SAP Finance interview Questions are vital to performing best in your FICO interviews. These questions guide you through your interview preparation. Additionally, they help you to work through real-time issues you would face during your consultant job.
Following are the SAP Finance interview questions that majorly cover questions on Global Settings and some on General Ledger.
The key topics herein are:-
Let us move ahead with these SAP Finance Interview questions.
A controlling area can have the following two types of relationships with a company code.
It means that you can assign one single controlling area to several different company codes. Also, Controlling can have a 1:1 or 1:many relationship with different company codes.
The Controlling Area is the umbrella which stores all controlling activities. Such as:-
Likewise, Company Codes are the umbrella for Finance activities.
No, the Business area is at the client level. It means other company codes can also post to the same business area.
Once the company code is live, this check box helps prevent the deletion of many programs accidentally. It is activated just before going live.
In this case, you either need to write an ANAP program or 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 consolidated figure.
The fiscal year is nothing but the way the system stores financial data. You have 12 periods in SAP and also four special periods. Fiscal Year Variant stores all of them.
There are two types of Fiscal Year Variant
In a Year dependent fiscal year variant, the number of days in a month is not as per the calendar month. Let us take an example.
For the year 2005 the period January ends on the 29th, Feb ends on the 27th, and March ends on the 29. While for the year 2006 January ends on 30th, Feb ends on 26th March ends on 30th. This applies to many countries, especially the USA.
Consequently, we need to configure this fiscal year variant every year.
There is no posting which happens from MM (Material Management) in special periods. Special periods are only applicable for the SAP FI module. We require them to make any additional posting such as closing entries, and provisions. These happen during quarter or year-end.
Learn – Periodic Closing activities in SAP S/4HANA Finance
One of the most important SAP Finance interview questions in GL is related to Business Area. One such is below.
This question is usually very disputable. We create both Business areas and Profit Centers for internal reporting. Each has its pros and Cons. But many companies nowadays go for Profit center. The reason is that they feel that SAP may not support business area enhancements in future versions.
There are typical month-end procedures which we need to execute for both of them. At the same time, many times reconciliation might become a big issue. A typical challenge in both of them is that you may not know the Business Area or Profit Center of the transaction at the time of posting.
Stock and Consumption accounts are instances of GL accounts that the system should post automatically. Then, we need to select the checkbox “ Post Automatically Only” in the GL account master record.
We should activate first the valuation group code. The valuation grouping code is maintained per plant and is configured in the MM module. Further, we should maintain the Account code per valuation grouping code after doing this configuration.
Read More:- Interview Questions on SAP S/4HANA Finance
Field status groups control the fields which come up when the user does the transactions. The options available are one can have the fields only for display, suppress them, or make them mandatory. So there are three options. FIGL Master stores the field status group.
We must manage the Account on the open item management. This tick is in the General Ledger Master Record called the Open Item Management. It helps to manage your accounts in terms of cleared and uncleared items. A typical example is GR/IR Account in SAP.
Also read: SAP General Ledger Period-End Closing
GR/IR is an interim account. In the legacy system, if you receive the goods but not the invoice, we make a provision in SAP at the Goods receipt. It passes the accounting entry debiting the Inventory and crediting the GR/IR Account.
Subsequently, when we receive an invoice, the system debits this GR/IR account and credits the vendor account. That way till the time that we don’t receive the invoice, the system shows the GR/IR as uncleared items.
The customer and vendor codes are at the client level. That means any company code can use the customer and vendor code by exiting the company code view.
We can make Vendor invoice payments in the following manner,
The following are the steps for configuring the Automatic Payment Program
Step-1
Step-2
Step-3
Step-4
Step-5
It is attached to the payment method per the company code.
The payment term in the accounting view of the customer master comes into the picture if the transaction originates from the FI module. If we post an FI invoice (FB70) to a customer, then the payment term defaults from the accounting view of the customer master.
While the payment term in the sales view of the customer master comes into the picture if the transaction originates from the SD module. A sales order is created in the SD module. Thus, the payment terms default in the sales order from the sales view of the customer master.
The payment term in the accounting view of the vendor master comes into the picture if the transaction originates from the FI module. If we post an FI invoice (FB60) to the vendor, then the payment terms have defaulted from the accounting view of the vendor master.
While 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. Thus, the payment terms have defaulted in the purchase order from the purchasing view of the vendor master.
Read Related: Vendor Master Data Structure
We prepare receipts in SAP for purchased material to refer to a purchase order.
When we post goods receipt in SAP, the accounting entry passed:-
A GR/IR is a provision account which provides for liability for the purchase. The rates for the valuation of the material are picked up from the purchase order.
When the invoice is booked in the system through Logistics invoice verification the entry is,
The following are instances of tolerance that we can define for Logistic Invoice Verification
Based on the client’s requirement, the transaction can be “Blocked” or posted with a “Warning” in the event of the Tolerance being exceeded.
Tolerance is nothing but the differences between invoice amount and payment amount or differences between goods receipt amount and invoice amount which is acceptable to the client.
The reconciliation account can be changed in the vendor master provided that authority to change has been configured. Also, any change you make to the reconciliation account is prospective and not retrospective. The old items and balances do not reflect the new account only the new transactions reflect the account.
Chart of depreciation is the highest node in Asset Accounting and this is assigned to the company code.
Under the chart of depreciation, all the depreciation calculation is stored
The asset class is the main criterion for classifying assets. Every asset must be assigned to only one asset class. Examples of asset classes are Plant and Machinery, Furniture & fixtures, computers etc. The asset class also contains the GL accounts which are debited when any asset is procured. It also contains the G/L accounts which are debited when any asset is procured. It also contains for depreciation calculation, scrapping etc
Whenever you create an asset master you need to maintain the asset class for which you are creating the required asset. In this manner whenever any asset transaction happens the GL accounts attached to the asset class are automatically picked up and the entry passed.
You can also specify certain control parameters and default values for depreciation calculation and other master data in each asset class.
We need to enter the specification and parameters in the Calculation methods that the system requires to calculate depreciation amounts. Calculation methods replace the internal calculation key of the depreciation key. Depreciation keys default in Asset Master from the asset class. Refer to the configuration for more details of how depreciation is calculated.
For each depreciation area and company, the code specifies the following:-
Yes, it is possible. You need to switch on the indicator Depreciation to the day in the deprecation key configuration.
Yes, it is possible. You need to set it in the depreciation key configuration.
We refer Capital WIP to as Asset under Construction in SAP and represent it by a specific Asset Class. Usually, the system does not change depreciation on Capital WIP.
We can book all costs incurred on building a capital asset to an Internal Order and through the settlement. Further, we can post the procedure onto an Asset Under Construction. Subsequently, on the actual readiness of the Asset for commercial production, the Asset Under Construction gets capitalized to an actual asset.
We use Internal Orders for tracking costs. These usually incur on a short-term basis and time tracking is not of much essence. Example Advertisement Campaign, Sales Promotion expenses etc.
So, in this article, I have covered interview questions majorly on Company Codes, Fiscal Year, GL Accounting, Document clearing, A/R & A/P and Asset Accounting.
I am sure these questions will help you to achieve complete learning for you to build a strong SAP FICO Career. And also help you prepare best for your FICO interviews.
Watch Video: How to build a career in SAP S/4HANA Finance
Also Visit Page: SAP Central Finance Training on S/4HANA
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