Greetings, readers These SAP FICO Interview Questions were created specifically to familiarize you with the types of questions you might encounter during your SAP FICO interview. According to my experience, good interviewers rarely prepare to ask any specific topic during your interview; instead, questions usually begin with a basic understanding of the topic and your answers. Let’s begin:
1. What does SAP FICO stand for?
SAP FICO stands for FI (Financial Accounting) and CO (controlling). SAP FI is responsible for accounting, financial statement preparation, tax computations, and so forth, whereas SAP CO is responsible for inter orders, cost sheets, inventory sheets, cost allocations, and so on. It is the program that stores, computes, and retrieves data based on the current marketing environment. SAP FICO not only prevents data loss but also verifies and reports data.
2. What are the different SAP FI submodules?
- Ledger General
- AR/AP
- Banks
- Fixed Assets are assets that cannot be changed.
- Lease Accounting, Travel Management, and so on.
3. Why do we utilize SAP Financial Accounting (SAP FI)?
SAP Financials accounting module allows you to manage financial accounting data across various firms, currencies, and languages in an international context. The SAP FI module primarily deals with the financial components listed below.
- Fixed assets
- Accrual
- Cash Journal
- Accounts payable and receivable
- Inventory
- Tax accounting
- General ledger
- Fast close functions
- Financial statements
- Parallel valuations
- Master data governance
4. What are the organizational elements in SAP FI?
a) Company Code
b) Business Area
c) Chart of Account
d) Functional Area
5. What is the difference between the baseline and decline balance methods?
A straight-line depreciation approach is the baseline method. Depreciation is calculated using a predetermined percentage of asset life, which must be recorded in the asset master.
It’s computed by reducing the asset’s cost from its projected salvage value, then dividing by the number of years it’ll be used.
6. What is the SAP company code?
Company code is used to generate financial statements such as profit and loss statements, balance sheets, and so on.
7. Can a company code have multiple Charts of Accounts?
You can only have one Chart of Accounts per designated company code.
8. How many currencies can be configured for a Company Code?
For a Company code, there are three currencies that can be configured: one local currency and two parallel currencies.
9. In SAP Controlling, what do you mean by product costing?
The SAP CO-Product Costing module is used to calculate the value of a product’s internal cost. It’s also employed in production profitability and management accounting.
When configuring Product Costing, there are two places where you can set the parameters.
- Product Cost Estimation
- Controlling Cost Objects
Cost Center Planning is the foundation of Product Costing. The goal of cost center planning is to forecast total dollars and quantities in each plant’s cost centers.
10. What are the most common month-end closing operations in SAP FI?
Month-end closing in SAP FI refers to the activities involved in posting a closing period. As part of month-end closing, you can perform the following tasks:
- Periods of open and closed posting
- You allow posting to one or more past posting periods, and you allow posting to one or more current or future posting periods.
11. What are the most prevalent G/L reports in Financial Accounting?
SAP FI allows you to create a variety of G/L reports. The most prevalent are
- List of G/L Charts of Accounts
- Balances in the General Ledger
- List of G/L Accounts
- Totals and Balances of G/L Accounts
12. What is the purpose of Account Receivables in Financial Institutions?
The SAP FI Accounts Receivable component keeps track of and handles all client accounting data. It’s also a crucial component of sales management.
All Accounts Receivable posts are likewise directly reported in General Ledger. Depending on the transaction, different G/L accounts are updated.
13. Is there a place where you may use the internal order?
Internal orders are used to track costs; they are designed to be incurred over a short period of time
14. Can depreciation be calculated down to the day?
Yes, depreciation can be calculated; however, you must turn on the indication Dep. to the day in the depreciation, key configuration to do so.
15. What are the organizational assignments in Asset Accounting?
The top node in Asset Accounting is the chart of depreciation, which is allocated to the company node. All depreciation calculations are saved in the depreciation chart.
Hope these questions and answers meet all your essential requirements. If you want to read SAP FICO Interview Questions & Answers part 2, please click here, and for more information, visit our website
All the best!
