Top SAP FICO Interview Questions and Answers

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SAP FICO INTERVIEW QUESTIONS
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• 1. Explain the term SAP FICO
• In SAP FICO, FI stands for Financial Accounting
  and CO stands for Controlling. FI takes care of
  accounting part, financial statements, etc.
  whereas CO takes care of cost sheet, inventory
  sheet, etc. SAP FICO is
• integrated with various other modules in
  parallel for better financial maintenance and
  outcome.
• 2. List the modules to which Financial
  Accounting is integrated
• Financial Accounting is integrated into the
  following modules
• Production Planning
• Material Management
• Sales and Distribution
• Human Resource
• Controlling of financial transaction
• 3. List the different sub modules in SAP FI
• General Ledger
• AR/AP
• Banks
• Fixed Assets
• Travel Management
• Lease Accounting, etc.

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• 4. Explain General Ledger in Finance accounting
• It acts as a primary record. All transactions of
  a company are recorded in General Ledger such as
• customer transactions, internal company
  transactions purchases from vendors.
• 5. Explain the common reasons for errors in
  accounting and their impact on the organization
• Errors may occur due to a lot of reasons. A small
  error can mislead profits losses, and bring
  many issues. The reasons for the errors could be
  faults in the system, negligence of users, gross
  errors, basic accounting errors and many more.
• 6. How many periods are there in the SAP FICO?
• There are 165 periods and 4 are considered
  special among them. When there is a need, a user
  can freely
• use any special period. Periods are generally
  used in a day related to fiscal year.
• 7. What is the Company? What does it consist of
  in SAP FI?
• In SAP FI, a company is the smallest unit for
  which financial statements are available. It can
  consist of
• multiple codes, which can have different local
  currency but need to use the same chart of
  accounts list.

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• 8. What are correspondence types in AR/AP?
• Corresponding types are the outputs, which are
  printed and delivered to the business associates
  based
• either general or customer Ledger information.
• Here are a few corresponding types
• Customer statements
• Line items lists
• Payment Notices
• Corresponding types can be printed together and
  sent out at the end of the day.
• 9. Explain how the system identifies a Posting
  Period
• Based on the posting date entered into the
  system, the system identifies the posting period.
  However, for this to happen, we should define the
  fiscal year variant properly.
• 10. Explain Posting Period Variant
• To control posting periods, we use the posting
  period variant. It controls which period to be
  used for each company code and whether it has to
  be normal or special, opening or closing period
  in the fiscal year. It is independent of fiscal
  year variant.
• 11. Explain Field Status Groups
• These groups control the fields that can be
  posted for a G/L account at the line item level
  and additional account assignments.

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• 12. Which account type you should use if you want
  to carry forward the balance from one fiscal year
  to
• next fiscal year?
• To carry forward the balance from one fiscal year
  to next, Retained Earnings Accounts is used. To
  carry forward automatically, you can define PL
  statements as per COA and then assign them to
  retained earning accounts.
• To make you a pro in SAP FICO, we provide the
  best in industry SAP FICO online training at IQ
  Online
• Training.
• 13. What is the significance of financial general
  ledger accounting?
• To access external accounts, we use general
  ledger accounting. It gives all the financial
  transactions made within a specific time.
• 14. What is the relationship between company code
  and controlling area?
• Each company code is assigned to one controlling
  area. A controlling area consists of multiple
  company
• codes and each code must use the same operative
  chart of accounts the controlling area is using.
• 15. Explain the use of FSV in SAP
• FSV stands for Financial Statement Version. It is
  used to remove final accounts like profit loss
  Account,
• balance sheet, etc. from SAP. To make the output
  of agencies like Banks, several FSVs are used.

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• 16. What does FI-GL (Financial- General Ledger)
  Accounting do?
• To get an outline of external accounting and to
  record all business transactions, General Ledger
  is used.
• It also ensures the accuracy and completion of
  accounting data.
• 17. What do you call a short-end Fiscal Year?
• Sometimes an organization has to modify the
  calendar year as per their need due to many
  reasons this is called short-end Fiscal Year.
  Organizations have to adopt a new calendar.
• 18. Explain internal order option in the SAP FICO
• To track the cost associated with an item or a
  project, internal order option is used. It used
  only used in
• some situations and in some important tasks.

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• 19. Explain the use of Sales returns in FI
• In SAP FI, the products returned by a customer
  due to any complaints are managed by sales
  returns. It also handles other tasks such as to
  track the path of the returned product, sending
  the returned item for inspection. It handles the
  products returned due to quality factors and not
  for incorrect deliveries and used in the consumer
  goods industry.
• 20. What are the common activities performed in
  month-end closing in Sap Fi?
• In month end closing, we can perform activities
  like, open or close one or more posting periods
  for posting, and permit postings to one or more
  current or future posting periods.
• 21. What are the common types of reports that can
  be used for Account Analysis (A/R)?
• Following are some of the types of reports, which
  can be used for account analysis (A/R) -
• Customer Line Item Analysis
• Balance Analysis
• Customer Evaluation Report

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