Last Updated on December 19, 2022 by Pradeep
FI SD Integration. FI MM Integration.
FI SD Integration (and FI-MM integration) in SAP is an important aspect of the Finance configuration process in the implementation project. A business that deals with sales and materials must go through this process of integration of SAP Finance with Sales & Distribution and Material Management.
In this article, we see some important interview questions on FI SD integration and FI MM integration.
Since these are vital for implementation, interviewers ask about these topics in SAP FICO or S/4HANA Finance interviews.
Q1. – How do you define FI-MM account determination?
We can maintain FI-MM settings in transaction code OBYC. Within these, we need to maintain various transaction keys like BSX, WRX, GBB, PRD etc. In each of these transaction keys, you specify the GL accounts that the system automatically passes at the time of entry.
For example –
- BSX- Stands for Inventory Posting Debit
- GBB – Stands for Goods Issue/ Scrapping/Delivery of goods etc.
- PRD- Stands for Price Differences
Q2. – At what level are the FI-MM, and FI-SD account termination settings?
They are at the chart of accounts level.
Q3. – What additional settings do we require while maintaining or creating the GL codes for Inventory accounts?
In the Inventory GL accounts (Balance sheet), the “ Post Automatically only” tick need to activate. We also require the above settings for all FI-MM and FI SD integration. This helps in preserving the integrity of those accounts and prevents from having any difference between FI and MM, and FI-SD.
Q4. – How do you configure FI-SD account determination?
The FI-SD account determination happens through an access sequence in FI-SD integration. The system goes about finding accounts from more specific criteria to fewer specific criteria.
Look for Customer AAG or Material AAG or Account Key
Step 1 – Thus, first, it will access and look for the combination of customer accounts assignment group/Material account assignment group/Account key. If it does not find an account for the first combination it will look for the customer account assignment group and account key combination.
Step 2 – Further, if it does not find accounts for the first 2 criteria then it will look for the Material account assignment group/Account Key.
Step 3 – If it does not find accounts for all earlier criteria then finally it will look for the Account key and assign the GL code.
This posting of Sales Invoices into FI are affected based on a combination of the Sales organization, Account Type or customer and Material Account assignment groups.
Here we have the following options.
- Customer AAG/Material AAG/Account type
- Material AAG/Account type
- Customer AAG/Account Type
For each of these options, you can define a GL account. Thus, the system uses this GL account to automatically pass the entries.
About Process Flow of FI SD Integration- Click to learn in detail
Q5. – What is the Valuation and Account assignment in SAP?
This is the link between Materials Management and SAP Finance. The valuation in SAP can be at the plant level or the company code level. If you define valuation at the plant level then you can have different prices for the same material in the various plants. If you keep it at the company code level you can have only price, across all plants.
Valuation also involves Price Control. We assign each material to a material type in Material Management. We evaluate every material either in Moving Average Price or Standard Price in SAP. These are the two types of price control available.
Learn Detail: SAP FICO on S/4HANA Training
Q6. – What is Valuation Class?
A. The Valuation Class in Accounting 1 view in Material Master is the main link between Material Master and SAP S/4HANA Finance. This Valuation Class along with the combination of the transaction Keys ( BSX, WRX, GBB, PRD) defined above determine the GL account during posting.
We can group different materials with similar properties by valuation class. Example Raw material, Finished Goods, Semi Finished Goods.
We can define the following assignments by customizing them-
- Assign all materials with the same material type to just one valuation class.
- You can assign different materials with the same material type to different valuation classes.
- Assign Materials with different material types to a single valuation class.
Q7. – Can we change the valuation class in the material master once we assign it?
Once we assign a material to a valuation class in the material master record, we can change it only if the stocks for that material are nil. If the stock exists for that material, then we cannot change the valuation class. In such a case if the stock exists we have to transfer the stocks or issue the stocks and make the stock nil for the specific valuation class. Then only we will be able to change the valuation class.
Q8. – FI SD integration on Moving Average Price
If we assign the material, a moving average price in the material master and issue the stock of such material, then does the moving average price change in the material master?
The moving average price in the case of goods issue remains unchanged. We always evaluate Goods issues at the current moving average price. Consequently, a goods issue reduced the total quantity and the total value about the price and the moving price remains unchanged.
Read More:- Interview Questions on SAP S/4HANA Finance
Q9. – FI SD Integration Question on Automatic Postings
What is the accounting entry in the Financial books of accounts when we receive the goods in unrestricted use stock? Also, mention the settings that we need to do in the “Automatic postings” in SAP for the specific GL accounts.
On receipt of the goods in unrestricted-use stock, we do the following entry-
- Inventory account Debit
- GR/IR account credit.
In the customization, in the automatic postings, we assign the Inventory G/L account to the Transaction event key BSX and the GR/IR account to the Transaction event key WRX.
Learn more on GR/IR Interview Questions
Q10. – If a material has no material code in SAP, can we still default the G/L account with the help of material groups?
We can assign the valuation class to a material group and then in FI automatic posting, we can set the relevant G/L account in the Transaction event key. The assignment of a valuation class to a material group enables the system to determine different G/L accounts for the individual material groups.
Q11. – What is the procedure in SAP for Initial stock uploading? Mention the accounting entries also.
A. We do Initial stock uploading in SAP from the legacy system with inventory movement type 561.
Material Valuation at a standard price – For a material evaluation at the standard price, we evaluate the initial entry of inventory data based on the standard price. If you enter an alternative value at the time of 561, then the system posts the difference to a different account.
Material valuation at moving average price – Here we evaluate the initial entry of inventory data as follows.
If you enter a value while entering initial data, the system evaluates the quantity entered at this price. However, if you do not enter a value when entering initial data, then the system evaluates the quantity entered at the MAP present in the material master.
Accounting Entries –
- Inventory account Debit
- Inventory Upload Account Credit
Q12. – Can you assign multiple G/L accounts in the Purchase order for the same line item?
Yes, we can assign multiple G/L accounts in the purchase order for the same line item. We can allocate the costs on a per cent (%) or quantity basis.
If the partial goods receipt and partial invoice receipt have taken place, then we can distribute the partial invoice amount proportionally i.e evenly among the account-assigned items of a purchase order. Or we can distribute the partial invoice amount on a progressive fill-up basis.
The system allocates the invoice amount to the individual account assignment items one after the other.
Q13. – What is the Credit memo and subsequent debit in Logistics Invoice verification?
The term credit memo refers to the credit memo from the vendor. Therefore, posting a credit memo always leads to a debit posting on the vendor account. We use Credit memos if the quantity invoiced is higher than the quantity received or if part of the quantity was returned.
Accounting entries are:-
- The vendor account debit
- GR/IR account credit
Subsequent Debit– If a transaction has already been invoiced and additional costs are invoiced later, then the subsequent debit is necessary. In this case, you can debit the material with additional costs i.e GR/IR account debit and vendor account credit.
When entering the subsequent debit, if there is no sufficient stock coverage, you can post only the portion of the available stock to the stock account and the rest you post to the price difference account.
Q14. – What do you mean by Invoice parking, Invoice saving and Invoice confirmation in FI SD Integration?
Invoice Parking– The functionality where we can save the Logistics Invoice Verification document as parked so that the document gets created in SAP but its status is Parked.
The advantage is that we just want to create this document in the database. We are not concerned about whether the entries are balanced or not correct/incorrect.
You can’t create the accounting document when the invoice is in Parked mode. We can, later on, rectify the Parked invoice.
Invoice saving – This is also called Invoice processing or Invoice Posting. You can create the accounting document when you post the invoice in SAP.
Invoice confirmation– There is no terminology in SAP for Invoice confirmation.
End Note
I made these questions by choosing some practical scenarios on FI-MM and FI SD Integration. It is a very important part of an SAP consultant’s profile. I hope these questions help you to perform efficiently in your SAP Finance interviews.
Learn more- SAP FICO Interview Questions
