SAP S/4HANA Financial Accounting Sample Questions:

01. Which of the following are standard correspondence types?

There are 3 correct answers to this question.

a) Payment proposal

b) Payment notice

c) Open items list

d) Account statement

e) Document journal

02. During which actions does the system assign the document
number for Financial Accounting?

There are 2 correct answers to this question.

a) Park

b) Hold

c) Post

d) Simulate

03. What is controlled by the terms of payment?

There are 3 correct answers to this question.

a) Account for cash discount received

b) Determination of the baseline date

c) Allowed account type

d) Default payment method

e) Setting for net procedure

04. How does the SAP HANA architecture improve SAP S/4HANA
system performance?

Please choose the correct answer.

a) SAP HANA uses a structured hierarchical data model with a multitude of

lean prebuilt aggregated tables to write efficient code.
b) SAP HANA makes extensive use of database indexes providing common
access paths to data in order to improve access speed.

c) SAP HANA allows you to build aggregate tables on top of aggregates

and, in addition, special versions of the database tables to support special
applications.

d) SAP HANA organizes data in line item tables and can aggregate data
from these line item tables at runtime.

05. Which of the following standard currency types can you set in
customizing activity "define setting for ledgers and currency
type"?

There are 2 correct answers to this question.

a) Material Ledger Currency

b) Transaction Currency

c) Local Currency

d) Group Currency

06. You want to quickly launch the balance sheet for the company
code you are responsible for from the SAP Fiori launchpad. What
can you create to achieve this?

Please choose the correct answer.

a) Your own financial statement version

b) Your own application tile

c) Your own application catalog

d) Your own application group

07. What account types can you use to classify general ledger
accounts in SAP S/4HANA?

There are 3 correct answers to this question.

a) Secondary costs

b) Non-operating expense or income

c) Balance sheet

d) Reconciliation accounts
e) Field status group

08. You want to make the Reference Document Number field

required for entry. Which object controls this setting?

Please choose the correct answer.

a) Document type

b) Document reference key

c) Document field status

d) Document posting key

09. Which entries do you define when maintaining a G/L account?

There are 3 correct answers to this question.

a) Account Type

b) Field status group

c) Profit center

d) Account group

e) Ledger assignment

10. The dunning run is made up of three main steps that happen
in a particular sequence. What is the correct sequence of steps?

Please choose the correct answer.

a) Account selection

Item selection

Dun line items

b) Item selection

Dun account

Dun line items

c) Item selection

Dun line items

Dun account

d) Account selection
Dun line items

Dun account

1. What do you understand by the term SAP FICO?

SAP is the abbreviation for Systems, Applications & Products in Data

Processing. The FI in FICO stands for (Financial Accounting), and CO is for
(Controlling). Thus, SAP FICO is a combination of SAP FI and SAP CO. While
SAP FI deals with accounting, tax computation, and preparation of
financial statements, SAP CO is for inner orders, inventory sheets, cost
sheets, cost allocations, and more.

2. What is the posting key? What purpose does it serve?

A two-digit numerical for controlling and determining the transaction type

documented in the line item is referred to as a posting key. It helps
determine the following:

 Account types

 Types of posting: debit or credit

 Field status of a transaction

3. What is the main usage of SAP FICO?

SAP FICO is the software used for storing and computing data. It helps
retrieve the result according to the latest marketing scenario. It prevents
data loss and is responsible for the reporting and verification of data. Its
modules allow companies to manage financial tasks within an
international framework of currencies and languages.

4. What are the other modules into which 'Financial Accounting' of SAP
FICO is integrated?

The other modules to which 'Financial Accounting' of SAP FICO is

integrated are:

 Sales and Distribution

 Production Planning

 Material Management

 Human Resource

 Controlling financial transaction

5. State the most important organizational elements in SAP FI.

The important organizational elements in SAP FI are as follows:

 Functional Area

 Business Area

 Company Code

 Chart of Account

6. What is the best way to manage transactions from different business

lines within a company?

The best way is to create Business Areas. You can also create different
company codes for each business line to manage transactions from
different business lines within a company.

7. What are the options for fiscal years in SAP FICO?

A fiscal year is a way to hold the financial data in the system. In SAP FICO,
there are twelve posting periods and four special periods. You must
specify the fiscal year variant for every company code. Also, when
creating a controlling area, you will have to specify the fiscal year variant.

8. What is the role of credit control?

Credit control helps guard a business against overstretching its financial

assets. Usually, a credit limit is set for the customers using SAP when a
payment is made post the product's sale. This method allows you to
restrict the customer's amount to clear before starting a fresh purchase.

It is suitable for credit management in application components:

 Account Receivable (AR)

 Sales and Distribution

9. What is the function of the company code in SAP FICO?

The company code is responsible for generating financial statements like

Profit and Loss Statements, Balance sheets, and others.

10. How many Chart of Accounts can a company code have?

There can be only one Chart of Accounts for an assigned company code.

11. How many currencies can you configure for a Company Code?

You can configure three currencies for a Company Code, including

 One local currency

 Two parallel currencies

12. What is the role of the Chart of Accounts in SAP FICO?

The Chart of Accounts is used to meet the company's daily needs and the
country's legal requirements. Its two types are as follows:

 Operating Chart of Accounts (COA): A record with all the general

ledger accounts assigned to the company code.

 Country Chart of Accounts (COA): The list of general ledger accounts

needed to meet the country's legal requirements.

13. What do you understand about the field status group and field status
variant?

The field status groups contain the field status variants. The General
Ledger account has field status groups. These status groups allow you to
define the fields when posting to the general ledger.

14. What is the year shift in the SAP calendar?

The SAP system only understands the calendar year. It fails to

acknowledge a broken fiscal year. Suppose for a business a fiscal year is
not a calendar year but a combination of the different months of two
different calendar years. Then, one of the calendar years needs to be
classified as a fiscal year, and the months that fall in another year should
be adjusted into the fiscal year by shifting the year by using the sign -1 or
+1. This shift is termed a year shift.

15. State the types of modules into which FI is integrated.

The different types of modules are:

 Production Planning

 Material Management

 Human Resource

 Sales and Distribution

16. How are output and input taxes managed in SAP FICO?

SAP FICO has tax codes within tax procedures for every country. You get
the facility to expense out the tax amounts or capitalize them to stocks.

17. What are validations and substitutions in SAP FICO?

Validations in the FI and CO modules help ensure data integrity when

entering actual transactions online or in a batch. The substitutions in the
FI / CO / EC modules help derive or correct values that are passed via
integration or submitted to the FI / CO modules.

18. Which application areas use validation and substitutions?

Validation and substitution are used by the following application areas in

SAP:
  FI- Financial Accounting

 CO- Cost accounting

 GL- Special purpose ledger

 AM- Asset accounting

 PS- Project system

 PC- Profit center accounting

 CS- Consolidation

 RE- Real estate

19. What is a year-dependent fiscal year variant?

When the number of days in a month does not correspond to the calendar
month, it is a year-dependent fiscal year variant. For instance, when
January ends on the 30th and February on the 27th.

20. What steps are involved in G/L posting?

On completion of the payroll run, the results are to be added to the G/L
accounts. GL posting involves the following steps:

 Grouping relevant information from the payroll results.

 Creating summarized documents.

 Performing the necessary postings to appropriate cost centers and

G/L accounts.

21. What are the different methods for making vendor payments?

The two methods are:

 Manual Payment: Done without a medium such as cheques.

 Automatic Payment: Done through DME (Data Medium Exchange)

like wire transfer or cheque.

22. What is the use of FSV (Financial Statement Version) in SAP FICO?

FSV is a reporting tool. It helps extract final accounts from SAP like
Balance Sheets and Profit and Loss Accounts. Using multiple FSVs, you can
generate the output of various external agencies like banks and other
statutory authorities.

23. At what level the Customer and Vendor codes are stored in SAP?

The Customer and Vendor codes are stored at the client level. A company
code can use the vendor and customer code by extending the company
code view.
24. What is the significance of financial statements within a business in
SAP FICO?

A financial statement helps manage the company's financial assets.

Creating and managing financial statements and records allows you to
create data that you can use later to plan further or decide on
investments for the company.

25. State the common G/L reports in SAP FI.

The most common G/L reports in SAP FI are as follows:

 G/L Chart of Accounts List

 G/L Account List

 G/L Account Balances

 G/L Account Totals and Balances

26. What is the purpose of "Document type" in SAP FICO?

The main purposes of "Document type" are as follows:

 It helps define the documents' number range.

 It enables controlling the types of accounts posted, like Vendor,

Assets, Customer, Normal GL account, and more.

 It is used for entry reversals.

27. What is meant by company and company code in SAP FICO?

A company is an organizational unit. It is used in the legal consolidation

module for rolling up financial statements of different company codes.
Contrastingly, the company code is the smallest organizational unit. You
can draw up a completely self-contained set of accounts for external
reporting purposes of company code.

28. What are accounting period variants and posting period variants in
SAP FICO?

 Accounting period variants: They help manage the accounting

periods open for validation and all closed periods to be deleted.
They are suitable for opening and closing periods of the financial
year for reservation purposes.

 Posting period variants: A posting period in a fiscal year is a period

for which the transactions figures are updated. The posting period
variants are accountable for controlling which Accounting period is
open for posting. It ensures balanced closed periods.

29. What is the use of Account Receivables?

Accounts Receivable components allow you to record and manage all
customers' accounting data. All postings in Accounts Receivable are
directly recorded in General Ledger.

30. What are the perks of using Business areas in a company?

In a company, business areas can be used when other company codes

need the same areas. They are used more in Controlling than Finance
Accounting. The benefits of using business areas are as follows:

 It is easy to configure. You will have to attach it to the company

code, and the other details will get attached by themselves.

 Using Business areas in controlling, it gets easier to create Balance

sheets, Profit and loss statements, and more.

31. What problems might occur when we configure the business area?

The splitting of the account balance is the main problem faced when a
business area is configured. It is more pertinent for taxable accounts.

32. Explain the relationship between company code and the controlling
area in SAP FICO.

A controlling area in SAP can contain one or more company codes. These
company codes use the same operative Chart of Accounts as the
controlling area. A single company code can be assigned to a controlling
area, while a controlling area can contain multiple company code
assignments.

33. What is FI-GL Accounting? Why is it used?

The FI-GL is the abbreviation for Financial-General Ledger. It helps get an

overview of external Accounting and accounts. It holds all business
transactions included with all other operational areas in a software
system, ensuring that the accounting data is always accurate and
complete.

34. What is parallel and the local currency in SAP FICO?

Local Currency: The currency entered in the company code creation.

Parallel Currencies: The other two additional currencies that can be used
in foreign business transactions or international transactions. GROUP
CURRENCY and HARD CURRENCY are two examples of parallel currencies.

35. What are the customizing prerequisites for document clearing?

The customizing prerequisites include checking the cleared and uncleared

items via open item management. The open item management process
helps manage the account payable and accounts receivable. I.e., the
outstanding accounts. For instance, an unpaid invoice item is taken as an
open account until paid.

36. What are the one-time vendors in SAP FICO?

For companies dealing with high cash transactions, it gets impractical to

create new master records for every vendor trading partner. So, one-time
vendors solve the problem as they allow a dummy vendor code to be used
on invoice entry while the information is usually stored in the vendor
master.

37. What is the significance of the GR/IR clearing account in SAP FICO?

GR/IR is the abbreviation for Good Received/ Invoice Received. A GR/IR

clearing account is an interim account. The provision is made if the goods
are received in the legacy system, but the invoice isn't. It goes through
the Accounting entry debiting the Inventory and crediting the GR/IR
account.

Similarly, when an invoice is received, the vendor account gets credited,

and the GR/IR account is debited. Thus, the GR/IR is an uncleared item till
the invoice isn't received.

38. What is the default exchange rate type picked up for all SAP
transactions?

The default exchange rate type is M or Average Rate for all SAP
transactions.

39. What are the different accounting groups that can be created in
Account Receivable in SAP FI?

The following accounting groups can be created in Account Receivable:

 X001- Domestic Customers

 X002- Export Customers

 X003- One-Time Customers

40. Is it possible to calculate depreciation to the day? How can you do

that?

Yes, it is possible. The depreciation to the day function gets active for an
asset as soon as it has a corresponding depreciation key and is capitalized
(posted to). Consequently, you can't switch off this function for the asset,
even when you change the depreciation key.

41. What are the internal orders in SAP FICO? Where can you use them?

Internal orders are used for planning, collecting, and settling the costs of
internal tasks and jobs. They can also be used to track the cost. They are
incurred over a short-term basis.
42. What is the use of Account payable? How is it related to G/L?

Accounts payable is used for managing and recording the accounting data
for all the vendors. It relates to G/L as follows:

 All invoices are managed as per vendor requests.

 Payables are managed as per the payment program. Payments can

be via cheques or electronic transfers.

 All the postings in Account payable are simultaneously updated in

General Ledger.

43. What 'blocks' can be applied to a vendor account in SAP FI?

The following blocks can be applied to a vendor account:

 Posting block for all company codes and certain company codes.

 Purchasing block for all or certain purchasing organizations. It is only

used when you have purchased/installed the purchasing application
component.

44. What is blocking a customer in SAP FI?

Blocking is when postings are no longer made to an account. You have to

block a customer account before marking a customer master record for
deletion.

For instance, you would block a customer that you use as an alternative
dunning recipient. Thus, nobody can mistakenly post to that customer.
The following blocks can be set for a customer in the Sales and
Distribution (SD) application component:

 Posting block

 Delivery block

 Order block

 Invoicing block

45. What is the chart of depreciation in Asset Accounting?

The chart of depreciation is the highest node assigned to the company

node. It stores all the depreciation calculations.

46. How can you manage the relationship between two currencies in SAP
FI?

Using exchange rates, you can define and manage the relationship
between two currencies or translate an amount into another currency.
Exchange rates are defined for the following purposes:

 Posting and Clearing

  Exchange Rate Differences

 Foreign Currency Valuation

47. What is the field status group used to control?

The field status group is configured in FSV to maintain field status for
General Ledger accounts.

48. How would you create a Credit Control Area in SAP FI?

You can use the transaction code OB45 or path to create a Credit Control
Area. The steps to create a credit control area are as follows:

SPRO > enterprise structure > maintain structure > definition > financial
accounting > maintain credit control area

Next, you will have to enter the following description:

 Update

 Name of the credit-control area in SAP

 Currency

 Description

 Credit Limit

 Risk Category

 Fiscal Variant

 Rep Group

49. What are some most important tables in SAP FICO?

Tables in SAP FICO help store the data on a screen. Some important tables
of SAP FICO are as follows:

Enterprise structure SAP Tables

 T001: SAP Company-Code

 TCURC: SAP Currency-codes

 T005: Countries in SAP

 TCURT: Currency name in SAP

 TCURR: Exch-rate in SAP

 T009: Fiscal year variants in SAP

 T077S: G/L Account-group

 T880: Global-company-data in SAP

  T004: SAP Chart of accounts (COA)

 T014: Credit-control-area SAP

 T012: House banks in SAP

 T010O: SAP Posting-period-variant (PPV)

 T001B: Permitted posting periods in SAP

 T010P: Posting period variant names in SAP

 T003: Document types in SAP

SAP FI G/L Tables

 BNKA: Bank master record SAP

 SKA1: Chart of accounts segment GL master data

 BNKA: Bank master record in SAP

 SKB1: Company code segment G/l master data

 BKPF: SAP Accounting documents header

 BKPF: Accounting documents header in SAP

Accounts Receivable Table

 KNBK: Bank details

 KNVH: Customer hierarchy

 KNVK: Contact persons

 KNVI: Customer master tax indicator

 KNA1: Customer master-General data

 KNB1: Customer master-Company code data

 KNVV: Customer master-Sales data

 KNVS: Shipment data for customer

 KNVP: Customer partners

SAP FI Accounts payable tables

 LFA1: Vendor master-General data

 LFBK: Bank details

 LFM1: Purchasing organization data

 LFM2: Purchasing data

 LFB5: Vendor dunning data

  LFB1: Vendor master-Company code data

Assets Accounting Tables

 ANEK: Document header asset posting

 ANKB: Asset classes: Depreciation area

 ANKA: Asset classes: General data

 ANKT: Asset classes: Description

 ANEP: Asset line items

 ANLU: Asset master record user fields

 ANLZ: Time-dependent asset allocation

SAP CO Tables

 CSKS: Cost center master data

 CRCO: Assignment of work center to cost center

 CSKT: Cost center texts

 COSP: Cost totals for external postings

 COBK: Document header

 COEP: Line items (by period)

 COST: Price totals

Profit center Accounting tables

 CEPC: Profit center master data table

 GLPCA: Actual line items - Profit center

 GLPCP: Plan line items - Profit center

 GLPCO: Object table for the account - Profit center

 GLPCC: Transaction attributes - Profit center

 CEPCT: Texts for profit center master data

50. What is the use of an account group?

Account group defines GL account and Vendor and Customer Master. It is

used to control the data that has to be entered while creating a master
record.

51. How would you define the tolerances for invoice verification?
Tolerance in SAP specifies whether the payable places match or tax hold
on the invoice. Following instances of tolerance can be defined for
logistics invoice verification:

 Small differences

 Quantity variances

 Moving average price variances

 Price variances

52. What is meant by the short-end fiscal year?

A short-end fiscal year is when you change from a normal fiscal year to a
non-calendar fiscal year or vice versa. It usually happens when an
enterprise becomes part of a new co-corporate group.

53. What is APP in SAP FICO?

APP is the abbreviation for Automatic Payment Program. It is a tool

provided to companies for paying their customers and vendors. It
facilitates avoiding mistakes while posting manually. Payments via APP are
more feasible when there are more employees in the company.

54. What are cost and profit centers in Controlling?

Cost Center: A component in an organization added to the cost and

indirectly added to the organization's profit, such as marketing and
customer service. A business unit of a company can either be classified as
a profit center or a cost center, or an investment center.

Profit Center: For managing internal control. Dividing a company into profit
centers enables delegating responsibility to decentralized units. It also
allows you to treat the units as separate companies within a company.

55. Is the business area at the company code level?

No, the business area is not at the company code level. Rather is at the
client level, which means that other company codes can be posted to the
same business area.

These SAP FICO interview questions will definitely help you in cracking the
job interview. Have we missed any questions? Let us know in the
comments and we will answer it for you.