Top SAP FICO Interview Questions and Answers
Last updated on Mon 16 Mar 2020
Learn SAP FICO Interview Questions with detailed Answers. Refer these interview question before attending an interview - Professionals, and freshers
SAP FICO Interview Questions and Answers
1. Explain the term SAP FICO
In SAP FICO, FI stands for Financial Accounting and CO stands for Controlling. FI takes care of accounting part, financial statements, etc. whereas CO takes care of cost sheet, inventory sheet, etc. SAP FICO is integrated with various other modules in parallel for better financial maintenance and outcome.
2. List the modules to which ‘Financial Accounting’ is integrated
Financial Accounting is integrated into the following modules:
- Production Planning
- Material Management
- Sales and Distribution
- Human Resource
- Controlling of financial transaction
3. List the different submodules in SAP FI
- General Ledger
- Fixed Assets
- Travel Management
- Lease Accounting, etc.
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4. Explain General Ledger in Finance accounting
It acts as a primary record. All transactions of a company are recorded in General Ledger such as customer transactions, internal company transactions & purchases from vendors.
5. Explain the common reasons for errors in accounting and their impact on the organization
Errors may occur due to a lot of reasons. A small error can mislead profits & losses, and bring many issues. The reasons for the errors could be faults in the system, negligence of users, gross errors, basic accounting errors and many more.
6. How many periods are there in the SAP FICO?
There are 165 periods and 4 are considered special among them. When there is a need, a user can freely use any special period. Periods are generally used in a day related to the fiscal year.
7. What is the Company? What does it consist of in SAP FI?
In SAP FI, a company is the smallest unit for which financial statements are available. It can consist of multiple codes, which can have different local currency but need to use the same chart of accounts list.
8. What are correspondence types in AR/AP?
Corresponding types are the outputs, which are printed and delivered to the business associates based either general or customer Ledger information.
Here are a few corresponding types:
- Customer statements
- Line items lists
- Payment Notices
Corresponding types can be printed together and sent out at the end of the day.
9. Explain how the system identifies a ‘Posting Period’
Based on the posting date entered into the system, the system identifies the posting period. However, for this to happen, we should define the fiscal year variant properly.
10. Explain ‘Posting Period Variant
To control posting periods, we use the posting period variant. It controls which period to be used for each company code and whether it has to be normal or special, opening or closing period in the fiscal year. It is independent of fiscal year variant.
11. Explain Field Status Groups
These groups control the fields that can be posted for a G/L account at the line item level and additional account assignments.
12. Which account type you should use if you want to carry forward the balance from one fiscal year to next fiscal year?
To carry forward the balance from one fiscal year to next, Retained Earnings Accounts is used. To carry forward automatically, you can define P&L statements as per COA and then assign them to retained earning accounts.
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13. What is the significance of financial general ledger accounting?
To access external accounts, we use general ledger accounting. It gives all the financial transactions made within a specific time.
14. What is the relationship between company code and controlling area?
Each company code is assigned to one controlling area. A controlling area consists of multiple company codes and each code must use the same operative chart of accounts the controlling area is using.
15. Explain the use of FSV in SAP
FSV stands for Financial Statement Version. It is used to remove final accounts like profit & loss Account, balance sheet, etc. from SAP. To make the output of agencies like Banks, several FSV’s are used.
16. What does FI-GL (Financial- General Ledger) Accounting do?
To get an outline of external accounting and to record all business transactions, General Ledger is used. It also ensures the accuracy and completion of accounting data.
17. What do you call a short-end Fiscal Year?
Sometimes an organization has to modify the calendar year as per their need due to many reasons; this is called short-end Fiscal Year. Organizations have to adopt a new calendar.
18. Explain internal order option in the SAP FICO
To track the cost associated with an item or a project, internal order option is used. It used only used in some situations and in some important tasks.
19. Explain the use of Sales returns in FI
In SAP FI, the products returned by a customer due to any complaints are managed by sales returns. It also handles other tasks such as to track the path of the returned product, sending the returned item for inspection. It handles the products returned due to quality factors and not for incorrect deliveries and used in the consumer goods industry.
20. What are the common activities performed in month-end closing in Sap Fi?
In month end closing, we can perform activities like, open or close one or more posting periods for posting, and permit postings to one or more current or future posting periods.
21. What are the common types of reports that can be used for Account Analysis (A/R)?
Following are some of the types of reports, which can be used for account analysis (A/R) −
- Customer Line Item Analysis
- Balance Analysis
- Customer Evaluation Report