Top 10 SAP FICO Interview Questions for Freshers

Sap Fico Interview Questions For Freshers

Presented below are a collection of interview questions and corresponding answers for SAP FICO, specifically designed to assist both freshers and experienced individuals in securing their desired job opportunity.

Contents

SAP FICO Interview Questions and Answers for Freshers

SAP FICO, which stands for Financial Accounting and Controlling, is a software that handles various financial tasks such as accounting, tax calculations, and the preparation of financial statements. It also manages controlling functions like cost allocation, inter orders, and inventory sheets. This software stores data securely and performs computations based on current market conditions. Additionally, SAP FICO ensures data integrity through verification processes and generates reports efficiently.

Integration of Financial Accounting with Other Modules in SAP FICO

The other modules that are connected to “Financial Accounting” include.

SAP FI: Organizational Elements in Focus

To identify the type of transaction recorded in a line item, a numerical code called the “Posting Key” is utilized. This two-digit number helps determine the nature of the entry made.

5) What is the company code in SAP?

The company code is utilized to produce financial statements such as the Profit and Loss statement and Balance sheets.

6) How many Chart of Accounts can company code have?

In India, it is common to assign a single Chart of Accounts to a company code.

SAP FICO Interview Questions for Entry-Level Candidates: Exploring Fiscal Year Options

The fiscal year in SAP refers to how financial information is stored within the system. It consists of 12 regular periods and four additional special periods. These specific timeframes are organized and managed through a fiscal year variant in SAP.

SAP Calendar: Understanding the Concept of Year Shift

The SAP system is designed to work with calendar years and may not recognize a non-calendar fiscal year, such as April 2012 to March 2013. In such cases, businesses need to designate one of the calendar years as the fiscal year for SAP purposes and adjust the months falling in another year by shifting the year using -1 or +1. This adjustment is referred to as a “year shift.

Our initial calendar year runs from April 2012 to December 2012, while our second year spans from January 2013 to March 2013. If you choose to consider April-12 to Dec-12 as your fiscal year, then Jan-13 to March-13 will automatically be regarded as the second year. In this case, you need to make an adjustment by using a -1 shift. Conversely, if the scenario is reversed and you select Jan-13 to March-13 as your fiscal year, then you would use a +1 shift for adjusting the years accordingly.

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10) What is year dependent fiscal year variant?

In a fiscal year variant that is dependent on the year, the duration of each month does not align with the standard calendar month. For instance, in 2005, January concluded on the 29th day and February ended on the 26th day.

How are input and output taxes managed in SAP?

In India, a tax procedure is established for each country, and within this procedure, tax codes are defined. There is an option to either deduct the tax amounts as expenses or include them in the capitalization of stocks.

SAP FICO Interview Questions for Freshers: Understanding Validations and Substitutions

Validation or Substitution is defined for different functional areas in SAP, such as Assets and Controlling. These are established at various levels within the system.

Sap Fico Interview Questions for Entry-Level Candidates

FSV, also known as Financial Statement Version, serves as a reporting tool within SAP. Its primary function is to extract important financial statements such as the Profit and Loss Account and Balance Sheet. Multiple FSVs can be utilized to generate outputs specifically tailored for external entities like banks and statutory authorities.

15) What is a field status group?

The fields that appear during transactions are managed by the “field status groups.” These groups are stored in the Financial General Ledger (FIGL) master.

Sap Fico Interview Questions For Freshers: Understanding FI-GL (Financial- General Ledger) Accounting

G L Accounting is utilized to gain a comprehensive understanding of external Accounting and accounts. It involves the recording of all business transactions in a software system, along with other operational areas, to ensure the accuracy and completeness of Accounting data.

SAP FICO Interview Questions for Entry-Level Candidates

In SAP, the standard exchange rate for all transactions is set as M (Average Rate).

Sap Fico Interview Questions For Freshers: Methods for Making Vendor Invoice Payments

b) Making a payment without the need for any physical form of transaction, such as checks or other printed documents.

b) Automated payment methods such as DME (Data Medium Exchange), checks, and wire transfers.

Sap Fico Interview Questions For Freshers: Issues with Business Area Configuration

One of the challenges encountered during the configuration of a business area is the division of account balance, which becomes particularly significant when dealing with tax accounts.

Customizing Prerequisites for Document Clearing in SAP FICO: What are they?

To ensure proper document clearing, it is necessary to utilize open item management. This feature allows for the monitoring of cleared and uncleared items in accounts payable and accounts receivable. For example, an unpaid invoice remains as an open account until it has been settled.

Importance of GR/IR Clearing Account in SAP FICO Interviews for Freshers

GR/IR (Good Received/Invoice Received) is a temporary account. In the previous system, if goods were received but the invoice was not yet received, a provision would be made. In SAP, this provision is made at the time of goods receipt by debiting Inventory and crediting the GR/IR account. Similarly, when an invoice is received, the vendor account is credited and the GR/IR account is debited. The GR/IR account will display as uncleared items until the invoice has been received.

22) What is parallel and local currency in SAP?

In addition to the local currency, each company code has the option to include two parallel currencies. These parallel currencies, known as group currency and hard currency, can be used for foreign business transactions and international transactions.

23) Where can you use the internal order?

Internal orders are utilized to monitor expenses and are intended for short-term use.

Can depreciation be calculated on a daily basis?

Certainly, it is feasible to compute depreciation by enabling the Dep. indicator in the configuration of the depreciation key.

Sap Fico Interview Questions for Freshers: Organizational Assignments in Asset Accounting

In Asset Accounting, chart of depreciation is rated as the highest node, and this is assigned to the company node. All the depreciation calculations are stored under the chart of depreciation.

What are the main skills required in SAP FICO?

Sap Fico consultants are professionals who work with the SAP FICO system, which is a software used by businesses to manage their financial and accounting processes. These consultants need to have a variety of technical skills in order to perform their job effectively.

Another crucial skill for Sap Fico consultants is proficiency in profitability analysis. This involves analyzing financial data to determine the profitability of different products or services offered by the company. By understanding profitability analysis, these consultants can provide valuable insights into areas where costs can be reduced or revenue can be increased.

Overall, Sap Fico consultants play a vital role in helping businesses manage their finances effectively using the SAP FICO system. Their expertise in business processes, master data management, profitability analysis, and familiarity with the software allows them to provide valuable support and guidance in optimizing financial performance.

SAP FICO Interview Questions for Experienced Professionals

The asset class is the primary category used to classify assets. Each asset must be assigned to a single asset class, such as Furniture & Fixtures, Plant & Machinery, or Computers. Within the asset class, there is a G1 account that gets debited when an asset is procured. When creating an asset master record, it is mandatory to specify the corresponding asset class for the assets being created. This allows for automatic retrieval of the associated G1 account and posting of entries whenever any transaction involving the assets occurs. Additionally, default values can be set within each asset class for depreciation calculations and other master data requirements.

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SAP FICO Interview Questions for Entry-Level Candidates: Understanding Capital WIP and Asset Accounting in SAP

In SAP, the term “Capital WIP” is used to describe assets that are still under construction. These assets are categorized under a specific asset class and typically do not undergo depreciation. The expenses associated with constructing a capital asset can be recorded using an internal order and settled through appropriate procedures, ultimately resulting in the posting of these costs to an “Asset Under Construction.

SAP FICO Interview Questions for Entry-Level Candidates: Exploring the Components of Chart of Accounts

To establish a Credit Control Area in SAP, one can utilize the transaction code OB45 or follow a specific path.

To access the credit control area in SAP FICO, navigate to SPRO and select enterprise structure. Then, go to maintain structure and choose financial accounting. From there, you can find the option to maintain the credit control area. Enter a description as required.

31) What is posting period variants?

The posting period in SAP is a specific time frame during which transaction figures are updated for the fiscal year. It is managed by the posting period variants, which determine which accounting periods are available for posting and ensure that closed periods remain balanced.

Sap Fico Interview Questions For Freshers: Field Status and Its Control Explained

The field status group is a collection of settings in the Field Status Variant (FSV) that determine how fields are displayed and required for General Ledger (G/L) accounts. It specifies which fields should be hidden, shown, optional, or mandatory.

33) What is short-end fiscal year?

A short-end financial year occurs when there is a transition from a regular fiscal year to a non-calendar fiscal year, or vice versa. This change typically happens when an organization becomes part of a different corporate group.

Sap Fico Interview Questions For Freshers: What is an account group and its usage?

An account group is utilized to regulate the information required when creating a master record. It serves as a means of defining GL accounts, Customer Master, and Vendor records.

35) What is the purpose of “Document type” in SAP?

The SAP FICO module is responsible for controlling the types of accounts that can be posted, such as assets, vendors, customers, and normal GL accounts.

Is business area defined at the company code level?

The business area is applicable at the client level, allowing for multiple company codes to be assigned to the same business area.

At what level are Customer and Vendor codes stored in SAP?

Tolerance plays a crucial role in deciding whether the invoice should be matched or if tax hold should be placed on it. Logistic Invoice Verification allows for various types of tolerance to be defined, and these instances determine how invoices are processed.

39) What is a country Chart of Accounts?

The Chart of Accounts for a specific country includes the necessary General Ledger accounts to comply with the legal regulations in that particular country.

40) What is APP in SAP Fico?

In some organizations, particularly those involved in significant cash transactions, it may not be feasible to create new master records for every vendor trading partner. To address this issue, the concept of one-time vendors is introduced. This allows the use of a dummy vendor code during invoice entry and includes all necessary information typically stored in the vendor master record.

SAP FICO Interview Questions for Freshers

The below mentioned are the typical phases of the SAP payment run process. Restate this information using your own words without adding any additional details. Use Indian English for your response.

b) Scheduling of Proposals – the system suggests a schedule for the payment of invoices.

c) Recording of payment- the process of entering the actual payments in the financial records.

Accounts Receivable: Differentiating between Residual Payment and Part Payment Methods for Allocating Cash

Recurring entries in SAP FICO can automate the posting of accounting documents that remain unchanged on a monthly basis. This eliminates the need for manual posting and saves time. For instance, an expense document can be generated and scheduled to be posted at specific intervals, such as the end of each month or any other preferred date. Typically, multiple recurring entries are created together and processed as a batch at month-end using a transaction.

SAP FICO Interview Questions for Entry-Level Candidates: Understanding Value Fields in the CO-PA Module

Statistical internal orders are fictitious cost objects that are utilized for the purpose of reporting and analysis. They need to be associated with a genuine object like a cost center during posting.

50) For what purposes internal orders can be used?

Overhead Orders: It tracks internal tasks that are allocated to cost centers.

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b) Investment Orders: It oversees the tracking of internal projects related to fixed assets.

c) Accrual Orders: Balancing the posting of computed accrued expenses in CO.

d) Revenue-Related Orders: This feature shows the cost control aspects of Sales and Distribution, without impacting the primary operations of the organization.

These set of questions can also be beneficial for your viva or oral examination.

What does FICO stand for?

FICO, which stands for the Fair Isaac Corporation, is a renowned company that played a significant role in creating a system to calculate credit scores using data gathered by credit reporting agencies.

Is SAP FICO a suitable career option for newcomers?

The career prospects after completing SAP FICO training are highly promising and in high demand, with a continuous growth trajectory. The global popularity and demand for SAP are consistently on the rise, making it an excellent field to pursue. Within the domain of SAP FICO, there is a wide range of career options available, providing ample opportunities for professional growth.

Furthermore, pursuing a career in SAP FICO offers individuals numerous specialization paths to explore. From becoming an expert in accounts payable or receivable to mastering asset accounting or cost center controlling, there are several areas within this domain where one can specialize based on personal interests and aptitude. This allows professionals to carve out their niche and develop expertise that sets them apart from others.

To sum up, embarking on a career path related to SAP FICO presents exciting possibilities due to its strong global presence and increasing demand across industries. The availability of various specializations within this field ensures that individuals can find their area of interest while building valuable skills sought by employers today. Moreover, the long-term growth potential makes it an attractive choice for those looking for stability along with continuous learning opportunities throughout their careers.

Can a fresher become SAP consultant?

Gaining practical experience through internships or entry-level positions can provide valuable exposure to real-world scenarios within the SAP environment. This hands-on experience allows freshers to apply their theoretical knowledge while learning from experienced professionals.

P.S: Remember that transforming yourself into an expert SAP Consultant takes time and perseverance; there are no shortcuts available. Stay committed to your goals and keep expanding your knowledge base through constant learning opportunities.

The three data types in SAP FICO

Data types can be categorized into three main groups: elementary, reference, and complex types. Elementary data types are those that have a fixed or variable length and are not composed of other types. These include basic data types such as integers, floating-point numbers, characters, and Boolean values.

Integers represent whole numbers without any decimal places. They can be further classified based on their size, such as byte (8 bits), short (16 bits), int (32 bits), and long (64 bits). Floating-point numbers are used to represent real numbers with decimal places. They consist of two parts: the mantissa and the exponent.

Reference data types refer to objects rather than storing actual values directly. They hold references to memory locations where the actual object resides. Examples of reference data types include strings (sequences of characters) and arrays (collections of elements).

Complex data types combine multiple elementary or reference data types together to form more intricate structures. Some examples include structures/records which group related variables under one name; unions which allow different interpretations for the same memory location; classes which encapsulate both properties and methods; and enumerations which define a set of named constants.

P.S.: Understanding different data types is crucial in programming as it helps determine how much memory will be allocated for storing variables and what operations can be performed on them efficiently.

What is your reason for selecting SAP FICO?

SAP FICO course certification is beneficial for managing financial systems effectively. It helps in maintaining accurate records and making informed decisions. With this certification, tasks like modifying processes, setting product prices, and managing manufacturing costs become easier. The use of activity-based costing increases throughout various business operations.

In simple terms, SAP FICO course certification enables individuals to efficiently handle financial management systems. It improves the way organizations keep track of their finances and make important decisions. This certification also simplifies tasks such as adjusting processes, determining product prices, and managing manufacturing costs. Additionally, it promotes the use of activity-based costing methods across different business activities.

List:

1) SAP FICO course certification aids in organizing financial management systems.

2) It improves record keeping and facilitates decision-making.

3) Tasks like modifying processes become easier with this certification.

4) Product pricing strategies can be managed more effectively.

5) Manufacturing cost management becomes streamlined.

6) Activity-based costing methods are widely used across different operations

What does FICO skills mean?

1. Account Receivables

2. Accounts Payable

3. General Ledger Analysis

4. Business Process MM Documentation

5. Vendor Management

6. SAP Analysis

These skills are essential for individuals seeking opportunities in the field of SAP FICO and can be beneficial for freshers looking to start their career in this domain, especially in India where there is a growing demand for professionals with expertise in SAP FICO.