SAP FICO (Financial Accounting & Controlling) Interview Questions
SAP FICO (Financial Accounting and Controlling) module can be integrated with all other SAP modules include Material Management, Sales and distribution, Production planning, Human resource Management, Material Management etc. We have listed of SAP FICO interview questions and Answers that have been designed for SAP FICO professionals who are preparing interviews on SAP FICO. Here, we have added some basic and advanced or both questions on SAP FICO Interview Questions and Answers.
Best SAP FICO Interview Questions and Answers
What is ‘SAP xApps’?
The ‘SAP xApps’ family of composite applications enables continuous business innovation—and provides the flexibility necessary to respond quickly and profitably to business changes. They extend the value of core business investments and maximize the return on strategic assets: employees, knowledge, products, business relationships, and IT.
SAP and SAP certified partners deliver these composite applications that drive specialized business processes, provide comprehensive business insights, and focus on the needs of a variety of industries.
What is known as ‘Duet’?
A component under SAP xApps, ‘Duet’ is a first-of-its-kind software solution from SAP and Microsoft that enables users to easily and quickly interact with SAP business processes and data via their familiar Microsoft Office environment. The result of a ground breaking collaboration between SAP and Microsoft, it is the first joint product created by these two industry leaders and is designed to revolutionize how IT workers interact with enterprise applications.
What is a ‘Posting Period Variant’?
Posting Period Variant’ is useful in ‘opening/closing’ posting periods across many Company Codes at one time. You define a posting period variant and assign it to various Company Codes. Since the posting period variant is cross-Company Code, the opening and closing of the posting period is made simple. Instead of opening and closing individually for different Company Codes, you just need to open or close the posting period variant.
Explain the ‘SAP Document Builder.
‘SAP Document Builder’ (CA-GTF-DOB) is a content-driven and cross-application solution for building and authoring complex documents. As a generic tool, it can be deployed within international organizations and large corporations to generate contract and bid invitation documents, banking-related documents, auto insurance policies, real estate contracts, and corporate employment policies.
Why is it not Possible to Post to a Customer A/C in a Previously Closed ‘Period’?
When you want to selectively ‘close’ or ‘open’ the posting period of some accounts (account range), there will be no problem with that if you are doing it for GL accounts. But, if it is a sub ledger account (such as the customer), it has to be achieved via opening or closing the account interval of the ‘reconciliation account’ of that account type.
What is a ‘Special Period’? When do You Use it?
Besides the normal posting periods, SAP allows for defining a maximum four more posting periods, which are known as ‘Special Periods’ as these are used for yearend closing activities. This is achieved by dividing the last posting period into more than one (maximum four) period.
What is the Maximum Number of ‘Posting Periods’ in SAP?
Under GL accounting, you can have a maximum of 16 posting periods (12 regular plus 4 Special Periods). However, you can have up to a maximum of 366 posting periods as is the case in ‘special purpose ledgers.’
How do You Maintain ‘Currency’ in SAP?
‘Currency’ (the legal means of payment in a country) in SAP is denoted by a 3- character Currency Code, maintained per ISO standards. Example: USD (U.S. Dollars), INR (Indian Rupee), GBP (Great Britain Pound), etc. Each currency code in the system will have a validity defined.
What is a ‘Local Currency’?
When you define a Company Code, you also need to mention in which currency you will be maintaining the accounts/ledgers in financial accounting. This currency is called the ‘Local Currency.’ This is also known as ‘Company Code Currency.’
What is a ‘Group Currency’?
This is the currency defined at the Client level.
What is the ‘Global Company Code Currency’?
The currency defined for the Company (or the Consolidated Company) is called the ‘Global Company Code Currency.’
How is Tax Calculated in SAP?
SAP uses a technique called ‘Condition Method’ to calculate taxes (except Withholding Tax) in the system. The system makes use of ‘Tax (Calculation) Procedures’ defined in the system together with the Tax Codes for calculating the quantity of tax.
Tell me about the ‘Tax Reports’ in SAP?
SAP comes delivered with country-specific default ‘Tax Reports’ to meet your tax-reporting requirements. However, it is not uncommon to use third-party software for the same purpose. As a process, it is recommended that the ‘closing operations’ are completed before running the tax reports. This will ensure that the system makes relevant adjustment entries (between payables and receivables, exchange rate differences, etc.) so that the correct tax amounts are reported.
What is known as ‘Year Shift/Displacement’ in a Fiscal Year?
When the fiscal year is not the same as the calendar year, we need to define a ‘displacement factor’ for each of the posting periods to correctly identify the number of posting periods.
What is a ‘Special Purpose Ledger’?
Special Purpose Ledgers’ (FI-SL) are used in reporting. These are basically user defined ledgers, which can be maintained either as GL or subsidiary ones with various account assignment objects (with SAP-dimensions such as cost centre, business area, profit centre, etc., or customer-defined dimensions such as region, area, etc.).
There are lot of good opportunities from many reputed companies in the world. According to research SAP FICO has a good market share, SAP FICO module will be idle choice for finance domain and want to move ahead in your career in SAP FICO. The above SAP FICO Interview Questions that helps you in cracking your interview & acquire dream career as SAP FICO consultants.