SAP FICO QUESTIONS ANSWERS

These SAP FICO Interview Questions have been designed specially to get you acquainted with the
nature of questions you may encounter during your interview for the subject of SAP FICO . As per my
experience good interviewers hardly plan to ask any particular question during your interview, normally
questions start with some basic concept of the subject and later they continue based on further
discussion and what you answer.we are going to cover top 100 SAP FICO Interview questions along with
their detailed answers. We will be covering SAP FICO scenario based interview questions, SAP
FICO interview questions for freshers as well as SAP FICO interview questions and answers for
experienced.

1) Explain the term SAP FICO?

Ans:

SAP FICO stands for FI ( Financial Accounting) and CO (controlling). In SAP FICO, SAP FI take cares
about accounting, preparation of financial statements, tax computations etc, while SAP CO take cares of
inter orders, cost sheet, inventory sheet, cost allocations etc. It is the software that stores data, and also
computes them and retrieves the result based on the current marketing scenario. SAP FICO prevents
data lost and also does the verification and reporting of data.

2) What are the other modules to which ‘Financial Accounting’ is integrated?

Ans:

The other modules to which ‘Financial Accounting’ is integrated are

 Sales and Distribution

Ans:

The organizational elements in SAP FI are:

 Company Code
 Business Area
 Chart of Account
 Functional Area
4) Explain what is posting key and what does it control?

Ans:

In order to determine the transaction type which is entered in the line item, a two digit numerical is used
known as ‘Posting Key’

 Posting key determines

Ans:

To generate financial statements like Profit and Loss statement, Balance sheets etc. company code is
used.

6) How many Chart of Accounts can company code have?

Ans:

You can have one Chart of Account for one company code which is assigned.

7) For a Company Code how many currencies can be configured?

Ans:

There are three currencies that can be configured for a Company code, one is a local currency and two
are the parallel currencies.
 8) What are the options in SAP for Fiscal years?

Ans:

Fiscal year in SAP is the way financial data is stored in the system. In SAP, you have 12 periods and four
special periods. These periods are stored in fiscal year variant that is:

 Calendar Year: From Jan-Dec, April-March

Ans:

SAP system does not know what is broken fiscal year e.g April 2012 to March 2013 and only understand
the calendar year. If, for any business, the fiscal year is not a calendar year but the combination of the
different months of two different calendar year and then one of the calendar year has to classified as a
fiscal year for SAP and the month falling in another year has to be adjusted into the fiscal year by shifting
the year by using the sign -1 or +1. This shift in the year is known as ‘year shift’.

Example: April 2012 to Dec 2012 is our first calendar year, and Jan 2013 to March 2013 is our second
year, now if you are taking April-12 to Dec-12 as your fiscal year, then Jan-13 to March-13 automatically
becomes the second year, and you have to adjust this year by using -1 shift, and vice versa if the
scenario is reversed, here you will use +1 shift.

10) What is year dependent fiscal year variant?

Ans:

In a year dependent fiscal year variant, the number of days in a month is not as per the calendar month.
For example, in year 2005, month January end on 29th, month Feb ends on 26th etc.

11) How taxes are taken care of in the SAP FICO?

Ans:

One of the major issues is Tax Slabs are not similar in all the countries. Also, there are additional taxes
applicable there. SAP FICO has tax procedure already defined in it for various nations and the users are
free to get the information regarding the same. The Tax amounts can be sent to stocks by default or the
users are free to make challenges in them as per their need and convince. Thus, taxes are not an issue
with the SAP FICO.
12) What do you know about the Substitutions and validations in SAP?

Ans:

They are generally defined assets for the different functional area. They can be accessed through two
options and they are Document level and the line level.

13) What are the major applications of SAP FICO you are familiar with?

Ans:

SAP FICO has some major applications for which it is actually known. It is widely considered I Financial
accounting for handling a lot of tasks that matters to the organizations. In fact, all that matters in the
accounting can easily be managed with this approach. It also has applications in the Asset and Cost
Accounting. The Project system accounting can also be managed through it in a reliable manner. The
users are free to consider it for the purpose of Consolidation. In addition to this, SAP FICO has large
scale application in the Real Estate which is one of the emerging domains across the globe in the present
scenario.

14) What is WIP in SAP FICO?

Ans:

It stands for Work in Progress and basically defines the status of the asset that is under development
mode in the SAP FICO. It is possible for the users to customize it if required.

15) Can you name a few methods with the help of which the vendor invoice payments can be
taken care of?

Ans:

There are options for manual payments that can be made either in cash or through cherubs. Other
options include electronic transfer. The SAP FICO keeps a close eye on all the transactions made
through the latter option when the same is integrated with the accounts.
 16) What exactly posting key is in FICO and what is its significance?

Ans:

It is basically an approach that enables users to determine the transaction type among the various
possible options in the domain. Generally, it is a two digit number when is entered during defining of item.
It simply give idea about the type of posting which can either be credit or debit as well as the type of
accounts. Also, the status of transactions can also be recorded through it.

17) What is the significance of financial general ledger accounting?

Ans:

It is used whenever there is a need for the organization to access the external accounts. It simply
incorporate all the financial transactions of a business made within a specific time period. The users are
free to keep up the pace simply even when the operational areas needs core accounting skills or have
problems associated with them.

18) What are the biggest benefits that you can have with the SAP FICO?

Ans:

There are certain benefits and a few major ones are spotlighted below:

 One of the major benefit is accounting data is always correct. The users doesn’t need to worry about
this
 There is no upper limit on handling the accounts. Any number of accounts can be managed
 It is useful in auditing as an eye can be kept on the transactions made by the business
 It make sure of financial transparency
 The detailed information about the expenses can be prepared and the same can then be considered for
the purpose of preparing the future budgets
 A lot of time and money can be saved
 The users can make sure of financial outputs that can be trusted in the long run
19) What is Financial Statement version in the SAP FICO?

Ans:

It is basically a tool that is used for reporting. All the financial accounts can be extracted through it along
with all the relevant information required by the users. It is possible to deploy it for the purpose of
generating the outcomes of different agencies associated with a business. The same information can
then be passed to the concerned authorities for the betterment.
20) Tell something you know about a field status Group?

Ans:

When transactions are done, there are often fields which come up, this option is used or is enabled when
they are not required while handling the tasks.