100+ SAP Fico Consultant Interview Questions and Answers

Interview questions for SAP Fico Consultant

• Journal entry for Purchase with GST involves debiting the Purchases account and crediting the Input GST account

• Ind AS stands for Indian Accounting Standards, one of which is Ind AS 116 on Leases

• SAP is a software company that provides enterprise software to manage business operations and customer relations

• ERP stands for Enterprise Resource Planning, a software system that integrates business processes and data

• IT industry offers opport...read more

SAP CO is a module for controlling and managing costs in an organization. Personal and nominal accounts are used in financial accounting. GST is a tax system. P2P cycle is a procurement process. Asset accounting is for managing fixed assets.

• SAP CO is used for cost controlling and management

• Personal accounts are used for individuals and nominal accounts are used for expenses and revenues

• GST is a tax system used in India and other countries

• P2P cycle is a procurement process fro...read more

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

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

To pay only particular vendor invoices from F110, you can use the 'Payment Block' field in the vendor master data.

• In the vendor master data, set the 'Payment Block' field to 'X' for the invoices you don't want to pay.

• When running F110, select the 'Payment Block' option and enter 'X' to only pay invoices without the payment block.

• This will exclude the invoices with the payment block from the payment run.

P2P cycle is the Procure-to-Pay cycle, which is the process of purchasing goods or services and making payments for them.

• P2P cycle involves several steps such as requisitioning, sourcing, purchasing, receiving, and payment.

• It starts with the creation of a purchase requisition, which is a request for goods or services.

• The requisition is then approved and converted into a purchase order, which is a formal agreement to buy the requested items.

• The purchase order is sent to the su...read more

Porter's model analyzes industry competition, advertisement influences market positioning, cash flow reflects financial health, balance sheet shows assets and liabilities.

• Porter's model is a framework that helps analyze industry competition and develop competitive strategies.

• Advertisement plays a crucial role in influencing market positioning and brand perception.

• Cash flow is a measure of the money flowing in and out of a company, indicating its financial health and ability t...read more

Vendor master data is information about the vendors/suppliers of a company.

• It includes details such as name, address, contact information, payment terms, and bank account information.

• Vendor master data is used in procurement processes, accounts payable, and financial reporting.

• It is important to maintain accurate and up-to-date vendor master data to ensure smooth business operations.

• Examples of vendor master data include the name and address of a supplier, the terms of paymen...read more

The cash flow field in GL master is used to track the cash flow category of a general ledger account.

• The cash flow field helps in classifying the general ledger account based on the type of cash flow it represents.

• It allows for better analysis and reporting of cash flows within the organization.

• Examples of cash flow categories include operating activities, investing activities, and financing activities.

• By assigning the appropriate cash flow category to a GL account, it become...read more

Accounts Payable in SAP is a module that manages the company's outstanding invoices and payments to vendors.

• Accounts Payable is a subledger in SAP that tracks and manages the company's liabilities to vendors.

• It includes functionalities such as invoice processing, payment processing, and vendor master data management.

• The module allows for the recording and tracking of vendor invoices, credit memos, and payments.

• It provides features like automatic payment runs, payment terms ma...read more

Yes, I have worked with ABAP financial modules (SE37).

• I have experience working with ABAP financial modules in SAP FICO.

• I am familiar with the SE37 transaction code in SAP, which is used for Function Module maintenance.

• I have utilized ABAP programming language to develop and enhance financial functionalities in SAP FICO.

• I can provide examples of ABAP programs I have developed for financial modules if required.

Four situations where we have to create a Bank Reconciliation Statement

• When there is a discrepancy between the bank balance and the company's books

• When there are outstanding checks or deposits in transit

• When there are bank errors or fees that need to be reconciled

• When there are adjustments for interest earned or bank charges

There are multiple levels in GL master, including company code level, chart of accounts level, and general ledger account level.

• GL master has different levels to organize financial data.

• The highest level is the company code level, which represents a legal entity.

• Below the company code level, there is the chart of accounts level, which defines the structure of accounts.

• Finally, at the lowest level, there are general ledger accounts that record specific financial transactions.

• E...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

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

In SAP FI, fiscal year is stored in a variant and entry effects are recorded in the general ledger.

• Fiscal year is stored in a variant which defines the start and end dates of the fiscal year

• Entry effects are recorded in the general ledger accounts

• The fiscal year variant can be assigned to a company code

• Posting periods can be defined within the fiscal year variant

• Closing entries are made at the end of the fiscal year to transfer balances to retained earnings

Cash journal is a special journal used to record all cash transactions in a company.

• Cash journal is used to record all cash transactions in a company

• It is a special journal that is used to manage cash transactions

• Cash journal is used to record all incoming and outgoing cash transactions

• There are 3 steps in cash journal: creating a cash journal, posting transactions, and closing the cash journal

Not maintaining account modifier can lead to incorrect financial reporting and accounting errors.

• Account modifier is used to differentiate between different types of transactions in financial reporting.

• If not maintained, it can lead to incorrect financial statements and accounting errors.

• For example, if a company has multiple revenue streams, not maintaining account modifier can lead to revenue from different streams being reported together, leading to incorrect financial ana...read more

SAP is an ERP software used for managing business operations. Fiscal year variant determines the financial year of a company. Document type is used to classify accounting transactions. Chart of accounts is a list of all G/L accounts used by a company. PtoP cycle refers to the procurement process. Asset procurement is the process of acquiring assets for a company. Document splitting is used to split a document into multiple segments. FCV stands for Foreign Currency Valuation.

• S...read more

There are three types of tolerance groups in SAP: payment, invoice, and purchasing.

• Payment tolerance group controls the maximum amount of difference between the invoice and payment.

• Invoice tolerance group controls the maximum amount of difference between the invoice and purchase order.

• Purchasing tolerance group controls the maximum amount of difference between the purchase order and goods receipt.

• Each tolerance group is assigned to a user or a group of users.

• Tolerance groups ...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

Asset accounting end to end steps with PO

• Create a purchase order (PO) for the asset

• Receive the asset and post the goods receipt in SAP

• Create an asset master record in SAP

• Post the invoice for the asset

• Settle the asset to the appropriate asset class

• Depreciate the asset over its useful life

• Retire or dispose of the asset when it is no longer in use

SAP is an enterprise resource planning software used to manage business operations. FICO is integrated with other modules through data transfer.

• SAP is a software used for managing business operations such as finance, sales, production, and inventory

• FICO is a module in SAP used for financial accounting and controlling

• Integration with other modules is achieved through data transfer between modules

• For example, FICO can be integrated with the sales module to transfer data on cust...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 cost of a fixed asset over its useful life.

• Provision is a lia...read more

Cost centre internal order is a tool used in SAP FICO to track costs and expenses for a specific project or department.

• It is used to monitor and control costs within a specific area of responsibility

• It helps in tracking expenses for a particular project or department

• It is used to allocate costs to different cost centers

• It is used to generate reports for management to analyze costs and expenses

• Example: A company may create an internal order for a specific marketing campaign to...read more

FI is for financial accounting and CO is for controlling in SAP.

• FI deals with recording financial transactions and generating financial statements.

• CO deals with cost accounting, budgeting, and internal reporting.

• FI is more focused on external reporting while CO is more focused on internal management.

• Examples of FI transactions include posting journal entries, creating customer invoices, and processing vendor payments.

• Examples of CO transactions include creating cost centers, ...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

Asset class is a categorization of assets based on their characteristics. It is made by the company's management.

• Asset class is used to group similar assets together for reporting purposes

• It helps in tracking and managing assets efficiently

• Examples of asset classes include buildings, machinery, vehicles, and furniture

• Asset classes are created by the company's management based on their business needs

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

There are multiple types of chart of accounts in SAP Fico, including operating chart of accounts, country-specific chart of accounts, and group chart of accounts.

• Operating chart of accounts is used for daily accounting transactions and is common across all company codes.

• Country-specific chart of accounts is used to meet legal and statutory requirements of a specific country.

• Group chart of accounts is used for consolidation purposes to combine financial data from multiple comp...read more

If an Asset Acquisition is done after the Depreciation run, depreciation will not get calculated in ECC but will get calculated in S4Hana.

• In ECC, depreciation will not get calculated for the period in which the asset was acquired after the depreciation run.

• In S4Hana, depreciation will get calculated from the acquisition date onwards, considering the remaining useful life of the asset.

• It is important to post the acquisition before the depreciation run in ECC to ensure accurate...read more

Business Partner functionality in SAP is used to manage all types of business partners in a single system.

• Business Partner is a central master data record that contains all relevant information about a customer, vendor, or any other type of business partner.

• It allows for a 360-degree view of the business partner, including contact information, payment terms, credit limits, and transaction history.

• Business Partner functionality can be used in various SAP modules such as Sales ...read more

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

• A chart of accounts is a list of GL accounts used by a company code.

• A company code can have multiple company codes assigned to it.

• Each chart of accounts is assigned to a specific company code.

• The chart of accounts determines the GL accounts that are available for posting in a company code.

There are three levels of configured down payment: partial, final, and intermediate.

• Partial down payment is made before the delivery of goods or services.

• Final down payment is made after the delivery of goods or services.

• Intermediate down payment is made during the delivery of goods or services.

• Each level can have different percentages and due dates.

• Down payment configuration can vary based on company policies and customer agreements.

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

In company code global settings, you enter the basic settings for the company code.

• Basic company code settings such as currency, language, and chart of accounts are entered in global settings.

• You can also define the fiscal year variant, posting periods, and field status variants.

• Examples of settings include defining the number range for document types, setting up tolerance groups, and defining tax codes.

• Global settings are important as they impact all transactions in the comp...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 configuration steps to run the APP in SAP involve defining the payment methods, creating house banks, setting up payment program variants, and configuring the payment medium formats.

• Define payment methods in the system

• Create house banks and assign them to company codes

• Set up payment program variants

• Configure the payment medium formats

• Define payment methods per country

• Assign payment methods to company codes

• Define bank determination rules

• Configure the payment program parame...read more

Desperation is not a process that can be calculated. Did you mean depreciation?

• Desperation cannot be calculated as it is an emotion.

• Depreciation is the process of allocating the cost of an asset over its useful life.

• Depreciation can be calculated using various methods such as straight-line, declining balance, and sum-of-the-years' digits.

• Depreciation is important for financial reporting and tax purposes.

• For example, a company may purchase a machine for $10,000 with a useful l...read more

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

• SAP FICO is an acronym for SAP Financial Accounting and Controlling.

• It is a module in SAP ERP that integrates financial accounting and controlling processes.

• It helps organizations manage their financial transactions, financial reporting, and cost controlling.

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

• I...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

The Asset can be deactivated in SAP Fico using the Deactivate button.

• Assets can be deactivated when they are no longer in use or have been disposed of.

• To deactivate an Asset, go to the Asset Accounting module in SAP Fico and select the Asset to be deactivated.

• Click on the Deactivate button to mark the Asset as inactive.

• Deactivating an Asset does not delete it from the system, but it prevents any further transactions from being posted to it.

Accounts Receivable is a subledger that records all incoming payments from customers.

• AR is used to manage customer invoices and payments

• It tracks outstanding customer balances and generates aging reports

• AR can be integrated with sales and distribution modules for seamless processing

• It allows for credit management and dunning processes to ensure timely payments

• AR can also be used for cash application and bank reconciliation

SAP is used for efficient management of business processes and data.

• SAP provides a centralized system for managing various business functions such as finance, sales, procurement, and production.

• It helps in streamlining business processes and improving productivity.

• SAP provides real-time data analysis and reporting, enabling better decision-making.

• It offers customizable solutions to meet specific business needs.

• Examples of SAP modules include FICO for finance and controlling, ...read more

Key configuration steps for creating Automatic payment program in SAP Fico

• Define payment methods in transaction code FBZP

• Set up house banks in transaction code FI12

• Configure payment methods per company code in transaction code FBZP

• Define payment methods per country in transaction code OBVC4

• Assign payment methods to vendors in transaction code XK02