10+ Shiv Nadar School Interview Questions and Answers

The number of currencies that can be configured for a company code depends on the SAP system settings and requirements.

• The number of currencies can vary based on the SAP system version and configuration.

• Typically, a company code can have a local currency and additional currencies for reporting or transaction purposes.

• The additional currencies can be used for consolidation, group reporting, or for handling foreign currency transactions.

• The currencies can be configured in the S...read more

Financial accounting is integrated with other modules such as Controlling (CO), Materials Management (MM), Sales and Distribution (SD), and more.

• Controlling (CO) module is closely integrated with financial accounting to provide cost accounting and management accounting functionalities.

• Materials Management (MM) module is integrated with financial accounting to track and manage procurement and inventory costs.

• Sales and Distribution (SD) module is integrated with financial accou...read more

Organizational elements in SAP are the basic building blocks of an organization's structure.

• Organizational elements include company code, plant, sales organization, distribution channel, and storage location.

• They are used to define the structure of an organization and to assign various business transactions to specific areas.

• Each organizational element has its own set of attributes and characteristics that determine its role and function within the organization.

• For example, a...read more

Distribution cycle is used to allocate primary costs to cost centers while assessment cycle is used to allocate secondary costs.

• Distribution cycle is used to allocate primary costs to cost centers based on the cost element category.

• Assessment cycle is used to allocate secondary costs from one cost center to another based on the sender and receiver cost centers.

• Distribution cycle is executed before the assessment cycle.

• Distribution cycle can be used for both direct and indirec...read more

The t code for park document in SAP FICO is FBV0.

• FBV0 is used to park accounting documents in SAP FICO.

• Parked documents are temporary and can be edited before posting.

• This t code allows users to save incomplete or unbalanced documents for later processing.

• Once parked, the document can be reviewed, modified, or deleted before posting.

End users use SAP FICO to perform daily business transactions, while consultants configure and customize the system to meet business requirements.

• End users perform daily business transactions such as creating purchase orders, processing invoices, and generating financial reports using SAP FICO.

• Consultants configure and customize the system to meet business requirements by setting up master data, defining business processes, and implementing new functionalities.

• Consultants als...read more

SAP S/4HANA is an intelligent, integrated ERP system that runs on an in-memory database, providing real-time insights and simplifying business processes.

• SAP S/4HANA is the next-generation business suite from SAP.

• It is built on the SAP HANA in-memory platform, allowing for real-time data processing and analytics.

• SAP S/4HANA offers a simplified data model, eliminating the need for traditional batch processing and data redundancy.

• It provides a modern user experience with a respo...read more

P2P cycle involves procurement of goods/services while O2C cycle involves sales of goods/services.

• P2P cycle: Purchase requisition -> Purchase order -> Goods receipt -> Invoice verification -> Payment

• O2C cycle: Sales order -> Delivery -> Invoice -> Payment

• P2P cycle entries: DR Inventory/Creditor, CR GR/IR, CR Vendor, DR Vendor/Cash/Bank

• O2C cycle entries: DR Customer, CR Sales, DR AR, CR Cash/Bank

Accounting principles are the guidelines and rules that companies follow to prepare financial statements.

• Accounting principles include GAAP, IFRS, and SOX

• GAAP stands for Generally Accepted Accounting Principles and is used in the US

• IFRS stands for International Financial Reporting Standards and is used in many countries around the world

• SOX stands for Sarbanes-Oxley Act and is a US law that regulates financial reporting

• Other accounting principles include consistency, materiali...read more

Foreign currency valuation is the process of adjusting the value of foreign currency transactions to reflect the current exchange rate.

• It is done to ensure accurate financial reporting

• It involves revaluing foreign currency assets and liabilities

• It can result in gains or losses depending on the exchange rate fluctuations

• It is usually done at the end of each accounting period

• SAP FICO has a foreign currency valuation functionality

Chart of depreciation is a list of depreciation areas and methods used to calculate depreciation for assets.

• It is a list of depreciation areas and methods

• It is used to calculate depreciation for assets

• It is specific to a company code

• It can be customized to meet specific business needs

A chart of accounts is a list of all the accounts used by an organization to record financial transactions.

• It is a structured list of all the accounts used by an organization

• It helps in organizing financial transactions

• It is used to prepare financial statements

• It can be customized to meet the specific needs of an organization

• It typically includes balance sheet and income statement accounts

• Example: Assets, Liabilities, Equity, Revenue, Expenses

Open item management is a method of managing accounts where individual transactions are tracked until they are cleared.

• Open items are transactions that are not yet settled or paid in full

• Each open item is tracked until it is matched with a corresponding transaction

• This method is commonly used in accounting to ensure accurate financial reporting

• Examples include unpaid invoices, outstanding checks, and unapplied payments

Master data is the core data that is used as a base for transactional data in an organization.

• Master data is static data that is not frequently changed.

• It is used as a reference data for transactional data.

• Examples of master data include customer data, vendor data, material data, etc.

• Master data is maintained centrally and is shared across different departments in an organization.

• It is critical for accurate reporting and decision-making.

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

• SAP FICO stands for Financial Accounting (FI) and Controlling (CO)

• FI module deals with financial transactions, general ledger accounting, accounts payable and receivable, asset accounting, etc.

• CO module deals with cost center accounting, profit center accounting, internal orders, product costing, etc.

• SAP FICO integrates with other SAP modules like MM, SD, PP, etc.

• SAP FICO helps in financial r...read more