. Document types for vendor accounts
5. Create G/L master record for sundry creditor
6. Create vendor master record.
Q5. What is a special G/L
Transactions ?
• Special G/L transactions are transactions that are not
normal business transactions with our business
partners. They are generally shown in different control
ledgers and are not grouped with the normal
transactions. They include Bills of exchange, Down
Payment, Bank Guarantees.
Q6. At what level are the customers &
Vendors codes are stored ?
• The customer and vendor codes are at the client
level, that means any company code can use the
vendor and customer code by extending the
company code view in their master data.
Q7.How are the Vendor Invoice
payment made ?
• Manual Payments without the use if any output
medium like cheques etc.
• Automatic payment programs through cheques, wire
transfers, DMS etc.
Q8.Can we change the reconciliation
account in the vendor master ?
• Yes, Reconciliation account can be changes in the
vendor master provided that the authority to change
has been configured. Normally we should not change
the reconciliation account.
Q9.What is the impact on the old balance
when the reconciliation account in the
Vendor Master is changed
• Any change you make to the reconciliation
account is prospective and not retrospective . The
old items and balances do not reflect the new
account, only new transactions reflect the
account.
Q10.What do you mean by Down
Payment ?
• Down Payment are used for short or medium
Financing. Down payments are generally made
before production. Down payments must be
displayed separately in the balance sheet.
Q11. Where we give the link for Down
Payment posting ?
• Special G/L to Reconciliation
Q12. How can you link vendor as a customer,
customer as a vendor ?

• Yes, it is possible, we can give the link in vendor

master data under Control Data(XK02).
Q13. What are Terms of
Payment ?
• Terms of payment are the conditions to settle the
invoices. The payment terms are used to determine
base line date for due date of invoices. Cash discount
periods, Cash discount percentage.
 Q14. In Payment Terms configuration, what are
the options available for setting a default date ?

• There are 4 options available

1. No Default 2. Posting date 3. Document date and 4.Entry Date.
• Posting Date is “goods receipt date”. Document date is “party bill
date”. Entry date is “Quality approved date”.
Q15. Where are the Payment terms for
vendor master maintained ?
• Payment terms for vendor master can be maintained at
two places in Accounting View and Purchasing View.
Q1. How can we block, a particular
payment term for a particular vendor?
• We have Two Methods for Vendor Block in APP

1. Vendor Creation : Block under Automation Payment

Transaction

2.APP Run : Edit Proposal Button in APP.

Q2.I run my app and I printed my check and after that I find that I
made a mistake of wrong payment to related vendor, now what can I
do can I stop app.. And can I stop payment and can I delete proposal
and payment in app? And can I run new app towards new vendor?

• You will not be able to delete proposal after payment run. If you want to delete proposal then,

First you have to manually reset & reverse the posting generated FBRA.

Second, You have to delete payment run from EDIT > PAYMENT > DELETE OUTPUT.

Third and then you will be able to delete proposal EDIT > PROPOSAL > DELETE.

For e.g. It is like you have executed the third step and then you want to reverse the second step.
So, you have to reverse or delete the third step and then you will be able to delete the second step .
Q3. What is internal number range? What
advantages & risk?

• if we assigned internal number range it picks up automatically like

1,2,3, that of document numbers

If we assigned external number range to system then we can assigned

any number in between the range. if given 10000 to 199999. we can
pick up 100000 num then 100020 100030 100007 like that.
Q4. We have a company with 4 branches and one
factory. How do you start configuring?

• if this is the case first we need to define a company code in

FI(OX02), and Define business areas as given 4 branches in
questionary.

Define plant that to be assigned company code.

Q5.Can u explain what is the purchase life cycle
and with entries?

1. When PO is created

---- No Entry -----

2. When GR is posted

Inventory Account dr (Transaction Key BSX in OBYC)

To GR/IR account (T.Key WRX in T-code OBYC)

3. When Invoice is posted

GR/IR account Dr.

Vendor account Cr.

4. Payment made to Vendor

Vendor A/c Dr
To Bank Clearing A/c Cr.
Q6.What is the entry date, document date, posting date, value
date, and next run date.

1. Entry Date - System Date on which document is entered

2. Document Date - Date of the supporting document ie PO/invoice/ Bill date

3. Posting date - date on which entry is posted to the ledger or accounting date

4. Value date - the date on which doc is valued. ie for forex valuation the value date is needed for
calculating the exchange rate difference

5. Next run date - this is for payment run. what the next day for calculating the payment due document
and discount calculation
Q7. Can we create P.O. for multiple vendors? How can we
create it?

• yes you can create p.o. for multiple vendors by using

"ME21N“ Only one p.o. number can belongs to one vendor.
same P.O. number (same P.O.) can not belongs to multiple
vendors
Q8. Bank Master Key is created at client level or Company
code level? Illustrate with examples & your prior project
experience?

• Bank Keys can be created at country level in FI01 T-Code not

at company code level. Here bank keys are different from
House Banks.
Q9. There is two company code with a common tax code. can it
possible to define different GL accounts with single tax
code...and the chart of A/c is same for both company codes?

• Tax code is always been defined at country level only, for Single tax
code we can't define two different G/L accounts, at the time of
defining only it will show the error of duplicate entry.
Q11. Tell something about Parallel local
currency in SAP?

• Organizations are allowed to add two more currency option

than their local. They can be used in the transactions made at
International level by an organization. The organizations are
free to use any two options for parallel that they seem to have
more need. They can be tagged as Group currency and hard
currency.
Q12. What are the biggest benefits that you can have with the SAP
FICO?

There are certain benefits and a few major ones are spotlighted below:
• One of the major benefit is accounting data is always correct. The users doesn’t need
to worry about this
• There is no upper limit on handling the accounts. Any number of accounts can be
managed
• It is useful in auditing as an eye can be kept on the transactions made by the business
• It make sure of financial transparency
• The detailed information about the expenses can be prepared and the same can then be
considered for the purpose of preparing the future budgets
• A lot of time and money can be saved
• The users can make sure of financial outputs that can be trusted in the long run
Q13. How taxes are taken care of in the SAP
FICO?
• One of the major issues is Tax Slabs are not similar in all the
countries. Also, there are additional taxes applicable there. SAP FICO
has tax procedure already defined in it for various nations and the
users are free to get the information regarding the same. The Tax
amounts can be sent to stocks by default or the users are free to make
challenges in them as per their need and convince. Thus, taxes are not
an issue with the SAP FICO.
Q14. What is Financial Statement version in
the SAP FICO?
• It is basically a tool that is used for reporting. All the financial
accounts can be extracted through it along with all the relevant
information required by the users. It is possible to deploy it for the
purpose of generating the outcomes of different agencies associated
with a business. The same information can then be passed to the
concerned authorities for the betterment.
Q15. What is credit control area in the SAP and
What options do you need to fill when it comes to
creating the Credit Control Area?
• The credit control is in the SAP enable the organization to impose a
strict upper limit on the credit for the customers. This can be done by
using the option controls are in the SAP. It simply makes sure of
avoiding the situation such as risk of bad debts and outstanding
receivables.
• The user needs to provide the controller name, Description, Currency
option is to be selected, risk category is to be selected and then the
information about the Fiscal variant is also to be provided.
 SAP FICO
Assets Accounting
Interview Questions & Answer
1. Explain Asset Accounting (FI-AA).
• The Asset Accounting (FI-AA) sub module in SAP manages a
company’s fixed assets, right from acquisition to retirement/scrapping.
All accounting transactions relating to depreciation, insurance, etc., of
assets are taken care of through this module, and all the accounting
information from this module flows to FI-GL on a real-time basis.
2. What is a Chart of Depreciation?
• The Chart of Depreciation is a list of Depreciation Areas arranges
according to business and legal requirement.
Chart of Depreciation is used in order to manage various legal
requirements for the depreciation and valuation of assets. Each
company code is allocated to one chart of depreciation.
3. Define Depreciation Areas.
• Fixed assets are valued differently for different purposes (business, legal,
etc.). SAP manages these different valuations by means of ‘Depreciation
Areas.’ There are various depreciation areas such as book depreciation,
tax depreciation, and depreciation for cost-accounting purposes, etc.
• A depreciation area decides how and for what purpose an asset is
evaluated. The depreciation area can be ‘real’ or a ‘derived one.’ You
may need to use several depreciation areas for a single asset depending
on the valuation and reporting requirements. The depreciation areas are
denoted by a 2-character code in the system. The depreciation areas
contain the depreciation terms that are required to be entered in the asset
master records or asset classes.
4. What is an Asset Class?
• An ‘Asset Class’ in SAP is the basis for classifying an asset based on
business and legal requirements. It is essentially a grouping of assets
having certain common characteristics. Each asset in the system needs
to be associated with an asset class. An asset class is the most
important configuration element that decides the type of asset (such as
land, buildings, furniture and fixtures, equipment, assets under
construction, leased assets, low value assets, etc.), the document
number range, data entry screen layout for asset master creation, GL
account assignments, depreciation areas, depreciation terms, etc. An
asset class is defined at the Client level and is available to all the
Company Codes of that Client.
5. Why do you need Asset Classes?
• An ‘Asset Class’ is the link between the asset master records and the
relevant accounts in the GL. The account determination in the asset
class enables you to post to the relevant GL accounts. Several asset
classes can use the same account determination provided all these
asset classes use the same chart of accounts and post to the same GL
accounts.
6. What is Account Determination?
• One of the most important functions of the Asset class
to be establish the connection between the Asset
master record and the corresponding accounts in the
general ledger in Financial accounting. This
connection is created by the account determination key
is asset class.
7. What is Depreciation key?
• A key for calculating depreciation amounts.
There is a direct link between asset and company
code. Which we link between the depreciation
key and master record.
8. What is an asset master ? What does it control for
sub asset master ?
• An asset master represents the master record and
information about a particular asset. According to the
screen layout of asset master, it controls the following
sub assets.
• Sub assets master number assignment
• Assignment of depreciation key
• Determination of life asset
• determination of assignment of group asset.
9. How many depreciation areas can be defined for a
Company Code ?

• Depreciation areas are not defined for company

codes rather depreciation areas are defined for a
chart of depreciation, A maximum f 99
depreciation areas cab be maintained for a Chart
of Depreciation.
10. What are the types of Depreciation methods ?

• Baseline value method.

• Decline value method.
• Maximum method.
• Multi level method.
• Period control method.
11. Is it possible to create an asset class
automatically ?
There are two ways
• 1. Create an asset class with reference to an existing asset
class
• 2.Generate an asset class through the asset class transaction
code(ANKL).
12. What is the difference between COA and
COD ?

• The chart of Accounts is the index of G/L accounts. The

Chart of Account can be global, country specific or industry
specific based on the need of business. The COD is the index
of depreciation areas. The COD is only country specific.
13. Is it possible to have depreciation calculated
for the day?
• Yes, it is possible. You need to switch on the
indicator Depreciation to the day in the
depreciation key configuration.
Thank You