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SAP FICO Interview Questions

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If you're looking for SAP FICO Interview Questions for Experienced or Freshers, you are at right place. There
are lot of opportunities from many reputed companies in the world. According to research SAP FICO has a
market share of about 3.3%. So, You still have opportunity to move ahead in your career as a SAP FICO
Consultant. Mindmajix offers Advanced SAP FICO Interview Questions 2019 that helps you in cracking your
interview & acquire dream career as SAP Business Applications and Technology.

Q1) Compare SAP FICO with any general financial accounting and controlling approach
S.No SAP FICO Others

1 In terms of flexibility, SAP FICO is good Other parallel approaches are not as flexible
as SAP FICO

2 There are additional options for accounting Account integration is either complex or
controlling and integration missing
 3 SAP FICO allow multiple currencies to be managed No additional options for currency

Q2) 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 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.

Q3) 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 was send including all
its information. The users can simply keep a digital record of all the funds received or transferred to any other
account. This enable them to prepare documents for the future on which some important plans and decision
making strategies are based on. Financial statements also enable business to get reducation 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.

Q4) Can you name a few modules with which it is possible for the users to integrate the financial
accounting?
There are several useful modules where it is possible for the users to consider this approach under an integrated
manner. These include Material Management, Sales & Distribution, Production Planning, financial transaction
management, as well as Human resource.

Q5) What is 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 May can have
29 days. The same can be done with an option in the SAP which is known as Year Dependent Fiscal Year.

Q6) What exactly do you know about the SAP FICO?

FICO stands for Financial Accounting and Controlling. It is basically an important tool which is useful in
preparing the 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 to worry about the security of the data and in addition to this, it simply make
sure of managing and utilizing the data in a reliable manner.

Q7) What are the common reasons of errors in the accounting and what impact do they actually have on
the organization?
Errors are of lot of types and can be due to a diverse array of reasons. The users can often made mistake. 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 not updating the sheets and so on.

Q8) 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 in 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 upto 3 currencies and among which one generally remains local and other can be considered
as parallel.

Checkout SAP FICO Tutorials

Q9) How many periods are there in the SAP FICO?
There are total 165 periods among which 4 are considered as special. They are generally used when it comes to
defining any data that is related to fiscal year. A user is free to consider the special period anytime when the
need of same is felt.

Q10) In SAP calendar, what exactly is “Year Shift”?

SAP doesn’t have any provision to access broker year. It only understands calendar year. However, it is not
always necessary that for all the organizations the calendar year is the financial year. There is often a need to
change months. They needed to be added or removed. This can be done easily in the SAP and the same procedure
is known as Year Shift.

Q11) How taxes are taken care of in the SAP FICO?

One of the major issues is Tax Slabs are not similar in all the countries. Also, there are additional taxes applicable
there. SAP FICO has 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.

Q12) What do you know about the Substitutions and validations in SAP?
They are generally defined assets for the different functional area. They can be accessed through two options
and they are Document level and the line level.

Q13) 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 matters to the organizations. In fact, all that matters in the accounting
can easily be managed with this approach. It also has applications in the Asset and Cost Accounting. The Project
system accounting can also be managed through it 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 application in the Real Estate which is
one of the emerging domains across the globe in the present scenario.

Q14) What is WIP in SAP FICO?

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

Q15) 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.

Q16) 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 of item. It simply give 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.

Q17) What is the significance of financial general ledger accounting?

It is used whenever there is a need for the organization to access the external accounts. It simply incorporate 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 needs core accounting skills or have problems associated with them.

Q18) 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 benefit is accounting data is always correct. The users doesn’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 make 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
Q19) What is 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.

Q20) Tell something you know about a field status Group?

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

Q21) What prerequisites are there which users need to handle when it comes to document clearing?
First thing to make sure is whether the items get cleared status by the management or not. Next is to make sure
that the document is valid or not.

Q22) 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.

Q23) What is 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.

Q24) Why Asset classes are important in SAP?

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

Q25) Name a few important components of the charts that matters 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.

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Q26) Tell something about the credit control area in the SAP?
The credit control is in the SAP enable 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 risk of bad debts and outstanding receivables.

Q27) 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.

Q28) What do you mean by posting period Variants?

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

Q29) 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.

Q30) Tell something about Parallel local currency in SAP?

Organizations are allowed to add two more currency option than their local. They can be used in the transactions
made at International level by an organization. The organizations are free to use any two options for parallel that
they seem to have more need. They can be tagged as Group currency and hard currency.

About The Author

Ravindra Savaram is a Content Lead at Mindmajix.com. His passion lies in writing articles on the most popular
IT platforms including Machine learning, DevOps, Data Science, Artificial Intelligence, RPA, Deep Learning,
and so on. You can stay up to date on all these technologies by following him on LinkedInand Twitter.

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How the tickets in production support are resolved?

2. Give some examples with solutions?

What are the types of ticket and its importance?

This depends on the SLA. It can be like:

1. Critical.
2. Urgent.
3. High.
4. Medium
5. Low.

The response times and resolution times again are defined in the SLA based on the
clients requirement and the charges.

This is probably from the viewpoint of Criticality of the problem faced by the client as
defined by SAP.

1) First Level Ticketing:

Not severe problem. Routine errors. Mostly handled by Service desk arrangement of
the company (if have one).

Eg: a) Say Credit limit block in working on certain documents?

b) Pricing Condition Record not found even though conditions are maintained?
c) Unable to print a delivery document or Packing list?
PS: In the 4th phase of ASAP Implementation Methodology( i.e Final Preparations for
GO-LIVE) SAP has clearly specified that a Service desk needs to be arranged for any
sort of Implementation for better handling of Production errors.

Service desk lies with in the client.

2) Second Level Ticketing:

Some sort of serious problems. Those Could not be solved by Service Desk. Should
be referred to the Service Company (or may be company as prescribed in SLA).

Eg: a) Credit Exposure (especially open values) doesn't update perfectly to KNKK
Table.
b) Inter company Billing is taking a wrong value of the Bill.
c) Need a new order type to handle reservation process
d) New product has been added to our selling range. Need to include this into
SAP. (Material Masters, Division attachements, Stock Handling etc.)

3) Third Level Ticketing:

Problems could not be solved by both of the above, are referred to Online Service
Support (OSS) of SAP Itself. SAP tries to solve the Problem, sometimes by providing
the perfect OSS Notes, fits to the error and rarely SAP logs into our Servers (via
remote log-on)for post mortem the problem. (The Medical check-up client,
connections, Login id and Passwords stuff are to be provided to SAP whenever they
need or at the time of opening OSS Message.)

There are lots of OSS Notes on each issue, SAP Top Notes and Notes explaining
about the process of raising a OSS Message.

Sometimes SAP Charges to the client / Service company depending on the Agreement
made at the time of buying License from SAP.

Eg: 1) Business Transation for the Currency 'EUR' is not possible. Check OSS Note -
This comes at the time of making Billing.
2) Transaction MMPI- Periods cannot be opened – See OSS Note.

There are many other examples on the issue.

4) Fourth Level Ticketing:

Where rarely, problems reach this level.

Those problem needs may be re-engineering of the business process due to change in
the Business strategy. Upgradation to new Version. More or less this leads to
extinction of the SAP Implementation.