SAP FICO interview question and answers

SAP FICO interview question and answers

 1)      What is a Company Code and what are the basic organizational assignments to a company code?

A)    Company Code is a legal entity for which financial statements like Profit and Loss and Balance Sheets are generated. Plants are assigned to the company code, Purchasing organization is assigned to the company code, and Sales organization is assigned to the company code.

2)      How many Chart of Accounts can a Company code have?

A)    A single Company code can have only one Chart of Account assigned to it. The Chart of Accounts is nothing but the list of General Ledger Accounts.

3)      What are the options in SAP when it comes to Fiscal years?

A)    Fiscal year is nothing but the way financial data is stored in the system. SAP provides you with the combination of 12 normal periods and also four special periods. These periods are stored in what is called the fiscal year variant. There are two types of Fiscal Year Variant one is Calendar Year – e.g. Jan-Dec and another one is Year Dependent Fiscal Year.

4)      What is a year dependent fiscal year variant ?

A)    In a year dependent fiscal year variant the number of days in a month are not as per the calendar month. Let us take an example:- For the year 2005 the period January ends on 29th, Feb ends on 27th, March ends on 29. For the year 2006 January ends on 30th, Feb ends on 26th, March ends on 30th. This is applicable to many countries especially USA. Ever year this fiscal year variant needs to be configured in such a case.

5)      How many currencies can be configured for a company code?

A)    A company code can have 3 currencies in total. They are local currency i.e. company code currency) and 2 parallel currencies. This gives the company the flexibility to report in the different currencies.

6)      If there are two company codes with different chart of accounts how can you consolidate their activities?

A)    In this case you either need to write an ABAP program or you need to implement the Special Consolidation Module of SAP. If both the company codes use the same chart of accounts then standard SAP reports give you the consolidated figure.

7)      What is a Account group and where is it used?

A)    An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master. It basically controls the fields which pop up during master data creation in SAP.

8)      What is a Financial Statement Version?

A)    A FSV (Financial Statement Version) is a reporting tool and can be used to depict the manner in which the financial accounts like Profit and Loss Account and Balance Sheet needs to be extracted from SAP. It is freely definable and multiple FSV’s can be defined for generating the output for various external agencies like Banks and other Statutory authorities.

9)      How are input and output taxes taken care of in SAP?

A)    A tax procedure is defined for each country and tax codes are defined within this. There is flexibility to either expense out the Tax amounts or Capitalize the same to Stocks.

10)  Is Business area at company code Level?

A)    No. Business area is at client level. What this means is that other company codes can also post to the same business area.

11)  What are the problems faced when a Business area is configured?

A)    The problem of splitting of account balance is more pertinent in case of tax accounts.

12)  Which is the default exchange rate type which is picked up for all SAP transactions?

A)    The default exchange rate type picked up for all SAP transactions is M (average rate)

13)  How many numbers of line items in one single entry you can have?

A)    The number of line items in one document you can accommodate is 999 lines.

14)  In customizing “company code productive “means what? What does it denote?

A)    Once the company code is live(real time transactions have started) this check box helps prevents deletion of many programs accidentally. This check box is activated just before go live.

15)  Is it possible to print the financial statement version on a SAP script form?

A)    Yes. It is possible to print the financial statement version on a SAP script form.

16)  Is it possible to generate a financial statement form automatically?

A)    Yes. It is possible to generate a form automatically.

17)  Is it possible to keep the FI posting period open only for certain GL codes?

A)    Yes. It is possible to keep open the FI posting period only for certain GL codes.

18)  At what level are the customer and vendor codes stored in SAP?

A)    The customer and vendor code are at the client level. That means any company code can use the customer and vendor code by extending the company code view.

19)  Where do you attach the check payment form?

A)    It is attached to the payment method per company code.

20)  Where are Payment terms for customer master maintained?

A)    Payment terms for customer master can be maintained at two places i.e. in the accounting view and the sales view of the vendor master record.

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