Hello Dear Consultants, If you are looking for SAP FICO Interview Questions for Experience Candidates | SAP FICO Interview Question Answers for Freshers and Experience Candidates then here you will get all the details.
What is special purpose ledger?
special purpose ledger is used for reporting purpose. It receives data
from all modules and summerizes data for user defined reporting purpose.
What is Difference between Leading & Non Leading Ledger?
Ledgers
It is used to record financial transactions in general accounting by account. In general
accounting,
several ledgers can be used in parallel.
Using several ledgers allows you to produce financial statements according to different
accounting
principles. SAP has two types of ledgers
- Leading Ledger
➢ The leading ledger is based on the accounting principles that are of the consolidated
financial statements.
➢ Only one leading ledger can be defined and sap provides leading ledger ‘0L’ by default.
➢ The leading ledger is integrated with all subsidiary ledgers and is updated in all company
codes.
➢ Leading ledger is integrated with all non-leading ledgers.
➢ The leading ledger automatically assigned to all company codes.
➢ The leading ledger receives the currencies, the fiscal year variant and the variant of the
posting period’s settings that are applied to that company code.
➢ Second and third parallel currency can be defined for leading ledger for each company
code.
Non-leading ledger
➢ The non-leading ledgers are parallel ledgers to the leading ledger in non-local countries.
➢ Non-leading ledgers can be based on a local accounting principle.
➢ Non-lading ledgers needs to be activated manually for the individual company codes.
➢ Non-leading ledgers can have different fiscal year variants and different posting period
variants per company code.
The second and third currency of the non-leading ledger picked from currencies assigned
to leading ledger.
Separate document number range can be assigned to document types in non-leading
ledger
Example: –
Let us assume a company is established in three countries India, USA and UK where the
company is registered in India. These three locations should maintain three separate
financial statements based on the legal requirements in the specific country. To create
those financial statements, transactions needs to be separated based on the accounting
principles.
The ledgers in financial statements created for the country where the company registered
are called as Leading Ledgers (LL). The ledgers in financial statements created for the
other countries are called as Non-Leading Ledgers (NLL).
Note: – Any postings to Leading Ledger automatically gets updated to Non-Leading Ledger.
Non-leading ledger posting can be used to modify for different amount due to accounting
principle.
What do you mean by company in sap?
A company is an organizational unit in Accounting which represents a business organization
according to the requirements of commercial law in a particular country. For which individual
financial statements are created according to the relevant legal requirements. A company can
include one or more company codes.
What do you mean by company code?
Company code is one of the organizational unit and legal entity which is formed as per local law
where we generate financial statements individually.
What do mean by segment in sap?
Segment is also one of the organizational element it can be a geographical area. It is new GL
concept.
What is profit center and use of it?
Where profit will be generate we called it as profit center. Profit center can be product or area
and it one of the node in org structure./
Profit Center: Profit center is an organisational unit used for internal controlling purposes. Profit
center accounting at profit center level is based on costs and revenues. Every profit center is
assigned to the controlling area organizational unit. Profit center can be assigned in cost center
master data.
What is the use of cost center?
Cost center is also one of the organizational element in CO where we book our cost.
What is chart of accounts and use of it?
Chart of accounts is nothing but list of GL accounts or structure of GL accounts. By using account
groups we create GL accounts at the time of account group creation we create with the
combination of chart of accounts. There are three types of COA`s are there
1.Operational
- Country
- Group
Operational COA is use to post our day to day business transactions. It is mandatory.Country specific COA will be create as per country legal requirements. The usage of country COAis optionalGroup COA is used for consolidation prepuce. The usage of group COA is also optional
Is it possible to assign one COA to multiple company codes?
Yes, we can assign one COA to multiple company codes.
How many COA can we assign to one company code?
Only one operation COA we can assign to a company code. Afford from we can assign country
specific and group COA as well if it require.
What do you specify in COA?
We specify name of COA, language of COA, length of GL account number and cost element
creation.
What is account group in sap and what it does?
Account are highest nodes in master data creation. In order to maintain similar types of accounts
as group we must create account groups. By using this we create master data. Account groups
controls the number range interval of the master records and field status of the master records.
What is retained earnings account and use in SAP FICO?
Retained earnings account is a bridge between P/L accounts to Balance sheet B/S. at the
year end balance of P/L will carry forward to B/S through this account.
Is it possible to maintain more than one retaining account and use In SAP FICO?
Yes, we can maintain more than one based on requirement. So when we assign more than one we have to specify the retained earning account in GL, at the time of P/L GL account creation. Then the respective values will go respective retained earnings account.
What is fiscal year variant in SAP FICO?
It is 2 digit Alfa numeric key it contain posting periods. There are two types of fiscal years are
there 1 is year dependent and 2 is year independent.
1 year dependent fiscal year is which varies the starting and ending date to year to
year is called year dependent
2 year independent which does not varies the starting and ending date to each
fiscal year is called year independent
What is short end fiscal year in Fico?
Short end fiscal year nothing which fiscal year does not have 12 normal posting periods is called
it short end fiscal year. It must be year dependent.
Is it possible to assign one fiscal year variant to multiple company codes?
Yes, we can assign more than one company code.
What is posting period variant and use in SAP FICO?
Posting periods are months where we post all our day to day business transactions. It is 4 digit Alfa numeric key it contains which month is open and which month is closed.
What do you mean by document number range and use?
Document number is unique identification. Document number can be internal or external. If it is
internal system will generate number for the document from the interval. If it is external we have
to give number to the document from the interval.
How many types of number range are there in sap and use?
Document number can be internal or external. If it is internal system will generate number for
the document from the interval. If it is external we have to give number to the document from the
interval.
What is document type in sap and use/what it controls?
Document type bifurcates the business transactions based on nature of the transaction. So we
can come to know what type of entry it is by seeing the document type. It controls the document
header data fields like reference number header text fields and it controls the
a. Number range interval of the document
b. Reversal document type
c. Account types which are to allowed
d. Exchange rate type for the document type
e. Negative postings allowed
f. Intercompany transactions allowed
What is field status variant?
It is 4 digit Alfa numeric key it contains the field status groups.
Is it possible to assign one field status variant to multiple company codes?
Yes, we can assign one FSV to more than one company code.
What is field status group and use or what is does?
Field status group controls the field status of document line item. We assign this group in GL
master so at the time of posting we give GL account based on this link will be happen.
What is posting key use in SAP FICO?
System does not know which line item is debit and which line item is credit, based on posting key
which we give at line item level system will treat debit and credit line items. And posting key also
controls the field status of the document line item like field status group.
Deference between posting key and field status variant?
Posting key is at client level field status group is company code level. So if you make any changes
at posting key level it will be applicable to all company codes in client whereas field states group
does not do it because it is company code level.
What is the use of tolerance group in sap?
This we used for posting with tolerance. It is mandatory basic setting. Here we give tolerance
limit for debit and credit line items. It can be either in percentage or amount
How many types of tolerance groups are there in sap FI?
a. Tolerance group for GLs
b. Tolerance group for employee
c. Tolerance group for vendors/ customers
What do you mean by global parameters?
From here we can see all the values which we assigned to company code and we can maintain some values from here those are like propose fiscal year, PAN number, balance sheet per business area etc..
How many variants are available in sap?
Field status variant
Fiscal year variant
Posting period variant
What is the use of propose fiscal year check box?
If we select this option system proposes the always with current year as default value like value
date also works.
What is the use of default value date?
If we select this option system proposes the always with current date as value date as default
value.
What are special periods use?
Special periods are part of last fiscal year. Usage of special periods purely optional. The Special
periods in a fiscal year can be used for things like posting audit or tax adjustments to a closed
fiscal year.
What do you mean by company code is productive and where do we specify?
If you select this option system prevent automatic deletion of programs and settings generally
we select this in production system. This option is available in global parameters.
What is GL account?
It is a key or master which we use to post transactions to update books. There are used to post
day to day business transactions.
How many segment are available in GL what are?
There are 2 segments are there
Chart of accounts segment
Company code segment
What is account currency?
In which currency account is created is called account currency it can be local currency or other
currency.
What is the use of only balance in local currency check box?
Select this check box where you want to update balance in local currency. When you select this
option balance of the account only will show in local currency it won’t show in other currency.
What is the use of exchange rate difference key?
This is just 4 digit key which we use to calculation exchange rate differences.
What do you mean by tax category?
If the GL account is subject to tax we have to specify tax category whether it is input or output or
all categories. Then you have to give tax category field value.
What is the use of post with allowed tax check box?
If you give value for tax category we must give tax code otherwise system will not allow us to
post. If we select this option system will allow to post transaction without giving tax code.
What is reconciliation account type?
Reconciliation account is a bridge between sub ledger and main ledger. We can’t post
transactions directly to this account.
What is the use of alternative account number in GL master?
The alternative account number field in the company code area is freely definable. You could use
it to enter the account number from your legacy system or
If we implemented country specific chart of accounts this field must filled with country specific
account. The account number from a country chart of accounts if your corporate group uses a
standard chart of accounts.
What is the use selecting line item display?
Select this option if you want to see line items in ledger view. If you select open item management
check box this field is mandatory. We must select to clear line items.
What is the use of open item management explain briefly?
Select this option where clearing is required. If you select this option we will be able to see all the
line items separately in ledger like open item and cleared items. Generally we select this option
for only balance sheet GLs we can`t select for P/L accounts. Then we can clear against line items
fully or partially or residually
Difference between partial clearing and residual clearing?
If you go for partial clearing the document will keep open till you pay remaining amount whereas
if you go for residual clearing the original document will be cleared and new document will be
generate for new residual line amount.
What are the pre-requisites to select open item management check box?
Line item display check box. It is mandatory if the GL is managed with open item management.
What do you mean by post automatically check box and for what type of account we select
give some examples?
Select this option where you want to post automatically. If we select we can`t post manually to
particular GLs.
EX: GR/IR
What is the use of interest indicate?
Specify this indicator in GLs where you want to calculate interest on open items.