SAP FICO Introduction
SAP is an enterprise resource planning software (ERP) package issued by SAP AG. ERP package is a software package for comprehensively managing operations, in order to make effective use of corporate management resources and make management relationship more efficient. SAP AG is a European software company.
SAP is made up of a group of modules that are responsible for multiple functions, and there are four modules and more specifically eight areas. The area is divided into items that are responsible for the module further.
Accounting module includes SAP Finance (FI) and SAP Management Accounting (CO), while logistics module include SAP Sales Distribution (SD) and SAP Inventory Management (MM), while other modules include SAP Human Resource Management (HRM), SAP Production Control (PP), SAP Projects Management (PS), SAP Plant Conservation (PM).
SAP FI and SAP CO together called as SAP FICO. SAP FI is a module of institutional and external accounting. This module is called to be the core module in SAP ERP software as data generated in other modules are integrated into FI modules. SAP CO is a module responsible for internal accounting. Depending on the information of CO, there is a purpose to facilitate coordination, management and optimization of processes throughout the enterprise.
SAP FICO Finance & Management Accounting interview questions and answers
Qns.1 Mention other module to which FICO in integrated?
Ans.1 The other modules integrated with FI are Sales and Distribution SAP Sales and Distribution (SD) and SAP Inventory Management (MM), SAP Human Resource Management (HRM) and SAP Production Control (PP).
Qns.2 How to treat input and output taxes in SAP FI?
Ans.2 Tax procedure for each and every country is predefined in SAP FICO. User can use input or output tax fields to record taxes.
Qns.3 What do you mean by Financial Statement Version (FSV)?
Ans.3 Financial Statement Version is used to generate final accounts like Profit & Loss, Trial balance, balance sheet, ledgers etc. Basically, it is a reporting tool.
Qns.4 What is transaction code for creation of a general ledger account at company code Level?
Qns.5 In how many ways vendors invoice payment can be made?
Ans.5 This can be done either manual payment or by automatic payments. Manual payment includes cheques etc, while DME (Data Medium Exchange DME (Data Medium Exchange is an example of automatic payment.
Qns.6 What is transaction code for Chart of Accounts?
Qns.7 Please mention Chart of Accounts (CoA) components?
Ans.7 Maintain language, block indicator, controlling integration, CoA key and Name.
Qns.8 Explain document posting transaction codes?
|Posting a document with reference to another document
|Post outgoing payment for general ledger accounts
|General ledger account posting – enjoy transaction
|Display general ledger account balances for open item managed accounts
|Display general ledger account balances
|General ledger document posting
Qns.9 What is the use of internal orders?
Ans.1 Internal orders are used for investment, accrual, revenue and overhead orders. Overhead orders are used to check internal jobs settled to cost centers, while accrual orders is to check weather accrued costs calculated in SAP CO. Investment orders observe internal jobs settled to fixed assets, while revenue orders show the cost controlling parts of distribution and sales.
Qns.10 In CO-PA module what is Value Field?
Ans.10. Number or value related fields in profitability analysis such as, sales revenue, quantity, discount value etc.
Qns.11 Customer and vendor code are store at which level in SAP FICO?
Ans.11. This code are stored at client level.
Qns.12 What do you mean by credit control area (CCA) in SAP?
Ans.12 This function deals with managing credit facility given by a company to its buyers. It can be managed at company code level, group level or at both.
Qns.13 What is operating charts of accounts?
Ans.13 operating chart of accounts includes general ledger accounts that are used while posting a transaction in company code or while performing every day activities.
Qns.14 What is transaction code for creation of a company code?
Qns.15 Can we calculate depreciation to the day?
Ans.15. Yes, we can for this while configuring depreciation key the indicator depreciation has to be switch on. It control which year is open for postings of transaction.
Qns.16 Explain field status group (FSG)?
Ans. 16 FSG are stored in Financial General Ledger master. FSG manage the fields in group action posting of the overall ledger account.
Qns.17 What is posting period variants (PPV)?
Ans.17 Posting period variants deals with opening calendar year in company code for posting the business transaction.