SAP FICO Questions and Answers – AR/AP & GR/IR

This list of SAP FICO Questions and answers mainly covers topics such as Foreign Currency Valuation, Documents Clearing, Open Items, GR/IR Clearing, Accounts Payable, Accounts receivable, Vendor Payment, APP (Automatic Payment Program), Payment Terms, etc.

SAP FICO is the most popular module of SAP. Subsequently, many aspirants look for the best interview questions and answers on SAP FICO. You require these questions for either to crack the SAP FICO interviews or to clear the certification exam.

Since GR/IR and AR/AP are some of the key parts of the Finance module, I advise you to gain a good knowledge of these, as these are very important for SAP FICO interviews and examination purposes.

These key SAP FICO questions with answers would make a good impact on your knowledge kit. Let us start!

SAP FICO Questions and Answers on GR/IR

Q1. – Which is the default exchange rate type that the system picks up for all SAP transactions?

Ans. – The default exchange rate type that the system picks up for all SAP transactions is M (average rate).

Q2. – Is it possible to configure the system to pick up a different exchange rate type for a particular transaction?

Ans. – Yes, it is possible. In the document type definition of G/L, you need to attach a different exchange rate type.

Q3. – What are the customising prerequisites for document clearing?

Ans. – You must manage the account on the open item management. A tick is there in the General Ledger Master Record. It is called open Item Management. It helps you to manage your accounts in terms of cleared and not-cleared items. A typical example of this is GR/IR account in SAP (Goods Received /Invoice Received Account).

Q4. – Explain the importance of the GR/IR clearing account.

Ans. – GR/IR is an interim account. This is to say, in the legacy system, if you receive the goods but do not receive the invoice, there is a provision in SAP.

In the Goods receipt, it passes the accounting entry debiting the inventory and crediting the GR/IR account. Subsequently, when you receive an invoice, it debits the GR/IR and credits the vendor account. Therefore, until you do not receive the invoice, the system shows the GR/IR as unclear items.

Learn: What is SAP- History, Methodology & Journey

Q5. – How many numbers of line items in one single entry you can have?

Ans. – You can accommodate is 999 line items in one document.

Q6. – You get some references in the assignment Field in the Document. Where do these references come from?

Ans. – When you enter the Sort Key in the Master Data Field in SAP, you get the references in the assignment field of the document.

Q7. – How do you maintain the Number Range in the Production environment?

Ans. – You require to create the Number Range in the production client. Additionally, you can also transport it by way of request. However, I advise creating it for the production client.

Q8. – In customising, What do you mean by “company code productive”?

Ans. – Once the company code is live, a check box helps prevent the deletion of many programmes accidentally. Noteworthy, you need to activate this checkbox just before go-live.

Why do you need to know GR/IR with these SAP FICO Questions and Answers?

GR/IR is an intermediary clearing account that you use in SAP FI for in-transit goods and invoices. You require to make a lot of adjustments in the GR/IR account with data entries and journal entries to manage the account. Thus, you should have technical and conceptual knowledge to work in this area.

In the SAP FICO interviews, employers ask questions on the technical and conceptual aspects of both. Hence, you must have a stronghold over concepts along with sound practical know-how.

Related post: GR/IR Re-grouping in SAP FICO

SAP FICO Questions and Answers on AR/AP

Q9. – At what level is the customer and vendor code stored in SAP?

Ans. – The SAP system stores the customer and vendor code at the client level. Further, you can use the customer and vendor code by extending the company code view.

Q10. – How do you create the Vendor invoice payments?

Ans. – We can create the vendor payments in the following manners:

1. Manual Payments without the use of any output medium like cheques etc.
2. Automatic Payment Program through cheques, wire transfers DME, etc.

Learn: Important Tcodes in SAP FI

Q11. – How do you configure the Automatic Payment Program?

Ans. – Step-1

• CO code for the Payment transaction
• Define sending and paying company code
• Tolerance days payable
• Minimum % for cash discount
• Maximum cash discount
• Paying Special GL transactions

Step-2

• Paying company code for the payment transaction
• The minimum amount for outgoing payment
• No exchange rate difference
• Separate payment for each reference
• Bill/Exchange payment
• Form for Payment Advice

Step-3

• Check the payment method for the country
• Check whether it accepts Outgoing payment
• Whether it accepts Cheque Bank transfers or B/E
• Whether it allows personal payment
• Do you require master data
• Document types requirement
• Payment medium programs
• Allows what currencies

Step-4

• Payment method per company code for payment transactions
• Set upper payment method and company code
• The minimum and maximum amount
• Whether payment per due day
• Bank optimisation by bank group or by postal code or no optimisation
• Whether it allows foreign currency
• Check if it allows Customers/Vendor to bank abroad
• Attach the payment form check
• Check the requirement for payment advice

Step-5

• Bank Determination for Payment transactions
• Rank the house banks as per the following
• Payment method, currency and give them ranking nos
• Set up house bank sub-account (GL Code)
• Available amounts for each bank
• House bank, account id, currency, the available amount
• Value date specification

Q12. – Where do you attach the check payment form?

Ans. – We attach it to the payment method per company code.

Watch Related Video: SAP FICO Scenarios on AR/AP, GR/IR

Q13. – You can maintain payment terms for customer master at two places. Accounting view and Sales view. Which payment term does the system set as default while doing transactions?

Ans. – The Payment term in the accounting view of the customer master comes into the picture if the transaction originates from the FI module. If you post an FI invoice (FB70) to the customer, then the system set the payment terms from the accounting view of the customer master as default.

This is to say, the payment term has defaulted from the accounting view of the customer master.

The payment term in the sales view of the customer master comes into the picture if the transaction originates from the SD module. You create a sales order in the SD module. The payment terms have defaulted in the sales order from the sales view of the customer master.

Q14. – You can maintain the Payment Terms for vendor master at two places. Accounting view and the purchase view. Which is the payment term which gets defaulted in a transaction?

Ans. – The payment term in the accounting view of the vendor master comes into the picture if the transaction originates from the FI module. If you post an FI invoice (FB60) to the vendor, then the payment terms have defaulted from the accounting view of the vendor master.

The payment term in the purchasing view of the vendor master comes into the picture if the transaction originates from the MM module. A purchase order is created in the SD module. The Payment terms have defaulted in the purchase order from the purchasing view of the vendor master.

Read Related: Vendor Master Data Structure in SAP

Q15. – Explain the entire process of Invoice verification from GR to invoice verification in SAP with accounting entries.

Ans. – We post the Goods receipt in SAP for purchased material referring to a purchase order. When we post the receipt of the goods in SAP, we pass the following accounting entry:

Stock account: (Debit)

To        GR/IR account (Credit)

A GR/IR is a provision account that provides for the liability for the purchase. The rates for the valuation of the material are picked up from the Purchased Order.

When we book the invoice in the system through Logistics invoice verification, we pass the following entry:

GR/IR account (Debit)

To Vendor account (Credit)

Q16. – How do you define the Tolerances for invoice verification?

Ans. – We can define the tolerances for logistic invoice verification with the following instances:

• Small Difference
• Moving Average price variances
• Quantity Variances

Based client’s client requirement, we can “Block” or “Post” the transaction with a Warning in case the event of the Tolerances exceeds its limit.

To sum up, Tolerances are nothing but the difference between invoice amount and payment amount or the difference between goods receipt amount and invoice amount as the client accepts.

Why it is important to read (AR/AP) SAP FICO Questions and answers?

Accounts Receivable and Accounts Payable are two important cornerstones of FICO. For vendor management, invoice generation and record maintenance, etc. you need AP configuration in the SAP system. While for Receivables, down payments, BOI etc. you need to configure AR.

Consequently, if you are a FICO consultant, you need good knowledge of AR and AP processes and deep know-how of their configurations.

These FICO questions on AR and AP would help you to enhance your knowledge and would help to define your expertise in interviews.

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Check our SAP FICO Blog for FICO-based questions such as Common Errors on SAP FICO and Various Scenarios of SAP FICO. These are very commonly asked during interviews.

Read more:- SAP S/4HANA Finance Interview Questions