Best SAP FICO Interview Questions & Answers in 2024

09-May-2023

An essential core operational element of the SAP ERP Central Component is SAP Financial Accounting (FI) and SAP Controlling (CO), often known as SAP FICO. It makes it possible for a company to control its financial data and keep a comprehensive copy of all of its financial transaction data. It is essential for assisting businesses in producing and managing financial statements for analysis and reporting, which facilitates efficient company planning and decision-making.

In this piece of writing we are going to see what are the important questions that are asked in the interview of SAP FICO.

Best SAP FICO Interview Questions

It's essential to have a basic understanding of SAP FICO's use, components, code, processes, and key keywords. The questions that are most frequently asked during SAP FICO interviews are listed below. Let’s see SAP FICO interview question and answer:

What do you mean when you say SAP FICO?

FI and CO in FICO stand for financial accounting and controlling, respectively. As a result, SAP FICO combines SAP FI and SAP CO. When it comes to internal requests, inventory sheets, cost sheets, cost allocations, and other things, SAP CO is different from SAP FI, which deals with accounting, tax computation, and the creation of financial statements. These SAP FICO interview questions are one of the basic questions to ask.

What is the posting key, exactly? What function does it fulfill?

A posting key is a two-digit number used to manage and identify the sort of transaction that was recorded in the line item. It assists in figuring out:

Types of accounts
Posting types: debit or credit
Status of a transaction's fields

What is SAP FICO's primary use?

The programme used for data storage and computation is SAP FICO course. It helps in retrieving the outcome in line with the most recent marketing circumstances. It guards against data loss and is in charge of reporting and verifying data. Companies may manage financial duties within an international framework of currencies and languages thanks to its components.

What other SAP FICO modules does the "Financial Accounting" module interface with?

Financial Accounting' in SAP FICO is connected with the following modules:

• Distribution and Sales

• Manufacturing Planning

• Material Management

• controlling human resources for financial transactions

List the key organisational components of SAP FI

The following list includes SAP FI's key organisational components:

• Functional Area 

• Company area 

• Business code

• chart of accounts

How can transactions from several business lines be managed most effectively inside a company?

Establishing business zones is the best course of action. To manage transactions from several business lines inside a firm, you may also define various company codes.

What choices does SAP FICO offer for fiscal years?

The system keeps track of financial information using fiscal years. There are twelve posting periods and four special periods in SAP FICO. For each company code, the fiscal year variation must be specified. Adding a controlling region also requires you to provide the fiscal year variation.

What function does credit control serve?

Credit control prevents a company from overstretching its financial resources. When a payment is made after the sale of the goods, a credit limit is often created for the customer using SAP. With this technique, you may limit the customer's amount that must be cleared before beginning a new transaction.

Credit management in application components is appropriate:

Sales and distribution
Account Receivables (AR)

What purpose does the business code serve in SAP FICO?

Financial statements, including balance sheets, profit and loss statements, and others, are produced by the company code.

How many charts of accounts is it possible for a business code to have?

A given business code can only have one chart of accounts.

How many different currencies can a company code support?

Three different currencies can be set up for a company code, including one local currency and a parallel currency system.

What function does SAP FICO's chart of accounts serve?

The chart of accounts is used to satisfy both the everyday demands of the business and the legal obligations of the nation. These are its two types:

• All general ledger accounts that have been allocated to the business code are listed in the operating chart of accounts (COA).

• The list of general ledger accounts required to satisfy a nation's legal obligations is known as the "country chart of accounts" (COA).

What are the field status groups and field status variations, in your opinion?

One of the SAP FICO interview questions is followed by this answer. Field status variations are contained in the field status groups. There are field status groups in the general ledger account. You can specify the fields when publishing to the general ledger using these status groups.

What is the SAP calendar's year shift?

Only the calendar year is understood by the SAP system. It ignores the fact that the fiscal year is flawed. Let's say that for a firm, a fiscal year is made up of the various months from two separate calendar years rather than a single calendar year. After that, one of the calendar years must be designated as a fiscal year, and the months that fall in another year must be added to the fiscal year by a certain amount.

List the different sorts of modules that FI is incorporated into.

The many module types include: 

• Manufacturing Planning

• Material Control

• Sales and distribution

• Human resources

How is SAP FICO used to control output and input taxes?

For every nation, SAP FICO includes tax codes and tax processes. You have the option to capitalise tax amounts into equities or expense them out.

What function does SAP FICO's Financial Statement Version (FSV) serve?

FSV is a tool for reporting. It assists in SAP's final account extraction, including profit and loss accounts and balance sheets. You may produce the output of several external agencies, including banks and other statutory bodies, using multiple FSVs.

What does SAP FICO imply by "company" and "company code"?

An organisational unit is a company. In the legal consolidation module, it is used to combine the financial accounts of several business codes. The business code, in contrast, is the lowest organisational unit. For the purposes of external reporting under company code, you can create an entirely self-contained set of accounts.

What purpose do accounts receivable serve?

You can keep track of and manage all client accounting data using the components of accounts receivable. The general ledger receives a direct recording of every posting in accounts 

What do SAP FICO's accounting period and posting period variations mean?

Variations in accounting periods: They assist in managing the open accounting periods for validation and the deletion of all closed accounting periods. They are suited for reservations at the beginning and end of the fiscal year.

Various posting periods: The time during which the transaction numbers are updated is known as the posting period in a fiscal year. Which accounting period is available for posting is controlled by the posting period variations. It guarantees evenly spaced off-season.

What do SAP FICO's parallel and local currencies mean?

Local Currency: The currency used while generating the business code

The two other currencies that can also be used in cross-border trade and other international activities are known as "parallel currencies." Examples of parallel currencies are GROUP CURRENCY and HARD CURRENCY. 

What customization requirements must be met before documents may be cleared?

Checking the cleared and uncleared things using open item management is one of the requirements for customization. Accounts payable and receivable are managed with the open item management method. Specifically, the unpaid accounts An outstanding invoice item, for instance, is treated as an open account until it is settled.

What kind of exchange rate is selected by default for all SAP transactions?

The M, or average rate, exchange rate type is the default.

What do SAP FICO's one-time vendors look like?

Building fresh master records for each vendor trade partner becomes impracticable for businesses that deal with significant cash transactions. Therefore, one-time vendors provide a solution by allowing the use of a fake vendor code when entering invoice data, even if the data is often kept in the vendor master.

What role does the GR/IR clearing account play in SAP FICO?

The acronym GR/IR stands for "good received" or "invoice received." An intermediate account is a GR/IR clearing account. If the products are received in the legacy system but the invoice is not, the provision is created. It proceeds through the accounting entry, crediting the GR/IR account and debiting the inventory. The vendor account is similarly credited, and the GR/IR account is debited when an invoice is received. As a result, the GR/IR is an unpaid item until the invoice is paid. One of these SAP FICO interview questions should be kept in mind as it can be asked most frequently.

Can depreciation be calculated down to the day? How do you manage that?

It is indeed possible. When an asset is capitalised (posted to) and has a matching depreciation key, the depreciation to the day function for that asset becomes operational. Consequently, even if you modify the depreciation key, you cannot turn off this function for the asset.

What are SAP FICO's internal order numbers? Where are they useful?

Planning, gathering, and paying the expenses of internal projects and tasks are done via internal orders. They may also be used to monitor expenses. They are short-term expenses that are incurred.

What purpose does Accounts Payable serve? What is its connection to G/L?

The accounting information for each vendor is managed and recorded in accounts payable. It has the following relevance to G/L:

• All bills are handled in accordance with vendor demands.

• The management of payables follows the payment programme.

• Payments may be made through checks or online transfers.
  The general ledger receives a simultaneous update of all accounts payable posts.

Which "blocks" may SAP FI users apply to vendor accounts?

A vendor account may be blocked via the aforementioned measures:

• All business codes, as well as specific company codes, have a posting block.

• Block purchases from all or selected purchasing organisations. It can only be used after installing or paying for the application component.

In SAP FI, how would one construct a credit control area?

To construct a credit control area, use the route or transaction code OB45. The following are the steps to creating a credit control area:

Maintaining the enterprise structure, 

maintaining the definition of financial accounting, and maintaining the credit control region

You must then type the following description:

• Update

• Name of the credit-control area in SAP

• Currency

• Description

• Credit Limit

• Risk Category

• Fiscal Variant

• Rep Group

What purpose does a collection of accounts serve?

Vendor and customer masters are defined by the account group for GL accounts. In order to create a master record, it is used to manage the data that must be entered.

What are the tolerances for invoice verification, in your opinion?

Whether the payable places match or the tax hold is on the invoice is specified by tolerance in SAP. For the purpose of verifying a logistics invoice, the following examples of tolerance can be defined:

• small variations

• Quantity deviations

• Variations in moving average prices

• Price differences

What does the term "short-end fiscal year" mean?

When you switch from a regular fiscal year to a non-calendar fiscal year or vice versa, it is known as a short-end fiscal year. It often occurs when a company joins a brand-new co-corporate organisation.

What is SAP FICO's APP?

The acronym APP stands for Automatic Payment Programme. It is a mechanism made available to companies for paying their suppliers and consumers. It makes it easier to post manually without making errors. When there are more people working for the firm, payments via APP are more practical.

What do controlling costs and profit centers entail?

Cost Centre: Such as marketing and customer service, a component in an organisation increased the cost and therefore increased the organisation's profit. A company's business units might be categorised as profit centres, cost centres, or investment centres.

The profit centre:In order to oversee internal control. The ability to assign responsibility to decentralised units is made possible by dividing a corporation into profit centres. It also enables you to manage the divisions like independent businesses inside a corporation.

Therefore,these are only some of the best SAP FICO questions out of many. You should always keep in mind that for any interview, all you need to do is be prepared for these questions. You also need to search for more such questions,study SAP FICO in detail, and last but not least, you have to wear your confidence when going to the interview.

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