100+ SAP Fico Consultant Interview Questions and Answers

There are three types of chart of accounts: Operating chart of accounts, Group chart of accounts, and Country-specific chart of accounts.

• Operating chart of accounts is used for daily accounting activities and is assigned to a company code.

• Group chart of accounts is used for consolidating financial statements of multiple company codes.

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

• Examples: Operating chart of accounts ...read more

CO FI MM integration refers to the integration of financial accounting (FI), controlling (CO), and materials management (MM) modules in SAP.

• CO FI MM integration allows for seamless flow of data between these modules

• It enables real-time tracking of financial transactions related to material procurement, inventory management, and production

• Examples of CO FI MM integration include automatic creation of accounting documents when goods are received or issued, and automatic updatin...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

Shortened fiscal year is a period of less than 12 months used for financial reporting purposes.

• Shortened fiscal year is used when a company changes its fiscal year-end date.

• It can be due to mergers, acquisitions, or changes in business operations.

• Financial statements for a shortened fiscal year are prepared for the period between the old and new fiscal year-end dates.

• For example, if a company changes its fiscal year-end from December 31st to June 30th, the first shortened fis...read more

Down payment is a partial payment made before goods/services are delivered, while down payment request is a formal request for a down payment.

• Down payment is made by the customer to secure an order, while down payment request is initiated by the vendor to request a down payment from the customer.

• Down payment is a financial transaction, while down payment request is a formal document.

• Down payment is usually a percentage of the total amount, while down payment request specifies...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-9 form in the US.

Condition record is used to define pricing and discounts for customers and materials.

• Condition record is used in SAP FICO module.

• It is used to define pricing and discounts for customers and materials.

• It helps in maintaining the consistency of pricing and discounts across the organization.

• It can be used to define different pricing and discounts for different customers and materials.

• Examples of condition records include pricing for a specific customer or material, discounts for...read more

Change management is the process of planning, implementing, and monitoring changes to improve organizational effectiveness.

• It involves identifying the need for change

• Developing a plan for change

• Communicating the change to stakeholders

• Implementing the change

• Monitoring the change to ensure it is effective

• Examples include implementing new software, restructuring a department, or changing company policies

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

When an employee is transferred from one region to another country, various actions need to be taken to ensure a smooth transition.

• Update employee's personal information in HR system

• Ensure compliance with local labor laws and regulations in the new country

• Transfer employee's benefits and compensation packages to comply with new country's regulations

• Provide cultural training and support for employee to adjust to new work environment

• Coordinate with immigration authorities for n...read more

Company is a legal entity while company code is a sub-division of a company used for financial reporting.

• Company is a legal entity that can have multiple company codes

• Company code is a sub-division of a company used for financial reporting

• A company can have multiple company codes for different business areas

• Company code is assigned to a chart of accounts and a fiscal year variant

• Transactions are posted at the company code level

General accounting refers to the process of recording, summarizing, and reporting financial transactions of an organization.

• General accounting involves recording all financial transactions of a company, such as sales, purchases, expenses, and payments.

• It includes the preparation of financial statements, such as the balance sheet, income statement, and cash flow statement.

• General accounting ensures compliance with accounting principles and standards, such as Generally Accepted...read more

The purpose of the next payment run date in F110 is to schedule and automate the payment process for outstanding invoices.

• The next payment run date determines when the system will execute the payment program to clear open items.

• It helps in ensuring timely payments to vendors or customers.

• By setting the next payment run date, the system can automatically select and process invoices for payment.

• It allows for efficient cash flow management and reduces manual effort in payment pr...read more

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

The 4 digit alphanumeric key, company name, city, country, currency, language, and address are all important details for SAP FICO consultants.

• The 4 digit alphanumeric key is used to identify the company in the SAP system.

• The company name, city, country, and address are used for billing and legal purposes.

• The currency and language are important for financial reporting and communication with stakeholders.

• Examples of currencies include USD, EUR, and JPY, while examples of langua...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

Posting period and fiscal year variants are important in SAP for accurate financial reporting and compliance.

• Posting period variant determines the number of posting periods in a fiscal year

• Fiscal year variant defines the start and end dates of a fiscal year

• Both variants are used to ensure accurate financial reporting and compliance with legal requirements

• Different countries may have different fiscal year variants, such as calendar year or April to March

• Posting periods can be ...read more

IDOC, LSMW, BDC are tools used in SAP for data transfer and processing.

• IDOC (Intermediate Document) is a standard data structure used for exchanging data between SAP systems or between an SAP system and an external system.

• LSMW (Legacy System Migration Workbench) is a tool used to transfer data from legacy systems into an SAP system.

• BDC (Batch Data Communication) is a method used to transfer data from external systems into SAP using batch input sessions.

Kofi & Kofa are not related to SAP Fico. No relevant information found.

Acetico and FI are not relevant terms in SAP FICO. Perhaps you meant Acetone and FI (Financial Accounting)?

• Acetico is not a term used in SAP FICO

• FI stands for Financial Accounting in SAP FICO

• Acetone is a chemical compound used in various industries

• FI module in SAP FICO deals with financial transactions, accounting, and reporting

Profitability segment and analysis is a feature in SAP FICO that allows for detailed analysis of profitability at various levels.

• Profitability segment is a key component in SAP FICO that helps in analyzing profitability at a granular level.

• It allows for tracking and analyzing profitability based on various segments such as product, customer, region, etc.

• Profitability analysis involves evaluating the profitability of different segments to make informed business decisions.

• It he...read more

GR/IR account is used in SAP to manage goods receipts and invoice receipts. OBYC settings are used to configure G/L accounts for different transactions. Journal entries are recorded to reflect transactions in the GR/IR account.

• GR/IR account is used to manage the balance between goods receipts and invoice receipts

• OBYC settings are used to configure G/L accounts for different transaction keys in SAP

• Journal entries are recorded to reflect transactions related to the GR/IR accoun...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

Actual costing is based on the actual costs incurred, while standard costing uses predetermined costs for materials, labor, and overhead.

• Actual costing uses actual costs incurred for materials, labor, and overhead, providing a more accurate reflection of costs.

• Standard costing uses predetermined costs for materials, labor, and overhead, allowing for easier budgeting and cost control.

• Actual costing is more time-consuming and complex to calculate compared to standard costing.

• Ac...read more

AP2P cycle stands for Accounts Payable to Payment cycle in SAP FICO. It involves the entire process from invoice receipt to payment disbursement.

• AP2P cycle starts with the receipt of vendor invoices.

• Invoices are verified, approved, and posted in the system.

• Payment terms are determined and payments are processed.

• Finally, payments are disbursed to vendors.

• The cycle ensures accurate and timely payment to vendors.

IDoc is a SAP document format used for exchanging data between systems. T-code WE19 is used to test IDocs.

• IDoc stands for Intermediate Document

• It is used for exchanging data between SAP and non-SAP systems

• IDocs can be sent and received using T-codes such as WE19, WE02, WE05, etc.

• T-code WE19 is used to test IDocs by manually creating and processing them

• IDocs can be customized using transaction codes such as WE30, WE31, etc.

I manage the MNC environment by understanding the company culture, building relationships, and adapting to changes.

• Understand the company culture and values

• Build strong relationships with colleagues and stakeholders

• Adapt to changes in the organization

• Stay up-to-date with industry trends and best practices

• Communicate effectively with team members and management

The product of costing entire price structure is the total cost of producing a product or providing a service.

• The costing process involves identifying all the costs associated with producing a product or providing a service.

• These costs include direct costs such as materials and labor, as well as indirect costs such as overhead and administrative expenses.

• Once all the costs have been identified, they are added together to determine the total cost of production.

• This total cost ...read more

Posting period variant is a configuration setting that controls the posting periods for financial transactions.

• Posting period variant determines the open and closed periods for posting financial transactions.

• It is assigned to a company code and controls the posting periods for all financial modules.

• It can be customized to meet the specific needs of the organization, such as defining special periods for year-end closing.

• Examples of posting period variants include K4 for calend...read more

Material Ledger is mandatory in S/4HANA for accurate valuation of inventory and cost of goods sold.

• Material Ledger provides real-time, multi-dimensional valuation of inventory

• It allows for parallel valuation in different currencies and valuation views

• Enables accurate calculation of actual costs for materials using actual costing method

• Supports transfer pricing and profit center valuation

You can add budget with WBS element number in SAP by using transaction code CJ30.

• Navigate to transaction code CJ30 in SAP.

• Enter the WBS element number for which you want to add budget.

• Enter the budget amount and other relevant details.

• Save the budget entry.

• You can also use transaction code CJ32 to display or change the budget for a WBS element.

SAP is an enterprise resource planning software that helps businesses manage their operations and finances.

• SAP stands for Systems, Applications, and Products in Data Processing

• It was founded in 1972 in Germany

• SAP offers various modules for different business functions such as finance, sales, and production

• It helps businesses streamline their processes and make data-driven decisions

• SAP is used by many large corporations worldwide, including Coca-Cola, IBM, and Microsoft

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 July 1st to June 30th.

SAP is an enterprise resource planning software that helps businesses manage various aspects of their operations.

• SAP stands for Systems, Applications, and Products in Data Processing.

• It is a software suite that integrates different modules to support various business functions.

• SAP FICO (Financial Accounting and Controlling) is a module within SAP that focuses on financial management and accounting processes.

• SAP provides real-time data processing, analytics, and reporting capa...read more

Chart of accounts is a list of all the general ledger accounts used by an organization to record financial transactions.

• Chart of accounts is a key element in SAP FICO module.

• It defines the structure and organization of the general ledger accounts.

• It helps in categorizing and classifying financial transactions.

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

• GL accounts are used to record financial ...read more

The company's way of doing business is focused on innovation, efficiency, and customer satisfaction.

• The company emphasizes continuous improvement and innovation in its products and services.

• Efficiency is a key priority, with a focus on streamlining processes and reducing waste.

• Customer satisfaction is a top priority, with a strong emphasis on building long-term relationships and delivering value.

• The company values teamwork and collaboration to achieve common goals.

• Examples: I...read more

The products quality for customers is exceptional, meeting and exceeding their expectations.

• Products undergo rigorous testing to ensure high quality standards

• Continuous feedback from customers is used to improve product quality

• Quality control measures are in place throughout the production process

• Products are designed to meet specific customer needs and preferences

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

Account Payable is a sub-ledger account in SAP-FICO used to track and manage payments to vendors.

• AP is used to record and manage all vendor invoices and payments

• It helps in maintaining accurate records of outstanding payments and due dates

• AP can be integrated with other modules like MM and SD for seamless transactions

• It allows for automatic payment processing and vendor statement reconciliation

• Reports can be generated to analyze vendor performance and payment history

Procure to pay process of SAP involves the entire procurement process from purchase requisition to payment to vendor.

• The process starts with creating a purchase requisition

• The purchase requisition is then converted into a purchase order

• Goods receipt is created upon receipt of goods

• Invoice verification is done to ensure accuracy of invoice

• Payment is made to vendor

• SAP modules involved in the process include MM, FI, and CO

SAP stands for Systems, Applications, and Products in Data Processing.

• SAP is a software company that provides enterprise resource planning (ERP) solutions.

• SAP software is used by businesses to manage their operations and finances.

• SAP has various modules such as FICO, MM, SD, HR, etc. that cater to different business needs.

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

• SAP is widely used in industries such as manufacturing, retail, healthcare, etc.

Product costing is the process of determining the cost of producing a product or service.

• It involves identifying all the costs associated with producing a product or service, including direct and indirect costs.

• Direct costs include materials, labor, and other expenses directly related to production.

• Indirect costs include overhead expenses such as rent, utilities, and administrative costs.

• Product costing is important for determining the profitability of a product or service an...read more

Bank determination is the process of determining the appropriate bank account for a specific business transaction.

• Bank determination is a key functionality in SAP FICO module.

• It involves mapping various business transactions to specific bank accounts.

• Bank determination is based on various factors such as company code, payment method, country, and currency.

• Multiple bank accounts can be assigned to a single payment method.

• Bank determination can be configured using transaction c...read more

Foreign currency revaluation in SAP is the process of adjusting the value of open items in foreign currency based on the current exchange rate.

• Foreign currency revaluation is used to reflect the true value of assets and liabilities in foreign currency.

• It helps in adjusting the balance sheet to account for fluctuations in exchange rates.

• The revaluation is typically done at the end of a period using the current exchange rate.

• Any gains or losses from the revaluation are posted t...read more

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

A cost center is a specific location, department, or function within a business that is responsible for incurring costs.

• Cost centers help track and allocate expenses within an organization.

• They are used for budgeting, forecasting, and performance evaluation.

• Examples include marketing department, IT department, and production line.

• Month-end activities may include closing financial books, reconciling accounts, and preparing financial reports.