Question 1. What Is An ‘account Group’?
The ‘Account Group’ (or GL Account Group), a 4-character alphanumeric key, controls how the GL account master records are created in the system. This helps to ‘group’ GL accounts according to the ‘functional areas’ to which they must belong. Account group is mandatory for creating a master record. The same account groups can be used by more than one more Company Code if they all use the same Chart of Accounts. Each GL account is assigned to only one account group.
The Account Group determines:
- The number interval that is to be used while creating the master record.
- The screen layout that is to be used while creating the master record in the Company Code area.
While defining the account groups in the system, you also need to define the corresponding field status for each of these groups. Otherwise, you will not be able to see any fields as all these would be hidden by default.
SAP comes delivered with a number of ‘account groups’ such as:
- SAKO (GL accounts general)
- MAT. (Materials Management accounts)
- FIN. (Liquid Funds accounts)
In most situations, you will not require additional groups other than the ones already available in the standard system. However, if you need to create a new one, it is easier to copy an existing one and make modifications to it instead of creating one from scratch.
Question 2. Describe Number Range Interval?
The ‘account group’ determines which ‘Screen Layout’ should be used while creating a GL account master record. For each of the account groups, you can define different screen layouts, which essentially determine the ‘Field Status’ of a field.
The field status refers to whether the field is:
- Suppressed (field is invisible, hidden from display)
- Required (display on, entry mandatory)
- Optional (display on, entry not mandatory)
All the above three are shown as ‘radio buttons’ against each of the fields in the screen layout, and you should select any one to set the status to that field; by default all the fields are ‘suppressed.’
There are two levels of controls of field status:
- Field status at the account group level
- Field status at the activity (create/change/display) level (i.e., at the transaction level).
You may also have the field status defined for posting keys (40-debit and 50-credit for the GL account postings). Also remember to define the field status for ‘reconciliation accounts’ as you will not be able to define any such status in the sub ledger accounts (for example, customer or vendor).
SAP has built-in rules, called link rules, to link these two levels and to decide the final status of a field in the ‘screen layout.’ The link rules also help to overcome the field-status setting differences arising out of different settings at the Client level (field status for posting keys) and the Company Code level (field status settings at the account group level).
Question 3. What Is A ‘field Status Group’?
The ‘field status’ of an individual field or a group of fields is marked in a ‘Field Status Group,’ which is then assigned to individual GL account master records. You may attach field status groups to a field status variant so that the ‘field status groups’ are used in various Company Codes.
The Field Status Variant is named similar to the Company Code. For example, if your Company Code is 1000, the field status variant is also named 1000, and it is assigned to the Company Code.
Question 4. What Do You Mean By ‘balances In Local Currency’ Only?
When you create GL account master records, it is necessary to decide whether you want an account to have the transactions updated only in local currency. You will set this indicator accordingly in the ‘Company Code area’ of the master record.
Make sure to set this indicator for clearing accounts such as:
- Cash discount clearing accounts
- GR/IR clearing accounts
Note that you need to set this indicator ‘on’ for all the ‘clearing accounts’ where you use the local currency to clear the line items in various currencies so that the transactions are posted without posting any exchange rate difference that otherwise might arise.
Example: Consider an invoice for USD 1,000, which on that day translates into an amount of INR 45,000 with an exchange rate of I USD=INR 45. Imagine that when the goods are received, the exchange rate was 1 USD=INR 44.
- If the indicator is set, the system ignores the exchange rate as if the line items have been maintained only in the local currency (INR), and the items are cleared.
- If the indicator is NOT set, the system makes a posting for the ‘exchange rate difference’ (INR 1, 000) before clearing the two line items.
Question 5. What Is ‘line Item Display’?
To display line items of an account, you need to set the indicator ‘Line Item Display’ to ‘on’ in that account’s master record. This is mandatory for customer and vendor accounts. The line items can be displayed using the classical display or the SAP List Viewer (ALV). You can also use several ‘display variants’ to display various fields when you feel that the Standard Variant is not meeting your requirements.
Question 6. Tell Me The Two Uses Of ‘blocking’ An Account?
You may use ‘Blocking’ to:
- Block an account from further postings.
- Block the creation of the account itself (at the Company Code level or Chart of Accounts area).
Question 7. How Do You Configure The Gl A/c For The ‘house Bank’?
A ‘House Bank’ is defined using transaction code FI12. A ‘bank key’ represents the bank. The house bank can contain several accounts; for each of these accounts you need to maintain a GL account. The bank determination, for an automatic payment program, is configured using the Transaction Code FBZP.
Question 8. What Is An ‘intermediate Bank’?
‘Intermediate Banks’ are used in SAP in addition to the house banks and partner banks for making or receiving payments from business partners abroad. The payment processing, involving an intermediary bank, makes use of the ‘bank chain,’ which may consist of a house bank, a partner bank, and a maximum of intermediate banks.
Question 9. How Do You Perform ‘period Closing’ In Sap?
You do a ‘(Period) Closing’ in SAP in three steps:
- Completing the Pre-closing activities
- Financial Closing
- Managerial Closing
Question 10. What Is ‘pre-closing’?
You need to ensure the following as part of the ‘Pre-closing’ activities:
- Post all the Recurring Entries for expenses and accruals.
- Ensure that all the interfaced programs have been run so that the required data have been transferred to the system.
- Post all the depreciation, material receipts, invoices, salaries, etc. In short, ensure that all the transactions for the period in question have been duly recorded and posted into the system.
Question 11. How Do You Ensure ‘correct’ Balances In The ‘financial Statement Version’?
In order to have a balanced statement (Profit & Loss and Balance Sheet) you need to ensure that the accounts are correctly and completely assigned to the nodes of the Financial Statement Version. You may do this by resorting to the necessary assignments at the account balance level or node balance level.
At the account balance level, you need to ensure that the account is shown in two different nodes, but you will turn “ON” the ‘debit indicator’ of the account on one node and turn “ON” the ‘credit indicator’ on the other node. Imagine that you have a bank current account 10001000. When you turn “ON” the debit indicator, this account shows only the debit balances and is construed as the asset. On the other hand, when the credit indicator is turned “ON,” the balances on this node now indicate that you owe to the bank (overdraft).
You may also use the node-level assignment. In this case, the system uses the ‘debit/credit shift’ and shows only the ‘effective’ balance at the node and not at the individual account level.
Question 12. How Do You Perform ‘annual Closing’ In Sap?
‘Annual Closing’ is like any other ‘period closing’ and you will be performing all the activities that are required for a period-end-close.
In addition to those activities, you will also:
- Carry forward Vendor and Customer accounts
- Carry forward the GL account balances of all the Balance Sheet items
- Close the Profit & Loss Accounts and carry forward the balance (profit or loss) to the retained earnings account(s)
For a GL account ‘carry forward,’ use the program SAPF011.
Question 13. What Is A ‘financial Statement Version’?
A ‘Financial Statement Version’ helps to define the Financial Statements (both the Balance Sheet and Profit & Loss statements). When you copy the settings from an existing Company Code to a new one, you will also be copying the financial statement version defined for the ‘source’ Company Code.
You may also define a new financial statement version and build the financial statements from scratch. You may create the financial statements both for external reporting (Company Code financial statements) and internal reporting (business area financial statements).
You may also create the balance sheets for a group of Company Codes using FI-SL (Special Purpose Ledgers). The financial statements may be defined to provide information from a period accounting point of view (GL account groups wise) or a cost of sales point of view (functional area financial statements).
All the above statements can be configured and defined to provide different levels of detail:
A financial statement version can have a maximum of 10 hierarchy levels, with each level assigned with an item (account category). As you go down the hierarchy, you define the account categories in more detail, with the lowest level being represented by the GL accounts. The system displays the relevant amount for each of these items.
Question 14. Give Some Examples Of Gl Accounts That Should Be Posted Automatically Through The System And How Is This Defined In The System?
Stock and Consumption accounts are instances of GL accounts that should be automatically posted to. In the GL account master record, a check box exists wherein automatic posting option is selected called “Post Automatic only”.
Question 15. Where Is A Account Group And Where All Is It Used?
An account group controls the data that needs to be entered at the time of creation of a master record. Account groups exists for the definition of a GL account, Vendor and Customer master. It basically controls the fields which pop up during master data creation.
Question 16. What Is A Field Status Group?
Field status groups control the fields which come up when the user does the transactions. The options available is one can have the fields only for display or one can suppress it or make it mandatory. So there are three options basically. The field status group is stored in the FI GL Master.
Question 17. What Is A Financial Statement Version?
An FSV is a reporting tool and can be used to depict the manner in which the final accounts like Profit and Loss account and Balance sheet needs to be extracted from SAP. It is freely definable and multiple TV’s can be defined for generating the output for various external agencies like Banks and other statutory authorities.
Question 18. How Can Input And Output Taxes Taken Care In Sap?
A tax procedure is defined for each country and tax codes are defined within this. There is flexibility to either expense out the Tax amounts or capitalize the same to stocks.
Question 19. Is It Possible To Maintain Plant Wise Different Gl Codes?
The valuation group code should be activated. The valuation grouping code is maintained per plant and is configured in the MM module. Account codes should be maintained per valuation grouping code after doing the configuration.
Question 20. Is Business Area At Company Code Level?
No. Business area is at client level. Which means other Company Codes can also post to the same Business area.
Question 21. What Are The Difference Scenarios Under Which A Business Area Or A Profit Center May Be Defined?
This question in usually very disputable. But both business areas and Profit centers are created for internal reporting. Each has its own pros and cons but many companies now a days go for Profit Center as there is a feeling that business area enhancements would not be supported by SAP in future versions.
There are typical month end procedures which need to be executed for both of them and many times reconciliation might become a big issue. A typical challenge in both of them is in cases where you do not know the Business area or Profit Center of the transaction at the time of posting.
Question 22. What Are The Problems Faced When A Business Area Is Configured?
The problem of splitting of account balance is more pertinent incase of Tax accounts.
Question 23. Is It Possible To Default Certain Values For Particular Fields?
Yes it is possible to default for certain fields where a parameter id is present. Go to the input field to which you want to make defaults. Press F1, and then click Technical info button, This opens a window that displays the corresponding parameter ID(if one has been allocated to the field) in the field data section. Enter this parameter ID using following path on SAP
Easy access screen system > User profile>Own data.
Click on parameter tab. Enter the parameter ID code and enter the value you require to default. Save the user Settings.
Question 24. Which Is The Default Exchange Rate Type Which Is Picked Up For All Sap Transactions?
The default exchange rate type picked up for all SAP transactions is M (Average type)
Question 25. Is It Possible To Configure The System To Pick Up A Different Exchange Rate Type For A Particular Transaction?
Yes it is possible. In the document type definition of GL, you need to attach a different exchange rate type.
Question 26. What Are The Customizing Prerequisites For Document Clearing?
Account must be managed on the open item management. This tick is there in the General Ledger Master Record called open Item Management. It helps you to manage your accounts in terms of cleared and uncleared items. A typical example would be GR/IR Account in SAP (Goods Received/Invoice Received Account).
Question 27. Explain The Importance Of The Gr/ir Clearing Account?
GR/IR is an interim account. In legacy system if the goods are received and the invoices is not received the provision is made, in SAP at the Goods receipt it passes the accounting entry debiting the Inventory and Crediting the GR/IR Account. Subsequently when an invoice is recd this GR/IR account is debited and the Vendor account is credited. That way till the time that the invoice is not received the GR/IR is shown as uncleared items.
Question 28. How Many Numbers Of Line Items In One Single Entry You Can Have?
No of line items in one document you can accommodate is 999 Lines.
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