If you're looking for SAP FICO Interview Questions for Experienced or Freshers, you are at right place. There are 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 opportunity to move ahead in your career as a SAP FICO Consultant. Mindmajix offers Advanced SAP FICO Interview Questions 2021 that helps you in cracking your interview & acquire dream career as SAP Business Applications and Technology.
Top SAP FICO Interview Questions and Answers
Q1) Compare SAP FICO with any general financial accounting and controlling approach
|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|
Q2) While handling the SAP FICO for the first time, why it is necessary for the users to pay attention to the exchange rate?
Ans: The default exchange rate in the FICO is 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.
SAP FICO Interview Questions for Freshers
Q3) Why the financial statements are important for any business?
Ans: Well, it simply enables them to keep an eye on the purposes for which a specific amount was send including all its information. The users can simply keep a digital record of all the funds received or transferred to any other account. This enable them to prepare documents for the future on which some important plans and decision making strategies are based on. Financial statements also enable business to get reducation 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.
Q4) Can you name a few modules with which it is possible for the users to integrate the financial accounting?
Ans: There are several useful modules where it is possible for the users to consider this approach under an integrated manner. These include Material Management, Sales & Distribution, Production Planning, financial transaction management, as well as Human resource.
Q5) What is Year Dependent Fiscal Year in SAP?
Ans: 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 May can have 29 days. The same can be done with an option in the SAP which is known as Year Dependent Fiscal Year.
Q6) What exactly do you know about the SAP FICO?
Ans: FICO stands for Financial Accounting and Controlling. It is basically an important tool which is useful in preparing the 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 to worry about the security of the data and in addition to this, it simply make sure of managing and utilizing the data in a reliable manner.
Q7) What are the common reasons of errors in the accounting and what impact do they actually have on the organization?
Ans: Errors are of lot of types and can be due to a diverse array of reasons. The users can often made mistake. 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 not updating the sheets and so on.
Q8) What is company code and when it is used? What is the limit on the currencies which you can configure?
Ans: It is basically a code that needs to be entered in 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 upto 3 currencies and among which one generally remains local and other can be considered as parallel.
Q9) How many periods are there in the SAP FICO?
Ans: There are total 165 periods among which 4 are considered as special. They are generally used when it comes to defining any data that is related to fiscal year. A user is free to consider the special period anytime when the need of same is felt.
Q10) In SAP calendar, what exactly is “Year Shift”?
Ans: SAP doesn’t have any provision to access broker year. It only understands calendar year. However, it is not always necessary that for all the 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.
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Related Article: SAP FICO Tutorial for Beginners
Q11) How taxes are taken care of in the SAP FICO?
Ans: One of the major issues is Tax Slabs are not similar in all the countries. Also, there are additional taxes applicable there. SAP FICO has 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.
Q12) What do you know about the Substitutions and validations in SAP?
Ans: They are generally defined assets for the different functional area. They can be accessed through two options and they are Document level and the line level.
Q13) What are the major applications of SAP FICO you are familiar with?
Ans: 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 matters to the organizations. In fact, all that matters in the accounting can easily be managed with this approach. It also has applications in the Asset and Cost Accounting. The Project system accounting can also be managed through it 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 application in the Real Estate which is one of the emerging domains across the globe in the present scenario.
Q14) What is WIP in SAP FICO?
Ans: It stands for Work in Progress and basically defines the status of the asset that is under development mode in the SAP FICO. It is possible for the users to customize it if required.
Q15) Can you name a few methods with the help of which the vendor invoice payments can be taken care of?
Ans: 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.
Q16) What exactly posting key is in FICO and what is its significance?
Ans: 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 item. It simply give 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.
Q17) What is the significance of financial general ledger accounting?
Ans: It is used whenever there is a need for the organization to access the external accounts. It simply incorporate 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 needs core accounting skills or have problems associated with them.
Q18) What are the biggest benefits that you can have with the SAP FICO?
Ans: There are certain benefits and a few major ones are spotlighted below:
- One of the major benefit is accounting data is always correct. The users doesn’t need to worry about this
- There is no upper limit on handling the accounts. Any number of accounts can be managed
- It is useful in auditing as an eye can be kept on the transactions made by the business
- It make sure of financial transparency
- The detailed information about the expenses can be prepared and the same can then be considered for the purpose of preparing the future budgets
- A lot of time and money can be saved
- The users can make sure of financial outputs that can be trusted in the long run
Q19) What is Financial Statement version in the SAP FICO?
Ans: 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 the betterment.
Q20) Tell something you know about a field status Group?
Ans: When transactions are done, there are often fields which come up, this option is used or is enabled when they are not required while handling the tasks.
SAP FICO Interview Questions for Experienced
Q21) What prerequisites are there which users need to handle when it comes to document clearing?
Ans: First thing to make sure is whether the items get cleared status by the management or not. Next is to make sure that the document is valid or not.
Q22) What exactly do you call a short-end Fiscal Year?
Ans: 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.
Q23) What is internal order option in the SAP FICO?
Ans: 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.
Q24) Why Asset classes are important in SAP?
Ans: Asset class is the primary class that is used for the purpose of justifying the assets. The entire asset category are generally assigned or integrated to the one asset class. It is also possible for the users to use the default values for the same.
Q25) Name a few important components of the charts that matters in accounting?
Ans: 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.
Q26) Tell something about the credit control area in the SAP?
Ans: The credit control is in the SAP enable 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 risk of bad debts and outstanding receivables.
Q27) What options do you need to fill when it comes to creating the Credit Control Area?
Ans: 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.
Q28) What do you mean by posting period Variants?
Ans: It is basically a time frame during which the transactions figures are updated. Generally it is accountable to control accounting periods that are complex.
Q29) What exactly Field Status is?
Ans: 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.
Q30) Tell something about Parallel local currency in SAP?
Ans: Organizations are allowed to add two more currency option than their local. They can be used in the transactions made at 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.