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SAP FSCM Interview Questions

SAP is one of the leading enterprise resource planning software providers globally. By developing expertise in SAP FSCM, you can enhance your marketability and increase your chances of securing well-paying positions. With that in mind, the following is a selection of SAP FSCM interview questions and answers. Whether  you're looking to start a new job or are an existing professional who is merely trying to upskill, you’ll find these SAP FSCM interview questions to be useful.

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If you're looking for SAP FSCM Interview Questions & Answers for Experienced & Freshers, you are in the right place. There are a lot of opportunities from many reputed companies in the world. According to research SAP, FSCM has a market share of about 0.1%. So, You still have the opportunity to move ahead in your career in SAP FSCM. Mindmajix offers advanced SAP FSCM Interview Questions 2024 that helps you in cracking your interview & acquire your dream career as an SAP FSCM Developer.

We have categorized SAP FSCM Interview Questions into 2 levels they are:

SAP FSCM Interview Questions and Answers For Freshers

1. Name and Compare the processes in the financial supply chain management which are important?

These are:

  • Purchase to pay cycle
  • Order to cash cycle
S.NoPurchase to pay cycleOrder to cash cycle
1It is Company’s perspectiveIt is the supplier’s perspective
2A quote is not always necessaryThe same is of prime importance in this cycle
3Vendors may not always need this   It is often required by the vendors

2. What are the advantages that an organization can have through effective financial supply chain management?

Well, it is basically an approach that is very essential for any business to consider in the present time. This is because it brings a diverse array of benefits for one and all. Those who go for it can simply make sure of a very large number of benefits some of which are listed below:

  • Financial Chain Supply Management simply make sure that the availability of finance at the right time
  • Better customer relationship management can also be assured
  • Timely delivery of products to the vendors and to the customers
  • A close eye can be kept on the production, as well as on the stock availability
  • The users can simply make sure of no loss occur due to any minor financial issues 
  • It is also possible for the users to simply make sure of categorizing the products easily when one has to deal with a very large number of products.

3. What benefits an organization can have with In-house cash?

  • Controlling the overall number of bank accounts requirement
  • Tax benefits
  • Quick payments of external transactions (but risks might be involved).

4. What are the reasons an organization should adopt SAP FSCM according to you?

Management of the credit collections and the concerned process is not a simple job in the present time. This is because of changes in the nature of users and their preferences. Another major problem is the competition which is obviously a challenge for any business in the present time. With SAP FSCM, one can simply enhance all the processes related to financial management in the organization. There are several functions in the tool with the help of which it is possible for the users to simply solve the issues related to finance and can enhance the overall visibility of the business.

5. While handling customer-related financial functions, what are the things that one would pay attention to?

There are certain things that largely matter. The first thing is to make sure how to sell the product to the customer without offering any discount. Next is to pay attention to the transaction history of the customer to understand the choice and preferences as it would be a useful strategy. It is also important to pay close attention to the risk assessment of the customer.

6. What do you mean by the term Product Flow?

It is basically a graphical or a proper representation of all the phases which are related to the development of a product and how it is processed further to the vendors or to the customers. It is actually one of the prime aims of the financial supply chain management approach to enhancing this strategy and most of the users pay extreme attention to this. 

7. Can FSCM have a direct impact on the profitability and expenses of an organization?

Yes, it has a direct impact on both of these modules which are very important in any sort of business. With effective management of the financial supply chain, the users can significantly cut down the expenses which are no longer matters and can keep a close eye on the flow of expenses. By cutting down the expenses, it is obvious that profitability can be assured for sure. 

8. Name anyone important financial Management component?

Cash Flow facility Structure

9. What do you mean by the term Credit Collection (CC)?

It is basically nothing but a policy of the company to collect the pending amount from the vendors, wholesalers, retailers or from the customers in a specific time frame. This is mainly to avoid any pendency and to make sure that better customer relationships can be assured.

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10. With the SAP FSCM tool, do you think there are other factors than finance that can be taken into consideration?

Yes, it is true. The SAP FSCM has several features in it through which the users can simply make sure of monitoring the behavior of the employee, his/her loyalty. In addition to this, the SAP FSCM makes sure of understanding the future sales trends with the help of which the organizations can enhance their profits or can simply prepare them for the future. 

11. What are the major factors that can impact the financial progress of an organization according to you and how SAP FSCM can help in it?

Financial Progress in a continuous manner is actually a tough job for the business. There are certain factors that can have a direct impact on the same. Some of these factors are:

  • The sudden resignation of skilled employees engaged in handling major financial responsibilities
  • Delays caused due to improper financial handling
  • Shifting of the department and their heads
  • Delays in the services affecting the production and the customer relations
  • Unexpected expenses arrive due to issues such as quality or the claims imposed by the customers

SAP Financial Supply Chain Management tool is powerful in deriving a lot of information about all the above issues and with the help of the same, the concerned actions can easily be taken by the organizations to keep up the pace simply.

12. What do you mean by the term Disputes?

It is basically a situation when a customer, vendor, retailer, supplier, wholesaler, or anyone dealing with an organization fails to accept the policies of the company. The dispute can be due to a mistake or an organization or any other party. Generally, most disputes arrive due to the factors which are related to the financial transactions.

13. Give one benefit that you can have with SAP FSCM while dealing with processes meant for customer improvement?

Well, the prime benefit is the concerned processes which are often too complex to handle can easily be broken down into different sub-modules or sections which can be combined at a later stage.

14. Is there any limit on handling customers with SAP FSCM tool?

No, there is no such limit and the users can easily keep up the pace without worrying about anything like that.

15. According to you, what is the biggest benefit that an organization can have with the SAP FSCM approach?

The potential risk of bad credits can easily be avoided up to a very good extent.

Also, Check out SAP SRM Interview Questions and Answers that help you grab high paying jobs

SAP FSCM Interview Questions For Experienced

16. When it comes to handling the financial tasks with SAP technology, where would reports can be considered?

In this approach, the reporting should be considered in the initial stage as it can help the organization in deriving results which are far beyond their imagination. This is because the wastage of time due to mentioning wrong information can easily be avoided in the long run and the users are free to make sure of outcomes that can be trusted for the long run. 

17. What do you know about the implementation of an SAP FSCM project and what are the pros and cons associated?

Implementation of such a project is a task that needs to have isolated at every stage. This is because the processes are very much different from one another and the users can divide them as per their need. The biggest thing about this technology is more than 80% of the tasks related to implantation are pre-designed. Rest can be done through the proper software implementation. 

18. What are the benefits that the Treasury and Risk Management can bring for an organization dealing with Finance?

It simply let the organizations to make sure of managing the payments, liquidity, financial reporting as well as integration of facts in a reliable manner.

19. What is customer Credit management according to you?

It is basically a policy or a strategy with the help of which evaluation is done by an organization on the creditworthiness of a customer based on the data for the purpose of taking credit decisions that can affect the organization and the customer. It is not always necessary that the same credit management approach works for all the customers. 

20. What exactly SKU stands for?

It means Stock Keeping unit and is basically an approach that gives information about a specific financial aspect.

21. What are the important tasks in collection Management according to you?

There are certain tasks that largely matters and the good thing is the users are free to keep up the pace in the right manner. There is not always a need for the users to get things done through an approach that always supports the receivables management. This generally includes:

  • Evaluation of the accounts
  • Improving or checking the credit history
  • Receivables processing.

22. What are the elements of an effective supply chain management system according to you?

There are certain elements:

  • The very first one is the availability of resources and an effective application through which things can be done in the right manner
  • The next big thing is transportation. No goods can be delivered to the customers or to the concerned parties on time without a properly managed system.
  • The overall availability of goods and the production time required to meet demand can also largely affect the supply chain management system
  • The proper communication should also be there among the vendors and organizations, customers and organizations, and other parties
  • Also, it is necessary for the organization to make sure of an effective billing system for the same.
  • The product barcodes can also play a significant role in making this approach more useful and reliable.

23. Define Dispute management in your own words?

It is basically a mechanism that is generally adopted by the organization to get the things done in their own favor or in the favor of both parties involved. With this, the payment problems can be detected easily. 

24. Can a finance supply chain management be based on different networks always?

Not always, but in most the cases it is based on different networks and tools

25. What according to you is the prime objective of SAP Financial Supply Chain Management?

To make the entire inventory readily available and achieve efficiencies

26. What is Logistics in the FSCM?

It is nothing but the movement of finance at the desired destinations

27. What is the purpose of Biller Direct according to you?

It is basically an approach with the help of which the sellers or the organizations can directly or easily send bills to the concerned parties through an electronic approach. This helps them in making payments online without worrying about anything.

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28. What is Finance Replenishment? 

It is basically maintaining a specific level of finance or cash when it goes down due to the reasons such as emergency needs and investments. Every organization has to maintain a financial stock actually. 

29. What improvements can you have through a financial supply chain management tool in the organization? 

The overall visibility of the financial flow can easily be expanded with the help of this approach and it has already been proven by the organizations who have already adopted the same. The users can easily recognize the events that have a great impact on the working capital and can improve the same. Also, a lot of information can easily be derived with the help of which the users are free to improve the pricing policy, discount gives, terms affecting and managing the payments, inventory related factors as well as the financial auditing can be improved in no time. 

30. What do you understand with the term BPI?

It stands for Business Process Integration.

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Last updated: 23 Feb 2024
About Author

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.

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