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Organizational Structure FICO Technical Interview Questions
In SAP ERP Central Component, SAP FICO is an essential core functional component that permits the company to manage all of its financial data. SAP FICO permits a company for storing a complete version of financial transactional data. SAP FICO’s purpose is to help the organizations for generating and managing financial statements for reporting and analysis as well as also help in effective decision-making and business planning. SAP FICO containing 2 sections i.e. SAP Finance (SAP FI) and SAP controlling (SAP CO) and each of its use for the specific financial process.
SAP finance deals with complete financial reporting and accounting and on the other hand SAP, CO focuses on planning and monitoring the cost. They both were released as separate modules but are now integrated as many individuals refer to as one module. SAP FICO integrates with other modules such are Sales and Distribution (SD), Production Planning (PP), Material Management (MM), and quality management (QM).
SAP FI-CO Technical Interview Questions 1
- Tell me regarding FI organizational structure?
Ans: Client <Operating Concern <Controlling area1 <Controlling Area 2 < Co. Code 1 Co. Code 2< Bus area 1 <Bus area2 <Bus Area3 <Bus Area 4
- How many normal and special periods will be in the fiscal year and why do you need special periods?
Ans: 4 special periods and 12 normal postings are in the fiscal year that may use for audit adjustment and posting tax for closing the fiscal year.
- Where do you open and close periods?
Ans: Use PPV to open and close the periods based on the account types that consider GL accounts Tr. Code.OB52.
- What do you enter in the code of company global settings?
- 4 digit Alphanumeric key
- Name of the company
5) What is a type of document and what does it control?
Ans: Type of document is containing line items and in this many business transactions can identify.
- Control ranges of document number
- Control the document header part
- Control the line item document level
- Help to file the physical document
- What is the posting key and how does it control?
Ans: It is a special classification key and 2 character numerical key as it controls the entry of line items. The posting key determines the type of account, transaction field status, and Debit/credit posting.
- What are account charts and how many account charts assign to a company?
Ans: Account chart is the list of all G/L accounts use by one or various codes of company. For the G/L account, the account chart consists of the account name, account number, and the details that control how the account functions and GL Account create code of the company. You need to assign an accounts chart to each company code and you may use the same accounts chart for all codes of the company.
In case, codes of the company all have the same needs for accounts chart set up, assign all individuals codes of the company to same account charts and this could be the case if all codes of the company are in the same country.
In addition, in the operating accounts chart, you may use 2 additional accounts charts. If individual codes of the company require different accounts charts, you may assign 2 accounts charts in addition to operate the accounts charts. This is the case when all codes of the company are of different countries. The use of different account charts does not affect the balance sheet and P & L statement. At the time of creating the balance sheet or P&L statement, you may select whether to balance the codes of the company that uses different accounts charts individually or collectively.
- What is a field status group and how does it control?
Ans: In GL creation, the Field status group is a compulsory field and you may use this field display when you post business transactions to the GL account. Fields need to choose one of the following statuses:
9) Can one COA assign to various companies?
Ans: Yes, one COA assign to various companies.
10) What does the accounts chart definition consist of?
- Account chart key
- Maintenance language
- Length of the GL Account Number
- Controlling Integration
- Group chart of accounts (Consolidation)
- Block Indicator
11) What are the segments of the GL master record?
- COA segment
- A/C group
- Nature of account
- Short text
- GL a/c long text
- Trading partner
- Group Account Number
- Company code segment
- Account currency
- Reconciliation a/c for a/c type
12) What are the segments in the customer/vendor master record?
Customer Master record
Vendor master record
Segments in Customer
Segments in Vendor
General Data segment
General data segment
Company code segment
Company code segment
Sales area segment
Purchasing organization Segment
SAF FI Technical Interview Questions 2
1) How does the procurement cycle works?
Ans: Sales orders place based on the need made by a customer after that pass on for creating a purchase order. At the time of goods movement, the Value of flow gets passed on to FI. In the case of Sales and Distribution (SD), the impact on FI happens only at the billing time.
2) Difference between Accumulated depreciation, Depreciation, and APC? What is APC means?
Ans: APC: Asset Transactions other than depreciation
Accumulated depreciation: Total depreciation amount calculated on a particular asset.
Depreciation: Due to wear and tear, the asset value decreases.
3) In MM and SD, what are the entries of accounting that take place?
Ans: In OBYC, the value from MM to FI is defined on the material master the values flow assign to the costing, accounting, etc tabs where the system aid for posting the essential values of stock to correct GL accounts. It helps to determine the GL accounts updated when there is goods movement.
4) What is IR/GR? For this, what journal entries do we pass?
Ans: IR/GR (invoice receipt/goods receipt) account is used for posting whenever goods are not invoiced have been received or when the invoice arrives before the goods delivery. There is a difference of time between delivery of goods and invoice creation so to accommodate this difference, IR/GR account maintain temporarily for the record of the flow.
5) What does document header control?
Ans: Field status
6) What is the baseline data and why is it used and can we change this?
Ans: It is used for payment terms and the baseline date is the due date.
General Questions Asked In The Interview
- Educational Background
- What influenced you to go for an SAP career?
- Functional Career
- Current earning v/s Expected salary
- Inclination to relocate
Questions on Conceptual understanding
- AP R/3 definition and 3-Tier Architecture
- ‘Real-time integration’ advantage of SAP
- ASAP methodology
- Solution Manager
- Client / Company / Company Code / Business Area
- Business Area v/s Profit Center Approach
- How efficient will be the Financial Statements generate via Business Areas
- With Holding Taxes vs Extended WHT
- Field Status Concepts
- Special G/L transactions
- Open item management
- Reconciliation Accounts
- Subsidiary Ledgers
- Sort key
- Negative Postings Allowed
- Special periods
- Only balances in local currency
- Essential Posting keys for G/L, A/R, A/P, AA, Stock Entries
- Assessment vs Distribution
- Org. Structure for FI
- Org. Structure for CO
- Product Costing: How the values flow
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