Fintech SAP FICO Interview Questions and Answers

1. What is SAP? And what are the important modules of SAP?

SAP stands for Systems Applications and Products in Data Processing. SAP, by definition, is also the name of the ERP (Enterprise Resource Planning) software as well as the name of the company. SAP Software is a European multinational, founded in 1972 by five ex-IBM scientists.

Important Modules are:

SAP Financial Accounting (FI)
SAP Controlling (CO):
SAP Sales and Distribution (SD)
SAP Production Planning (PP)
SAP Materials Management (MM)
SAP Quality Management (QM)
SAP Human Capital Management (HCM)

2. The length of G/L account number should be mentioned in

A. G/L account groups
B. G/L account
C. Chart of Accounts
D. None of the above

Answer: C

3. What is the company code in SAP?

To generate financial statements like Profit and Loss statement, Balance sheets etc. company code is used.

4. How many Chart of Accounts can company code have?

You can have one Chart of Account for one company code which is assigned.

5. In SAP what is the use of FSV (Financial Statement Version)?

FSV (Financial Statement Version) is a reporting tool. It can be used to extract final accounts from SAP like Profit and Loss Account and Balance Sheet.

6. What is the default exchange rate type which is picked up for all SAP transactions?

For all SAP transaction, the default exchange rate is M (Average Rate).

7. Where can you use the internal order?

To track the cost, internal orders are used; they are proposed to be incurred over on a short term basis.

8. How many normal and special periods will be there in a fiscal year, and why would you use special periods?

In general, there are 16 posting periods in a fiscal year. Of these 16 posting periods, there are 12 normal periods and 4 special posting periods. Special posting periods are used for book adjustments, tax adjustments, audit corrections, and so forth. Special posting periods are part of the 12 th normal period.

9. What are residual payment and part payment?

Residual payment: This clears the original invoice with the incoming amount and creates a new open line item for the remaining outstanding amount.

Part payment: This leaves the original invoice amount and creates a new line item for the incoming amount. In case of partial payment, both the original (invoice) entry and the payment entry will appear as open items. These situations arise when you don’t receive full payment against an invoice.

10. Can you configure cash discount terms?

 Yes, this is configurable through payment terms. While configuring payment terms, you will define the cash discount if payment is made within the defined date. You can configure payment terms using T-code OBB8.

11. If a document type is configured for a vendor, can you use that document type in the line item posting key meant for a customer?

With T-code OBA7 you are defining the document type. While configuring the document type, you are defining the type of account to which it will post. If the document type is defined only for vendors and you are using it for a customer, the system will not allow us to post to the customer. Hence, the document can’t be posted for a customer.

12. What is dunning? What is a dunning level?

Dunning means notifying business partners of their overdue outstanding balance. A dunning level determines how often an account will be dunned.

13. What is a controlling area?

The controlling area is the central organizational unit within the CO module. It is representative of a contained cost accounting environment where costs and revenues can be managed.

14. By mentioning the base line date, cash discount periods, and cash discount percentage rate in payment terms, system will calculate

A. Due date of the invoice and cash discount
B. Due date only
C. Cash discount only
D. None of the above

Answer: A

15. How many local currencies can a company have?

Only 1

16. The G/L account for a bank is linked to

A. House Bank
B. Many house bank
C. One house bank and one account id
D. One house bank plus multiple account ids in the same bank

Answer: C

17. Foreign currency valuation is possible for what items?

               Vendor, Customer and G/L Items

18. What are posting keys and what is the purpose of defining them?

 Posting keys determine whether a line item entry is a debit or a credit, as well as the possible field status for the transaction.

19.What are some examples of standard document types?

The standard document types provided in SAP solutions are: SA—General entry, DA—Customer document, KA—Vendor document, DZ—Customer payment, and KZ—Vendor payment. You can create new document types using T-code OBA7

20. What is an automatic payment program? What is the T-Code for the APP configuration?

An automatic payment program is a program through which you are able to pay and generate checks for all vendors/customers you owe as per payment terms. This can be configured through T-code FBZP.

21. Define the relationship between a controlling area and a company code.

A controlling area may include one or more company codes, which must use the same operative COA as the controlling area. A controlling area can contain multiple company code assignments, but a single company code can be assigned to only one controlling area.

22. What is ECC?

SAP ERP Central Component (SAP ECC). ECC is a component of SAP’s ERP software package. ERP suite provides the overall management and control of the functions. ECC consists of the group of functions that businesses can perform.