SAP FI-CO Technical Interview Questions 1
1. Tell me about FI Organizational structure?
Ans: Client | Operating Concern |Controlling area1 Controlling Area 2 | Co. Code 1 Co. Code 2| Bus area 1 Bus area2 Bus Area3 Bus Area 4
2. How many Normal and Special periods will be there in fiscal year, why do u use special periods?
Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for posting tax and audit adjustments to a closed fiscal year.
3.Where do you open and close periods?
Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr. Code. OB52.
4.What do you enter in Company code Global settings?
Ans: 4 digit Alphanumeric key.
Name of the company
5.What is document type, and what does it control? Examples.
Ans: Document type is nothing vouchers containing line items. Several business transac! tions can be identified within a particular document type.
It controls the document number ranges.
It controls the Header part of document
IT controls the line item level of the document
Helps filing of physical document
6. What is posting key and what does it control?
Ans: These are special classification keys. Two character numerical key it controls the entry of line items.
Posting key determines Account type, Debit/credit posting, Field status of transaction.
7. What is field status group, what does it control?
Ans: FSG is mandatory field in ! GL Creation. You use this field to define which fields are displayed when you post business transactions to a G/L account.
A field may have one of the following statuses.
8. What is chart of account and how many charts of accounts can be assigned to a company?
Ans: Chart of account is a list of all G/L accounts used by one or several company codes.
For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a Company code.
You have to assign a chart of accounts to each company code. This chart of accounts is the Operating chart of accounts and is used for the daily postings in this company code.
You have the following options when using multiple company codes. You can use the same chart of accounts for all company codes
If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country.
In addition to the operating chart of accounts, you can use two additional charts of accounts If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries.
The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the co! mpany codes which use different charts of accounts together or separately.
9. What does definition of a chart of account contains?
Ans: chart of account key
Length of the GL Account Number
Group chart of accounts (Consolidation)
10. Can one COA be assigned to several companies?
Ans: yes. One COA can be assigned to several companies.
11) What is account group and what does it control?
Ans: Account group determines which fields you can configure on the G/L master record. It is necessary to have at least two one for B/S and another one for P&L a/c.
It controls the Number ranges of GL A/C.
The status of fields of the master record of GL belongs to company code area.
12) What is reconciliation account; can you directly enter documents in that a/c?
Ans: When you p! ost items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger.
We can’t use reconciliation account for direct postings.
13) How do you control field status of GL master records and from where do you control!
Ans: Field status variant is maintained all FSGs.
14) What are the segments of GL master record?
Ans: - COA Segment
Nature of account
GL a/c long text
Group Account Number
Company code segment
Reconciliation a/c for a/c type
15) What does Field status group assigned to a GL master record controls?
Ans: It controls the account assignments that are made to the account. Specifically the field status group controls whether postings to cost centers, internal orders, profitability segments and so on are required, not allowed (suppressed), or optional.
16) What is Country and operational chart of account? Why do you use group chart of account?
Ans: Operational chart of account – Day to day activities It is mandatory.
Country COA – It’s used for legal specific requirement of each country. It’s additional and optional.Group COA used for consolidation of Company codes. This is for group consolidation purpose.
17) What are all the segments in a Customer/Vendor master record?
Ans: Segments in Customer Segments in Vendor
General Data segment General data segment
Company code segment Company code segment
Sales area segment Purchasing organization Segment
18) What is open line item management? What do you mean by clearing open line items?
Ans: Open item management is further reconciliation function. OIM allows you to display the open and cleared items and amounts in an account. OIM should be used if an offsetting entry is made for every line item posted in the account. The a/c is reconciled and cleared against another account. Ex. Salary clearing account and GR/IR Clearing account.
19) What is residual payment and part payment?
Ans: Residual payment it clears original invoice with incoming amount and create new line item for remaining outstanding amount.
Partial payment it leaves the original invoice amount and creates new
line item for incoming amount.
20) What is internal and external number ranges?
Ans: Internal Number Ranges: Doc. No will be provided by the system automatical! ly in serial order allotting the next available progressive number. The number must be in numerical.
External Number ranges: Doc. No will be given manually by the end user. System will not lock no automatically in this case. User can pick the number randomly. Number may be an alpha numeric.
SAF FI Technical Interview Questions 2
Questions are answer best of my knowledge, if I am wrong, please correct me..anyone
1. How can be or in what way baseline date is important in Automatic Payment Program run?
The Baseline date is used to calculate the due date by taking into account the payment terms. On the APP, the baseline date helps to pick the relevant invoices for payment. During the APP run when invoices are pulled into the run, the system checks the ‘Next Payment Date’ before picking the invoices to be paid.
2. Please tell me the procurement cycle how it works?
Procurement cycle – a sales order is placed on a requirement made by a customer, after which it is passed on to create a purchase order (this could either happen based on the requirements on the SO, or a planned SO). the value flow gets passed on to FI at the time of goods movement. In the case of SD(Sales and Distribution), the impact on FI happens only at the time of billing.
3. Difference between Depreciation ,Accumulated Depreciation and APC?
What is APC?
Depreciation – a decrease in the value of an asset due to wear and tear
Accumulated Depreciation – the total amount of depreciation calculated on a particular asset.
APC – refers to Asset transactions other than depreciation
4. What is GR/IR?What journal entries we should pass for this?
The GR/IR – the goods receipt/Invoice Receipt account is used to post to whenever goods that are not yet invoiced have been received or when invoices arrive b4 the the delivery of goods.
During the time between the invoice being created and delivery of goods, there can be a timing difference, in order to accommodate this timing difference, a GR/IR account is maintained temporarily to record the flow .
5. What are the accounting entries take place in MM and SD?
Value from MM to FI is defined in OBYC…. on the material master the flow of values are assigned on the Costing, acctg, etc tabs where the system helps to post the necessary stock values into the appropriate GL accounts. helps to determine, the GL accounts updated when there is a movement of goods.
SD-FI - VKOA
6. Can we assign one Controlling area to two different Company Codes (but the company codes having different fiscal years/different currencies
Company code should have same financial year, may have different currencies.
You can assign 2 or more company codes to one controlling area as long as the chart of accounts are same. Furthermore, if you have different fiscal year variant in the company code, then make sure that the number of period remain the same.
7. While posting transaction, can we give cost centre / production order at time.
Yes it is posiiable , but in such situation cost centre will be real and production order is stastical.
If you assign both cost center and Prd Order then since Prod. Order are real co object, Cost center entry would be statistical.
8. Which Master data uploads will be done?
The question is not very clear. If you are talking about CO Master data. Then Cost center need to be uploaded. You can use Data Transfer Workbench or write abap for it.
9. Can we run Payment Programe giving ( Hdfc vendor detailes ) City bank in Payment run programe?
Yes can be possible , this can resolved through ranking order and bank optimization in FBZP.
You use use further selection in proposal paramater, if you would like to filter the open item based on the city
10. What does document header control?
11. After entering a document can you delete the entry? Can you change the document? Which fields’ can/not is changed?
Document header cannont be changed, after posting the document you cannot change. only if you want to change the document the reseversal entry.
12. What is a special GL transaction?
The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of exchange, Interest payable , aqusition
13. How do you reverse cleared documents?
By doing reversal posting.
14. What is base line date? Why is that used? Can this be changed?
For paymentterms it is used. base line date is the due date.
15. How many statistical objects can be selected in when you post an FI document? Where CCtr, PCtr, OM are active?
FI/CO Interview Questions
Brief about the project you did: w.r.t. the main activity of the client, How many plants they had, What modules were implemented, Who were the implementers, What’s the implementation team size, How many were in your module team, What’s your role in the project with respect to the activities you partook in the project, The Enterprise Structure with regard to the no. of Company Codes, any Business Areas or Profit Centers defined, Cost Centers defined, What’s the period of the project, When did they Go-Live?, Any issues you’d solved during ‘Support’ phase?
Questions on conceptual understanding:
a) SAP R/3 definition and 3-Tier Architecture
b) ‘Real time integration’ advantage of SAP
c) ASAP methodology
d) Solution Manager
e) Client / Company / Company Code / Business Area
f) Business Area vs Profit Center Approach
g) How effective will be the Financial Statements generated through Business Areas
h) With Holding Taxes vs Extended WHT
i) Field Status Concepts (G/L master fields controlled through Account Group and Document entry through Field Status Group set in the G/L master
j) Special G/L transactions
k) Open item management
l) Reconciliation Accounts
m) Subsidiary Ledgers
n) Sort key
o) Negative Postings Allowed
p) Special periods
q) Only balances in local currency
r) Important Posting keys for G/L, A/R, A/P, AA, Stock Entries
s) Assessment vs Distribution
t) Org. Structure for FI
u) Org. Structure for CO
v) Product Costing: How the values flow in the system
a) Extended With Holding Taxes configuration steps – right from creation of WH Tax Types, Codes to Annual Return
b) FI-MM Integration (OBYC configuration with particular reference to Off-Setting entries)
c) FI-SD integration
d) Down Payments transactions
e) Interest – Balances / Arrears
f) Asset Accounting: Asset Class, Main Asset, Sub-Asset, Group Asset, Dep. Areas, Dep. Key, Transaction No.s (100- External acquisition, 210 – Retirement with Revenue, etc.), Imp. Transaction Codes.
a) Educational Background
b) What influenced you to go in for SAP career?
c) Functional Career
d) Present earnings vs Expected pay
e) Inclination to relocate
What is APC?
APC stands for Acquisition and Production costs. Acquisition means any asset which you may acquire/ purchase externally. It includes invoice price and other related exp. Associated with it like customs, octroi, freight which you add and arrive at total cost of acquisition for capitalisation of the asset.For ex Say a computer. The total cost which you incurr for the acquisition of the computer including installation will be your APC
Production cost means any asset which is created internally within the organisation. This is normally created by means of AUC and you go on adding cost to the AUC as and when you incurr exp. for the same.For ex. say addition to the office building. Therefore APC incudes any external acquisition or internal construction of exp. which needs to be capitalised.
In OADB under 01 deprn area Acquisition & prod Cost tick is activated. Marazban D. Dalal
This is umapathy, I have intereview tomorrow, if anybody have taken interview with any company, kindly let me know what the questions they will be asking, how will be the interview. How the questions will be on configuration, implementation side and other questions plz.. share with me.
Pl. prepare yourself on the following broad lines:
Brief about the project you did: w.r.t. the main activity of the client, How many plants they had, What modules were implemented, Who were the implementers, What’s the implementation team size, How many were in your module team, What’s your role in the project with respect to the activities you partook in the project, The Enterprise Structure with regard to the no. of Company Codes, any Business Areas or Profit Centers defined, Cost Centers defined, What’s the period of the project, When did they Go-Live?, Any issues you’d solved during ‘Support’ phase?
What is a breakpoint ?
Breakpoint is used to help the user scrutinize how the system behaves at a certain point in the ABAP code. At that point the system goes into debug mode. This breakpoint is useful in investigating how routines and requirements function. By accessing the routine source code and setting a breakpoint at its execution point, a user can follow the routine through each step.
What is a CATT ?
CATT means Computer Aided Test Tool. It is SAP's tool for processing transactions automatically. CATT is used in bringing in data, such as a mass maintenance of the material master in EXCEL, from an application to modify master data.
What is a user exit ?
User exit is a point in an SAP program at which a customer's own program can be called. User exits allow developers to access program components and data objects in the standard system. There are two types of user exits -
user exits that use includes (customer enhancements that are called from the program)
and user exits that use tables, which are used and managed directly via customizing.
What is a client ?
Client in a SAP work environment is the highest organizational structure. Many clients can be found in each system. QA (quality analysis) and Development are clients in Training and Production system.
What is an authorization ?
Authorization gives an SAP user permission to perform a given set of transactions.
Who is a user ?
Anyone who is given access to the SAP system by the system (basis) administrator is known as a user.
What is a variant ?
When executing a program, different selection parameters may be used. These selection parameters are stored in the SAP system as variants.
What is a SQL trace ?
SQL trace records all open, prepare, fetch, execute and actual SQL statements and the duration time for each step in a procedure.
What is master data ?
Master data is used in an SAP system to represent the basic components of a procedure and to ensure data integrity throughout the SAP business process. This gaurantees that one common record is accessed for different procedures. Example - a customer master record may be referenced by more than one functional module : FI (financial) and SD (sales and distribution).
What is the IMG ?
IMG is Implementation Guide that SAP system developers use to customize the client they are working in.
What is ASAP ?
ASAP is Accelerated SAP, a project management software tool that is used on SAP implementations to guide the project through different phases. ASAP can take a project from the designing of the "blueprint" through to "going live". Accelerated SAP is SAP’s total process-oriented solution for accelerated implementation and continuous optimization of R/3.
What are the core modules of SAP ?
The core functional modules in SAP R/3 are Financial Accounting (FI) usually in combination with Controlling (CO) or Treasury (TR) - Human Resources (HR), and logistic modules : Sales and Distribution (SD), Materials Management (MM), Quality Management (QM), Plant Maintenance (PM), and Production Planning (PP).
What is the ABAP Workbench?
ABAP Workbench is SAP's graphical programming environment. It is used to write ABAP code, design screens, create user interfaces, obtain database information, debug and test applications for effeciency.
In the SD document, what are the three levels of a sales document?
Each sales document comprises of three main levels and each level is represented by a table that holds the data for that level. Data for the header level is stored in table VBAK, data for the item levels is stored in table VBAP, and data for the schedule line level is stored in table VBEP.
What is a user profile?
User profile is a set of authorizations that enable user access to certain parts of the SAP system.
What is a sales area ?
Sales area is a segment that combines the sales organization, the distribution channel, and the sales division.
What is a logical database ?
Logical database is an ABAP program that combines the contents of database tables. It is linked to an ABAP report program as one of the program attributes. It supplies the report program with a set of hierarchically structured table entires derived from different database tables. This saves the developer from having to program the data retrieval.
What is a requirement ?
Requirement is a portion of code that is used to determine if a function or formula should be executed.
What is an ABAP Query ?
ABAP Query is a reporting tool that uses a logical database (LDB), individual table, or combined tables to form a report.
What is a functional area ?
Functional area is assigned to the query. It is the representation of a logical database or tables with their respective table joins. This defines which tables and fields the query can reference.
What is a batch input ?
Batch input facility in SAP is a convenient tool for capturing data into SAP or updating large amounts of information in SAP transactions. The simplest way to utilize batch input is by : 1) Record the batch input for the transaction used to enter the data in SAP; 2) Then export the batch input recording to a text file. From the recording, you know what data is required. Create a spreadsheet or word processor document containing all the data to be captured or changed. Then mail merge the exported text file with the data in a word processing program. Finally, import the merged file, upload the file into SAP, and execute the batch input in SAP.
What is LIS ?
LIS is Logistics Information System. LIS consists of following information systems -
Sales Information System
Purchasing Information System
Shop Floor Information System
Plant Maintenance Information System
Quality Management Information System
These information systems can be used to plan, control, and monitor business events at different stages in the decision-making process. They are flexible tools for collecting, aggregating, and analyzing data from the operative applications.
What is OSS ?
OSS is an Online Service System which can be used to access information about a module in a given release. OSS is a database of notes on known issues and their remedies. Any user with a logon name and password can access this information. OSS can be used to obtain quick responses from the SAP help desk representatives, administration and registration of new users.
What is an SAP GUI ?
GUI means Graphical User Interface. It is responsible for the graphical layout of the SAP software. GUIs in SAP R/3 differ from version to version of SAP
Courtsey of ZZ:
1. Tick the incorrect answers
FI configuration is divided into the following levels
a. Organization Definition
b. Global settings
c. Transaction codes
d. Accounting functions
2. Tick the correct answer
The procedure model
a. Provides steps required for creating clients, users and authorization
b. Contains documentation for the configuration of applications
c. Provides Planning basis for implementation project.
3. Views within IMG allow for grouping of transactions based on various criteria.
4. Business Area is set up within organization structure and is linked to the Company Code.
5. Parameters for processing accounting data is must when creating a Company Code.
6. One customer can belong to multiple dunning areas.
7. Customer created in one company code can be allocated to several Credit Control Areas.
8. Tick the incorrect answer Benefits of Organizational Structure in SAP R/3 are
a. Flexibility to reflect complex organizational structure.
b. Data entry during creation of a transaction is minimized.
c. Possibility to consider future changes in organizational structure.
d. Separation of data into different functional modules
9. Customer and Vendor Master records can be accessed from the IMG side.
10. Master records may be assigned to an Account Group.
11. What are the two types of creating a Master Record?
Ans. : Centrally, Step-by-step i.e. at COA level then at Co. Code level.
12. Posting to a Blocked G/L master record gives a warning and then lets the user post to the master record.
13. Only one vendor master record is defined for a client having four different companies.
14. What is a Data Transfer Rule in the context of Sample Accounts?
15. If the Currency key of a Balance Sheet Account is not same as the Local Currency then the monthly debits and credits are stored only in the specified foreign currency. True/False
16. When creating a Customer Master Record the monthly debits and credits are entered at the Client level.
17. What is the third level of information contained in a Vendor Master Record when a Vendor is maintained centrally?
18 Which field in the Customer Master Record controls the One Time Accounts?
19. What are the three levels of controlling screen layout of a Master Record?
Field status of "Account Group", "Company Code" and "Activity Type"
20. Do you need to maintain line item display of a Vendor Reconciliation Account?
21. To manage foreign Currency bank accounts, the G/L master record must have the same currency as the foreign currency bank account.
22. In SAP for each payment term you can define up to 3 individual levels.
23. In the SAP system multiple documents are created for every business transaction.
24. Tick the incorrect answer
a. Distinguishes between the type of business transactions
b. Assigns the document Number
c. Controls the account types that can be posted to the document
d. Used as a sort Criteria
e. None of the above.
25. Tick the correct answer
a. Number Ranges must be defined for a Document Type.
b. Recurring Document Number Range is not associated with any Document Type.
c. Sample Document Number Range is associated with a Document Type
26. In SAP only one posting period is allowed to remain open at any point of time.
27. Maximum of how many posting periods can be defined in SAP?
16 in FI and 366 in Spell. Ledger
28. Tick the incorrect answer
Posting Key specify
a. Account Type
b. Account Number
c. Debit or Credit Entry
d. Data entry screen for line items
29. Field Status Group of a posting key is defined at the Client Level.
True/False Company Level
30. What are the levels of controlling layout of a Document Entry screen?
Field status of "Posting Key", "G/L account master record".
31. Is it a must to associate all revenue and loss accounts to a retained earning account?
32. Each Inter Company Transaction generates three documents .
33. What are the two types of "Fields" defined in SAP for authorization purpose?
Ans.: Operational Object like transaction table, Company code etc.
Activities like Create, Change, Delete etc.
34. There can be only one Authorization Object defined for an Object Class.
Several Authorization Objects(i.e. Customer, Account authorization) can belong to one Object Class(e.g. FI).
35. Tick the correct answer.
Allocation field in Document Line Item is used for
a. Controlling the screen layout.
b. Allocating amount to different cost centers
c. For sorting of documents
d. For referencing another document.
36. Tick the correct answer
Sub-Screen Processing is used
a. To control the layout of the subsequent screen based on the data entered in the first screen. (Posting Key controls the Layout of the subsequent screen)
b. To maintain the document flow from one functional module to another
c. To control the layout of the screen on which the data is entered.
d. To display all the referenced documents of the existing documents.
37. There is only one validation table defined per Company Code.
38. Are validations and Substitutions module specific?
39. What is a Call Up point?
Call up point is a point within a document where a validation or substitution is called. A validation can be called at document header level or at the line item level.
40. Tick the incorrect answer
Clearing is the process of
a. Posting a document
b. Matching Debit Entries to Credit Entries
d. Clearing Open items
d. Taking the account balances of Profit and Loss Accounts to Retained earning Account.
41. Tick the correct answer/answers
a. Residual payment leaves the original invoice intact and creates a negative amount in the account for the amount of partial payment.
b. Partial Payment results in clearing the original invoice and creating a new open item for the difference between the payment and the original invoice.
c. A partial payment can not refer to more than one open items.
d. None of the above.
42. The process of clearing open items for a customer who is also a vendor of the company is called
a. Partial Payment
b. Residual Payment
c. Transfer with clearing
d. Vendor Clearing
43. Which of the following statements is incorrect for Account Assignment Model.
a. It can contain multiple company codes
b. The transaction currency can be different from the currency defined in the Account assignment Model.
c. Ability to change all the fields
d. More number of line items can be added
44. Which all fields in a Recurring Document can be changed
a. Posting Keys
c. Line Item amounts
d. None of the above
45. Creation of the recurring reference document updates transaction figures of the associated accounts.
46. Preliminary posting is posting of incomplete documents before extensive entry checks.
46. Can the cross company transaction be parked?
47. Difference between a Parked Document and a Held Document is: The Parked document gets a document number based on the user ID where as the Held Document gets the document number assigned in the same way as in the standard document posting function.
48. What determines the document fields that can be changed?
Document Update Rule
49. What does GAAP rule specifies in context of Document Update Rule?
Account, Amount and Posting keys can not be changed for a posted document
50. A document posted in MM and SD can be reversed in FI.
51. Which field in the master record determines the way in which the line items are sorted?
Ans. Sort Key
52. Only system can populate the Allocation Field.
53. Can you create customized line layout, totals variant, or lists?
54. What are Total Variants?
Ans. It determines the fields according to which the line items are totaled. For each Total Variant up to three fields can be specified. For example, the line items of an account can be totaled and separated by : document type/document date, business area/month, or year/month/posting date.
55. Tick the correct answer
A "Work List" is
a. List of pending jobs
b. List of scheduled jobs
c. No of Employees and their job status
d. combination of accounts or company codes
56. You must assign Company Codes to Credit Control Area.
57. What is an "Update Group" in context of Credit Management?
Ans. An Update Group is assigned to a credit control area which affects how the accounts are updated. For example one update group can specify what credit statistics such as open order value, open delivery value, or open invoice value are updated based upon what document is being posted.
58. Tick the elements that needs to be configured for automatic credit checking
a. Credit Group
b. Credit Control Area
c. Risk Category
d. None of the above
59. In SAP which one of the followings is not a type of payment advice?
b. Lockbox Advice
c. Bank Advice
d. Dunning letter
60. Can a customer be dunned twice within the same Dunning Interval?
61. The due date for dunning is calculated from which date?
a. Document date
b. Baseline date
c. Value Date
d. Posting Date
62. Can a customer receive dunning letters from two dunning areas?
63. Dunning Keys are used to
a. Mark specific items that should not trigger specific dunning levels
b. Identify the Dunning procedure
c. List the customers under same dunning area
d. All of the above
64. Payment method must be defined at the country level before it is specified at the Payment program level.
65. Tick the incorrect answer
Payment program is controlled at
a. Client parameter level
b. Company Code parameter level
c. Payment method parameter level
d. Bank parameter level
66. What are the criteria based on which the open items to be paid are selected?
Ans. Date of Payment run, Next posting date, Blocked accounts
67. Tax codes are set up at the
a. Client level
b. Company Code level
c. Group Level
d. Country level
68. Where are the data to calculate tax are defined in SAP?
Ans. 1. Line item when posting a document
2. G/L Account Master
3. Country definition table
4. Tax Code table
5. Tables controlling automatic postings
69. To define a new tax code the following must be specified
a. Tax Type
b. Posting key
c. G/L tax accounts
70. What is a tax jurisdiction code and where it is set up?
Ans. Tax Jurisdiction codes are used in conjunction with tax codes to further specify the taxes applied to a purchase. This is recommended for implementations crossing multiple tax jurisdictions. Tax Jurisdiction codes are tied to customer/vendor master records. Using tax jurisdiction codes allows the user of fewer tax codes and easier tax determination by deriving tax information from the master record. This minimizes the burden of determining the appropriate tax information on a purchase order or invoice for a PO creator or Accounts Payable Clerk.
71. Can the taxes on parked document be calculated?
72. What are the criteria considered by SAP when archiving a document?
Ans. The longest of Minimum days in the system, Life by Document Type and Life by account determines the life of any document before it is archived(These are to be configured).
73. Once a change is made to the coding block, it is permanent and can not be deleted.
74. Explain the two steps of adding a field to a Coding Block.
Ans. Light Mode: Only the absolute minimum amount of information required to create a field is entered. Expert Mode: More detailed data dictionary and table information to be entered to create a new field. This is more complex. After a field is been entered a subscreen is generated to build the particular posting screen and to position the new field.
75. When posting document in FI, if only one line item has a business area, the system will automatically populate the blank records in the other line items. True/False
76 Multinational corporations can issue P&L statements and B/S in up to 4 currencies.
True/False Ans. 3
77. Index currency is used in high inflationary environment.
True/False Ans. Hard Currency
78. Which field determines where to post the exchange rate differences of foreign currency during revaluation?
Ans. Exchange rate difference key in G/L Account master records
79. The special G/L transactions per customer/vendor are tracked in the customer and vendor reconciliation accounts.
Ans. reconciliation accounts other than reconciliation account for customer and vendor
80. A special G/L transaction is defined by the special G/L indicator and the account type.
81. Can a financial statement structure be deleted from the system.?
82. In GLIS from the business ratio field can you drill-down to the line item level?
CO Interview Questions
Again courtsey of ZZ:
Cost center accounting
1. Describe how cost center accounting differs from financial accounting?
CO is for internal reporting where FI is more for external legal reporting. CO relates more to indirect and overhead costs, which don't affect G/L. These costs hit the G/L once, after that all the allocations are behind the scenes.
2. Describe the possible options for a controlling area - company code relationship Put emphasis on the option you have in terms of different currencies.
A controlling area can encompass one or more company codes. These company codes may have different currencies, but they must use the same chart of accounts. The controlling area is assigned a currency, but can also support multiple company code currencies. If all the companies have the same currency, then the object currency is freely definable (if currency type 10 is used). If the company codes do not have the same currency, then the object currency inherits the currency of the company code.
5. Discuss the cross-company controlling?
Cross-company-code controlling enables cross-company transfers and reports to be made in CO, but increases the organizational overhead at the cost center. In cross-company-code accounting involving different currencies, the CO account assignment object (e.g. cost center) inherits its currency from the company code.
6. What are the three types of currencies used in cross-company-code accounting and what conversion rates are used?
Each CO document is updated in three currencies. In cross-company-code accounting with different currencies, these are designated the document currency, the company code currency and the controlling area currency. Conversions in CO use the average exchange rate (M).
8. Define the types of master data that exist in cost center accounting?
Cost center - units of a company that incur costs
Cost element - define types of costs
Activity type - units of measure for allocating activities
Statistical key figures - allocation basis for distribution and assessment
12. Define the relationship between the chart of accounts and cost elements in cost center accounting.
The chart of accounts contains all G/L accounts for financial accounting and all primary cost elements for cost accounting. Secondary cost elements are not contained on the chart of accounts.
15. What is the difference between primary and secondary cost elements?
Primary cost elements are costs that originate outside of the company (posted to G/L). Secondary cost elements are costs resulting from the internal exchange of activities, and do not exist in the G/L. They exist solely within Controlling.
26. Is it possible to plan on cost centers in more than one plan version - elaborate youranswer?
Yes, when planning for cost centers, changes can be made to all plan versions This includes copying these planning versions, to create separate scenarios with When calling up the planning screen you will be asked to enter the plan version number.
30. Discuss how distribution for cost center allocation is used in the system.
Primary postings are pooled in a cost center and allocated out at the end of the period specified by user. Original cost elements are retained, and line items are produced for sender and receiver. Receiver line items contain information about the sending cost center.
31. Discuss how assessment for cost center allocation is used in the system.
Designed for cost center settlement, primary and secondary postings are allocated at the end of period according to a user defined key. The original cost elements are totaled and posted to a secondary cost element (assessment cost element). Line items for sender and receiver are provided, with receiver cost center getting information on sender cost center. Assessments can include all or a portion of costs from the sending cost center.
33. Distinguish between the two cost allocation techniques: assessment and distribution.
In a distribution, all receiving cost objects are debited with a portion of an original cost element that had been posted to a sending cost center. This portion is determined as part of configuration. In assessment, a secondary assessment cost element is used. Within the sending cost center, all costs to be allocated are totaled and the sender is credited with this assessment cost element while all receivers are debited with a portion of assessment costs. This could be all costs or a portion of the costs (both primary and secondary that had been originally posted to the sending cost center).
39. What is the difference between direct and indirect activity allocation?
With direct activity allocation an individual activity confirmation takes place. Thus the activities are directly allocated to the cost centers.
The purpose of indirect activity allocation is to automatically allocate planned and actual activities. There are two kinds of indirect activity allocation.
40. What are the two allocation categories for indirect activity allocation?
Activity volume known: The planned and actual activity volume is known. The total actual volume is manually entered for the sender and allocated to the receiver cost centers (or orders) based upon some planned/actual quantity/ statistic.
Activity volume not known: This uses management units to provide an actual activity quantity to the sender cost center using statistical key figures so that the system can calculate an operating rate for the target cost calculation.
42. What is actual cost splitting and its purpose?
Actual costs can only be posted to cost centers within cost center accounting. Therefore, in order to compare target versus actual costs on activity types and to display variances for each activity type, it is necessary to split (apportion) the actual costs to each activity type.
43. What are the two stages which splitting actual costs based on the activity type occurs?
The actual costs are split in two stages (1st stage is not necessary in planning):
1) In the first stage, the actual cost are apportioned by cost element to the activity type based on the target costs or target quantities. If no costs exist for a cost element, the target cost of the cost element group is used as the first splitting step.
2) In the second stage, the remaining costs on the cost center level are apportioned to the activity types according to the splitting rules (user defined). If the splitting rules are not defined, the actual costs are split based on the equivalence numbers for the activity type.
2. What are the primary functions of an order?
1) Quantitative control of input factors and sales performance (sales and production order).
2) Monitors costs and supports decision making (Internal overhead orders and capital spending orders).
3. Define and contrast individual orders and standing orders. Give examples of each.
Individual - Collects costs of a one-time business activity (Christmas party, capital spending order).
Standing - Allocated each month to a cost center, it is used to collect the costs of regularly occurring activities (maintenance order, small repairs orders).
4. What is a statistical order? Why would you use one?
A statistical order collects costs for informational purposes and does not settle costs against another object. You would use this to track costs in a separate fashion without double counting them. An example would be one car in a fleet of cars. Typically, a statistical order could collect data that also was posted to a cost center.
9. In what two ways can an internal order be processed?
An order can be processed individually or with collective processing. An example of this is that it is possible to call all orders which have already been released but not yet have a settlement rule. Users can enter recipient cost centers in the list screen or alternatively, they can reach the entry of the distribution rule via the Settlement rule function. (This is not the same as choosing an order group.)
10. Describe briefly the collective automatic processing of internal orders.
This allows you to select a group of orders so that you can change them all quickly and accurately. Manual collective processing requires the use of a list variant and allows changes to be made to the order master data. Automatic collective processing is used to release orders or settle them. This changes the status of an order, not the master data.
12. What is a selection variant and what is it used for within CO?
A selection variant is SAP or user-defined to select orders. The variant chosen determines which master data fields are offered for selection of collective processing, whether a status profile can be used, whether a selection rule can be used and what default values will appear in the fields.
13. What is a list variant?
A list variant defines which master data fields can be maintained for collective processing.
14. What options do you have for additional account assignments within a CO posting and when would you get a statistical posting?
There can be two additional account assignments excluding business areas and profit centers. These can be chosen from an order, project, or profitability segment. If the order or other object is not marked for statistical postings, the profit center is always statistical.
15. What are the different commitment types the system can record for an internal order? For which type do you have to perform a manual reduction?
The availability control allows you to warn a user if/when budget is exceeded. You set tolerances for these availability controls.
Funds Reservations must be manually reduced by the user.
16. What can an order be settled to?
1) External receivers - G/L Account, asset.
2) Internal receivers - cost center, order, project, network, profitability segment
17. What is hierarchical settlement?
The settlement hierarchy is used to ensure that settlement of orders is occurring in the right sequence. An example would be if order A is settled to order B and this is settled to order C, then you want to make sure that order B is not settled before A, otherwise you will not be able to settle order A to order B because it will be closed.
The hierarchy is setup in the settlement parameters, and each order can be given a number from 0 to 999 allowing up to 1000 orders in the hierarchy. The orders are settled in descending order - highest number first.
18. What is the reconciliation ledger?
The Reconciliation Ledger is a Standard Ledger configured and delivered by SAP. The data model and functionality defined for specific business requirements are available. It is primarily an information source.
19. What is a Reconciliation posting?
A reconciliation posting is used to transfer costs to financial accounting which were made across company code or business area boundaries in controlling. This allows for more freedom with CO postings, and the ability to reconcile back to FI.
1. T F A profitability segment is a combination of characteristics and value fields.
T F The primary source of input to Profitability Analysis is the Sales and Distribution module.
T F The Profitability Analysis portion of the Controlling module can not be used as a stand alone system.
T F There are 4 tables created by the system when an operating concern is generated.
2. Describe how costs in Cost Center Accounting are transferred to Profitability Analysis.
Costs in cost center accounting are assessed to Profitability Analysis through assessment cycles that specify which value field(s) will be affected, who the sender cost center(s) are, which cost element(s) will be summed and transferred via a secondary cost element, and which characteristic values will be affected
3. ___________ is performed when values are estimated within Profitability Analysis.
4. T F There are 2 kinds of Profitability Analysis: Cost Based and Value Field Based
T F Derivation is used to define values for non-system delivered fields.
T F Derivation can be multi-level but not multi-dimensional.
T F Sales information is received into PA at the time the Billing Document is released.
5. __________________ is the organizational unit within Profitability Analysis.
6. Explain the relationship between Controlling Area and Operating Concern within the Controlling module. The Operating Concern can be defined to have a 1 to 1 relationship with the Controlling Area, or multiple Controlling Areas can be assigned to one Operating Concern. One Controlling Area cannot be assigned to more than one Operating Concern
7. Define and provide an example of a profitability segment within Profitability Analysis.
A profitability segment is a unique combination of characteristic values. An example for the characteristics Sales Area and Distribution Channel would be North (Sales Area) Wholesale (Distribution Channel).
Report Painter and Report Writer
1. T F Libraries are used in both Report Painter and Report Writer.
T F Report Writer and Report Painter both generate ABAP reports.
T F Report Writer is a graphical reporting tool and is therefore easier to use to write reports.
T F A Report Painter report can be converted to a Report Writer report by naming the Report Painter report as a model for the Report Writer report.
2. In Report __________ a user can create a report without understanding the creation of sets.
3. A ___________ is a collection of characteristics, key figures, and predefined columns for a specific table. All reports are assigned to it.
4. T F A basic set can be made up of values from various fields/characteristics.
T F A single characteristic set can have one single characteristic set combined with another single characteristic set.
T F The point at which a row and a column cross is called a cell.
T F Report Writer can not be used with the Controlling module.
5. Formulas can be used in __________sets and in ____________sets.
6 T F In Report Writer, the elimination of internal business volume is supported.
T F In Report Painter, actual and planned values do not have validity periods.
T F Downloading reports from Report Painter to the PC is possible.
T F The user can define texts that utilize variables.
7. How are subtotals formed in Report Writer?
Subtotals are formed for each set. The hierarchy of the set determines how many subtotals are formed.
8. A _________ is a single field or column of a database table. (characteristic)
9. All the sets contained in a _________-characteristic set refer to the SAME characteristic. (single)
10. Using _________ sets you define which value fields or quantities are shown in a report. (data)
What are the 3 levels that a customer master record can be maintained at? Why do these three levels exist? Give an example of the information stored on these levels.
Client, company code, and sales (if maintained centrally). Exists so that you can tailor the customization at each level. Adds more flexibility to the structure of a master record. For example, if you have one customer named ABC Co., you define it once for your client Pepsi Co. That customer exists in two companies of the client, Taco Bell and Frito Lay. However, in Taco Bell the customer has different dunning areas, banks, payment terms than in Frito Lay. This is an example of how all information is the same for ABC at the client level, but different at the company code level. Of course, Sales information would be different in each company code as well.
What are the 3 levels that a vendor master record can be maintained at? Why do these three levels exist? Give an example of the information stored on these levels.
See the example given above. Exists so that you can tailor the customization at each level. Adds more flexibility to the structure of a master record. In the above example, if ABC Co, is a vendor in the companies Taco Bell and Frito Lay, under the client Pepsi Co, and the payment terms, payment methods are different at the company level. Of course, purchasing information would be different in each company code as well.
What are the two purposes of the customer/vendor Account Group? Give an example of how the Account Group is used.
1) Establishes number range of the customer/vendor master records - a number range is assigned to an account group. This adds flexibility, you are able to keep similar accounts numbered distinctly. For example customers are 1-100,000, vendors might be 200,000 - 300,000. One-time customers might be 400,000-500,000.
2) Establishes the screen layout for customer/vendor master records. All fields at the client and company code level for customer/vendor master records can be designated either suppressed, optional, required or mandatory. For example, some vendors may not use dunning areas, so you would establish a separate account group for those vendors, where the dunning fields are suppressed.
What are screen layout link rules? Why are screen Layout link rules used for customer/vendor master records? Why are they used for line items?
Since the same information can be designated required, optional, mandatory, suppressed in 3 different places, the link rules determine which designation rules out over another. These 3 places are at the account group level, company code level, and the activity/transaction level.
For line items, the same information can be designated required, optional, mandatory, suppressed in 2 different places. The link rules determine which designation rules out over another. These 2 places are at the posting key level, and the field status group of the G/L master record.
T or F. Account Groups are mandatory when creating a sub-ledger account.
True. Account Groups are always mandatory when creating customer/vendor master records.
T or F. Number ranges may overlap for sub-ledger accounts.
True. When setting up number ranges for account groups of customer/vendor master records, you cannot create one that overlaps with an existing number range.
Define bank directory, house bank, bank account, bank ID, bank key, and account ID. Describe the relationship between all of these and G/L accounts. Draw a picture if necessary.
The bank directory is the repository in SAP that contains all of the banks. It can be downloaded into the system or manually keyed in. In order to establish house banks, which are banks in which your company does business, the bank must first exist in the bank directory. The house bank is named with a bank ID, and has a distinctive or unique, universally recognized bank key.
All of the accounts in a house bank are referred to as bank accounts and are named with an account ID. Each bank account must contain a respective G/L account. Each G/L account must contain the house bank and account ID. This allows SAP to maintain the bank books accurately. For example, when you are running the payment program, you specify the bank accounts that you are paying out of. When a payment is made, it is accurately reflected in the corresponding G/L account.
What are payment terms? Why are they used? How are they define in SAP?
Payment terms define how you deal with a customer/vendor in terms of payment. For a customer, it defines when a customer must pay you, in order to receive discounts. For a vendor, it defines when you must pay the vendor in order to receive discounts.
The terms can be set up with 3 terms, which are usually cash discount term 1, cash discount term 2, and due date for net payment.
What is the document principle in SAP?
Every transaction in SAP creates a document. This is a means of documenting all transactions, being able to trace your actions in the system.
What are the two pieces of a document? What must all line items consist of ?
Header and line items. All line items must at least consist of a posting key, account and amount.
What do document types control? What is their function?
1) distinguish between the types of business transactions - you specify the type. Ie. Is it a general ledger accounting document, customer payment, etc.
2) controls which account types may be posted to - you specify the account types that may be posted to. Ie. Some document types are only for asset accounts. Some are only for vendor accounts, etc.
3) assigns the document number - each document type is assigned a number range
4) and is used as a sort criteria - by all of the above, you are grouping the documents or sorting them accordingly.
Define posting periods, fiscal year variants, company codes and the relation between each. Draw a picture if necessary.
Posting periods define which periods are open for posting documents, and also which accounts are open for posting within these periods.
Fiscal year variant define what your posting periods are, in relation to the calendar year. For example, if your fiscal year runs from July to June, you need to define, through a fiscal year variant, how that relates to the calendar year, so that SAP can interpret your fiscal year.
Fiscal year variants and posting periods are assigned to a company code.
What is a posting key? What does it control?
Posting keys determines how line items are entered. They control:
1) debit or credit entry?
2) what account type - posting keys are designated for specific account types
3) field status - how are the line items going to look if you use this posting key??
4) other properties - is it a sales related transaction? is a special g/l transaction? what is
the reversal posting key?
What are automatic line items? How are they configured in the system? Give some examples of automatic line items.
There are certain activities defined at the Chart of Account level in FI that create automatic line items. Examples include discount expenses, revenue from over/under payment, taxes. There is a 3-character system-specific code in SAP that corresponds with each of these activities, and usually you must specify a G/L account to correspond with these. This determines which G/L account is hit when the automatic line item is generated.
Define composite profile, profile, authorization, value, field, authorization object, and object class. Describe the relationship between each, draw a picture if necessary.
Composite profile is assigned to a user and contains one or several profiles. The profiles contain the authorizations or allowed activities that a person may perform on an object, for a particular value. Similar authorizations can be grouped in to object classes - such as an SD object class, and FI object class.
What are employee tolerances? Why do they exist? Give an example.
They control the maximum amount that employees are allowed to post. All control the maximum payment difference that employees are allowed to post. This is a control or authorization mechanism. An example would be, you wouldn't want a brand new clerk to be able to post more than $100,000 and wouldn't want them to post an incoming payment that was 10% less than the total. All users must be allocated to an employee tolerance group in order to post.
What are customer/vendor tolerances. Why do they exist? Give an example.
They control the maximum payment difference allowed for customers/vendors, specify how to post residual items from payment difference, and contain details of clearing procedures. An example would be: Customer One can post a 5% difference b/c they've been a customer longer and are more credible. Customer Two can only post a 1% difference b/c they are a new customer and haven't established credibility.
Define sort key, allocation field. Describe the relationship between the two.
Line items are displayed in the order designated by the allocation field. The allocation field is populated by the sort key. The sort key specifies the fields that the line items are sorted by.
Why would a project team want to configure its own line item layout? Why would a project team want to configure its own fast entry structure?
Some fields are more relevant for some customers than others. For instance, maybe the value date or dunning areas are not important for a group of Accounting clerks to see. So a line item layout would be made that did not include these fields. Also, it may be typical that clerks always retrieve line items according to the posting date. This would be a necessary field located in the line item layout.
In the same concept
What is credit management? Why is it used in SAP?
The SAP functionality that allows you to maintain credit for customers on various levels, based on the customer's creditworthiness. Basically credit checks can be performed for customers throughout the sales cycle. Credit management is hugely integrated with SD.
How is FI credit management integrated with SD?
You can set up risk categories, automatic credit checking, and update groups to check invoices as they proceed throughout the sales cycle.
What is a Credit Control Area? Where does it fall in the organizational structure?
Credit Control Area is the highest hierarchial level in Credit Management. It falls below the client level, above companies. You create credit control areas and assign companies to them. Each company can only be assigned to one credit control area. Obviously, customers can span Credit Control Areas since the same customer can exist in more than one company code.
What are the levels of configuring credit management for a customer?
First, a credit limit can be assigned to a credit control area. Then, any customer assigned to that credit control area, will have that limit. On the next level, specifications can be made for each customer individually. For each customer, you specify the maximum limits across all credit control areas and per credit control areas. Then on the lowest level, you specify the current limit across all credit control areas and the current limit per credit control area.
T or F The credit for a customer can be checked at various points along the sales cycle?
What is a payment advice? Why would one be used? Give some examples of payment advices.
A payment advice contains information about an incoming payment, such as amount, payment date, reasons for underpayment, and document number. It is used for the automatic search and matching of open items during the clearing process. Instead of matching an incoming payment against the open items manually, the clerk only needs to enter the payment advice in order to clear.
What is a reason code? Why would a reason code be used? Give an example.
The reason code specifies the reasons for over or under payment. It also determines if the difference will be written off to a G/L account. An example would be a reason code set up for damaged goods. If a business decision is made to write off damaged goods to a G/L account then all payment advices with that reason code specified will cause differences to be written off to the G/L account.
T or F The FI module does not currently support Lockbox functionality.
What is dunning and why is it used?
Dunning is a process whereby customer and vendors can be sent late notices for overdue amounts.
What are the 4 necessary inputs for running the dunning program? Define each and give examples of the data in each.
Data in master records - such as address and payment terms
Basic parameters - dunning procedure such as texts, levels, charges, interest
On-line parameters - such as company code, range of customers/vendors
OI - payment terms, baseline date in open items
Why are separate dunning levels supported by SAP? What is the purpose of the levels?
Because you may want to specify amounts, charges, texts depending on the number of days an amount is outstanding. For example, you would want to send a firmer letter to customer when they become more overdue.
T or F You may not change the dunning letters that are shipped with SAP.
False. They can be edited with SAPSCRIPT.
Why would you use Dunning Areas? Give examples.
Dunning areas are used when you want run different procedures for different groups of customer/vendors. For example, you would send a different letter to your more reliable customers, than for brand new customers b/c the reliable letter may be more friendly. Also, you may send a differently worded letter for your plastics buyers than your electronics buyers.
What does the payment program do?
Payment program is the procedure whereby payments are made to customer/vendors for outstanding amounts. The procedure automatically clears outstanding items and updates the corresponding bank accounts to reflect outgoing payments. They system evaluates all open items based on payment terms and days outstanding to decide if the item is due.
What are the 4 necessary inputs for running the payment program? Define each and give examples of the data in each.
1)Master Records - includes payment methods, house bank
2)Configuration - payment procedure includes banks, payment methods in co. code, payment methods in country, specifications for sending and paying co. codes
3)On-line parameters - things you specify when running the program like the company code, the payment method
4)OI -open items. The payment method in the open item, the payment terms. The amounts.
What are the 3 levels that the payment program in configured at? Give examples of the data that is configured on each level?
Company Code - specify your paying and sending company codes
Bank - specify your house banks, bank accounts you are paying or receiving money from.
Also configure the balances in the accounts, and their rank order per payment method
Payment Methods - must specify payment methods for in the country and in the company code.
T or F The payment method must be configured for a country before it can be configured for a paying company?
Describe how SAP decides which open items must be paid by the payment program.
First, you specify whether you want to always maximize your cash discounts, or always minimize. Then each open item is looked at individually by the system. In particular, the payment terms are evaluated. If you are always maximizing, the program looks at the first payment tier, if the payment program will not be run again in time to get the maximum discount then the amount if paid. If the payment program will be run again before the first payment tier expires, then the amount will be paid at the next run.
If you specify to always minimize the discount, the amount will only be paid when the program will not be run again before the net amount is due (the third payment tier).