10+ Oracle Financial Services Software Interview Questions and Answers

The profit in the P&L a/c is transferred to the retained earnings account.

• Profit is transferred to the retained earnings account to reflect the accumulated profits of the company.

• Retained earnings account is a part of the equity section on the balance sheet.

• The transfer is done at the end of the accounting period.

• Retained earnings can be used for reinvestment, dividends, or other purposes.

• Example: If a company has a profit of $100,000 in the P&L a/c, it will be transferred to...read more

A company code can be assigned to only one chart of accounts.

• A company code can have multiple company codes, but each company code can only be assigned to one chart of accounts.

• The chart of accounts determines the account structure and is used for recording transactions.

• If a company has multiple subsidiaries with different accounting requirements, it may need to create multiple company codes with different charts of accounts.

• For example, a company may have a separate chart of...read more

Accounts receivable is the money owed to a company by its customers, while accounts payable is the money a company owes to its suppliers.

• Accounts receivable refers to the outstanding invoices or money owed to a company by its customers for goods or services provided.

• Accounts payable refers to the outstanding invoices or money that a company owes to its suppliers for goods or services received.

• Accounts receivable is an asset on the company's balance sheet, while accounts payab...read more

SAP FICO is a module in SAP ERP that deals with financial accounting and controlling.

• SAP FICO stands for Financial Accounting and Controlling.

• It helps in managing financial transactions, generating financial statements, and analyzing financial data.

• It includes sub-modules like General Ledger Accounting, Accounts Payable, Accounts Receivable, Asset Accounting, and Controlling.

• It integrates with other SAP modules like Sales and Distribution, Material Management, and Production ...read more

Accounts payable is a financial term that refers to the money owed by a company to its suppliers or vendors for goods or services received.

• Accounts payable is a liability on the balance sheet.

• It represents the amount owed by a company to its creditors.

• It includes invoices, bills, and other payment obligations.

• Accounts payable is recorded when goods or services are received but payment has not yet been made.

• It is an important aspect of cash flow management and working capital....read more

Accounts receivable refers to the money owed to a company by its customers for goods or services provided on credit.

• It is a current asset on the balance sheet.

• Accounts receivable represents the credit sales made by a company.

• It is recorded when a company invoices its customers for the goods or services provided.

• The amount owed by customers is typically collected within a specified period, known as the credit terms.

• If a customer fails to pay within the credit terms, the accoun...read more

Suspense A/C is a temporary account used to hold transactions until they can be properly classified.

• Suspense A/C is also known as a clearing account or a transit account.

• It is used when there is uncertainty or discrepancy in the classification of a transaction.

• Transactions are initially recorded in the suspense account until they can be correctly allocated to the appropriate accounts.

• Once the correct classification is determined, the transactions are moved from the suspense a...read more

Yes, I have worked on withholding tax in SAP Fico.

• Implemented withholding tax configurations in SAP Fico

• Processed vendor invoices with withholding tax deductions

• Generated withholding tax reports for tax authorities

• Provided support for withholding tax related issues to end users

IDoc is a data container used to exchange information between SAP systems, while DME stands for Data Medium Exchange used for generating payment files.

• IDoc is a standard data structure used to exchange information between SAP systems or between SAP and external systems.

• IDoc contains data in a structured format and is used for communication between different systems.

• DME (Data Medium Exchange) is used in SAP to generate payment files for electronic payment transactions.

• DME file...read more

APP run refers to the Automatic Payment Program in SAP FICO, which is used to process outgoing payments in a batch.

• APP run automates the process of making outgoing payments to vendors or customers.

• It selects open invoices based on predefined selection criteria.

• It generates payment proposals, schedules payments, and creates payment documents.

• APP run can be customized to meet specific business requirements.

• Example: Running APP run in SAP FICO to process vendor payments on a wee...read more

ECC is the older version of SAP's ERP system, while S4Hana is the newer, more advanced version with improved features and capabilities.

• ECC is based on traditional row-based database technology, while S4Hana utilizes in-memory computing for faster processing.

• S4Hana offers real-time analytics and predictive capabilities, while ECC does not.

• S4Hana has a simplified data model and user interface compared to ECC.

• S4Hana is designed to run on SAP's HANA database, while ECC can run on...read more

House Banks configuration involves setting up bank accounts in SAP for electronic payments and receipts.

• House Banks are created in SAP using transaction code FI12

• Bank accounts are linked to House Banks for payment transactions

• House Banks can be assigned to company codes for specific use cases