Big 4 Accounting Firms SAP Fico Consultant Interview Questions and Answers

APP configuration is the setup of Automatic Payment Program in SAP FICO to process vendor payments.

• APP configuration involves defining payment methods, bank determination, payment terms, and tolerances.

• Payment run is the process of executing the APP to generate payment proposals and payment orders.

• During payment run, the system selects open items based on defined criteria and creates payment documents.

• Payment run can b...read more

Document splitting is a feature in SAP FICO that allows for the splitting of financial documents into multiple segments for reporting purposes.

• Document splitting is used to meet legal and management reporting requirements.

• It allows for the allocation of costs and revenues to different segments of the business.

• Document splitting can be based on various criteria such as business area, profit center, or segment.

• For exampl...read more

Accrual is an accounting method where expenses or revenues are recognized before they are paid or received.

• Accrual accounting is used to match expenses and revenues to the period in which they are incurred or earned.

• Accruals are recorded as adjusting entries in the financial statements.

• Examples of accruals include accrued interest, accrued salaries, and accrued taxes.

• Depreciation is the systematic allocation of the cos...read more

Actual costing is based on the actual costs incurred, while standard costing uses predetermined costs for materials, labor, and overhead.

• Actual costing uses actual costs incurred for materials, labor, and overhead, providing a more accurate reflection of costs.

• Standard costing uses predetermined costs for materials, labor, and overhead, allowing for easier budgeting and cost control.

• Actual costing is more time-consumin...read more

Material Ledger is mandatory in S/4HANA for accurate valuation of inventory and cost of goods sold.

• Material Ledger provides real-time, multi-dimensional valuation of inventory

• It allows for parallel valuation in different currencies and valuation views

• Enables accurate calculation of actual costs for materials using actual costing method

• Supports transfer pricing and profit center valuation