SAP FICO- Latest Interview Questions

1. Compare SAP FICO with any general financial accounting and controlling approach

SAP FICO: In terms of flexibility, it is good.

There are additional options for accounting, controlling, and integration.

SAP FICO allows multiple currencies to be managed.

Others:  Other parallel approaches are not as flexible as SAP FICO.

Account integration is either complex or missing.

No additional options for currency.

2. While handling the SAP FICO for the first time, why it is necessary for the users to pay attention to the exchange rate?

The default exchange rate in the FICO is the Average Rate. It is not always necessary that everyone needs to use the FICO in the same manner. Therefore, it needs to be changed as per the requirement.

3. Can you name a few modules with which it is possible for the users to integrate financial accounting?

There are several useful modules where it is possible for the users to consider this approach in an integrated manner. These include Material Management, Sales & Distribution, Production Planning, financial transaction management, as well as Human resource.

4. Why the financial statements are important for any business?

Well, it simply enables them to keep an eye on the purposes for which a specific amount sent including all its information. The users can simply keep a digital record of all the funds received or transferred to any other account. This enables them to prepare documents for the future on which some important plans and decision-making strategies are based. Financial statements also enable businesses to get a reduction in taxes in a few cases. In addition to this, the users can access the record of all the financial transactions anytime the same is required.

5. What are the common reasons for errors in accounting and what impact do they actually have on the organization?

Errors are of a lot of types and can be due to a diverse array of reasons. The users can often make mistakes. A single wrong entry of only one digit can bring a lot of issues in the organization and can mislead about the profits and losses. Errors can be due to negligence of users, fault in the system, wrongly prepared bills or claims, gross errors, basic accounting errors, errors due to not updating the sheets, and so on.

6. What is the Year Dependent Fiscal Year in SAP?

In businesses, it’s not necessary that all months have 30 days working. Depending on the type of projects which vary largely, the organizations have to end a month a day earlier or two. For example, the Month of May can have 29 days. The same can be done with an option in the SAP which is known as Year Dependent Fiscal Year.

7. What exactly do you know about the SAP FICO?

FICO stands for Financial Accounting and Controlling. It is basically an important tool that is useful in preparing statements about the finance related to an organization or a business. In addition to this, FICO can also be considered for the purpose of accounting, tax computations, preparing the inventory sheets, financial data storage. The users need not worry about the security of the data and in addition to this, it simply makes sure of managing and utilizing the data in a reliable manner.

8. What is company code and when it is used? What is the limit on the currencies which you can configure?

It is basically a code that needs to be entered into the system when it comes to generating the Loss or the profit statements. It is not always necessary that all the employees are given access to the same. It is possible for the users to configure up to 3 currencies and among which one generally remains local and the other can be considered as parallel.

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9. How taxes are taken care of in the SAP FICO?

One of the major issues is Tax Slabs are not similar in all countries. Also, there are additional taxes applicable there. SAP FICO has a tax procedure already defined in it for various nations and the users are free to get the information regarding the same. The Tax amounts can be sent to stocks by default or the users are free to make challenges in them as per their need and convince. Thus, taxes are not an issue with the SAP FICO.

10. How many periods are there in the SAP FICO?

There is a total of 165 periods among which 4 are considered special. They are generally used when it comes to defining any data that is related to the fiscal year. A user is free to consider the special period anytime when the need for the same is felt.

11. What do you know about the Substitutions and validations in SAP?

They have generally defined assets for the different functional areas. They can be accessed through two options and are Document level and line level.

12. What are the major applications of SAP FICO you are familiar with?

SAP FICO has some major applications for which it is actually known. It is widely considered I Financial accounting for handling a lot of tasks that matter to the organizations. In fact, all that matters in accounting can easily be managed with this approach. It also has applications in Asset and Cost Accounting. The Project system accounting can also be managed in a reliable manner. The users are free to consider it for the purpose of Consolidation. In addition to this, SAP FICO has large-scale applications in Real Estate which is one of the emerging domains across the globe in the present scenario.

13. What is WIP in SAP FICO?

It stands for Work in Progress and basically defines the status of the asset that is under the development model in the SAP FICO. It is possible for the users to customize it if required.

14. What exactly posting key is in FICO and what is its significance?

It is basically an approach that enables users to determine the transaction type among the various possible options in the domain. Generally, it is a two-digit number when is entered during defining an item. It simply gives an idea about the type of posting, which can either be credit or debit as well as the type of accounts. Also, the status of transactions can also be recorded through it.

15. What is the importance of financial general ledger accounting?

It is used whenever there is a need for the organization to access external accounts. It simply incorporates all the financial transactions of a business made within a specific time period. The users are free to keep up the pace simply even when the operational areas need core accounting skills or have problems associated with them.

16. Can you name a few methods with the help of which the vendor invoice payments can be taken care of?

There are options for manual payments that can be made either in cash or through cherubs. Other options include electronic transfer. The SAP FICO keeps a close eye on all the transactions made through the latter option when the same is integrated with the accounts.

17. What are the biggest benefits that you can have with the SAP FICO?

There are certain benefits and a few major ones are spotlighted below:

• One of the major benefits is accounting data is always correct. The users don’t need to worry about this
• There is no upper limit on handling the accounts. Any number of accounts can be managed
• It is useful in auditing as an eye can be kept on the transactions made by the business
• It makes sure of financial transparency
• The detailed information about the expenses can be prepared and the same can then be considered for the purpose of preparing the future budgets
• A lot of time and money can be saved
• The users can make sure of financial outputs that can be trusted in the long run

18.What is a Financial Statement version in the SAP FICO?

It is basically a tool that is used for reporting. All the financial accounts can be extracted through it along with all the relevant information required by the users. It is possible to deploy it for the purpose of generating the outcomes of different agencies associated with a business. The same information can then be passed to the concerned authorities for the betterment.

19. What prerequisites are there which users need to handle when it comes to document clearing?

The first thing to make sure of is whether the items get cleared status by the management or not. Next is to make sure that the document is valid or not.

20. What exactly do you call a short-end Fiscal Year?

A Short-end Fiscal Year is basically when a calendar year is modified as per need. This can happen due to a very large number of reasons and the organizations have to adopt the new calendar.

21. What is an internal order option in the SAP FICO?

It is basically an option that is used to track the overall cost associated with an item or a project. It is used widely during certain situations and while handling some important tasks.

22. Why Asset classes are important in SAP?

The asset class is the primary class that is used for the purpose of justifying the assets. The entire asset category is generally assigned or integrated into the one asset class. It is also possible for the users to use the default values for the same.

23. Name a few important components of the charts that matter in accounting?

The first and the foremost is the main language. Next is controlling the integration level, name, Block Indicator, GL, account number, and the chart of Account Key.

24. Tell me something about the credit-control area in the SAP?

The credit-control is in the SAP enables the organization to impose a strict upper limit on the credit for the customers. This can be done by using the option controls are in the SAP. It simply makes sure of avoiding the situation such as the risk of bad debts and outstanding receivables.

25. Tell something you know about a field status Group?

When transactions are done, there are often fields that come up, this option is used or is enabled when they are not required while handling the tasks.

26. What options do you need to fill when it comes to creating the Credit Control Area?

The user needs to provide the controller name, Description, Currency option is to be selected, risk category is to be selected and then the information about the Fiscal variant is also to be provided.

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27. What do you mean by posting period Variants?

It is basically a time frame during which the transaction figures are updated. Generally, it is accountable to control accounting periods that are complex.

28. What exactly Field Status is?

It is basically an approach that is used for the purpose of maintaining the General Ledger accounts. It controls the fields which should provide information on the concerned accounts.