SAP FICO- Interview Asked Questions
INTERVIEW QUESTIONS- PART I
Finance
1) What is Client?
A) In Commercial, Organization and Technical terms, a self contained unit in an
r/3 system with separate master records and its own set of tables.
2) What is Company?
A) Smallest Organization unit of which individual financial statements are created
according to legal requirements.
3) What is Company Code?
A) Smallest Organization unit of external accounting for which set
Of accounts can be created.
4) What is Business Area?
A) It is an Organization unit that corresponds to a specific business segment or
area of responsibility in a company.
5) Profit center?
A) A Profit center accounting is main purpose is to provide the client with an
opportunity to analyze and report internal profitability for its organization.
6) What is Fiscal year Variant and what are its uses?
A) Variant defining the relationship between the calendar and fiscal year. The
fiscal year variant specifies the no. of periods and special periods in a fiscal
year and how the system is to determine the assigned posting periods.
7) What is the use of Posting Key?
A) Posting key Controls whether the line is debit or credit and it will be used to
post line items in a particular document. For Example
Accounts Dr Cr
GL posting 40 50
Vendor invoice 40 31
Customers 01 50
Assets 70 75
8) What is Document type?
A) Document Types controls the nature of Business Transactions whether it is
vendor invoice, payments, expenses, revenues etc.
9) What is posting periods?
A) Order to manage identical posting periods in several posting periods in
several company codes, maintain one posting variant.
10) What is posting period variant?
A) Posting period variant which controls posting periods, both normal and
special periods are open for each company code. The posting period is
independent of fiscal year variant.
11) What is Field Status Group Variant?
A) FSGV controls the additional account assignments and other fields that can be
posted at the line item level for GL a/c. FSGV can be control at three level
i.e.,1) In OBC4 (ch of a/c‟s)- which controls the screen for a particular GL a/c
group, 2) Posting Keys- which controls the screen for a particular posting key
transaction is taken, & 3) Accounting Groups- which controls the screen for a
particular account group i.e., customer group or vendor group.
12) What is Chart of A/c‟s and types of chart of a/c‟s ?
A) All general ledger accounts grouped together is called ch of a/c‟s.
There are 3 types of chart of accounts i.e., 1) Operational ch of a/c‟s- used for
daily transaction purposes 2) Group Ch of A/c‟s – It is used for company
consolidation purpose & 3) Country Specific Ch of A/c‟s – Used for particular
country legal entity purpose.
13) What is Reconciliation account?
A) When u post items to a subsidiary ledger, the system automatically posts the
same data to the general ledger. Each subsidiary ledger has one or more
reconciliation a/c‟s in general ledger, we cannot post directly.
14) What is special GL a/c?
A) The transaction other than AR & AP is called a special GL a/c . Example Bills of
exchange, Interest payables, bank bills, guarantees, & reserves for bad debts
etc.
15) What is the use of APP?
A) It is used to multiple vendors, it is also used for multiple company codes, but
it should be in the same country.
16) What is T-code for APP?
A) FBZP.
17) What are the steps in APP?
A) Select all company codes
Select paying company codes.
Payment method in country (incoming and outgoing payments)
Payment method in company code.
Define House bank.
Bank determination.
18) What are the fields in vendor master?
A) General data – address, communications, Control data – customer, tax
codes, & Payment Transactions- bank details, alternative payee a/c.
Company code data – Reconciliation a/c etc.
19) What are the Main Organization in vendor master?
A) General data, Company code data, & Purchase Organization.
20) Why u is going to create multiple payment methods?
A) We Create on Client Requirement‟s like if he wants to create c-bank,
electronic payment, bank transfer, & bills of exchange.
21) What are the Tabs in GL Master?
A) Type description, Control data, & Bank interest tab.
22) What is Open Item Management?
A) OIM allows u to display the open and cleared items and amounts in an
account. Example Salary clearing a/c, GR/IR clearing a/c.
23) What is Sort Key?
A) It is Used to display line item, examples are vendor no., customer no, value
date, & Asset no. etc.
24) What is Organization Structure of Asset Accounting?
A) Company Code, Chart of Depreciation , Number range assignment, Fiscal year
variant, Depreciation area for net worth tax, & Depreciation type for posting
depreciation.
25) What do you mean by Chart of Depreciation?
A) Ch.of.Dep is used to manage where its legal requisition for depreciation and
valuations of assets. Normally Dep. Contains Dep.Area, Dep.Key.
26) Depreciation Area?
A) An area showing the valuation of fixed assets for a particular purpose (for ex.
Individual financial statement, Balance sheet for tax purposes etc).Example,
01 Book Depreciation, 02 Special tax Depreciation, & 03 Special
Depreciation Reserve.
27) Depreciation Key?
A) Key for calculating depreciation amount‟s.T-code is AFAMA.
SDVM Straight Down Value Method, WDVM Written Down Value Method.
28) Account Determination?
A) The connection between the asset master records and the corresponding
account‟s in the general ledger in FA‟ing. This connection is created by the a/c
determination in asset class.
Path: SproFAAA Organization Structure Asset Class Specify a/c
Determination.
29) Asset Class?
A) The Asset Class is the main criterion for classifying assets according to legal
and management requirement. Every asset must assign to only one asset class.
T-code oaoa.
CONTROLLING
Controlling: Controlling provides you with information for management decision-
making. If facilitates co-ordination, monitoring and optimization of all process in
an organization.
Features of Controlling: Cost Center Accounting, Activity Based Accounting,
Internal Orders, Product Costing, & Profitability Analysis.
Controlling Area: Organization unit that represents a closed system Used for
accounting purposes.
You can assign one or more company codes to one controlling area.
If u assign more than one company code to one controlling area, then u
need to note the following.
1) Consistent Chart of a/c‟s( Treat each cost element in all company
codes in same way).
2) The Operative fiscal year variants in the company codes must match
the fiscal year variant in controlling area.
3) You should execute period end closing in controlling for all company
codes at same time.
4) The system only post reconciliation posting across company codes
without taxes, which means that it cannot automatically create invoice.
5) Maintain controlling area okkp .
6) Maintain no. ranges for controlling documents Kank
7) Maintain versions OKEQ
COST ELEMENT ACCOUNTING
Cost Elements: Cost Elements Describe the origin of costs. Cost element classifies
the organization valuated consumption of production factors within a controlling
area.
Primary Cost Elements: These arise through the consumption of productions
factors that are sourced externally. Primary cost elements are used for direct posting
and must be accompanied in GL a/c‟s in FI.
T-code KA02.
The categories are follows 1) General primary cost element, 03
Imputed cost element percentage method 4 Imputed cost element, target =
Actual Method, 11 Revenue elements, & 12 sales deductions.
Secondary Cost Elements: Cost elements arise through the consumption of
production factor‟s that are provided internally i.e., by enterprise itself. Secondary
cost elements are used strictly for internal controlling posting like assessments and
settlements. T-code kA06
Category: 12 internal settlements, 31 Result analyses, 41 overhead‟s, 42
assessments etc. Cost Element Group KAH1
COST CENTER‟S
Cost Center’s: Organizational Unit within a controlling area that represents a
defined location of cost incurrence. The definition can be based on 1) Functional
Requirement, 2) Allocation criteria, 3) Physical location and 4) Responsibilities for
cost.
Change Cost center hierarchy OKEON
Creation of Cost Center KS01
Distribution: Was created to transfer primary costs from a sender cost center to
receiving controlling objects. Distribution is primary cost elements.
Define Distribution KSV1
Execute “” KSV5
Assessment: Was created to transfer primary and secondary costs from a sender
cost center to receiving controlling objects.
During assessment, the original cost elements are summarized into assessment cost
elements (secondary cost element, category=42).
Define Assessment KSU1
Execute Assessment KSU5
Activity Types: Categorizes productions and services activities provided by a cost
center to the organization and used for allocating costs for internal activities to the
originates of the costs.
Creation of Allocation Cost elements KA06
Creating/Maintaining the Activity types KL01
Statistical key figures: Are used as the basis (tracing factor) on which to make
allocations (assessments & distributions) and to analyze structural key figures.
INTERVIEW QUESTIONS- PART II
1. What is chart of accounts? Chart of accounts is a grouping of GL
accounts that used to post transaction from cross modules and FI
modules. These can be further used for reporting like Balance Sheet,
P&L, and Trial Balance etc...Chart of accounts are usually very specific
to an organization and you will not find the same chart of account
across two different companies. SAP does give you standard set of
accounts that can be used as template but it usually requires detail
discussion with accounts so a list can be finalized.
2. How many types of COA are there? There can be only one primary
chart of account per company code in SAP. You can have a different set
of chart of account that can be used for Group Account and one for
Alternative accounts. I will discuss in step 3 and 4
3. What is alternative chart of accounts? Alternative chart of
accounts is secondary grouping of account that is generally used for
statuary reporting. For example you might have a company chart of
account but due to statutory nature (for countries like Russia and China
to name a few, you have to report your account activity in an account
range that has been provided by the company stature. In this case you
have a primary chart of account as explained above and alternative chart
of account. Postings should always be made in the primary chart of
account and in the GL account setup these primary accounts should be
associated to alternative chart of accounts. This way updates can be
made to both primary and alternative chart simultaneously.
4. What is group COA? A group chart of account is way to group your
primary accounts. For example from an operation perspective you can have
several cash accounts but from a group reporting perspective you might
want to group all cash activity under one account. These are usually
used for Consolidation reporting.
5. How many segments are there in G L a/c what are they: ?
What is APC?
APC stands for Acquisition and Production costs. Acquisition means any asset which
you may acquire/ purchase externally. It includes invoice price and other related
exp. Associated with it like customs, octroi, freight which you add and arrive at total
cost of acquisition for capitalisation of the asset.For ex Say a computer. The total
cost which you incurr for the acquisition of the computer including installation will be
your APC
Production cost means any asset which is created internally within the organisation.
This is normally created by means of AUC and you go on adding cost to the AUC as
and when you incurr exp. for the same.For ex. say addition to the office building.
Therefore APC incudes any external acquisition or internal construction of exp. which
needs to be capitalised.
In OADB under 01 deprn area Acquisition & prod Cost tick is activated.
INTERVIEW QUESTIONS- PART III
1)Why we are using K4(Fiscal year variant)in controling area?why don't
use K1 for the same?
k4 means it may be using calader dependent fiscal year, you con't chage
it.
2)What is the Noted Items? Will the noted items get effected in Balance
Sheet?
noted items are request generated it will not effect your books at all.
3) What is Valvation Grouping Code ?
valuation grouping is the mateiral how it is tobe valued is depends on the
code
4)In Integration how do the values flow from Material master to the GL,s
in integration the MM part is integrated to FI Books, thrugh accouting
keys the fi books is updated
5) What is the meant by Account Determination?
accout detemination is where your account gets determinied or updated
6) What is the T/Code for Asset Master Uploading to SAP,through LSMW?
7) What is the importance of Recalculate value button in Asset
Accounting?
8. Tell us about the challenges you faced during a full life cycle
implementation (please number challenges with specific technical details)
9. Tell us about the challenges you faced during an upgrade project
(please number challenges with specific technical details)
10 Prove yourself a team player by giving any example of specific task
during an implementation that you resolved using your leadership\team
building skills (please describe the situation)
11. Give any example of any system enhancement that you proposed which
end up in implementation and helped the company after all (please propose
any real time system enhancement idea)
12. Give any example of any system enhancement that you proposed which
didn't get implemented (please propose any system enhancement idea)
INTERVIEW QUESTIONS- PART IV
1. Was there a project where you had to co-ordinate between different groups. If so
how did you resolve differences among team members and between groups .
2. Did you ever come across a very controversial piece of information
in your project (you were the only one to know it) and what did you do?
3. What was my approach when there was an issue like what steps were taken to
meet end client needs.
4. In past exp there was a confidential matter at client site and how
did you handle the situation as this was going to impact based on the
answers I present to client.
5. What did you do and was there was any conflict as a team lead how did you
prioritize tasks ?
6. Tell me about a time when you were faced with more to do than you felt you
could manage. What was it and what did you do?
7. Tell me about a recent situation in which you were responsible for
trying to solve a recurring or longstanding problem. What happened and what did
you do?
8. Tell me about a time when you were confronted by extremely tight
deadlines to get something done. What happened and what did you do?
9. Tell me about a situation when you had to present and discuss
potentially controversial information. What happened and what did you do?
10. Tell us about the challenges you faced during a full life cycle
implementation (please number challenges with specific technical
details)
11. Tell us about the challenges you faced during an upgrade project
(please number challenges with specific technical details)
12. Prove yourself a team player by giving any example of specific
task during an implementation that you resolved by your leadership\team building
skills (please describe the situation).
13. Give any example of any system enhancement that you proposed which didn't
get implemented (please propose any system enhancement idea)
14. Identify a project you are involved with, in which you had to
resolve some significant conflicts. Please explain the nature and origin
of conflicts, and how you resolved them.
15. Did you encounter any personality conflicts in the previous
projects and how did you deal with them?
16. Did you work in any project at a client place with teams from
multiple organizations with conflicting priorities? How did you deal with the
situation?
17. Did you get a chance to mentor any one? Talk about the experience.
18. What software development methodologies you are familiar with and how did
you use them in the most significant project you did?
19. Did you ever get to deliver bad news to some body, either to your
client, some one who worked for you etc. how did you handle it?
20. Did you face attrition in any project? How did you deal with it?
21. On lengthy and tedious projects how do you keep your
self-motivated and how do you keep your team members motivated?
22. Did you ever get to make a very critical decision? What is it and
how did you handle it? What are the things you consider before making a decision?
INTERVIEW QUESTIONS- PART V
FI
1) Tell me about FI Organisational structure.
2) How many Normal and Special periods will be there in fiscal year, why do u
use special periods.
3) Where do you open and close periods.
4) What do you enter in Company code Global settings?
5) What is document type, and what does it control..?
6) What is posting key and what does it control.
7) What is field status group, what does it control.
8) What is chart of account and how many chart of accounts can be assigned to
a company.
9) What does definition of a chart of account contains?
10) Can one COA be assigned to several companies..?
11) What is account group and what does it control.
12) What is reconciliation account, Can you directly enter documents in that a/c?
13) How do you control field status of GL master records and from where do you
control.
13) What are the segments of GL master record.
14) What does Field status group assigned to a GL master record controls..? (Ans
: Field status of document line items entered in that particular GL a/c.)
15) What is Country and operational chart of account..? Why do you use group
chart of account?
16) What are all the segments in a Customer/Vendor master record.
17) What is open line item management..? What do you mean by clearing open
line items..?
18) What is residual payment and part payment?
19) What is internal and external number ranges.
20) What controls the Customer/Vendor master records field status.
21) What is sub ledger.? How is it linked to GL?
22) What is house bank, bank key and bank id..?
23) Why do you use “Bank Type” in customer/vendor master records..?
24) How do you identify a document..? How many line items one document can
have..?
25) Tell me some examples of standard document types.
26) How do you control Document line item fields..?
27) Can one posting variant be used by several companies..?
28) What is tolerance group..?
29) If a document type is configured for Vendor and use that document type in
the line item you enter a posting key meant for customer, now what will happen
while document entry..?
30) What does document header control..?
31) After entering a document can you delete the entry..? Can you change the
document..? Which fields‟ can/not be changed?
32)What is special GL transactions..?
32) What is normal and negative reversal posting..?
33) How do you reverse cleared documents?
34) What is base line date..? Why is that used.? Can this be changed..?
35) What is park document and held document..? Differences..?
36) Can you configure cash discount terms..?
37) What are the types of tolerance rules..? (Ans.:3, Employee, GL a/c,
Customer/Vendor)
38) What is automatic payment programme..? What are all the steps to configure
it..?
39) What are all the settings you need to do before running the automatic
payment?
40) What is dunning..? What is dunning level..? How many dunning levels can be
configured..?
50) Explain the steps of dunning configuration.
51) What is asset class.? What are depreciation areas..?
52) What is asset master..?
53) What is integration between FI and other modules..?
54) Hwy do you need to have integration with SD and MM modules..?
55) Tell me Journal entries passed in system from the time of good receipt to
payment)
56) What is GR/IR account..? Why do you maintain that..?
57) Tell me journal entries from the stage of procurement of raw-material till
production of finished good and sales.
58) Tell me the procedure of purchase (need to explain from Purchase requisition
till payment), and tell me when and what entries do you pass.?
59) What is business area..? Can you assign it to a company..?
60) What are financial versions..?
61) What is solution manager..?
62) What are the stages of SAP implementation..?
63) How due date of a document is calculated..?
CO
1) Tell me about CO organizational structure.
2) What is cost centre and profit centre..?
3) What is operating concern..? What is controlling area..?
4) What is standard hierarchy..?
5) What is a Statistical key figure..?
6) What are the allocation tools available in CO..?
7) What is the difference between Distribution and assessment..?
8) What is reposting..?
9) What is cycle and segments..?
10) What is drilldown reporting..?
11) What is product costing..?
12) What is cost element?
13) What is the difference between primary and secondary cost elements?
14) What is the internal order..? and types of internal order..?
15) Profitability analysis report is taken at what level..?
16) What is dummy profit centre..? And what is planning profile..?
17) What is accrual..?
Above are the some of questions asked to me when I was appearing for
interview. However prepare yourself thoroughly with the configuration steps and
logical functional reasons. I am also attaching below some questions put on
yahoo group (some of them with answers)
INTERVIEW QUESTIONS- PART VI
1) what is special purpose ledger?
2) Explain the importance of GR/IR clearing account.
3) What is the purpose of Activity type
4) what is specified by the cost element category?
5) what are the statistical key figures and what are they used for?
6) How are revenues dealt with cost cneter accounting?
7)what is accrual calculation?
8) what is the connection between activity type planning and price
calculation?
9) what is the purpose of version?
10) which posting methods are available in co?
11) what is the main control parameter for settlement?
12) What is dummy profitcenter?
13) what is the purpose of reconcillation a/c?
14) what is the process flow for check deposit?
15)Explain the asset classes.
16) what is the connection between costelements and G/L accounts?
17) Explain the terms segment and cycle?
INTERVIEW QUESTIONS- PART VII
(1) What is the function of Account Groups weather be in gl or ap or ar ?
(2) What is the fundamental behind Field Status Groups - where all
assigments - what for used - master data level assignments
(3) What configurations are reqd for Extended Withholding tx
(4) What aboutt the posting periods ?? what configs -- you need to explain
the screen?
(5) What config is w.r.t. the field status variant. If he is asking abt a
thing.. you wuld need to explain the full screen configs, assignments, usage
etc. of that.....
(6) Tax code configs and Account code assignments -- if you have done any
tax procedures configs : that is taxes on sales or purchases
(7) Tell me the structure of FI and CO in SAP : i.e. the enterprise struct
(8) MM entries -- flow At the time of GR, GI, INV. VERIFICATION and
Payments
(9) SD entries
(10) Tell me abt the automatic account assignmnets -- MM integration
(11) Tell me abt the Revenue account determination - SD intergration
(12) What types of cost element are there - purposes - some cost element
catetories in each type?
(13) What is the main integrating element between FI and CO -- cost
element
(14) Differnece between the functionalities of Account Group and field
status group
(15)*****What is the t-code for closing costing periods
CCA-- ENVIRONMENT -- okp1
(16) **** FI has to be closed first aand then only CO
(17) Chart of accounts config-- automatic creation of cost element?
(18) Financial Statement Versoin -- purpose etc.
(19) Number ranges --
(20) Automatic payment run -- full screen -- application menu - every
field
(21) Config for APP
(22) miro -- Logistics Invoice Verification --what for ers..
(23) Downpaymentsà both AP and AR
(24) Difference between Distribution and Assessment cycle... in CCA in CO?
(25) Internal Order Types if you put this
(26) Settlement of Internal Orders - Configs as to allocation structure,
settlement cost elements config etc.
-- dist passes the entries by cost element and hence looses the tracking
at the source
but assessment passes the entry w.r.t. the assessment cost ele
it dr and crs the same SCE and hence .... the oritianl value in the PCE is
stored
but the total vlaue becomes ZERO
(27) Business Area concepts and COMP CODE AND BA relations
(28) Functional areas -- cost of sales accounting
(29) **** RP/RW Ã allocated trail bal -- bUSINESS AREA WISE glt0
-- FI
for CO -- ccss
(30) **** Depreciation Keys
(31) asset master, chart of de
pn, asset clases, account determinations
(32) Credit mgt FD32 (SEE SEOM CONFIGS) (AND STUDY FD32)
(33) Periodic Processing -- FOR GL, AR, AP
(34) **** Recurring entrie à Account Assigment models etc.
(35) **** Structure of cost centes
(36) Accounts config -- cash discount taken account, lost account, forex
gain or loss accounts, allllllllllllll acounts
(37) **** Doc types
(38) Validations and Substitutes à Validations -- cash account
Glossary menu path.
158
You can change your password
A Before entering your log in parameters
B After entering your log in parameters
C By pressing CTRL P on your keyboard prior to entering your password.
159
If you receive a message on the status bar and you do not understand the message, or if
you need further explanations, you should:
A Access the Getting Started function
B Access the Master Data function
C Access the Online Help
D Access the R/3 Library
160
Which of the following represents the area of responsibility for sending payment requests
for past due open items ?
A The credit control area
B The business area
C The dunning area
D The company code
161
Which of the following is required for internal management reporting only ?
A The credit control area
B The business area
C The dunning area
D The company code
162
Which of the following represents an independent legal business entity required to issue
financial statements ?
A The credit control area
B The business area
C The dunning area
D The company code
163
Mark the correct statements:
A A controlling area can be assigned to only one company code.
B Several company codes can be defined within each client in the same SAP R/3
systems
installation. You can compare the financial performance of the company codes
across
the clients as all data is maintained in the same system.
C Several company codes can be defined within each client in the same SAP R/3
systems
installation. You can compare the financial performance of the company codes
within a
client and not across the clients.
D ABC, Inc. USA and ABC Inc. Europe are two subsidiary companies of XYZ Co.
ABC
USA and ABC Europe must be configured as two clients when implementing the
SAP
R/3 system at XTZ Co.
164
Mark the correct statements:
A The Client is an optional unit in the Purchasing Organization structure.
B A central Purchasing Organization can serve plants in different
companies
C Plants ABC1 and ABC2 require an specific raw material for their manufacturing
process. ABC1 requires it in 200 Kg drums and ABC2 requires it 100 drums.
You can assign a single Purchasing Group 02 to material for both plants.
D A Plant can be assigned to more than one company code.
E More than one Plants can be assigned to one company code.
165
Mark the correct statements:
A In the SAP R/3 system a Sales area can be assigned to multiple company codes.
B In the SAP R/3 system a Sales area is made up of a combination of Sales
Organization, Distribution Channel and Division. A sales Organization can be
assigned to only one company code; therefore, a Sales area belongs to one company code only.
C A company code cannot be linked to more than one personnel area.
D Since the SAP R/3 system is delivered with pre-defined employee groups, you
cannot create new Employee Groups in the system.
166
The functions of the Purchasing Organization include:
A Procurement of Material and Services.
B Reaching and agreement on terms and conditions with customers
C Reaching and agreement on terms and conditions of purchase with vendors.
D A and C
167
Which of the following is not part of the production organization.
A The client
B The controlling area
C The company code
D The plant
168
Which of the following statements is incorrect
A Storage locations are not assigned to plants
B Storage locations may be defined as individual storage bins
C Storage locations can be warehouses in which finished goods are stored
D Storage locations can be areas in which raw materials are stored along a
production line.
169
In dunning program for clearing between customer and vendor, the following is
true….(single)
1. Same dunning procedure must be defined for both customer and vendor.
2. Different dunning procedure must be defined for both
3. If no procedure is defined both will use default procedure
170
Solution Manager is the answer for followings , select the right ones
1. How to ensure successful implementation (functional and technical) as well as
operation of core business process
2. How to secure the technical installation and operation
3. How to facilitate customer’s IT dept. and other business units
4. How SAP can ensure continuous improvement of customers business solution
5. How can SAP ensure the best in class support