Reliance Retail SAP Fico Consultant Interview Questions, Process, and Tips

Document splitting is a feature in SAP FICO that allows for the separation of financial transactions based on specific criteria.

• Document splitting is used to separate financial transactions based on specific criteria such as cost center, profit center, or business area.

• It allows for more detailed reporting and analysis of financial data.

• For example, if a company has multiple cost centers, document splitting can separat...read more

Profit center is a unit within an organization that generates revenue and expenses and is used for internal management reporting.

• A profit center is responsible for generating profit or loss.

• It is used for internal management reporting and decision-making.

• It can be a department, product line, or geographic location.

• It helps in analyzing the profitability of different parts of the organization.

• Examples include sales depa...read more

Cost elements are used to track expenses and revenues in SAP FICO.

• Cost elements are used to record expenses and revenues in the general ledger.

• They help in tracking the cost of goods sold, overheads, and other expenses.

• Cost elements are assigned to cost centers and profit centers to track costs and revenues.

• They are used in cost accounting and management accounting to analyze costs and profitability.

• Examples of cost el...read more

Withholding tax is a tax deducted at source from payments made to vendors or suppliers.

• It is a tax deducted by the payer from the payment made to the payee.

• It is applicable on payments made to vendors or suppliers for goods or services.

• The deducted tax is paid to the government on behalf of the payee.

• It is used to ensure tax compliance and prevent tax evasion.

• Examples include TDS (Tax Deducted at Source) in India and W

A defined fiscal year is a period of 12 months used for financial reporting purposes.

• A fiscal year can start on any date, but it must end 12 months later.

• It is important to define a fiscal year to ensure accurate financial reporting and compliance with tax laws.

• Companies may choose to align their fiscal year with the calendar year or use a different period.

• For example, a company may have a fiscal year that runs from Ju