Sap Fico

SAP FICO Interview Questions
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Dear readers, these SAP FICO Interview Questions have been designed specially to
get you acquainted with the nature of questions you may encounter during your interview
for the subject of SAP FICO. As per my experience good interviewers hardly plan to ask
any particular question during your interview, normally questions start with some basic
concept of the subject and later they continue based on further discussion and what you
answer −
What is financial accounting?
SAP FI stands for Financial Accounting and it is one of important module of SAP ERP. It is used
to store the financial data of an organization. SAP FI helps to analyze the financial condition of a
company in the market. It can integrate with other SAP modules like SD, PP, SAP MM, SAP
SCM etc.
Why do we use SAP FI?
SAP Financials accounting module enables you to manage financial accounting data within an
international framework of multiple companies, currencies, and languages. SAP FI module
mainly deals with the below financial components −
 Fixed asset
 Accrual
 Cash journal
 Accounts receivable and payable
 Inventory
 Tax accounting
 General ledger
 Fast close functions
 Financial statements
 Parallel valuations
 Master data governance
What are the different submodules in SAP FI?
 General Ledger
 AR/AP
 Banks
 Fixed Assets
 Travel Management
 Lease Accounting, etc.
What is General Ledger in Finance accounting?
A General Ledger contains all the transaction details of a company. It acts as primary record to
maintain all accounting details. Common general ledger entries are customer transactions,
purchases from vendors, and internal company transactions.
What is a Company in SAP FI? What does it consists of?
A company is defined as smallest unit for which financial statements can be created in accordance
with commercial legal regulations.
In SAP FI, a company can comprise of multiple codes, however it acts as a single unit for which
financial statements are available. All the company codes must use the same chart of accounts list
and fiscal year however each code can have a different local currency.
How do you manage transactions that comes from different line of business in a company?
Business Areas are used to differentiate transactions that comes from different line of business in
a company.
Example
There is a big company XYZ, which runs multiple business. Let us say it has 3 different domains
like manufacturing, marketing and sales.
Now you have 2 options −
 First is to create different company codes

 And other better option is to create each of these business lines into business areas,
What are the benefits of using Business areas in a company?
You can use these business areas if other company codes require the same areas
It is easy to configure if you use Business Area as you just need to attach to the company code
and the other details in business area will get attach itself.
By using Business areas in controlling, you can create Profit and loss statement, Balance sheet,
etc. for business areas so this is used for management accounting in few companies.
Note − Business areas are more used in Controlling as compare to Finance Accounting.
How do you manage credit limit for the customer in FI?
Credit control in FI is used to check the credit limit for the customer and it can use one or more
codes. It is used for credit management in Application components- Account Receivable (AR)
and Sales and Distribution.
The credit control area is determined in the following sequence −
 User exit
 Distribution channel
 Customer master
 Company code for the sales organization
What is Chart of accounts? What are the different types of COA in FI?
The FI chart of accounts represent the list of GL accounts that are used to meet daily needs and
country’s legal requirement in a company. The master chart of accounts must be assigned to each
company code.
Chart of accounts COA can be divided into below types −
Operating Chart of Accounts
It contains all General Ledger accounts that are used to meet daily needs in a company. Operating
chart of accounts has to be assigned to a company code.
Country Chart of Accounts
It contains list of all General Ledger accounts that are required to meet country legal requirements.
You can also assign company chart of account to company code.
In your company you have large number of G/L accounts, how can you manage them effectively?
You can create SAP FI chart of accounts group as per the requirement. To effectively manage
and control large number of G/L accounts, you should use COA groups.

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SAP FICO Interview Questions

 First is to create different company codes

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