Explain the term SAP FICO?
SAP FICO represents FI ( Financial Accounting) and CO (controlling). In SAP FICO, SAP FI take thinks often about bookkeeping, arrangement of budget reports, charge calculations and so forth, while SAP CO take cares of entomb orders, cost sheet, stock sheet, cost designations and so on. The product stores information, and furthermore processes them and recovers the outcome in light of the ongoing advertising situation. SAP FICO forestalls information lost and furthermore does the confirmation and announcing of information.
What are different modules to which 'Monetary Accounting' is coordinated?
Different modules to which 'Monetary Accounting' is coordinated are
a) Sales and Distribution
b) Material Management
c) Human Resource
d) Production Planning
e) Controlling of monetary exchange
In SAP FI what are the authoritative components?
The hierarchical components in SAP FI are:
a) Company Code
b) Business Area
c) Chart of Account
d) Functional Area1. What is SAP FICO?
Answer: SAP FICO stands for Financial Accounting (FI)
and Controlling (CO). It is a module in SAP ERP that focuses on financial
accounting, management accounting, and financial reporting.
2. Explain the key components of SAP FICO.
Answer: The key components of SAP FICO are:
3. What is the purpose of the General Ledger in SAP FICO?
Answer: The General Ledger (GL) in SAP FICO is used
to record and manage all financial transactions for an organization. It
provides a central repository for financial data and enables financial
4. Explain the difference between FI and CO in SAP FICO.
Answer: FI (Financial Accounting) deals with external
reporting, financial transactions, and financial statements. CO (Controlling)
focuses on internal management accounting, cost analysis, and decision support.
5. What is a document in SAP FICO?
Answer: In SAP FICO, a document is a record of a
financial transaction. It contains information about the transaction, such as
the date, accounts involved, amounts, and reference details.
6. How do you define a company code in SAP FICO?
Answer: To define a company code in SAP FICO, you use
transaction code "OX02." It involves specifying the company's legal
and organizational details, such as its name, address, and currency.
7. What is a chart of accounts in SAP FICO?
Answer: A chart of accounts is a list of all general
ledger (GL) accounts used by an organization. It defines the structure and
organization of accounts for financial reporting.
8. Explain the difference between accounts payable and
accounts receivable in SAP FICO.
Answer: Accounts Payable (AP) manages money owed by
the organization to its vendors or suppliers. Accounts Receivable (AR) manages
money owed to the organization by its customers or clients.
9. What is asset accounting in SAP FICO?
Answer: Asset Accounting (AA) in SAP FICO deals with
managing an organization's fixed assets. It includes recording, depreciating,
and tracking the value of assets over time.
10. How can you post a journal entry in SAP FICO?
Answer: You can post a journal entry in SAP FICO
using transaction code "FB50" for manual journal entries or through
automated processes, such as through the Accounts Payable and Accounts
11. What is a fiscal year variant in SAP FICO?
Answer: A fiscal year variant defines the
organization's fiscal year, including the start and end dates of the fiscal
year, posting periods, and special periods. It is used for financial reporting
and closing activities.
12. How is a cost center different from a profit center
in SAP FICO?
Answer: A cost center is responsible for incurring
costs, while a profit center is responsible for generating revenue and profit.
Cost centers are used for cost analysis, while profit centers are used for
13. What is the purpose of the accounts payable module in
Answer: The accounts payable module in SAP FICO
manages the organization's payments to vendors and suppliers. It handles
invoice processing, payment processing, and vendor account management.
14. How can you perform asset depreciation in SAP FICO?
Answer: Asset depreciation in SAP FICO is performed
using transaction code "AFAB." It calculates and posts depreciation
for fixed assets based on the asset's depreciation key.
15. What is automatic payment program (APP) in SAP FICO?
Answer: The Automatic Payment Program (APP) in SAP
FICO is used to automate the payment process to vendors. It generates payment
documents and initiates payments based on predefined criteria and payment
16. Explain the difference between a balance sheet and a
profit and loss statement.
Answer: A balance sheet provides a snapshot of an
organization's financial position at a specific point in time, showing assets,
liabilities, and equity. A profit and loss statement (P&L) shows the
organization's financial performance over a period, indicating revenue,
expenses, and profit or loss.
17. How do you define a credit control area in SAP FICO?
Answer: To define a credit control area in SAP FICO,
you use transaction code "OB45." A credit control area is responsible
for managing credit limits and monitoring customer creditworthiness.
18. What is the purpose of internal orders in SAP FICO?
Answer: Internal orders in SAP FICO are used for
tracking and controlling costs within an organization. They are often used for
projects, cost center assignments, or other specific activities.
19. What is the difference between a statistical key
figure and a controlling key figure in SAP CO?
Answer: A statistical key figure is used for
reporting and analysis but does not directly impact cost calculations. A
controlling key figure, on the other hand, is used in cost allocations and
calculations within Controlling (CO).
20. How can you transfer data from Controlling (CO) to
Financial Accounting (FI) in SAP?
Answer: Data can be transferred from CO to FI in SAP
using reconciliation ledgers. Reconciliation accounts are used to ensure that
data from CO is correctly reflected in FI for financial reporting.
21. Explain the purpose of document splitting in SAP
Answer: Document splitting in SAP FICO is used to
create separate accounting entries for different segments or dimensions of the
business, such as profit centers or segments, in a single financial
22. What is a profit center group in SAP FICO?
Answer: A profit center group is a collection of
related profit centers. It simplifies reporting and analysis by grouping profit
centers with similar characteristics.
23. How do you define a financial statement version in
Answer: To define a financial statement version in
SAP FICO, you use transaction code "OB58." It specifies the structure
and layout of financial statements, such as balance sheets and income
24. What is the purpose of tax configuration in SAP FICO?
Answer: Tax configuration in SAP FICO is used to
define tax codes, tax rates, and tax rules for accurate calculation and
reporting of taxes in financial transactions.
25. Explain the difference between recurring entries and
sample documents in SAP FICO.
Answer: Recurring entries are used for regularly
occurring transactions, such as rent payments. Sample documents, on the other
hand, are templates for one-time transactions that can be reused.
26. What is the purpose of asset retirement in SAP FICO?
Answer: Asset retirement in SAP FICO is the process
of removing an asset from the organization's books due to sale, scrapping, or
other reasons. It involves adjusting the asset's value and recording the
27. How do you perform a foreign currency valuation in
Answer: You can perform a foreign currency valuation
in SAP FICO using transaction code "FAGL_FC_VAL." It calculates the
revaluation of foreign currency items to reflect their current value based on
exchange rate fluctuations.
28. Explain the difference between parallel accounting
and parallel currencies in SAP FICO.
Answer: Parallel accounting involves maintaining
multiple sets of books for legal or reporting purposes, while parallel
currencies involve displaying financial data in different currencies within a
single set of books.
29. What is the purpose of document parking in SAP FICO?
Answer: Document parking in SAP FICO allows users to
temporarily save and review financial documents before posting them. It is
often used for validation and approval workflows.
30. How do you perform asset acquisitions in SAP FICO?
Answer: Asset acquisitions in SAP FICO are performed
using transaction code "F-90." It allows you to record the
acquisition of assets, such as purchases or capitalization of assets under
31. What is the automatic account determination in SAP
Answer: Automatic account determination in SAP FICO
is a process that automatically selects the appropriate general ledger accounts
for various financial transactions based on predefined rules and conditions.
32. How can you configure automatic clearing in SAP FICO?
Answer: Automatic clearing in SAP FICO is configured
using transaction code "OB74." It involves defining criteria for
clearing open items automatically, such as by document type, account, or
33. Explain the purpose of the payment program in SAP
Answer: The payment program in SAP FICO automates the
process of generating payments to vendors based on open invoices and payment
terms. It improves efficiency in accounts payable.
34. What is the purpose of the cash journal in SAP FICO?
Answer: The cash journal in SAP FICO is used to record and manage cash transactions, such as cash receipts and payments. It provides visibility into cash flow.
Explain what is posting key and what does it control?
To decide the exchange type which is placed in the detail, a two digit mathematical is utilized known as 'Posting Key'
Posting key decides
a) Account Types
b) Types of posting. Charge or Credit
c) Field status of exchange
What is the organization code in SAP?
To produce fiscal reports like Profit and Loss articulation, Balance sheets and so forth organization code is utilized.
what number Chart of Accounts can organization code have?
You can have one Chart of Account for one organization code which is alloted.
For a Company Code what number of monetary standards can be designed?
There are three monetary standards that can be designed for a Company code, one is a neighborhood money and two are the equal monetary forms.
What are the choices in SAP for Fiscal years?
Monetary year in SAP is how monetary information is put away in the framework. In SAP, you have 12 periods and four unique periods. These periods are put away in monetary year variation that is:
a) Calendar Year: From Jan-Dec, April-March
b) Year subordinate monetary year
What is a 'year shift' in SAP schedule?
SAP framework doesn't have the foggiest idea what is broken financial year e.g April 2012 to March 2013 and just figure out the schedule year. If, for any business, the financial year isn't a schedule year yet the blend of the various long periods of two different schedule year and afterward one of the schedule year needs to delegated a monetary year for SAP and the month falling in one more year must be changed into the monetary year by moving the year by utilizing the sign - 1 or +1. This change in the year is known as 'year shift'.Model: April 2012 to Dec 2012 is our most memorable schedule year, and Jan 2013 to March 2013 is our subsequent year, presently in the event that you are taking April-12 to Dec-12 as your financial year, then Jan-13 to March-13 consequently turns into the subsequent year, and you need to change this year by utilizing - 1 shift, as well as the other way around in the event that the situation is switched, here you will utilize +1 shift.
What is year subordinate monetary year variation?
In a year subordinate financial year variation, the quantity of days in a month isn't according to the schedule month. For instance, in year 2005, month January end on 29th, month Feb closes on 26th and so on.
In SAP how info and result charges are taken consideration?
For every nation charge technique is characterized, and charge codes are characterized inside this. There is an adaptability to one or the other cost out the Tax sums or underwrite something similar to stocks.
Explain what is approvals and replacements in SAP?
For each utilitarian region in SAP Validation or Substitution is characterized eg, Assets, Controlling and so on at the accompanying levels
a) Document Level
b) Line thing Level
What are the application regions that utilization approval and replacements?
a) FI-Financial bookkeeping
b) CO-Cost bookkeeping
c) AM-Asset bookkeeping
d) GL-Special reason record
f) PS-Project framework
g) RE-Real domain
h) PC-Profit focus bookkeeping
In SAP what is the utilization of FSV ( Financial Statement Version) ?
FSV ( Financial Statement Version) is a revealing device. It very well may be utilized to separate last records from SAP like Profit and Loss Account and Balance Sheet. The different FSV's can be utilized for producing the result of different outside organizations like Banks and other legal specialists.
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