Here is a list of the 15 most commonly asked questions for SAP FICO interviews that will hopefully help you get a good idea on what to expect from a job meeting. 1. What is the main use of SAP FICO? We use SAP FICO modules within a company to manage financial tasks within an international framework of languages and currencies. SAP FI (Financial Accounting) deals mainly with fixed assets, accrual, cash journal, tax accounting, general ledger, and other such financial tasks. SAP CO (Controlling) on the other hand deals with buying orders, stock sheet, cost sheet, cost assignment and other tasks in this category. 2. In SAP FI what are the components in a hierarchy? You find four hierarchical components in SAP FI: a. Company Code b. Business Area c. Functional Area d. Chart of Account 3. What is the significance of financial statements within a business? You use financial statements to manage the financial assets of your company. By creating and handling such financial records, you also create data that you can use in developing further plans and investments for your company. 4. What is the use of company code? You use the company code before generating the profit and loss statements of your company. While not all employees do not have access to the same code, you can configure up to 3 different currencies. One of these remains local, while the other two are considered a parallel. 5. What is the best way to manage transactions originating from different lines of businesses within a company?You can create Business Areas in order to differentiate among the different lines of businesses in the company. Another way can be to create different company codes for each business line. 6. What do you use Chart of Accounts for? You use FI COA in order to meet the daily needs of your company as well as the legal requirements of the country. The COA has two types: a. Operating COA: this record is assigned to the company code and contains all the general ledger accounts. b. Country COA: this is the list of general ledger accounts required in order to meet the legal requirements of the country. 7. What is the function of credit control? You use credit control in order to safeguard your business from overstretching its financial assets. Generally, you can set a credit limit for the customers using SAP, when the payment is made after the sale of the product. In this way, you can restrict the amount that the customer needs to clear in his/her account before further purchases can be made.
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8. How many fiscal year variants can you use at a time? The fiscal year variants that you create contain the number of posting periods in that fiscal year as well as the number of special periods. Up to 16 posting periods can be defined. Each company code needs a specific fiscal year variant. Thus, while creating a controlling area, you should also specify that code’s fiscal year variant. 9. What is the field status variant and field status group? Your field status variants are contained within field status groups. On the other hand, the field status groups are maintained within the General Ledger account. You use it to define the fields while you post to the general ledger. 10. What are some of the modules to which FI is integrated? FI is also integrated into the following modules: a. Production Planning b. Human Resource c. Material Management d. Sales and Distribution 11. How do you manage input and output taxes? The country of origin of your company will have tax procedures defined, having tax codes within them. You can make the choice to either expend the tax amount or you can choose to capitalize the tax amount into stocks. 12. How can you make vendor payments? You can use two methods to make the vendor payments: a. Manual Payment: This is done without the use of a medium such as cheques. b. Automatic Payment: This is through DME (Data Medium Exchange) such as wire transfer or cheques. 13. How do you define ‘Year Shift’? Within a company, the calendar year does not always match the financial year. For example, you may need to remove or add certain months. You can do this using SAP and the procedure is called ‘Year Shift'. 14. What are the major applications of SAP FICO? SAP FICO has many real-time applications. a. Handling financial tasks vital to the company b. Asset and cost accounting c. Consolidation d. Real estate
15. What do you understand by WIP? WIP stands for Work in Progress. You sue this to label an asset that is currently under development, and that can be customized by the user if needed.
This list of 15 important SAP FICO interview questions and answers should help you get a head start on preparing for the job interview.
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