SAP FICO Interview Questions and Answers
This section focuses on frequently asked SAP FICO (Financial Accounting and Controlling) interview questions.
1. What is SAP FICO?
SAP FICO (Financial Accounting and Controlling) is a module within the SAP ERP system. FI (Financial Accounting) handles external financial reporting, while CO (Controlling) manages internal accounting and cost management.
2. Main Usage of SAP FICO.
SAP FICO is used for financial and cost accounting within organizations. FI handles tasks like general ledger accounting, accounts payable/receivable, and financial statement generation. CO focuses on cost management, profitability analysis, and internal reporting.
3. What is a Posting Key?
A posting key is a two-digit code that determines the type of accounting entry (debit or credit), the account type, and the field status for a given transaction.
4. Important Organizational Elements in SAP FI.
- Company Code: Represents a legally independent entity.
- Business Area: Used for internal reporting and analysis across different business segments.
- Chart of Accounts: Defines the accounts used in a company code.
- Functional Area: Used for further categorizing accounting data.
5. Managing Transactions from Different Business Lines.
Use Business Areas to track financial data across different business units within a single company code. Alternatively, you could create separate company codes for each business line.
6. Modules Integrated with SAP FI.
FI integrates with several other SAP modules, including Sales & Distribution (SD), Production Planning (PP), Materials Management (MM), and Human Resources (HR).
7. Credit Control in SAP FICO.
Credit control helps prevent bad debt by setting credit limits for customers. It restricts further transactions if a customer exceeds their credit limit.
8. Use of Company Code in SAP FICO.
A company code is a legal entity within the SAP system used to generate financial statements (balance sheet, profit & loss statement, etc.).
9. Fiscal Year Options in SAP FICO.
SAP FICO supports different fiscal year variations: calendar years (Jan-Dec) and fiscal years that don't align with calendar years (e.g., April-March). Fiscal year variants define the periods within the fiscal year.
10. Number of Charts of Accounts per Company Code.
One.
11. Use of Chart of Accounts.
The Chart of Accounts is a list of accounts used for financial reporting and legal compliance. There are typically an operating chart of accounts (for internal use) and a country-specific chart of accounts (to meet legal requirements).
12. Number of Currencies per Company Code.
Three (one local currency and two parallel currencies).
13. Year Shift in the SAP Calendar.
A year shift adjusts the fiscal year to align with a company's financial year when it doesn't follow the standard calendar year. This involves shifting the year by +1 or -1 to correctly map the fiscal year to the calendar year.
14. Modules Integrated with FI (Repeated from earlier).
Production Planning, Human Resources, Materials Management, Sales and Distribution.
15. Handling Input and Output Taxes.
Tax codes define how taxes are handled (expense or capitalized) according to a country's tax regulations.
16. Field Status Variant and Field Status Group.
A field status group defines which fields are displayed and editable on a transaction screen. Field status variants are used to create different versions of field status groups for different purposes.
17. Validations and Substitutions in SAP FICO.
Validations check data integrity during transactions. Substitutions modify or derive values automatically.
18. Application Areas Using Validations and Substitutions.
(This section would list the SAP modules using validations and substitutions.)
19. Year-Dependent Fiscal Year Variant.
A year-dependent fiscal year variant defines periods with varying numbers of days for each month (e.g., to accommodate leap years or non-standard month lengths).
20. Making Vendor Payments.
- Manual Payment: Without automated systems.
- Automatic Payment: Using electronic methods (like bank transfers).
21. FSV (Financial Statement Version) in SAP FICO.
FSV is a reporting tool used to generate financial statements (balance sheets, profit & loss statements, etc.) tailored to specific requirements.
22. Steps Involved in G/L Posting.
- Gather posting data.
- Create summarized documents.
- Post to general ledger accounts and cost centers.
23. Field Status Group.
A field status group controls which fields are visible and editable on specific transactions.
24. Common G/L Reports in SAP FI.
(This section would list various general ledger reports.)
25. Importance of Financial Statements.
Financial statements provide insights into a company's financial health and are crucial for decision-making, planning, and regulatory compliance.
26. Managing Customer Credit Limits.
Use the credit management functionality within SAP FI to define and monitor customer credit limits.
27. Number of Fiscal Year Variants.
You can define multiple fiscal year variants, but only one can be assigned to a company code at a time.
28. Use of Account Receivables in SAP FI.
(This section would describe the role of accounts receivables in managing customer payments.)
29. Benefits of Using Business Areas.
Business areas offer a way to segment financial data within a single company code. This is particularly useful for internal reporting and management accounting.
30. Company vs. Company Code in SAP FICO.
A company is a high-level organizational unit used for legal consolidation. A company code is a legally independent entity for which financial statements are generated.
31. Company Code and Controlling Area Relationship.
One controlling area can contain multiple company codes, but each company code can only belong to one controlling area. All company codes within a controlling area must share the same chart of accounts.
32. Problems with Business Area Configuration.
A major challenge with business areas is the potential for splitting account balances, especially for accounts involving taxes.
33. Parallel and Local Currency in SAP FICO.
The local currency is the primary currency of a company code. Parallel currencies are used for foreign currency transactions. Examples include group currency and hard currency.
34. Customizing Prerequisites for Document Clearing.
Open item management is crucial for document clearing. This involves tracking outstanding invoices and payments. Proper configuration of open item management is necessary for accurate clearing.
35. FI-GL (Financial General Ledger) Accounting.
FI-GL provides a central repository for all financial transactions. It ensures data completeness and accuracy.
36. Methods for Vendor Invoice Payments.
- Manual Payment: Payments made without an automated system.
- Automatic Payment: Payments made through automated systems (like bank transfers or electronic payments).
37. Default Exchange Rate Type.
M (average rate).
38. GR/IR (Goods Received/Invoice Received) Clearing Account.
The GR/IR account is an interim account used when goods are received before the invoice arrives. Once the invoice is received, the GR/IR account is cleared.
39. Accounting Groups in Account Receivable (AR).
(This section would list various customer accounting groups, e.g., domestic, export, one-time customers.)
40. Calculating Depreciation to the Day.
Yes, it's possible in SAP Asset Accounting if a depreciation key is assigned to an asset and that asset is posted.
41. Account Payable in SAP FI and its Relation to G/L.
Account Payable manages vendor accounting data. All transactions are reflected in the General Ledger.
42. Internal Orders in SAP FICO.
Internal orders track the costs of specific projects or tasks within an organization. They're often used for short-term cost monitoring.
43. Blocking a Customer in SAP FI.
Blocking a customer prevents further postings to their account. This is commonly done before deleting a customer master record or to temporarily restrict transactions.
44. Blocking a Vendor Account in SAP FI.
Vendor accounts can be blocked for postings (financially) or purchasing (if the purchasing module is installed).
45. Chart of Depreciation in Asset Accounting.
The chart of depreciation is the highest-level organizational element for depreciation, defining how depreciation calculations are performed for assets within a company code.
46. Creating a Credit Control Area in SAP FI.
(This section would detail the steps for creating a credit control area using transaction code OB45 or the IMG path.)
47. Managing Currency Relationships in SAP FI.
Exchange rates are used to convert amounts between currencies. Exchange rates are important for posting transactions, calculating exchange rate differences, and evaluating foreign currency balances.
48. Field Status Group.
A field status group determines which fields are displayed and editable on transaction screens for specific accounts.
49. Important Tables in SAP FICO.
SAP Financial Accounting (FICO) involves a number of critical tables that are used for managing financial transactions and accounting data. Below is a list of some of the key SAP FICO tables categorized by module:
1. General Ledger (GL)
The General Ledger (GL) module is used for tracking and managing all financial transactions within a company. The key tables in this module are:
| Table Name | Description |
|---|---|
| BKPF | Document Header: Contains general data about financial documents. |
| BSEG | Document Segment: Contains the line item details for financial transactions. |
| BSID | Open Items for Customers: Stores information on open items in customer accounts. |
| BSAD | Cleared Items for Customers: Stores cleared items in customer accounts. |
2. Accounts Receivable (AR)
The Accounts Receivable module helps in managing customer transactions. Important tables in this module include:
| Table Name | Description |
|---|---|
| BSID | Open Items for Customers: Stores open receivable items. |
| BSAD | Cleared Items for Customers: Stores cleared receivable items. |
| KNB1 | Customer Master Data: Contains information on customer-specific data such as terms and credit limits. |
| ARFBS | Accounts Receivable: Contains information on receivables, settlements, and payments. |
3. Accounts Payable (AP)
The Accounts Payable module is used for managing supplier transactions. Key tables include:
| Table Name | Description |
|---|---|
| BSEG | Document Segment: Contains the line item details for financial transactions related to accounts payable. |
| APINV | Accounts Payable Invoices: Stores information on accounts payable invoices. |
| PAYR | Payment Information: Contains details on supplier payments. |
| LFB1 | Vendor Master Data: Stores information on vendor-specific data such as payment terms, bank details, etc. |
4. Asset Accounting (AA)
Asset Accounting helps manage fixed assets and their depreciation. The essential tables are:
| Table Name | Description |
|---|---|
| ANLA | Asset Master Data: Contains general information about assets. |
| ANLB | Asset Depreciation: Stores details on the depreciation of assets. |
| ANEP | Asset Postings: Contains records of asset transactions, including acquisitions and retirements. |
| ANRF | Asset Revaluation: Contains information on asset revaluation transactions. |
50. Posting Period Variants in SAP FI.
Posting period variants control which periods are open for posting transactions and help maintain data integrity by preventing entries into closed periods. They define the posting periods within a fiscal year.
51. APP (Automatic Payment Program) in SAP FICO.
The Automatic Payment Program (APP) automates vendor and customer payments, reducing manual effort and improving accuracy.
52. Defining Tolerances for Invoice Verification.
Tolerances in invoice verification define acceptable variations between expected and actual values (e.g., price or quantity differences). They determine whether invoices require manual intervention.
53. Short-End Fiscal Year.
A short-end fiscal year results from a change in the fiscal year variant, such as when a company changes its financial year-end.
54. Account Group in SAP FICO.
Account groups are used to define and control the data that can be entered for a specific type of general ledger account, customer master record, or vendor master record.
55. Cost Center vs. Profit Center in Controlling.
| Feature | Cost Center | Profit Center |
|---|---|---|
| Purpose | Tracks costs | Tracks profitability |
| Organizational Structure | Can be a department or business unit | Often a business unit or division |
56. Purpose of Document Type in SAP FICO.
- Defines number ranges for documents.
- Controls which accounts are posted to.
- Used for reversing entries.
57. Application Areas for Validations and Substitutions.
(This section would list the SAP modules using validations and substitutions—Asset Accounting, Consolidation, Cost Accounting, Financial Accounting, Profit Center Accounting, Project System, Special Purpose Ledger, and Real Estate.)
58. Business Area Level in SAP.
Business areas are defined at the client level, not the company code level, meaning multiple company codes can use the same business area.
59. One-Time Vendors in SAP FICO.
One-time vendors are used for transactions with vendors who don't have a full master record created, often simplifying invoice entry for infrequent vendors.
60. Storage Level of Customer and Vendor Codes.
Client level.
61. Accounting Period Variants vs. Posting Period Variants.
Accounting period variants manage the opening and closing of accounting periods for reporting purposes. Posting period variants control which periods are open for entering transactions.