We are witnessing a massive demand for SAP FICO professionals worldwide. Numerous job opportunities await them, and that too in MNCs and other reputed firms. Almost all business organisations are working on SAP software and need experts to handle it properly; because of the shortage of SAP professionals, employers are willing to pay big salaries for certified ones. This article is crafted just for you if you are a qualified SAP FICO professional preparing for your first job interview. Below we will discuss some of the most commonly asked SAP FICO interview questions, which will help you in your upcoming interviews.
SAP FICO Interview Questions and Answers
What is the primary function of SAP FICO?
A company uses SAP FICO modules to manage its financial tasks within a global framework of currencies and languages. SAP financial accounting(FI) looks after cash journal, accrual, fixed assets, general ledger, cash accounting, and other similar financial tasks. In contrast, SAP controlling(CO) is in charge of stock sheets, buying orders, cost assignments, etc.
What is the importance of financial statements in a business?
Financial statements are used to manage the company’s financial assets. With these financial statements, you can create data for future investments and plans for the company’s betterment.
What are the hierarchy components in SAP FICO?
There are four hierarchical components in SAP FICO. They are:
- Business area
- Company code
- Chart of account
- Functional area
What is the use of the company code?
Company code is used for generating the profit and loss of a company. All employees cannot access the same code but can configure up to three different currencies, out of which one is local, and the other two are considered parallel.
What is the use of a chart of accounts?
A chart of accounts or COA is used to meet the company’s legal requirements and daily needs. There are three types of COA.
Country COA is the general ledger accounts list used to meet the country’s legal requirements.
Operating COA is looked after by the company code and has all the General ledger accounts.
Group COA are accounts used by the entire corporate group. They help in generating reports at the corporate.
How will you manage the transactions originating from different lines inside a company?
You can create different company codes for each business line or generate business areas to differentiate between the company’s diverse business lines.
What is the use of credit control?
Credit control protects your business from overstretching its financial assets. After making the payment after the product sale, usually, you can set a credit limit for customers using SAP. It will enable you to restrict the amount customer has to clear in their account before making further purchases.
What do you understand by field status group and field status variant?
Field status groups come under the general ledger account. The field status variant comes under the field status group. It is used to define the fields while posting in the ledger account.
At a time, how many fiscal year variants can you use?
The fiscal year variant combines the number of particular periods and posting periods in that fiscal year. You can declare up to 16 posting periods. There is a specific fiscal year variant for each company code. So while generating a controlling area, you must also mention that code’s fiscal year variant.
Mention some of the modules into which FI is integrated.
FI is integrated into following modules:
- Material management
- Human resource
- Sales and distribution
- Production planning
How will you make vendor payments?
There are two methods to make vendor payments. One is manual payment; it is done manually and does not use other mediums like cheques. The second one is automatic payment. This payment method uses DME(data medium exchange), like cheques or wire transfers, to carry out the payment.
How will you manage input and output taxes?
The country where your company originated will have defined tax procedures with tax codes. You can choose between expending or capitalising the tax amount into stocks.
What do you mean by ‘year shift’?
The calendar year of a company may not always match its financial year. You may have to add or remove certain months. Using the SAP software, you can easily carry out this process, and this procedure is known as the ‘year shift’.
According to you, what is WIP?
WIP or work in progress is used to label an asset currently under development and can be customised as per the customer’s needs when needed.
What are the major applications of SAP FICO?
The applications of SAP FICO are:
- Asset and cost accounting
- Handling the essential financial tasks of the company
- Real estate
The above SAP FICO questions and answers will help you clear the interview without hassle. For other SAP FICO-related queries, you can visit the official website of Finprov Learning. And if you are thinking of getting certified in SAP FICO, join the SAP FICO certification course of Finprov and become a successful SAP professional.