If you're looking for SAP FICO Interview Questions for Experienced or Freshers, you are in the right place. There are a lot of opportunities from many reputed companies in the world. According to research SAP, FICO has a market share of about 3.3%. So, You still have the opportunity to move ahead in your career as an SAP FICO Consultant. Mindmajix offers Advanced SAP FICO Interview Questions 2021 that help you in cracking your interview & acquire a dream career as SAP Business Applications and Technology.
|1||In terms of flexibility, SAP FICO is good||Other parallel approaches are not as flexible as SAP FICO|
|2||There are additional options for accounting controlling and integration||Account integration is either complex or missing|
|3||SAP FICO allow multiple currencies to be managed||No additional options for currency|
The default exchange rate in the FICO is the Average Rate. It is not always necessary that everyone needs to use the FICO in the same manner. Therefore, it needs to be changed as per the requirement.
Well, it simply enables them to keep an eye on the purposes for which a specific amount sent including all its information. The users can simply keep a digital record of all the funds received or transferred to any other account. This enables them to prepare documents for the future on which some important plans and decision-making strategies are based. Financial statements also enable businesses to get reductions in taxes in a few cases. In addition to this, the users can access the record of all the financial transactions anytime the same is required.
There are several useful modules where it is possible for the users to consider this approach in an integrated manner. These include Material Management, Sales & Distribution, Production Planning, financial transaction management, as well as Human resource.
In businesses, it’s not necessary that all months have 30 days working. Depending on the type of projects which vary largely, the organizations have to end a month a day earlier or two. For example, the Month of May can have 29 days. The same can be done with an option in the SAP which is known as Year Dependent Fiscal Year.
FICO stands for Financial Accounting and Controlling. It is basically an important tool that is useful in preparing statements about the finance related to an organization or a business. In addition to this, FICO can also be considered for the purpose of accounting, tax computations, preparing the inventory sheets, financial data storage. The users need not worry about the security of the data and in addition to this, it simply makes sure of managing and utilizing the data in a reliable manner.
Errors are of a lot of types and can be due to a diverse array of reasons. The users can often make mistakes. A single wrong entry of only one digit can bring a lot of issues in the organization and can mislead about the profits and losses. Errors can be due to negligence of users, fault in the system, wrongly prepared bills or claims, gross errors, basic accounting errors, errors due to not updating the sheets, and so on.
It is basically a code that needs to be entered into the system when it comes to generating the Loss or the profit statements. It is not always necessary that all the employees are given access to the same. It is possible for the users to configure up to 3 currencies and among which one generally remains local and the other can be considered as parallel.
There is a total of 165 periods among which 4 are considered special. They are generally used when it comes to defining any data that is related to the fiscal year. A user is free to consider the special period anytime when the need for the same is felt.
SAP doesn’t have any provision to access broker year. It only understands the calendar year. However, it is not always necessary that for all organizations the calendar year is the financial year. There is often a need to change months. They needed to be added or removed. This can be done easily in the SAP and the same procedure is known as Year Shift.
|Related Article: SAP FICO Tutorial for Beginners|
One of the major issues is Tax Slabs are not similar in all countries. Also, there are additional taxes applicable there. SAP FICO has a tax procedure already defined in it for various nations and the users are free to get the information regarding the same. The Tax amounts can be sent to stocks by default or the users are free to make challenges in them as per their need and convince. Thus, taxes are not an issue with the SAP FICO.
They have generally defined assets for the different functional areas. They can be accessed through two options and are Document level and line level.
SAP FICO has some major applications for which it is actually known. It is widely considered I Financial accounting for handling a lot of tasks that matter to the organizations. In fact, all that matters in accounting can easily be managed with this approach. It also has applications in Asset and Cost Accounting. The Project system accounting can also be managed in a reliable manner. The users are free to consider it for the purpose of Consolidation. In addition to this, SAP FICO has large-scale applications in Real Estate which is one of the emerging domains across the globe in the present scenario.
It stands for Work in Progress and basically defines the status of the asset that is under the development model in the SAP FICO. It is possible for the users to customize it if required.
There are options for manual payments that can be made either in cash or through cherubs. Other options include electronic transfer. The SAP FICO keeps a close eye on all the transactions made through the latter option when the same is integrated with the accounts.
It is basically an approach that enables users to determine the transaction type among the various possible options in the domain. Generally, it is a two-digit number when is entered during defining of an item. It simply gives an idea about the type of posting which can either be credit or debit as well as the type of accounts. Also, the status of transactions can also be recorded through it.
It is used whenever there is a need for the organization to access external accounts. It simply incorporates all the financial transactions of a business made within a specific time period. The users are free to keep up the pace simply even when the operational areas need core accounting skills or have problems associated with them.
There are certain benefits and a few major ones are spotlighted below:
It is basically a tool that is used for reporting. All the financial accounts can be extracted through it along with all the relevant information required by the users. It is possible to deploy it for the purpose of generating the outcomes of different agencies associated with a business. The same information can then be passed to the concerned authorities for betterment.
When transactions are done, there are often fields that come up, this option is used or is enabled when they are not required while handling the tasks.
The first thing to make sure of is whether the items get cleared status by the management or not. Next is to make sure that the document is valid or not.
A Short-end Fiscal Year is basically when a calendar year is modified as per need. This can happen due to a very large number of reasons and the organizations have to adopt the new calendar.
It is basically an option that is used to track the overall cost associated with an item or a project. It is used widely during certain situations and while handling some important tasks.
The asset class is the primary class that is used for the purpose of justifying the assets. The entire asset category is generally assigned or integrated into one asset class. It is also possible for the users to use the default values for the same.
The first and the foremost is the main language. Next is controlling the integration level, name, Block Indicator, GL, account number, and the chart of Account Key.
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The credit-control is in the SAP enables the organization to impose a strict upper limit on the credit for the customers. This can be done by using the option controls are in the SAP. It simply makes sure of avoiding the situation such as the risk of bad debts and outstanding receivables.
The user needs to provide the controller name, Description, Currency option is to be selected, risk category is to be selected and then the information about the Fiscal variant is also to be provided.
It is basically a time frame during which the transaction figures are updated. Generally, it is accountable to control accounting periods that are complex.
It is basically an approach that is used for the purpose of maintaining the General Ledger accounts. It controls the fields which should provide information on the concerned accounts.
Organizations are allowed to add two more currency options than their local. They can be used in the transactions made at the International level by an organization. The organizations are free to use any two options for parallel that they seem to have more need. They can be tagged as Group currency and hard currency.
I am Ruchitha, working as a content writer for MindMajix technologies. My writings focus on the latest technical software, tutorials, and innovations. I am also into research about AI and Neuromarketing. I am a media post-graduate from BCU – Birmingham, UK. Before, my writings focused on business articles on digital marketing and social media. You can connect with me on LinkedIn.