SAP FICO Interview Questions – [ Best 2022 ]

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1. What is the posting key, and how can it control?

Answer: Posting key:- This is a numerical number of two-digit which is used to find the transaction type that was entered in the line items.

It is used to find the following details as mentioned below.

1. Account Types
2. Field status of the transaction
3. Types of posting-Debit or Credit

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2. What is the use of validations and substitutions in SAP Finance?
Answer:- The validation function allows us to analyze values and also the ranges of values when these are entered into the SAP system.

The rule manager is used to store the validation rules. When the values are entered into the SAP system, it automatically checks for standard validation rules.

The substitution function validates the values entered into the SAP system as per the prerequisite specified by the user.

3. What is the use of GR( Good Received ) and IR( Invoice Received ) clearing accounts?

Answer:- GR( Good Received ) and IR(Invoice Received) both are interim accounts. If the goods are received and the invoice is not received, In the legacy system the provision is made.

But in SAP at the receipt of the goods, it passes the Accounting entry debiting the Inventory and crediting the GR or IR account.

Similarly, when an invoice is received the vendor account is credited, and the GR or IR account is debited.

The GR/IR will show as an un-cleared items till the time the invoice is not received.

4. What is the meaning of parallel and local currency in the SAP system?

Answer:- Each company code can have two additional currencies, in addition to the company code, currency entered into the company code data.

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Local currency:- The currency entered in the company code creation is called local currency and the other two additional currencies are called parallel currencies.

Parallel Currencies:- They can be used in foreign business transactions. In order to do the international transactions. The two parallel currencies would be GROUP CURRENCY and HARD CURRENCY.

5. What is the use of Internal Order?

Answer:- Internal Order is used to track the cost, which is proposed to be incurred on a short-term basis.

6. What is the use of Document type in SAP?

Answer:- Document Type:- It is used to define the range of documents. It helps to control the types of accounts like assets, customers, G/L accounts and Vendors, etc. Moreover.

It is also used to identify the reversal document entries in the system.

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7. What are the different Submodules in SAP FI?

Answer:- There are various sub-modules available in SAP FI as mentioned below.

General Ledger
Travel Management
Lease Accounting
Fixed Assets, etc.

8. What are Exchange Rate “Factors”?

Answer:- Exchange Rate factors are the relation between the Currencies, one currency to another currency to which an exchange rate is enforced.

9. What are the steps required in G/L posting?

Answer:- When you run payroll, the next is to add results to the GL accounts and this includes cost centers. There are the following steps involved in G/L posting as mentioned below.

1. Groups together posting-relevant information from the payroll results.
2. Creates summarized documents.
3. Performs the relevant postings to appropriate GL accounts and cost centers.

10. What are the account types in SAP FI?

Answer:- Posting Keys in SAP FI are used to determine Account types (A, D, K, M, and S) and also the type of posting.

11. How do you identify account types?
Answer:- This is a type of posting and it is 2 digits numerical key.

12. How many different accounts type are in SAP FI?
Answer:- There are the following different Account Types in SAP FI

A = Assets
D = Customers
K = Vendors
M = Materials
S = General Ledger Account

13. What are the standard common G/L reports in SAP FI?

Answer:- There are various G/L reports available in SAP FI.

G/L Chart of Accounts List
G/L Account Balances
G/L Account List
G/L Account Totals and Balance

14. What is the use of Account Receivables in SAP FI?

Answer:- SAP FI Accounts Receivable component records and manages accounting data of all customers. It is also an integral part of sales management.

All postings in Accounts Receivable are also recorded directly in General Ledger. Different G/L accounts are updated depending on the transaction involved (for example, receivables, down payments, and bills of exchange).

15. What is the use of Account payable in FI? How it is related to G/L?

Answer:- SAP FI Accounts payable is used to manage and record accounting data for all the vendors. All invoices and deliveries are managed as per vendor requests.

Payables are managed as per the payment program and all payments can be made using checks, transfers, electronic transfers, etc.

All the postings that are made in Account Payable are also updated in General Ledger simultaneously and the system also maintains forecasts and standard reports that can be used to keep track of all the open items.

16. What is an automatic payment program in SAP FI?

Answer:- Automatic Payment Program serves the purpose of posting accounts payable like payment to a vendor based on vendor invoices automatically, shortly termed as APP.

It is used to find out due/overdue invoices and to process a list of customer and vendor invoices to make payments in one go. APP can’t be used for all company codes from different countries.

APP has below categories –

Setup all company codes
Setup paying company codes
Payment method per country
Payment method per country code
Bank Selection
House Bank

17. How do you do vendor payments in SAP?
Answer:- There are two different methods available to make the vendor payments:

A. Manual Payment: This is done without the use of a medium such as cheques.
B. Automatic Payment: This is through DME(Data Medium Exchange) such as wire transfer or cheques.

18. How to create Bank Master Data?

Answer:- You can create Bank Data using below-mentioned steps.

1. Define House Bank
2. Define the Bank selection payment program
3. Define Company Codes for all payment transactions for Customers and Vendors
4. Define paying Company Codes for payment transactions
5. Define payment method country wise
6. Define the Payment method per Company Code for the payment transaction
7. Define Bank determination for the payment transaction

Now you can use the transaction code FCHI for cheque managing and for void reasons FCHV.
Then, Using transaction Code FF67, You can create a Bank Reconciliation statement and check opening Balance should be zero.

Use FBEA for post-process

19. What is SAP APO?

Answer:- APO – SAP APO stands for Advanced Planner and Optimizer, which is one area of FSCM and application component of My SAP product.

It is designed to provide solutions for companies in Demand planning, network design, supply network planning,

and production planning and global availability to promise transportation and scheduling.

20. What is the Ranking Order in the Automatic Payment Program in SAP FICO?

Answer:- In SAP FICO, the priority is assigned to each House Bank, which helps the Automatic Payment Program to choose House Bank for payment.

If in case there is more than one House Bank available for the payment program.

The payment program will select more than one House Bank Suppose example 3 Banks for payment,
So in that scenario, the ranking of the Bank helps to select one bank from the list of 3 selected Banks.

21. What is the difference between a Contract and a Scheduling Agreement?

Answer:- Contract vs Scheduling Agreement:- We create a contract for standard items and we can restrict it to value for Quantity.

and We create scheduling agreements for consignment, subcontracting, and stock transfer.

22. What is scrap accounted for in subcontracting in SAP FICO?

Answer:- Scrap accounted is a process to adjust the loss when we do a quality inspection of the material received after subcontracting.

23. How do you configure an electronic Bank statement in SAP FICO?

Answer:- Please follow the steps mentioned steps below for configuring Electronic Bank Statement in SAP FICO.

1. Create account symbols
2. Create GL accounts
3. Assign GL account to account symbol
4. Create Posting keys
5. Now Post Rules
6. Finally, Assign External Transactions

24. What is Back Order in SAP FI?

Answer:- When a customer places an order to a company and If the current stock level is insufficient or the company has no stock
then the company places a Back-order which simply means that they do not have sufficient stock and they need to order more from the supplier
or distributor.

Thus Back Order is an unfilled Customer Order.

25. What are the Transaction Codes to Close the outstanding Items for Output Control Documents that cannot be Cleared?

Answer:- There are the following Transaction codes that are used to close the outstanding Items for Output Control Documents that cannot be Cleared as mentioned below.

1. F-03 – GL clearing
2. F-32 – Customer clearing
3. F-44 – Vendor clearing

26. What is the difference between company and company code?

Answer:- The Company is an organizational unit that is used in the legal consolidation module to roll up financial statements for several company codes.

The Company Code is the smallest organizational unit for which a completely self-contained set of accounts can be drawn up for purposes of external reporting.

27. What are Posting Periods?

Answer:- The Posting period variant controls which posting periods, both normal and special, are open for each company code.

It is possible to have a different posting period variant for each company code in the organization.

The posting period is independent of the fiscal year variant.

28. What is Cost Center in SAP FICO?
Answer:- In SAP FICO, Cost Center is an Organizational element that is defined to manage their cost. It is used as per the requirements.
Suppose Cost Centers could be Canteen, Telephone, Power, Human Resource and Production, etc.

29. What is Born in the sale?

Answer:- Born in sale means Discount on sale.

Discounts are born in the sale. It means Profits are born when sales take place.

30. What is a field status group, and what does it control?

Answer:- Field Status Group: This is assigned to the GL account.

Using Field Status Group, one can define a field as suppressed, optional, or mandatory.

According to the field status groups, respective fields that will be displayed are mandatory or suppressed when the postings are made to that GL account.