“SAP INTERVIEW QUESTION”
# SAP Overview
1. Explain the “SAP FICO?”
SAP FICO stands for FI - Financial Accounting and CO - Controlling. In SAP FICO, FI take cares of
journal accounting, preparation of financial statements, tax computations etc while CO take cares of
internal orders, cost sheet, inventory sheet, cost allocations etc.
2. What is other modules to which “Financial Accounting” is integrated in SAP?
The other modules to which “Financial Accounting” is integrated are:
SHORT NAME DESCRIPTION
PP Production Planning
MM Material Management
SD Sales & Distribution
HR Human Resource
CO Controlling of Financial Transaction
3. What are basic organizational assignment to company code in SAP?
Basic organizational assignment are:
Plant
Purchase Organization
Sales Organization
# FI - Enterprise Structure
1. What are the organizational elements in SAP?
The organizational elements in SAP FI are:
Company Code
Business Area
Chart of Account
Functional Area
2. What is difference between Company and Company Code in SAP?
A Company is the organizational unit used in the legal consolidation module to roll up financial
statements of several company code. While Company Code is the smallest organizational unit for
which a complete self-contained set of accounts can be drawn up for purpose of external reporting.
3. What is Chart of Accounts in SAP?
It is a list of all G/L accounts master data under different accounts group of a company code that is
used to record day to day financial transactions of a company.
4. How many Chart of Accounts can be attached to a Company Code in SAP?
Operative COA: One COA can be assigned to many company codes.
Country COA: One COA can be assigned to only one company code.
5. How many Chart of Accounts can Company Code have in SAP?
You can have one Chart of Accounts for one Company Code which is assigned.
6. What are the major components of Chart of Accounts in SAP?
Chart of Accounts Key
Name of Chart of Accounts
Maintain Language
Length G/L Account Number
Controlling Integration
Consolidation Group Chart of Accounts
Block Indicator
7. For a Company Code how many currency can be configured in SAP?
There are three currencies that can be configured for a Company Code, one is local currency and two
are the parallel currencies.
8. Is it possible to generate a Financial Statement Version form automatically?
Yes, It is possible to generate a form automatically.
9. What is Local Currency and Parallel Currency in SAP?
Local Currency: Which currency entered in company code creation is called Local Currency.
Parallel Currency: Other two additional currency are called Parallel Currency. It can be used in
foreign business transactions. The two parallel currency would be Group Currency and Hard
Currency.
10. Do you require to configure additional ledger for parallel currencies?
There is no need for additional ledger. In case third parallel currencies is also configured and if it is
different then the second currency type. You would then need to configure additional ledger.
11. What is the default exchange rate type which is picked up for all SAP transactions?
For all SAP transaction, the default exchange rate is M which is called Average Rate.
12. What is Business Area in SAP?
It is used to get financial report in different dimension. It can be graphical or productive line.
13. Is Business Area at Company Code level in SAP?
No. Business Area is at client level which means other company codes can also be posted to the
same business area.
14. What are the problems when Business Area is configured in SAP?
The problem faced when a business area is configured, is splitting of account balance which is more
pertinent in the case of tax accounts.
15. What is Credit Control Area in SAP?
To Immune your company form risk of bad debts and multiple outstanding receivable, you can set
credit limit for your customer. You can block the deliveries to your customer based on the credit
limit and account receivable balance in their account which is maintain by you.
16. What is Fiscal Year Variant in SAP?
It is a financial year of a company and assigned as a variant. It determines the posting periods and
allows 16 posting periods in each financial year. It consist of 12 regular posting period and 4 special
posting period which can be used for audit or tax adjustment.
17. How many types of Fiscal Year in SAP?
There are two types of Fiscal Year:
Year Dependent Fiscal Year: 01 January’ 2019 To 31 December’ 2019
Year Independent Fiscal Year: 01 April’2019 To 31 March’ 2020
18. Is it possible to generate a Financial Statement Version form automatically?
Yes, It is possible to generate a form automatically.
19. It is possible to print the Financial Statement Version on a SAP script?
Yes, It is possible to print the Financial Statement Version on a SAP script.
How do you configure the SAP script from Financial Statement Version?
It is possible to generate a form from Financial Statement Version and print the financial statements
on a SAP script form. In customizing for financial statement version select the FSV you created and
choose go to Generate Form then go to One Column or Two Column Form. You can also copy for
20. What is Year Shift in SAP calendar year?
SAP system does not know what is broken fiscal year that is 01 April’ 2019 to 31 March’ 2020. Its
only understand the calendar year. If for any business, the fiscal year is not a calendar year but the
combination of the different months of two different calendar year. In this situation, one of the
calendar year has to classified as a fiscal year of SAP and the month falling in another year has to be
adjusted into the fiscal year by shifting the year by using the sign -1 or +1. This shift in this year is
known as “Year Shift.”
21. What is Open Posting Period in SAP?
It is used to maintain accounting periods that are open for posting and all closed periods are
balanced. It is for opening and closing period in financial year for posting purpose.
22. What is Field Status Variant in SAP?
It is used to define the field which are used for input like Cost Centre, Profit Centre, Plant etc.
23. What is Field Status Group in SAP?
It controls the field at line item in transaction level and stores in financial general ledger master data.
It is used to assigned G/L account.
24. What is difference between Field Status Group and Field Status Variant in SAP?
Field Status Variant is tool to assign some set of property of one or more object. While Field Status
Group are used to control which required field should suppress, display, optional and required.
25. What is Document Types in SAP?
It is used to classify accounting document at transaction level. It is entered in the document header
and applies to the whole document.
26. What does Document Types controls in SAP?
Document Types determines:
Account Type that can be posted are controlled by it e.g. Asset, Vendor, Customer, Material, G/L
Account.
Number Range for document are defined by it.
Reversal of Entries
Batch input session.
27. What is Financial Statement Version?
It is a reporting tool and can be used for financial accounts like Profit & Loss Account and Balance
Sheet needs to be extract from SAP. It is reporting to internal parties like employees, managers,
owner and external parties like banks, creditors, taxation authorities, government.
28. Can posting period variant to be assigned more than 1 company code?
Yes, Posting Period Variant can be assigned more than one company code.
29. What are the common document types in SAP?
Common document types are:
OBJECT STATUS PROCESS
KR Vendor Invoice FI
DR Customer Invoice FI
KZ Vendor Payment FI
DZ Customer Payment FI
KA Vendor Document FI
DA Customer Document FI
KG Vendor Credit Memo FI
DG Customer Credit Memo FI
KN Vendor Net Invoice and Credit Memo FI
DN Customer Net Invoice and Credit Memo FI
SA General Ledger Account FI
AB General Document or Reversal Document FI
AA Asset Accounting FI
AN Net Asset Accounting FI
CO Controlling CO
01 Number Range FI
30. How many types of Standard Document Types in SAP?
Standard document Types are:
A: Asset
D: Customer
K: Vendor
M: Material
S: General Ledger
31. What is Tolerance Group for Employee in SAP?
It is used for determine maximum document amount and discount percentage for employee is
authorised to post.
32. What is Functional Area in SAP?
It is used to define the expenses in a company according to individual function unit.
33. What is Account Groups in SAP?
It is grouping the similar accounts into single group.
34. What are the common account groups in SAP?
Common account groups are:
SHROT NAME GROUP NAME SHOWN
CA Current Asset B/S
CL Current Liabilities B/S
DE Direct Expenses P/L
DI Direct Income P/L
FA Fixed Asset B/S
IDE Indirect Expenses P/L
IDI Indirect Income P/L
RS Reserve & Surplus B/S
35. What does Accounts Group control in SAP?
It controls and specify user range of G/L accounts.
36. What is Retain Earning in SAP?
It is used to carry forward the balances from one fiscal year to another next year.
37. How does posting happen in MM during special periods?
There are no posting which happens from MM in special periods. Special periods are only applicable
for the FI module. They are required for making any additional posting such as closing entry,
provisions which happen during quarter end or year end.
38. If there are two company codes with different chart of accounts. How can you consolidate
their activities?
In this case you either need to write an ABAP program or you need to implement the Special
Consolidation Module of SAP. If both the company codes use the same chart of accounts then
standard SAP reports give you the consolidation figure.
39. We always copy common company code or we can create manually also. If possible give
reasons also?
There are loads of tables that get copied over when copying company codes. This might be
incomplete in a manual copy and hence the manual route is not advisable.
40. In customizing “Company Code Productive” means what?
Once company code is live this check box helps prevent deletion of many programmes accidently.
This check box is activated just before go live.
41. What “Company Code Productive” denotes in SAP?
Company Code Productive denotes are:
Accounts Receivable
Accounts Payable
42. What are the submodule of FI in SAP?
There are submodule of FI in SAP:
General Ledger Accounting
Accounts Receivable Process
Accounts Payable Process
Bank Process
Asset Accounting
Travel Management
Lease Accounting
43. How are input and output taxes taken care of SAP?
A tax procedure is defined for each country and tax codes are defined with in this. There is flexibility
to either expenses out the tax amounts or capitalize the same to stocks.
44. What are Validations and Substitutions in SAP?
Validation and Substitutions in SAP are defined for each functional area that FI-GL, Assets,
Controlling etc at the following levels.
Document Level.
Line Item Level.
These needs to be specifically activated and setting them up are complex and done only when it is
really needed. Often help of the technical team is taken to do that.
45. It is possible to maintain plant wise different GL codes?
Yes, to be able to do so the valuation group code should be activated. The valuation grouping is
maintained per plant and is configured in the MM module. Account codes should be maintained per
valuation grouping code after doing this configuration.
# FI – G/L Accounting
1. What is G/L account in SAP?
It is used to provide a picture of external accounting and day to day transaction in SAP system.
2. Explain the most common G/L Reports in FI in SAP?
There are various G/L reports that can be generated in SAP FI. Most common are:
G/L Chart of Accounts List
G/L Account Balance
G/L Account List
G/L Account Totals and Balance
3. Explain what is posting key in SAP?
In order to determine the transaction type which is entered in the line item is known as “Posting
Key.” It is two digit numerical value.
4. What does Posting Key control in SAP?
Posting Key determines:
Account Types
Types of Posting: Debit or Credit
Field Status of Transaction
What are Adjustment Posting
5. What classical method of “Posting Key” is used for all document types in SAP?
Classical method of posting keys are used:
DOCUMENT TYPES DEBIT CREDIT
Asset 70 75
Customer 01 11
Vendor 21 31
Material 89 99
General Ledger 40 50
6. Sate the purpose of “Defining Posting Keys?”
Posting Key are SAP delivered. If you want changes like making additional fields optional on payment
type posting keys than best possible action is to copy the posting key that needs to be modified and
then modify it.
7. Give example of G/L accounts that should be posted automatically through the system and
how is this defined in the system?
Stock and consumption accounts that should be automatically posted. In the G/L account master
record a check box exists when the automatic posting option is selected called “Post Automatically
Only.”
8. What are the common activities performed in Month End Closing in SAP FI?
In SAP FI, month end closing involves activities in posting a closing period. You close one or more
posting periods in the past for posting and permit posting to be made to one or more current or
future posting periods.
9. What are the “Customizing Prerequisites” for document clearing in SAP?
Account must be managed on the open item management. This tick is there in the General Ledger
Master Record called open item Management. It helps you to manage your accounts in term of
cleared and uncleared items. A typical example could be GR/IR Account in SAP. GR/IR Account
stands for Goods Received/ Invoice Received Account.
10. Explain the importance of the GR/IR Clearing Account in SAP?
GR/IR is an interim account. In the legacy system of a client if the goods are received and the invoice
is not received the provision is made for the same. In SAP at the goods receipt stage the system
passes an accounting entry debiting the inventory and crediting the GR/IR Account. Subsequently
when an invoice is received the GR/IR account is debited and the vendor account is credited. That
way till the time that invoice is not received the GR/IR is shown as uncleared items.
A Finance Document usually has an assignment
# FI - CO
1. What is Controlling Area in SAP?
It is the central organizational unit with in CO module. It is representative of a contained Cost
Accounting where cost and revenues can be managed.
2. Define relationship between Controlling Area and Company Code in SAP?
A controlling area may include one or more company codes which must use the same operative
chart of accounts as the controlling area. A controlling area can contain multiple company code
assignment but a single company code can be assigned to only one controlling area.
3. What is a “Value Field” in the CO-PA module in SAP?
Value Fields are number or value related fields in profitability analysis such as quantity, sales
revenue, discount value etc.
4. What are the “Statistical Internal Order” in SAP?
Statistical Internal Orders are dummy cost objects used for reporting and analysis purposes. It must
be posted to in conjunction with a real object such as a cost centre.
