CLASS NO-3

General Questions Set – 1

1. SAP – System, Application & Products in Data Processing.
2. SAP R/1, R/2, R/3
R/1 – 1st Version & 1 Tier architecture in which 3 layer Presentation, Application &
Database are installed in 1 system / server
R/2 – 2 Tier architecture in which 3 layer Presentation, Application & Database are
installed in 2 system / server.
Server 1 – Presentation, Server 2 - Application & Database
R/3 – 3 Tier architecture in which 3 layer Presentation, Application & Database are
installed in 3 system / server.
Server 1 – Presentation, Server 2 – Application, Server 3 – Database
2. FI In SAP – This module is the Back bone Of SAP, Which records, Collects & Process
Financial transaction on a real time basis & which the Data is drawn for the external and
internal .FI is integrated with other modules like SD, MM, HR, CO, PP..
4. Organizational Units in SAP - Organizational Units in SAP are the functional in
enterprise and are used in Reporting.
 Client (Across all Modules)
 Company Code (FI)
 Controlling Area (CO)
 Plant (Logistics)
 Sales Organization (SD)
 Purchasing Organization (PP)
 Employee Group (HR)

5. Organizational Structure

6. Company in SAP – Company is the Organizational unit for which individual financial
statements can be drawn according to relevant commercial law. A Company can comprise more
than one company code. A Company has local Currencies in which the transactions are
recorded. All Company Codes within a Company must use the same Chat of Accounts & Same
Fiscal Year. Creation of Company in SAP is optional.
7. Company Code in SAP – Company Code in SAP is the smallest Organizational unit of
Financial accounting for which you draw a individual Financial statement like Profit & Loss A/C,
Balance Sheet for the purpose of external reporting. Creation of Company Code in SAP is
mandatory.
8. Organizational Element in SAP FI –
Company Code
Business Area
Chart Of Accounts
Functional Area

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9. Business Area – Business Area is a separate area of Org. units. Operations Or
Responsibilities within a company code and used for Internal & External Reporting. Different
Divisions of Such business within a legal entity are created as Business Area for reporting of each
operational area.

10. IBAN In SAP – International Bank A/C Number Internationally recognized unique
identification number for a specific Bank A/C 34 Alphanumeric character .
The Bank Country Key
Two Check Digits
Country Specific A/C Number

IBAN maintains in bank details of Customer / Vender Master Data in House Bank. Most of the
time IBAN is used for foreign currency payment term.

11. Can You assign more than one Company Code to a company?
Yes, all Company Codes within a company should use the same Fiscal Year and COA
though all Company Codes can have different local Currencies.

12. What is Posting Keys?

2 digit numeric cal key that determines the type of transaction entered in the line
items. It determines.
1. Account Types (A, D, K, M, S)
2. Types Of Postings i.e Dr. or Cr.
3. Fields Status of Transactions

13. Sub Modules Of FI?

G/L Accounting, AR, AP, Bank Accounting, Consolidation, Special Purpose Ledger, Travel
Mgt.

14. Functional Area – Functional Area is a organizational Unit in accounting that classifies
the exp. Of organization by function. The functional Area is use to create P&L A/C in Financial
Accounting using cost of sales accounting . Eg: Functional Area are Administration, Sales &
Distribution, Manufacturing, Production, Research & Development

15. Credit Control Area – Credit control Area in an organizational Unit that specifies &
check a Credit Limit for Customer. Credit Control Area can include one or more Company Codes
(OB45). Update Name of Credit Control Area CurrencyDescriptionCredit LimitRisk
CategoryFiscal Year VariantRep. Group.

16. Chart Of Accounts – Chart Of Accounts is a list of all G/L accounts master records that
are used by the organization. A COA must be assign to each Company Code. COA is defined at
Client Level. Types:- Operating COA, Country Specific COA, Group COA.

17. Country Specific COA – Country Specific COA contains the G/L accounts needed to
meet the country’s Legal Requirements. Country Specific COA are assigned to Company Codes
and this is optional.

18. Operating COA – Operating COA Contains G/L accounts that uses for posting in Company
Code for day to day posting activities. Operating COA is used in both Financial Accounting & Cost
Accounting. You have to assign Operating COA to a Company Code.

19. Group COA – Group COA contains the G/L accounts that are used by the Entire Corporate
Group and this COA is used to consolidate the Reports for the entire Corporate Group.
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20. Relationship between Chart of Accounts and Co.Code

21. Fiscal Year – Fiscal Year is Divided into number of Posting Period in a accounting period
is divided by a Start Date & End Date.

22. Fiscal Year Variant – Fiscal Year Variant is used to define the Fiscal Year. It contains
the 12 normal posting periods & 4 special periods. We can define maximum 16 posting periods
for each year. Special periods are used for Year End Activities.

23. Assign Fiscal Year Variant to Company Code – OB37

24. Posting Period Variant (PPV) - Posting Period Variant is accountable for the Opening
& Closing of Periods in a Fiscal year for posting taken place. The Posting Period Variant in SAP is
used to control which accounting period is open for postings & Ensuring that closed period
remain balanced and reconciled. We can PPV to one or more Company Code.

25. Opening & Closing Posting Period – The Posting Period can be maintained as per
account Type and the Year which is to be Open & which is to be closed. The Posting Period
Variant is used to control which accounting Period is to be open for Posting and ensuring that
Closed Periods are remain Balanced and reconciled.

26. Year Dependent & Year Independent Fiscal Year Variant:-

Year Independent - Same number & date for the periods every year.
Year Dependant - Periods can be different from year to year.

27. Shortened Fiscal Year :-

Fiscal year which has less than 12 posting periods is known as shortened Fiscal year.

28. Can You How Do You Carry forward A/C Balance?

A/C balances are carried forwarded from one Fiscal year to the next Fiscal year by using the
SAP standard carry forward program.

29. Purposes Of Internal Order:-

30. What Is Retained Earnings A/C? And How Many Retained Earnings A/C Can Be
Defined In SAP System?
A/C balances are carried forwarded from one Fiscal year to the next Fiscal year by using
SAP Standard C/F program. Retained Earnings is assigned to each P/L A/Cs by specifying as P&L
A/C type in the COA. Each P&L a/c assigned to a retained earnings a/c.

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31. In Company Code Max 3 Currencies:-
One Local Currency & two Parallel Currencies.
32. Year Shift In Fiscal Year Variant:-
SAP system does not know what is broken Fiscal year(April-Mar) & only understand
calendar year. If for any business, the Fiscal year is not a calendar year but the combination of
the different months of two calendar year & then one of the calendar year has to be classified
as a Fiscal year for SAP & the month falling in another year has to be adjusted into the Fiscal
year by shifting the year by using the sign -1 or +1. This shift in the year is known as 'Year Shift'.

33. Problems in Business Area Configuration:-

Is splitting of A/C balance which is more practical in the case of Tax A/Cs.
General Questions Set – 2
1. Difference between Company Code and Company ID

2. Is It Possible To Generate A Financial Statement Form Automatically?

Is It Possible To Keep Open The FI Postings Period Only For Certain G/L Code?
Can Posting Period Variant Be Assigned More Than 1 Company Code?
Yes, Is It Possible To Generate A Financial Statement Form Automatically?
Yes It Is Possible To Keep Open The FI Postings Period Only For Certain G/L Code – OB52
(A,D,K,M,S)
Yes Posting Period Variant Can Be Assigned More Than 1 Company Code
3. There Is A Advance Given By A Customer Which Lies In Special G/L
Indicator A. Will The Advance Amount Be Considered For Audit Check?
It Depends On The Configuration Setting In Special G.L Indicator A. If Relevant To Credit Limit
Indicator Switched On In The Special G/L Indicator A, Then The Advance Amount Will Be
Relevant For Credit Check, Otherwise Not.
4. In Payment Term Configuration What Are The Opinion Available For Setting A
Base Line Date?
4 Options – No Default, Posting Date, Doc. Date, Entry Date.
5. How Do You Configure Special G/L Indicator For Customer?
We Can Use An Existing Special G/L Indicator ID Or Create A New One. After Creating, Update
COA & Reconciliation A/C, Special G/L Code.
Special G/L Code Should Be Marked as a Reconciliation A/C. Switch On the Relevant For Credit
Limit & Commitment Warning Indicator in the Master Record.

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6. I Run My APP & I Printed My Check & After That I Find That I Made A
Mistake Of Wrong Payment To Related Vendor. Now What Can I Do? Can I Delete
Proposal & Stop APP.
You Will But Be Able To Delete Proposal After Payment Run. If You Want To Delete Proposal
then :-
1st – You Have To Manually Reset & Reverse The Postings Generated By FBRA.
2nd You Have to Delete Payment Run Edit-Payment Delete Output.
3rd – Then You Will Be Able to Delete Proposal, Edit-Proposal Delete.

7. I Have 2 Companies One In Parent Company And Another Sister Company. Both
Companies Have Same Vendor & Customers. Can I Assign Dunning Procedure For
Both Companies?
You Have To Assign A Dunning Procedure Separately For Each Customer and Vendor In Their
Respective Master Record in Company Code Level. And Then Select Company Codes Both Parent
& Sister Concern And Then Select Customer And Vendor In Parameter Maintain.

8. 4 Branches & 1 Factory – Configure It?

1 Company Code - Bus. Area2, Bus. Area3, Bus. Area4
1 Company Code – Plant

9. Purchase Life Cycle With Entries

10. A. ENTRY DATE:- System Date On Which Docs Entered.

B. DOC. DATE:- Date Of Supporting Docs P.O./ Invoice/ Bill Date
C. POSTING DATE:- Date On Which Entry Is Posted To The Ledger Or Accounting Date.
D. VALUE DATE:- The Date On Which Doc Is Valued I.E. For Forex Valuation the Value Date Is
Needed For Calculating Exchange Rate Difference.
E. NEXT RUN DATE- This Is For Payment Run What the Next Day For Calculating The Payment
Due Document & Discount Calculation.

11. Ticket Rising Run Time Problem?

Ticket Will Be Receiving From Production Server. Solution Should Be Depends On Client
Service Desk, We Have to Give the Answers through Emails. If Configuration Change We Have
To Ask Change Request From the Client, Then We Have To Do Configuration after That It
Moves to Testing Server. Once Consultant Checks If There Is No Error It Will Be Transported To
Quality Server, There User Has To Check & Given User Acceptance Testing Then Only The
Request Move to Production Server.

12. Statistical Internal Order:

Cost objects used for reporting & analysis purpose. It must be posted to in conduce with a real
object such a cost centre.

13. Purpose of the A/C type Field in G/L master Record:

At the end of the year, P/L a/c’s are cleared down to the retained earnings balance sheets. This
Field contains an indicator which is linked to specified G/L a/c s to use in this clear down.
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14. Recurring entries:
FBD1 – for Configuration, F.14 – For Run of Recurring Document.
Recurring entries can eliminate the need the manual postings of accounting documents which
do not change from month to month, usually multiple recurring entries are created at one go
and then processed all together as a batch month end unitary transaction.

15. Value Field in the CO-PA:

Value Field are number or value related Field in profitability analysis such as quantity, sales
revenue, discount value etc.

16. How tolerance for invoice verification defined is:

Tolerance determines whether the payable places matching or tax hold on the invoice. The
following are instances can be defined for logistics invoices verification:
a. Small difference
b. Moving average price variance
c. Quantity variance
d. Price variance

17. Major component of Chart of accounts:

COA key, Description, Maintain language, controlling integration, length of G/L a/c number,
consolidation of group COA, Block indicator.

18. Parallel & Local currency in SAP:

The currency entered in the company code creations called local currency & the other two
additional currencies are called Parallel currencies. Parallel currencies can be used in foreign
business transactions. In order to international transaction, Parallel currency can be used,
there are two Parallel currencies are Group currency and Hard currency.

19. Special Purpose ledger:

It’s used in reporting these are basically user defined ledgers, which can be maintained either
as G/L or Subsidiary ones with various a/c assignment objects. (With SAP dimension such as
profit centre, cost centre, Business area)

20. “C/F A/c Balance”:

If you have already posted into the new Fiscal year, you don’t need to ‘C/F balances manually”.
But you can use the C/F programs supplied by SAP for this task.
For the entire B/S item, the balance of this a/c s is just C/F to new Fiscal year along with a/c
assignment if any. This is also true for customer & vendor a/c s. In case of P/L a/c s, the system
carries forward the profit or loss (in the local currency) to the Retained Earning a/c & the
balances of this a/c s are set to be. No additional a/c assignments are transferred.

21. Prerequisite ‘C/F activity’

Yes for P/L A/Cs , you should have defined the retained earnings a/c in the system, you should
have also specified the P/L A/C type in the master records of each of these for P/L A/C s. There
is no such requirement. G/L A/C, Customer, Vendor A/Cs

22. How many Retained Earning a/c can be defined:

You can define as many “Retained earnings” a/c as you need. But normally, companies use only
one retained earning a/c. Remember, to define more than one, you should use the P/L a/c
type.

23. Can you have multiple Retained Earning a/c:

Normally its sufficient if you use one ”Retained Earning A/C” However, if you are configuring

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for a MNC where the legal requirement require treating some of the tax provisions differently
from other countries, then you will need more than one retained earning a/c

Document Parking In Fiscal Year Cannot Be Posted To The Next Fiscal Year Because Parked
Does Means If Any Adjustments Can Be Happened In The Future Days For That Purpose We
Have Temporarily Saved That Document.