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Top 60 SAP FICO Interview Questions and Answers

sap fico interview questions and answers

How time flies!! In the 49 years of a successful journey, job opportunities in the SAP field have greatly increased. As SAP FICO job seekers increase, so does competition in the SAP job market. Not only the score of the SAP Certification Exam are enough, but excellent performance in the interview is also crucial to build your SAP FICO career. As you gear up for your interview, you may be considering the SAP FICO interview questions and answers your employer is going to ask you.

While there is no way to know exactly what questions will be asked, there are many popular interview questions that are expected to be thrown at you. Job interviews can be stressful. The best way to prepare for a job interview is to anticipate and prepare for potential questions. We are going to introduce the most common interview questions and answers of SAP FICO that will make you a confident candidate for the job role.

SAP FICO Interview Questions and Answers

1. What is SAP?

SAP (Systems, Applications, and Products in Data Processing) is founded in 1972 by the German company SAP SE. it’s the leading ERP (Enterprise Resource Planning) software package in the world.

2. Who is the founding father of SAP software?

Dietmar Hopp

Hasso Plattner

Hans-Werner Hector

Klaus Tschira

Claus Wellenreuther

3. What are the various layers within the R/3 system?

Database layer, Application layer, Presentation Layer

4. What are the categories of SAP modules?

Functional Modules

Technical Modules

5. Mention the various types of SAP modules?

Financial Accounting (FI)

Controlling (CO)

Treasury (TR)

Real Estate Management (RE)

Enterprise Controlling (EC)

Investment Management (IM)

Project System (PS)

Materials Management (MM)

Sales & Distribution (SD)

Production Planning & Control (PP)

Quality Management (QM)

Logistics General (LO)

Plant Maintenance (PM)

Logistics Execution (LE)

Customer Service (CS)

Environment, Health & Safety (EHS)

Supplier Relationship Management (SRM)

Product Lifecycle Management (PLM)

Supply Chain Management (SCM)

Advanced Planning & Optimization (APO)

Human Capital Management (HCM) (formerly: HR – Human Resources)

Employee Self-Services (ESS)

Manager Self-Services (MSS)

Workflow (WF)

Business Warehousing (BW)

Customer Relationship Management (CRM)

Enterprise Content Management (ECM)

SAP Manufacturing Integration & Intelligence (MII)

SAP NetWeaver (formerly SAP Basis)

SAP Solution Manager

Enterprise Portal (EP)

Process Integration (PI) (formerly SAP-XI)

6. Mention a number of SAP’s setbacks?

  1. It’s expensive
  2. Lengthy implementation time
  3. Demands highly trained professionals
  4. Bit complex

7. What are the Components of the ‘ERP’ Solution?

  1. SAP ERP Central Component (ECC 6.0)
  2. SAP SRM 5.0 (Supplier Relationship Management)
  3. SAP CCM 2.0 for ERP 2004 (Catalog Content Management)
  4. SAP SEM (Strategic Enterprise Management) (SEM 6.0)
  5. SAP Project and Portfolio Management 4.0 (cProject Suite)
  6. SAP Internet Sales for ERP

8. What is ABAP in SAP?

ABAP or Advanced Business Application Programming is a fourth-generation language (4/GL) developed by SAP SE, a German company. It is extracted from computer languages such as C, C ++, Java, and Python. It’s used by developers to develop the SAP R/3 platform. It is a high-level programming language and it is easy to learn when it comes to the level of programming.

9. What does one mean by transaction codes in SAP?

Transaction codes are a shortcut key that has direct access to the requested transaction from anywhere within the SAP system.It’s also called T – Codes.

10. What is a command field?

Command field is an input field where to enter the transaction codes that direct to a program task or SAP application without using menu paths.

11. What is the ‘IMG’?

The ‘IMG (Implementation Guide)’ in SAP provides you with the assorted configuration steps in a tree-like structure for easy access. This can be the central repository for customizing, providing a step-by-step guide for ending various activities.

12. What is ‘Configuration’ in SAP?

‘Configuration’ is the process of maintaining settings (parameters) within the system to support specific/customized business requirements. Remember SAP is an ‘all-encompassing’ application that has to be ‘configured to satisfy your specific requirements.

13. What is a company in SAP?

A company is an organizational unit in accounting, which represents a commercial entity that personal financial statements could also be caught up in accordance with applicable law. A five-character alphanumeric code refers to a company in SAP.

14. What does one mean by company code in SAP?

A company code is the smallest organizational unit for external accounting. Financial statements (Balance sheets and profit & loss statements) are created at the company code level as per required by law. A parent company can contain one or more company codes.

15. If two company codes use the same chart of accounts, can the currency in one company code be used as INR and the currency in the other company code as USD?

Although the two company codes use the same chart of accounts, they can use two different currencies. This is because the currency of the account is defined at the company code level and not at the chart of accounts level.

16. Is the Business area defined at the company code level?

The business area is available for use to all company codes in the client. So the business area can be said to be client level.

17. What are the various account types in SAP?

Customer, vendor, GL, asset, material

18. Explain the term chart of accounts in SAP

A list of ledger account is termed as a chart of account. It is defined at the client level and is assigned to every company code.

The COA has three types:

1. Operating Chart of Accounts: This record is used for daily posting in your company code.

2. Group Chart of Accounts: it’s utilized by the whole corporate group.

3. Country-specific Chart of Accounts: It helps to satisfy country-specific legal requirements.

19. How many charts of accounts can be assigned to a company code defined in SAP?

Only one chart of accounts can be assigned to a company code. You will not be able to assign more than one chart of accounts to one company code but one chart of account may be assigned to many company codes.

20. What is the use of retained earnings account?

Retained Earnings Account is used to transfer the P& L Account balances from one fiscal year to the next fiscal year.

21. What is Shortened SAP Fiscal Year?

If the number of periods during a financial year is less than the number of periods within the fiscal year then it’s called a shortened SAP fiscal year. In the case of shortened SAP Fiscal Year, the variant must be defined as year-dependent.

22. What is the transaction code for customization?


23. What is the need for FSV (Financial Statement Version)?

FSV stands for Financial Statement Version. It is a reporting tool. It can be used to extract final accounts (Profit and Loss Account and Balance Sheet) from SAP.

24. When defining a chart of accounts (COA) in SAP, what are the important components contained in it?

a) Chart of account key

b) Name

c) Maintain Language

d) Length GL account number

e) Controlling Integration

f) Consolidation-Group chart of accounts

g) Block indicator

25. What are the purposes of document types in SAP?

a. Unique document numbers are defined by it.

b. It is used to determine account types like asset, customer, vendor, etc. for posting.

c. Used to reverse a selected transaction that’s entered wrongly.

26. What is an open item in SAP FI?

Open item is an unfinished transaction in SAP. That means the line item is open and it is not cleared by a clearing transaction.

27. What is meant by ‘Organizational Units’ in SAP?

The ‘Organizational Units’ in SAP are the components or structures representing business functions and are used in financial reporting.

28. What are the Important ‘Organizational Units’ used for financial reporting in SAP?

1. Company

 2. Company Code

 3. Business area

29. What is the business area?

Business areas represent separate areas of operation within a company and may be used across company codes.

30. Can you assign a business area to a company code directly?

No, business areas aren’t assigned to any organizational units like company code.

31. What is the variant principle? And what are the steps of variant principle?

The variant principle may be a three-step method employed in the SAP system to assign particular properties to at least one or more objects.

The three steps are:

Define variant

Determine values for the variant

Assign the variant to the objects

32. Name the commonly used exchange rate types?

B: Selling rate

G: Buying rate

M: Average rate

33. What is a reconciliation account? Mention the purpose

Reconciliation accounts are general ledgers accounts assigned to the master records (customer/ vendor master data) to automatically record all transactions in the sub-ledger. Once we post from a subsidiary ledger account, the SAP system automatically posts the identical data to the main general ledger at the same time.

34. A G/L account consist of which segments?

Company code segment

Chart of accounts segment

35. G/L accounts with open item management must have a line item display. True/ false?

True, we cannot define a G/L account with open item management without selecting the ‘Line item display’ option.

36. What is a house bank?

The bank accounts used by your company are called house banks. Each company code can have multiple house banks. The account is identified by an account ID that’s unique for every house bank.

37. Mention four steps in the payment program.

Maintain parameters

Proposal run

Execute a payment run

Printing payment media

38. What are the steps involved in the configuration of the Automatic Payment Program (APP)?

1. All company codes

2. Paying company codes

3. Payment methods in-country

4. Payment methods in company code

5. Bank determination

6. House bank

39. List the steps that have to be taken by the dunning program to perform the automatic dunning procedure.

Maintain parameters

Proposal run

Dunning proposal

Print the dunning notice

40. What are the tax types that help the SAP system for tax calculation, posting, and tax reporting?

Tax on sales& purchases

Withholding Tax

Additional Tax

41. What is Sub-ledger accounting in SAP FICO?

In SAP sub-ledger account is the name of asset accounting. It is used for managing the fixed assets of a business organization. The main purpose of sub-ledger accounting is to extract the exact values of the fixed assets owned by the organization on a particular date.

42. What do you mean by asset class in SAP FICO?

A group of similar assets is known as an asset class.  Every asset must be assigned to an asset class in SAP.

43. What are the predefined document types in SAP?

A- Asset

K- Vendor

D- Customer

M- Material

S- General ledger

44. What is the difference between field status variant and field status group?

Field status variants are used to store field status groups. There must be a lot of required or optional fields in these groups to design the posting windows. At the time of ledger creation, we have to assign these groups to each ledger.

45. What is the significance of the tolerance group in SAP?

The tolerance group determines the maximum amount that can enter as a line item in a vendor account or customer account and the maximum document amount the employees are authorized to post.

46. How can you prevent the creation of duplicate accounts?

Use the match code before you create a new/ replacement account

Activate the automatic duplication check.

47. What is an external number assignment?

If the user assigns the document number manually, then it is called an external number assignment. External numbers may be alphanumeric.

48. What are the most important control functions of a posting key?

Account side (i.e. Debit or Credit)

Field status of the additional account assignment and general data.

49. Mention two elements that influence the field status of document fields.

Posting key

Field status group

50. What is SAP power user?

Power users are users with advanced knowledge in certain applications and with special permissions or roles. SAP ‘Power User’ may be a formal role given to a person who isn’t a programmer, but who is a specialist in SAP software.

51) Name the organizational elements in SAP FI?

The organizational elements in SAP FI are:

a) Company Code

b) Business Area

c) Chart of Account

d) Functional Area

52)What is a posting key, and what does it control?

A two-digit numerical value known as the ‘Posting Key’ is utilized to identify the transaction type that is entered in the line item.

The posting key identifies a) account types and b) posting types. Debit or credit card c) Transaction field status

53)What is the SAP company code?

A company code is used to compile financial documents such as profit and loss statements, balance sheets, and so on.

54)What is the maximum number of Charts of Accounts that a company code can have?

You can have one Chart of Accounts for each designated company code.

55) How many currencies may be specified for a Company Code?

A Company code can be customized to use one of three currencies: one local currency and two parallel currencies.

56) What are the fiscal year choices in SAP?

In SAP, the fiscal year is the method through which financial data is kept in the system. In SAP, there are 12 normal posting periods and four special posting periods. These times are saved in the fiscal year variation, which is:

a) Calendar Year: January-December, April-March b) Fiscal Year Dependent on Year

57) What exactly is a ‘year shift’ in the SAP calendar?

The SAP system does not grasp what fiscal year is broken, for example, April 2012 to March 2013, and only understands the calendar year. If the fiscal year for any business is not a calendar year but a combination of different months from two different calendar years, then one of the calendar years must be classified as a fiscal year for SAP and the month falling in another year must be adjusted into the fiscal year by shifting the year by using the sign -1 or +1. The term “year shift” refers to this change in the calendar year.

Example: Our first calendar year runs from April to December of 2012, and our second year runs from January to March of 2013.

58) In SAP, how are input and output taxes handled?

Each country’s tax processes are outlined, and tax laws are defined within this. The tax amounts can either be expensed or capitalized to stocks.

59) What is the difference between SAP validations and substitutions?

In SAP, validation and substitution are described at the following levels for each functional area, such as Assets, Controlling, and so on.

a) At the level of document b) At the level of the line item

60) What are some examples of application areas that employ validation and substitutions?

a) Financial accounting; b) Cost accounting; c) Asset accounting; d) General ledger, and e) Consolidation.

f) Postscript (Project System) g) RE (Real Estate) h) PC (Personal Computer) (Profit Center Accounting)

Whew! That was a huge collection of top SAP FICO Interview Questions and answers. While preparing for the interview, you can have an insight into the questions that your employer is likely to ask. Then you can be equipped with a good understanding of the relevant topics and be prepared. Being ready with the SAP FICO Interview Questions and answers can easily dispel your distress and you will be able to perform well as you are prepared with the interview questions and answers.

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