Important SAP FICO Interview Questions

Prepare with the most Important SAP FICO Interview Questions and answers. Boost your chances of success with expert tips for freshers and experienced professionals.

1. What is a Line Item?

The Line Items contain information relating to account number, amount, debit/ credit,

tax code, amount, etc. SAP allows a maximum of 999 line items in a single document.

Besides the one entered by you during a document entry, the system may also create its own line items called system-generated line items, such as tax deductions, etc.

Irrespective of the number of line items entered, ensure that the total of these is always

zero (that is, total debits should equal total credits). Otherwise, the system will not allow

you to post the document.

2. What is a Posting Key?

A Posting Key in SAP is a 2-digit alphanumeric key that controls the entry of line items.

SAP comes with many posting keys for meeting the different business transactions

Requirements.

The posting key determines:

1. What account can be posted to

2. Which side of the account (debit or credit) to be posted to, and

3. What layout screen needs to be used for that particular transaction?

It is a normal practice not to change any of the default posting keys in the system, as you would very rarely require additional posting keys.

3. Give some examples of GL accounts that should be posted automatically through the system, and how this is defined in the system.

Stock and Consumption accounts are instances of GL accounts that should be

automatically posted. In the GL account master record, a check box exists wherein the

automatic posting option is selected called “Post Automatically Only.”

4. What is an Account group, and where is it used?

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 that pop up during master

data creation in SAP

5. What is a Financial Statement Version?

An FSV (Financial Statement Version) is a reporting tool and can be used to

depict the manner in which the financial accounts, like the Profit and Loss Account and

Balance Sheet needs to be extracted from SAP. It is freely definable and has multiple FSVs

can be defined for generating the output for various external agencies like Banks and

other Statutory authorities.

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6. What are Validations and Substitutions?

Validations/Substitutions in SAP are defined for each functional area, e.g., FIGL,

Assets, Controlling, etc, at the following levels

1. Document level

2. Line item level

These need to be specifically activated, and setting them up is complex and done only

when it is really needed. Often help of the technical team is taken to do that.

7. Which is the default exchange rate type that is picked up for all SAP transactions?

The default exchange rate type picked up for all SAP transactions is M

(average rate)

8. What are the master data pre-requisites for document clearing?

The Gl Account must be managed as an ‘open item management’. This

checkbox is there in the General Ledger Master Record called Open Item Management.

It helps you to manage your accounts in terms of cleared and uncleared items. A typical

example would be the GR/IR Account in SAP (Goods Received/Invoice Received Account)

9. How many numbers of line items in one single entry can you have?

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

10. A Finance Document usually has an assignment field. This field automatically gets populated during data entry. Where does it get its value?

This value comes from the Sort key entered in the Gl master record.

11. In customizing, “company code productive “means what? What does it denote?

Once the company code is live(real-time transactions have started), this check

box helps prevent the deletion of many programs. This check box is activated

just before going live.

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

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

codes.

13. Can a posting period variant be assigned to more than 1 company code?

Yes. The posting variant can be assigned to more than one company code.

How can you use the additional login in the AP payment program for troubleshooting?

Any errors in payments run, regardless of the reason, are reported in the additional log, allowing corrections to be made rapidly, reducing error rates.

14. How do you handle cash transactions or single-purchase vendors?

Not every vendor needs a new master record. When you only purchase from

them once, or when paying cash, a dummy code can be used on the invoice entry, and

Information traditionally stored in a master record is recorded on the individual invoice.

15. How is debt collection or dunning handled using SAP?

SAP allows for different levels of debt collection notices. Depending on the

The age of the overdue payment, collection letters can range from reminder notices to legal notices

notifications.

16. What Fiscal year options are available using SAP?

A fiscal year is nothing more than a designated way to store financial data. In

SAP, you have twelve periods and four special periods, allowing for both monthly and

quarterly data organization. There are two types of fiscal years that are available:

Calendar year and year-dependent fiscal year.

17. How many currencies can be configured for a company code?

A company code can have 3 currencies in total. They are local currency ie

, company code currency. and 2 parallel currencies. This gives the company the flexibility

to report in different currencies.

18. Do you require configuring an additional ledger for parallel currencies?

Where only 2 currencies are configured (Company code currency and a

parallel currency) there is no need for an additional ledger. In case the third parallel

currency is also configured and if it is different than the second currency type, you

would then need to configure an additional ledger.

19. How many Chart of Accounts can a Company code have?

A single Company code can have only one Chart of Accounts assigned to it.

The Chart of Accounts is nothing but the list of General Ledger Accounts.

20. What is meant by a “baseline date” in SAP AR and AP?

The baseline date is the date from which the payment terms (specified in IMG

transaction OBB) apply. Usually, this is the document date on the invoice, but it can also be

The date of entry or posting date from the ledger.

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Author:-

Vaibhav Phadke