20+ Associate SAP Fico Consultant Interview Questions and Answers

FI-MM integration is done through transaction keys in MM.

• FI-MM integration is the process of linking financial accounting with materials management.

• Transaction keys in MM are used to determine the account type and posting key for accounting documents.

• Examples of transaction keys in MM include BSX for stock postings and WRX for goods receipt.

• Integration between FI and MM allows for accurate and efficient financial reporting.

In FI-MM integration in PRD transaction key, the account specified is the Consumption Account.

• The account specified in PRD transaction key for FI-MM integration is the Consumption Account.

• This account is used to record the consumption of materials in the production process.

• It helps in tracking the cost of materials used in production.

• Example: Consumption Account 300000 is specified in PRD transaction key for recording material consumption.

Chart of accounts is a list of all the general ledger accounts used by a company, while country chart of accounts is specific to a particular country.

• Chart of accounts is a structured list of all the general ledger accounts used by a company.

• It helps in organizing financial transactions and preparing financial statements.

• Country chart of accounts is a variant of the chart of accounts that is specific to a particular country.

• It includes accounts that are specific to the legal ...read more

I am a finance professional with expertise in SAP FICO. Chart of accounts is a list of all G/L accounts used by a company.

• Chart of accounts is a list of all G/L accounts used by a company to record financial transactions.

• Types of chart of accounts include operating chart of accounts, country-specific chart of accounts, group chart of accounts, and global chart of accounts.

• Some t.codes related to chart of accounts in SAP FICO are FSP0 (Create Chart of Accounts), OB13 (Define C...read more

Partial payment is a payment made for a portion of the total amount due, while residual payment is the remaining amount left to be paid.

• Partial payment is made for a part of the total amount owed.

• Residual payment is the remaining balance left after the partial payment.

• Partial payment reduces the total amount due, while residual payment clears the remaining balance.

• Example: If a total bill is $1000 and a partial payment of $500 is made, the residual payment would be $500.

Validation and substitution are functionalities in SAP FICO used to enforce data integrity and automate data entry processes.

• Validation ensures that data entered meets certain criteria or conditions before being saved.

• Substitution automatically populates fields with predefined values based on certain conditions.

• Validation and substitution can be applied to various fields in SAP FICO such as GL accounts, cost centers, and document types.

• They are commonly used to enforce busine...read more

BP configuration in SAP FICO involves setting up business partners and related data. T.codes include XD01, XD02, XD03, FK01, FK02, FK03.

• BP configuration involves creating, changing, and displaying business partner master data in SAP

• T.codes XD01, XD02, XD03 are used for creating, changing, and displaying customer master data

• T.codes FK01, FK02, FK03 are used for creating, changing, and displaying vendor master data

Chart of accounts is a list of all the accounts used by an organization to define its financial structure.

• Chart of accounts organizes financial transactions into categories

• Types include operating expenses, assets, liabilities, equity, revenue, etc.

• Each account is assigned a unique number for identification

• Example: Account 1000 for Cash, Account 2000 for Accounts Payable

Country chart of accounts is a list of general ledger accounts used by a company based on the country's legal requirements.

• It is a structured list of general ledger accounts specific to a country's legal and reporting requirements.

• It helps in standardizing the accounting practices within a country.

• Each country may have its own unique chart of accounts based on its regulations and reporting standards.

• For example, the chart of accounts used in the United States may differ from ...read more

Posting period variant is a key configuration in SAP FICO that controls the posting periods for different document types.

• Controls the open and close periods for posting documents

• Assigned to a company code in SAP

• Defines the fiscal year variant and posting periods for each document type

• Used to restrict posting to specific periods

APP stands for Automatic Payment Program in SAP FICO, used for making payments to vendors automatically.

• APP is used to process outgoing payments to vendors in SAP FICO.

• It allows for automatic selection of open items for payment based on predefined criteria.

• Steps include defining payment methods, creating payment proposals, scheduling payment runs, and posting payments.

• APP helps streamline the payment process and improve efficiency in accounts payable.

• Example: Setting up APP t...read more

Field status group determines the field status of G/L account master data fields in SAP FICO.

• Field status group controls whether a field is required, optional, or suppressed in G/L account master data.

• It is assigned to a G/L account in the chart of accounts.

• Field status group is used to define the field status of various fields like posting key, cost center, etc.

• It helps in controlling data entry and validation in G/L account master data.

GR/IR clearing ac is used to reconcile Goods Receipt (GR) and Invoice Receipt (IR) in SAP FICO.

• GR/IR clearing ac helps in matching the goods received with the invoice received.

• It ensures that the accounting entries for goods receipt and invoice receipt are in sync.

• Any discrepancies between GR and IR can be identified and resolved using GR/IR clearing ac.

• It helps in maintaining accurate financial records and avoiding payment delays.

• Example: If a company receives goods but the ...read more

FI-SD integration refers to the integration between Financial Accounting (FI) and Sales & Distribution (SD) modules in SAP.

• FI-SD integration allows for seamless flow of data between the two modules, ensuring accurate financial reporting based on sales transactions.

• Key integration points include customer master data, sales orders, billing documents, and accounts receivable.

• Integration helps in automating processes such as revenue recognition, credit management, and cash flow m...read more

SAP FICO refers to Finance (FI) and Controlling (CO) modules in SAP ERP system.

• SAP FICO is used for financial accounting and management accounting in organizations.

• FI module deals with financial transactions, while CO module focuses on planning, reporting, and monitoring costs.

• Integration between FI and CO modules allows for seamless financial management.

• SAP FICO helps in generating financial statements, managing cash flow, and analyzing financial performance.

• Example: Creatin...read more

O2C cycle stands for Order to Cash cycle, which is the process of receiving and fulfilling customer orders.

• O2C cycle involves receiving customer orders, creating sales orders, picking and packing goods, shipping to customers, and invoicing.

• It also includes credit checks, pricing, delivery scheduling, and payment processing.

• An example of O2C cycle in SAP Fico would be receiving a customer order, creating a sales order in SAP, picking the items from the warehouse, shipping them...read more

O2C cycle stands for Order to Cash cycle, which is the process of receiving and fulfilling customer orders.

• Customer places an order

• Order is processed and goods/services are delivered

• Invoice is generated and sent to customer

• Payment is received from customer

• Accounts receivable is updated

APP stands for Automatic Payment Program in SAP FICO module.

• APP is used for making payments to vendors automatically based on predefined criteria.

• It helps in streamlining the payment process and reducing manual intervention.

• APP can be scheduled to run at specific intervals to ensure timely payments.

• It allows for customization of payment methods, payment terms, and selection criteria.

• Example: Setting up APP to pay all invoices due within a certain period using a specific payme...read more

Year shift refers to changing the fiscal year in SAP FICO to align with the company's financial reporting requirements.

• Year shift is used to adjust the fiscal year in SAP FICO to match the company's financial calendar.

• It involves changing the start and end dates of the fiscal year in the system.

• Year shift can impact financial reporting, budgeting, and forecasting processes.

• It is important to carefully plan and execute year shift to avoid any disruptions in financial operation...read more

P2P process stands for Procure to Pay process, which involves all steps from requisition to payment for goods or services.

• The process starts with a purchase requisition being created by the requesting department.

• The requisition is then approved by the appropriate authority.

• A purchase order is generated and sent to the vendor.

• Goods or services are received and the invoice is matched with the purchase order.

• Payment is made to the vendor based on the invoice.

• The process ends wit...read more

P2P cycle refers to Procure-to-Pay cycle in SAP FICO, involving procurement of goods/services, invoice processing, and payment to vendors.

• Procurement of goods/services from vendors

• Receipt of goods/services and creation of goods receipt in SAP

• Invoice processing and verification against purchase order

• Payment to vendors through accounts payable process

• Integration with other modules like MM and SD

P2P cycle refers to the Procure-to-Pay cycle in SAP FICO, which involves the process of procuring goods or services and making payments for them.

• P2P cycle starts with the creation of a purchase requisition, followed by creation of a purchase order.

• Goods or services are received and an invoice is generated.

• The invoice is verified, approved, and payment is made to the vendor.

• The cycle ends with reconciliation of payments and closing of the purchase order.

Chart of accounts is a list of all the accounts used by an organization to define its financial transactions.

• Chart of accounts organizes financial transactions into categories

• It helps in tracking financial transactions and preparing financial statements

• Each account in the chart of accounts is assigned a unique number or code

• Examples of account categories: assets, liabilities, equity, revenue, expenses

A business area is a separate area within a company that is used to group related activities for reporting and analysis purposes.

• Business areas are typically defined based on geographical locations, product lines, or divisions within a company.

• They help in segregating financial transactions and reporting for different segments of the business.

• For example, a company may have separate business areas for its North America operations, European operations, and Asia-Pacific operati...read more