SAP FI Interview Questions & Answers

  1. Question 1. What Is The Difference Between Company And Company Code?

    Answer :

    A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes.The Company Code is the smallest organizational  unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

  2. Question 2. How Many Chart Of Accounts Can Be Attached To A Company Code?

    Answer :

    One or more Operative Chart of Accounts can be assigned to a company code.

    A COA must be aasigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can be assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country specific Company code or International Company code) can have a country specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record.

    Eg: If a company’s subdidiaries are located in both US & Mexico. We need to configure 2 Company codes – one for US and another for Mexico,for eg U100 and M100. The same way we create 2 COA’s one for US & one for Mexico, USCA and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in Chart of Accounts field and MXCA in Country Chart/Accts field.

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  4. Question 3. What Are Substitutions And Validations? What Is The Precedent?

    Answer :

    Validations are used to check settings and return a message if the prerequisite check condition is met. Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.

  5. Question 4. What Is A Controlling Area?

    Answer :

    The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed.

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  7. Question 5. Define Relationship Between Controlling Area And Company Code?

    Answer :

    A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.

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  9. Question 6. What Is A Fiscal Year Variant?

    Answer :

    Fiscal Year is a period of 12 months and SAP provides 4 special periods to posting adjustment Entries. Fiscal year determines posting periods. Posting periods are used to assign business transactions. Fiscal year may be year dependent or year independent.

  10. Question 7. What Are Special Periods Used For?

    Answer :

    The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments to a closed fiscal year.

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  12. Question 8. What Do You Mean By Year Dependent In Fiscal Year Variants?

    Answer :

    1. Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting periods and the calendar months are equal).
    2. Year Independent: the financial year is different from calendar year Starting from 1st April to 31st March (where the posting period months are not equal to calendar year months).
  13. Question 9. What Are Shortened Fiscal Year? When Are They Used?

    Answer :

    Shortened Fiscal Year: a financial year, which has less than 12 periods.

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  15. Question 10. What Are Posting Periods?

    Answer :

    The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant.

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  17. Question 11. What Are Document Types And What Are They Used For?

    Answer :

    Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc. Types controls things like type of the account that can be posted to, the number range assigned to it, and required doc header fields.

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  19. Question 12. How Are Tolerance Group For Employees Used?

    Answer :

    Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized persons can make postings.

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  21. Question 13. What Are Posting Keys? State The Purpose Of Defining Posting Keys?

    Answer :

    Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.

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  23. Question 14. What Are Field Status Groups?

    Answer :

    Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.

  24. Question 15. What Are Adjustment Postings And Its Use? Give And Paths If Possible?

    Answer :

    fb50,f-02 and others could be used for adjustments. These adjustments are to correct any financial representation that has already been booked into the accounts.

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  26. Question 16. We Always Copy Company Code Or We Can Create Manually Also? If Possible Give Reasons Also.

    Answer :

    There are loads of tables that get copied over when copying co codes. This might be incomplete in a manual copy, and hence the manual route is not advisable.

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  28. Question 17. What Are The Common Document Types In Fi?

    Answer :

    Common Document types Key are

    1. AA – Asset Posting.
    2. AN – Net Asset Posting.
    3. DR – Customer Invoice.
    4. DZ – Customer Payment.
    5. KA – Vendor Document.
    6. KG – Vendor Credit Memo.
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  30. Question 18. Explain The Most Common G/l Reports In Fi?

    Answer :

    There are various G/L reports that can be generated in SAP FI. Most common are:

    1. G/L Chart of Accounts List.
    2. G/L Account Balances.
    3. G/L Account List.
    4. G/L Account Totals and Balances.
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  32. Question 19. What Is The Use Of Account Receivables In Fi?

    Answer :

    SAP FI Accounts Receivable component records and manages accounting data of all customers. It is also an integral part of sales management.

    All postings in Accounts Receivable are also recorded directly in the General Ledger. Different G/L accounts are updated depending on the transaction involved (for example, receivables, down payments, and bills of exchange).

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  34. Question 20. How Can You Manage Partial Payment From Customers In Fi?

    Answer :

    In SAP FI, you can also post partial payments from customer. These partial payments are posted as separate open items.

    Customer can see clearly what all invoice has been issued to customer and what payments he has made. But it keeps the multiple open items, until the invoice is fully paid/ cleared.

    Example : There is a customer with an outstanding amount of 1500 and makes a payment of 500 as partial payment then there will two separate open items of 1500 Debit and 500 Credit in FI system and there will be no clearing document is created.

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  36. Question 21. What Is The Use Of Sales Returns In Fi?

    Answer :

    Sales Returns in SAP FI is used to manage full products that the customer has returned due to a complaint. These are used in consumer good industry.

    All returns are related to quality defects and not incorrect deliveries. The path that the returned merchandise takes often has to be tracked in detail. Returned item has to be sent for inspection.

  37. Question 22. How Do You Define Credit Control Area In Fi?

    Answer :

    T-code: FD32 is used to define the credit control area in SAP FI.

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  39. Question 23. How Do You Manage Credit Limit For The Customer In Fi?

    Answer :

    Credit control in FI is used to check the credit limit for the customer and it can use one or more codes. It is used for credit management in Application components- Account Receivable (AR) and Sales and Distribution.

    The credit control area is determined in the following sequence

    1. User exit
    2. Distribution channel
    3. Customer master
    4. Company code for the sales organization
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  41. Question 24. What Are The Different Submodules In Sap Fi?

    Answer :

    • General Ledger
    • AR/AP
    • Banks
    • Fixed Assets
    • Travel Management
    • Lease Accounting, etc.
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  43. Question 25. What Is The Use Of Fi-asset Accounting Component?

    Answer :

    The FI-Asset Accounting (FI-AA) component is used for managing the fixed assets in FI system. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.

    Integration with other components − As a result of the integration in the SAP System, Asset Accounting (FI-AA) transfers data directly to and from other SAP components.

  44. Question 26. How Do You Manage Relationship Between Two Currencies In Sap Fi?

    Answer :

    Exchange Rates are used to define relationship between two currencies and also to maintain exchange rates are used to translate an amount into another currency.

    You define exchange rates in the system for the following purposes −

    Posting and Clearing : To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing.

    Exchange Rate Differences : To determine gains or losses from exchange rate differences.

    Foreign Currency Valuation : To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.

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  46. Question 27. What Is Dunning In Fi? What Are The Requirement Of Using Dunning?

    Answer :

    In SAP FI, If customer misses the payment for the outstanding invoice by payment due date You can generate dunning letter using SAP FI and send it to customer address for reminding the customer outstanding payment.

    Requirement − The dunning system enables to trace liable customers who have not paid their open invoices within a given time span. It enables you to handle the process from, for example, sending a reminder to customers of their outstanding payments through to referring such customers to collections agencies.

    The dunning system covers below documents

    • Open A/R invoices, including invoices that are partially credited or partially paid.
    • Invoices that include installments.
    • A/R credit memos.
    • Incoming payments that are not based on invoices.
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  48. Question 28. How Do You Manage Outgoing Partial Payment For Vendor In Fi?

    Answer :

    In SAP FI, you can also post outgoing partial payments for vendor. Partial payment from vendor will be open as open item and no clearing document will be generated.

  49. Question 29. Which Of The Fields You Can Display And Log Changes In Fi?

    Answer :

    When you change a master record, the system logs these changes and generates change documents. For each field, it stores the time of change, the name of the user, and the previous field contents.

    You can display all the changes for the following −

    1. A certain field
    2. A master record

    For several vendor master records, following changes are displayed separately −

    1. Overwritten field contents.
    2. Any bank details and/or dunning areas entered after the master record was created.
    3. Any bank details and/or dunning areas that have been deleted.
    4. Using the change documents, you can find all the changes that are made and when they were made.
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  51. Question 30. What Are The Common Activities Performed In Month End Closing In Sap Fi?

    Answer :

    In SAP FI, month end closing involves activities in posting a closing period. You can carry out the following activities as part of month-end closing −

    Open and close posting periods.

    You close one or more posting periods in the past for posting, and permit posting to be made to one or more current or future posting periods.

  52. Question 31. At What Level Are The Customer And Vendor Code Stored In Sap?

    Answer :

    The customer and vendor code are at the client level. That means any company code can use the customer and vendor code by extending the company code view.

  53. Question 32. In Customizing “company Code Productive” Means What? What It Denotes?

    Answer :

    Once the company code is live this check box helps prevent deletion of many programmes accidently. This check box is activated just before go live.. Accounts Receivable and Accounts payable.

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  55. Question 33. Is Business Area At Company Code Level?

    Answer :

    No. Business area is at client level. Which means other company codes can also post to the same business area.

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  57. Question 34. What Are The Customizing Prerequisites For Document Clearing?

    Answer :

    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 could be GR/lR Account in SAP(Goods Received/invoice Received Account).

  58. Question 35. What Is Account Group And What Does It Control?

    Answer :

    • Account group determines which fields you can configure on the G/L master record.
    • It is necessary to have at least two one for B/S and another one for P&L a/c .It controls the user ranges of GL A/C.
    • The status of fields of the master record of GL belongs to company code area