This comprehensive list of SAP S4 HANA Finance interview questions is specifically for beginners in SAP. This will give you a guiding path on how to begin your SAP career journey in SAP S/4HANA Finance. Majorly the topics covered Organizational structure, policies, SAP Finance, Controlling and its sub-components.
It also covers the basic configuration steps of SAP FI that the SAP FI consultant has to follow. Likewise, it also explains the most important journal entries that we enter into the SAP systems such as for GR/IR accounts or FI-SD and FI-MM integration.
Thus, read all these and much more SAP S4 HANA Finance Interview Questions.
A. Organisation structure is one of the first steps in setting up the business function in SAP. The organizational structure is created by defining the organizational units consisting of the following:-
Generally accepted accounting principles (GAAP) are the accounting rules used to prepare financial statements for publicly traded companies and many private companies in the United States. Generally accepted accounting principles for local and state governments operate under a different set of assumptions, principles and constraints as determined by the Governmental Accounting standard Board.
The Cost Object is what we use to control the cost elements. Any real cost carrier that can be used to settle the cost is a cost object.
A. Generally checks will be issued from house banks ( from 1st rank onwards ), if you select no optimisation radio button in the “setup payment methods per company code for payment transaction” configuration step. As you are saying that money is picked from ICICI, the reason is bank selection in the above step (Optimise by bank group or optimise by postal code in the above configuration step). Bank selection will give prior to this selection and next to the ranking order.
A. Secondary cost element creates for internal purpose of Controlling area. This is for service provided from one cost centre to another cost center.
An example.
We have Canteen Cost Center. The canteen provides service to Production, Packing, Utility, Admn etc. You allocated the Canteen cost to other cost centres through a secondary cost element.
It is used for Controlling cost allocation purposes.
A. The point of integration between CO-PP is Work Center. The transaction code for the same is CR01. The point of integration is the confirmation of the production Order in the production module. To create a production module – CR01.
A. Accounts Receivable. Generally is a Customer Account. We configure AR in three types:-
i) General Data Segment- Details of Customers
ii) Company Code Segment- Details of customers
iii) Sales Area Segment
A. After you create the dunning procedure with FBMP, you have to assign it to the customer master record with XD02 before going for the dunning run, go to the correspondence tab in the customer master and can assign the dunning procedure.
A. If we want to void the check only then we use FCH9 or if we want to cancel the entire payment transaction then we use FCH8.
More Interview Questions on SAP FICO:- Read Here
A. When we post an entry we may post a wrong entry, SAP can’t delete any document or entry which is posted therefore to correct or cancel the entry we reverse the entry which is called a reversal entry.
A. Depreciation keys contain the calculation methods for Depreciation calculation and parameters that control
We can enter a separate depreciation key for each, Depreciation area in the master record.
A. The customer or the end user logs a call through any tool or by mail tools (RADIX), Remedy Service Desk (SD4) Preigreen Lotus Notes etc.
Whenever a customer logs a call he /she has to mention to which workgroup.
If we will summarise, if any configuration or customisation is required to solve the issue, then the consultant has to work on the DEV client, then the end user will test it in the QA client and after approval, the BASIS consultant has to transport it to the Production client.
A. House Bank is a group of banks means the company is maintaining 10 bank accounts these 10 accounts will be maintained by 1 house bank. Each bank GL can be assigned to house bank and the account id is to refer for payment program House Bank Master in SAP is created to capture the Branch details of your bank like branch address, swift code etc
Whereas a Bank Account ID represents the account number in your bank branch. So there can be many account ids under one house bank ( as in one bank you can have a local currency account and a foreign currency account or a savings account and current account.
A. The Baseline Date is used to calculate the due date by taking into account the payment terms. The Baseline date helps to pick the relevant invoices for payment. During APP when the invoices are pulled into a run, the system checks the next payment date before picking invoices to be paid.
A. Fiscal Year Variant determines the financial year, a company follows for financial reporting whereas the posting period variant is used for which period onwards transactions will be started.
The development client is known as the Golden Client because it has all the correct configuration settings which have been tested and are error-free. The Golden client is taken as a reference while performing some other configuration settings. You should not change any settings in the golden client.
Asset Accounting is used for the Accounting of Fixed Assets in an organisation. The significance of Asset accounting lies in the following:-
Procedure
2. Planned Depreciation runs must be run to make Depreciation postings.
A. Service level agreement (SLA) is applicable to tickets. Every ticket will have an SLA attached to it, it could vary from Critical, High, Medium or Low priority. For example, if it is a critical ticket the time to update/solve the ticket is only 2 hrs, if you do not solve it within that time the ticket will cross the SLA and the indicator colour will change from green to red and the issue will be escalated later on you may be asked to raise an incident for same (reason for the delay in processing).
A. Solution manager is something like share point. It will contain all the project plans and blueprint it is like a guide for the project which says which things are done and which have to be done. You can upload and download functional specifications from it.
A. Transport request is nothing but to transport the objects from one system to another system by using the transport organizer.
SE09 – is the workbench organiser used to customise the objects for the development class.
In SAP there are three servers:-
i). Development server
ii) Quality/testing server
iii) Production server
Transport is the vehicle by which your configuration settings are moved from one client to another client or environment to environment. In the development server, we configure the settings these settings are transferred to the quality/testing server through transport request.
A. First we have to create clearing accounts like GL clearing accounts, vendors clearing accounts, customer clearing accounts and asset clearing accounts. These accounts are only for data uploading. Post GL balances in F-02, the customer in F-22 and F-43 for the vendor, we have debit balances of customer and credit customer clearing account, for the vendor we have debit vendor clearing account and credit balance for the vendor. For Asset balances first, we have to remove the reconciliation in FS00 for the asset account and accumulated depreciation account, and we have to post in F-02.
A. Derivation rule used for updating profit centres because of derivation rule profit centre will be updated. We define derivation rules like-
A. Activity Type is internal activity allocation from one cost centre to another cost center. For example, the Telephone is part of the administration cost centre but the phone use all cost center, so we make the activity type “PHONE”. So we allocated cost centre amounts thru activity.
Activity types are nothing but services provided by cost centres through work centers. It is one of the tracing factors for the cost center’s efficiency. Those are created & planning in cost centres and assigned in the work centre in PP.
GR/IR account is offsetting entry.
Example- Concerning Goods Rec Note
After verifying, once the vendor invoice will be posted in logistics the accounting entry in FI
So it is offsetting the entry
It always cleared no balance at last.
The offsetting entry for clearing the GR/IR clearing account is posted to the stock account (provided that there is sufficient stock coverage for the quantity difference).
If there is a delivery surplus on the GR/IR clearing account the material was debited with too high value when the receipt of the goods was posted. When the GR/IR clearing account is cleared the material is credited accordingly.
If there is an invoice surplus on the GR/IR clearing account, the material was debited with too low a value when the receipt of the goods was posted. When the GR/IR clearing account is cleared the material is debited accordingly. If there is insufficient stock coverage for this quantity only the portion corresponding to the available stock is posted to the stock account. The rest is assigned to a price difference account.
For a material subject to standard price control, the offsetting entry to clear the GR/IR clearing account is made to a price difference account. There are no value changes in the material master record.
Normally there will be a time lag between the recording of goods received and the Invoice received. To track the differences at any point in time, GR/IR Account will be helpful.
Read related: GR/IR Account Interview Questions
Ans. The baseline date is the date from which terms of payment apply. By default, the baseline date will display in invoice posting. We can control the base configuration steps ( T Code- OBB8)
The baseline date may be:-
A. We need to reverse the cleared Document No in FBRA, Then we can reverse the main doc no in fb08
A. Reversal posting means we try to rectify the entry we passed earlier. The error may be because of
i) Wrongly Debiting/ Crediting a Party
ii) Excess Payment to a party, so we do a reversal to rectify the entry
ii) Wrong Assignments 2 wrong party
A. Open Line item: That means BT is pending for clearing AP/AR etc.
Example
PO Creation
GR Creation
When GR is posted
Payment Made to Vendor
The Pre-Requisite
There is a close integration between FI & MM, document flows from MM to FI in the following areas
FI-SD Integration – The integration is done T Code- VKOA
Sales Order Created
PGI did Goods Issue)
Billing document released to Accounting
Note– The GL account is assigned to this ERL in VKOA
Payment Received.
Read related: SAP FI SD Integration Interview Questions
Those who are working towards making a career in SAP S/4HANA Finance or SAP FICO, desire to become an SAP Consultant and are looking for the best Interview guide on SAP FICO and S/4HANA Finance. Importantly, reading these questions would help you best, when you practice the concepts with practicals. Which consequently, helps you have system knowledge and the required confidence to perform well in your interviews.
Visit Course Page: SAP FICO on S4 HANA Training- For Beginners
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