SAP FICO Interview Questions Guide

Short Answer: Company code is an Legal Entity

Description: The company code is the central organizational unit of external accounting within the SAP System. You must define at least one company code before implementing the Financial Accounting component. The business transactions relevant for Financial Accounting are entered, saved, and evaluated at company code level.

Chart of accounts is the highest hierarchy in GL Accounting, All the configurations in GL will be made with reference to COA. Chart of accounts are created at client level.

There are three types of Chart of Accounts :

1. Operating chart of accounts (Mandatory)
2. Country chart of accounts (Country legal requirements)
3. Group chart of accounts (Group Reporting)

• To transfer P&L Balance to Balance sheet we used Retained Earnings Account
• Retained Earnings Account is used to carry forward the balance from one fiscal year to the next fiscal year.

This is used for opening and closing period in the fiscal year for posting purpose. You can assign these posting periods to one or more company codes.

Fiscal year variant is nothing but financial year; we will have 12 normal periods and 4 special periods total 16 periods

Calendar year is the normal financial year which is between January to December.

Special Periods are used for year-end Adjustments. SAP allows maximum 4 Special periods

Year Shift is used for Non Calender financial years:

1. 0 (Zero)For periods in same calendar year.
2. -1 for periods in next calendar year.
3. +1 for periods in previous calendar year.

Year dependent means it is specific to that particular year.

Field status variant is used to control fields during posting the transactions, we have 3 options as

• Suppress
• Required
• Optional

Example: Text, Business area etc

Cost center hierarchy is the highest level in Cost center accounting, it consists groups of cost centers, It is created at the time of controlling area creation

Profit Center Hierarchy is the highest level in PCA(Profit Center Accounting), it consists groups of profit centers, It is created in PC accounting

Reconciliation accounts are G/L accounts and it is main ledger to which postings are made automatically whenever a business transaction is entered on a sub ledger account (such as Accounts Receivable, Accounts Payable, and Asset Accounting)

Line item display check box in FS00 is used to display the report line item wise. Else we can see only total balance in the GL

Open item management ensures that all items that have not yet been cleared are available in the system. You can only archive a document after all the open items have been cleared. You can see whether an item has been cleared in the line item display or document display.

If you select Post Automatically check box in FS00, it means that this account can only be posted by the system using account determination(basically at the time of integration between different modules like FI-MM, FI-SD, FI-PP etc) and the system will not allow posting the entries manually for this GL.

These posting keys specify whether the line item is a debit or credit entry with account type. It also specifies the screen layout of the line items.

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.

Reconciliation accounts are the main ledgers which will represent in balance sheet, All the sub ledger balances will flow to reconciliation account.
Example : Vendors, Customers, Assets

Special G/L transactions are basically down payment requests, down payment made, down payment received, against the Customers and Vendors, such kind of transactions are captured to separate Special GL Accounts.

APP configuration will be done in transaction FBZP

1. Set up all Company Code
2. Setup Paying Company Code
3. Setup payment method per country
4. Set Up Payment Methods per Company Code
5. Set Up Bank Determination

Steps to Run APP

We will Run APP in F110 Transaction

1. Parameters
2. Proposal
3. Payment Run

Tax codes are created at country Level

They are at the chart of accounts level

Valuation grouping code is used for automatic assignment in OBYC settings
Valuation grouping code is used to maintain same or different GL account assignment based on Valuation area.
We can assign Valuation grouping code against Valuation area and Company code

Dunning is nothing but reminder to the customer for his outstanding payment, We can have maximum 9 levels of dunning.

Organizational unit that you use to process the dunning program for example, by division, or sales organization.

Chart of depreciation is the highest node in Asset Accounting and this is assigned to the company code. Under the Chart of depreciation all the depreciation calculations are stored.

Chart of depreciation is created at client level.

The configuration steps in brief are as follows:-

• Copy a reference chart of depreciation areas
• Assign Input Tax indicator for non taxable acquisitions
• Assign chart of depreciation area to company code
• Specify account determination
• Define number range interval
• Define asset classes
• Define depreciation areas posting to general ledger
• Define depreciation key

Yes it is possible. You need to switch on the indicator “Dep to the day” in the depreciation key configuration.

Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class. Usually depreciation is not charged on Capital WIP

The steps for Electronic Bank Statement are the same except for couple of more additional steps which you will see down below

1. Recurring Documents.
2. Posting Accruals or Provisions entries at month end
3. Managing the GR/IR Account-Run the GR/Ir Automatic Clearing
4. Foreign Currency Open Item Revaluation-Revalue Open Items in AR.AP
5. Maintain Exchange Rates
6. Run the Depreciation Calculation
7. Fiscal Year Change of Asset Accounting if it is year end
8. Run the Bank Reconciliation
9. Open Next Accounting Period

Company codes are assigned to the controlling area. A controlling area is assigned to the operating concern.
Controlling Area is the umbrella under which all controlling activities of Cost Center Accounting, Product costing, Profitability Analysis and Profit Center are stored.
Operating Concern is the highest node in Profitability Analysis

Primary cost elements are GL accounts, To transfer balance from FI to CO we use cost elements,
Basically we create P&L Accounts as Cost Elements
Secondary cost elements are created and posted within controlling
Examples as: Activates, Overhead, Assessment etc

1 - Cost
11 - Revenue

21 - Internal Settlement
41 - Overhead rates
42 - Assessment
43 - Internal Activity Allocation

Distribution uses the original cost element for allocating cost to the sender cost center. Thus on the receiving cost center we can see the original cost element from the sender cost center. Distribution only allocates primary cost.
Assessment uses assessment cost element No 42 defined above to allocate cost. Thus various costs are summarized under a single assessment cost element. In receiver cost center the original cost breakup from sender is not available. Assessment allocates both primary as well as secondary cost.

Activity types classify the activities produced in the cost centers. Examples of Activity Type could be Machine, Labour, Utilities

Settlement is possible for real orders but for statistical orders settlements is not possible