1.Explain the term SAP FICO?

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?

The other modules to which 'Financial Accounting' is integrated are

a) Sales and Distribution
b) Material Management
c) Human Resource
d) Production Planning
e) Controlling of financial transaction

3.In SAP FI what are the organizational elements?

The organizational elements in SAP FI are:

a) Company Code
b) Business Area
c) Chart of Account
d) Functional Area

4. Explain what is posting key and what does it control?

Posting Key Is a Two Digits Numerical Code. Posting Key In order to determine
the transaction type which is entered in the line item and Posting key
determines
 a) Account Types
b) Types of posting. Debit or Credit
c) Field status of transaction

5.What is the company code in SAP?

Company Code is Smallest Organization Unit and Legal Entity in SAP. Company
code Mainly Used to Extract the External Reporting Purpose it generates financial
statements like Profit and Loss statement, Balance sheets.

6.How many Charts of Accounts can company code have?

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?

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?

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:
a) Calendar Year: From Jan-Dec, April-March
b) Year dependent fiscal year

9. What is year dependent fiscal year variant?

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.
10. In SAP how input and output taxes are taken care?

For each country tax procedure is defined, and tax codes are defined within this.
There is a flexibility to either expense out the Tax amounts or capitalize the same
to stocks.

11. Explain what is validations and substitutions in SAP?

For each functional area in SAP Validation or Substitution is defined eg, Assets,
Controlling etc. at the following levels
a) Document Level b) Line-item Level

12. What are the application areas that use validation and substitutions?

a) FI- Financial accounting

b) CO-Cost accounting
c) AM-Asset accounting
d) PC-Profit center accounting

13. In SAP what is the use of FSV (Financial Statement Version)?

FSV (Financial Statement Version) is a reporting tool. It can be used to extract

final accounts from SAP like Profit and Loss Account and Balance Sheet. The
multiple FSV's can be used for generating the output of various external agencies
like Banks and other statutory authorities.

14. What is a field status group?

'Field status groups' control the fields which come up when the user does the
transactions. In FIGL (Financial General Ledger) master, the field status group is
stored.

15. What is FI-GL (Financial- General Ledger) Accounting does?

To get an overview of external Accounting and accounts, G L (General Ledger)

Accounting is used. It does the recording of all business transactions incorporated
with all other operational areas in a software system and also ensures that the
accounting data is always complete and accurate.

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

For all SAP transaction, the default exchange rate is M (Average Rate).

17.What are the methods by which vendor invoice payments can be made?

a) Manual payment without the use of any output medium like cheques etc.
b) Automatic payments like DME (Data Medium Exchange), cheques, Wire
transfer

18. What are the problems when business area is configured?

The problem faced when a business area is configured, is splitting of account

balance which is more pertinent in the case of tax accounts.

19.For document clearing what are the customizing prerequisites?

The customizing pre-requisite for document clearing is to check the items cleared
and uncleared, and this is done by open item management. Open item
management manages your outstanding account, i.e. account payable and
account receivable. For instance, an invoice item that has not yet been paid is
recorded as open account until it is paid.

20. What is the importance of GR/IR (Good Received/ Invoice Received) clearing
account?

GR/IR (Good Received/ Invoice Received) is an interim account. In the legacy

system, if the goods are received and the invoice 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. Similarly, when an invoice is received
the vendor account is credited, and the GR/IR account is debited, the GR/IR will
show as an un-cleared items till the time the invoice is not received.
21. What is parallel and local currency in SAP?

Each company code can have two additional currencies, in addition to the
company code, currency entered to the company code data. The currency
entered in the company code creation is called local currency and the other two
additional currencies are called parallel currencies. Parallel Currencies can be
used in foreign business transactions. In order to do international transaction,
parallel currency can be used. The two parallel currencies would be GROUP
CURRENCY and HARD CURRENCY.

22. Is it possible to calculate depreciation to the day?

Yes, it is possible to calculate depreciation, to do that you have to switch on the

indicator Dep. to the day in the depreciation key configuration.

23. What are the major components of Chart of Accounts?

The major components of Chart of Accounts are:

a) Chart of account key
b) Name
c) Maintain Language
d) Length GL account number
e) Controlling Integration
f) Consolidation-Group chart of accounts
g) Block indicator

24.What is credit control area in SAP?

In SAP Provided Credit Control Area to Avoid the Risk of Bad Debts and Multiple
Outstanding Receivables from You Customers, You Can Set Credit Limit for Your
Customers by Using Credit Control area. You Can Block the delivers to you
customer based on the Credit Limit Credit Control area in SAP Enable
Organization to Impose Strict Upper Limit on the Credit for the Customers... We
will Define Credit Control Area by Using T Code OB45 …in that time we will fill the
fields like, Credit Control Area Key, Description currency, risk category credit limit,
Fiscal Year variant also be provided

25. How can you create Credit Control Area in SAP?

By using transaction code OB45 or path you can create Credit Control Area in SAP
SPRO> enterprise structure >maintain structure>definition>financial
accounting>maintain credit control area and then enter the following description
a) Name of the credit control area in SAP
b) Currency
c) Description
d) Credit Limit
e) Risk Category
f) Fiscal Variant g) Rep group

26. What is posting period variants?

In fiscal year posting period is a period for which the transactions figures are
updated. The posting period variants in SAP is accountable to control which
Accounting period is open for posting and ensures that the closed periods remain
balanced.

27. Explain in simple terms what is field status and what does it control?

Field status group is a group configured in FSV (Field Status Variant) to maintain
field status for G/L (General Ledger) accounts. It controls which field should
suppress, display, optional and required.

28. What is short-end fiscal year?

A short-end fiscal year results when you change from a normal fiscal year to a
non-calendar fiscal year, or other way around. This type of change happens when
an enterprise becomes part of a new co-corporate group.
29. What is an account group and where it is used?

To control the data that needs to be entered at the time of the creation of a
master record an account group is used. Account group exist for the definition of
GL account, Customer Master and Vendor.

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

The purpose of " Document type" in SAP is

a) Number range for documents are defined by it
b) Types of accounts that can be posted are controlled by it, e.g Assets, Vendor,
Customer, Normal GL account
c) It is used for the reversal of entries

31. Is business area at company code level?

No. Business area is at client level which means other company codes can also be
posted to the same business area.

32.In SAP, Customer and Vendor code are stored at what level?

The Vendor and Customer codes are stored at the client level. It means that by
extending the company code view any company code can use the customer and
vendor code.

33. How are tolerances for invoice verification defined?

Tolerance determines whether the payable places matching or tax hold on the
invoice. The following are the instances of tolerance can be defined for Logistic
Invoice Verification.
a) small differences
b) Moving average price variances
c) Quantity variances
d) Price variances

34. What is a country Chart of Accounts?

Country Chart of Accounts contains G/L (General Ledger) accounts needed to

meet the country's legal requirements.

35. In SAP FICO what are the terms of payment and where are they stored?

Payment terms are created in the configuration and determine the payment due
date for vendor/customer invoice. They are stored on the customer or vendor
master record and are pulled through onto the customer/vendor invoice postings.
The due date can be changed on each individual invoice if required.

36. What are one-time vendors?

In certain companies, especially the one dealing with high cash transactions, it is
not practical to create new master records for every vendor trading partner.
Onetime vendors allow a dummy vendor code to be used on invoice entry and
also the information which is usually stored in the vendor master.

37. What are the standard stages of the SAP payment run?

The following steps are the standard stages of the SAP payment run
a) Entering of parameters (Vendor Accounts, Company Codes, Payment Methods)
b) Proposal Scheduling – the system proposes the list of invoices paid
c) Payment booking- the booking of the actual payments in the ledger
d) Printing of payment forms, example cheques

38.What is the purpose of the account type field in the GL (General Ledger)
master record?

At the end of the year, profit and loss accounts are cleared down to the retained
earnings balance sheets account. The field contains an indicator which is linked to
a specific GL (General Ledger) account to use in this clear down.
39. Explain what is recurring entries and why are they used?

Recurring entries can eliminate the need for the manual posting of accounting
documents which do not change from month to month. For example, an expense
document can be generated which can be scheduled for the last days of each
month or whenever an individual wants it. Usually, multiple recurring entries are
created at one go and then processed all together as a batch month end using
transaction.

40.What is Posting Period Variant?

The Posting period variant Specifies which Periods Allow to post the Financial
Transactions and which posting Period are open & closed for financial
transactions posted. Posting period can be controlled by Account Type wise.
Posting period variant is contains Two period Ranges 1st one Control the Normal
Posting Periods and 2nd one is Control the Special Posting Periods.

41.What is Document Types In SAP

Document Types Can be Called as Voucher Types Also In SAP.

a) RV-Billing Document
b) SK-Cash Payment
c) WA-Goods Issue
d) WE-Goods Receipt
e) WI-Inventory Document
f) WL-Goods Delivery to Customer
X1-Recurring Documents
X2-Sample Documents

42.What is Tolerance group?

Tolerance Group Specify the Authorization to post Upper Limit of Posting for the
General Document .and while posting to the customer and vendors payments
that time maximum cash Discount percentage allowed and it specify maximum
permitted payment.
• Group Tolerance: - if You Have Leave This Field as Blank then this control
applicable all users ids. otherwise, if you have mentioned particular user,
they will assigned individual tolerance group. (ob57)
• Amount per document :- the Maximum Authorized Amount for the
employee to post the accounting Document
• Amount per Open Item Account: - posted amount permitted for
the employee while posting to customer and vendors. These controls do
not apply to automatically created line item
• Cash Discount per line-item:- Maximum Cash Discount percentage rate
permitted for the employee while posting to customer and vendor
accounts
• Permitted payment difference:- the Maximum authorized amount for the
employee while accounting payment against the invoice or Clearing the
Invoices if any Differences arises .

43.How Many Levels we will Crete G L Account?

G L account creation ---Chart of Accounts Segment Level, Company Code Segment

Level
Under COA Segment Data –Type/description tab, Keyword Transaction Tab,
Information System
Under Company Code Segment Data-Control Data Tab, Create Bank / Interest tab
Information System
– The COA Segment it contains the general information the is
valid for all company code which are using same chart of accounts
---It Contain the data specify to the company code. we
can maintain the different data for the same g l accounts based on the company
code data.
44.Trading Partners

The Trading Partners is Used to Track the Intercompany Transactions and also it
used for Consolidation Purpose. the Trading Partners normally Assign in the
intercompany customers and vendor Master data to Track the intercompany sales
and purchase Information. We can assign the Trading Partners in the G l account
creation.

45.Group Account Number

The Group account number is Appears only with the Group of Chart of Accounts
Assigned in the Operational COA. Otherwise, this filed will hidden. The Group G L
Account is Used for Consolidation Purpose. This Filed is Main Link between the
Primary G L Accounts and Group g l Accounts. Group G L Accounts Collect Data
from Primary g l Accounts.

46. “Only Balance in Local Currencies “

This Indicator is More Relevant to the Balance Sheet Accounts If the Indicator is
Activated Then the G l Account Balance Always Displayed In Local or Company
Code Currency .it won’t Generate The Exchange Rates Differences During the
Clearing of The Transactions. ” Only Balance in Local Currency” indicator need to
be selected Mandatory for the GR/IR Account, Cash Discount Accounts.

47. Alternative Account Number

Alternative Account Number Can Be Called as Country Specify G L Account. In This

Case the County Specify G L Account is Activated then need to Assign in the
Alternative Account in The Creation of General Ledger Master Data.

48. Line- Item Display

The Purpose of Ebeling Line- Item Display in G l Master Data Creation time We
Can Able View the Transactions Line-Item Wise for the Specific G l Account.
We Can Select Line-item Display for All Type of the G L Accounts.

49. Partial Payment & Residual Payment

Partial Payment –
In Partial Payment method both Invoice Amount and Payment Amount
Documents it will show as an Open item Until settle the full payment.
Example: -
Invoice Generated with -10,000/-
But we Paid Payment Against invoice amount with Partial Payment-4,000/-
Now system shows both invoice amount10,000/- and paid amount 4,000/- as an
open item
Residual Payment
In Residual Payment Method System Show the Only After Part of Payment Made
with Residual Payment the Remaining Balance System Show as an Open item. And
this Remaining Balance Generated as New Invoice
Example
Invoice Amount -10,000/-
We Paid Part of Payment with Residual Payment -4,000
System shows the remaining 6,000/- as an open item and Generated as New
Invoice.

50.What Is Bank key

Bank Keys are always Defined at County Level, Bank Key Represents the Bank
Branch in the system, Bank Key required to process the Bank transfer and also for
automatic payment process

51.USAGE OF DOCUMENT TYPE AND IT CONTRLOLLS?

1.Document types are defined at the client level so document types are applied
for all company codes. A Document type is specified at the Header level
during transaction entry and servers the following purposes:
2.Document type key is used to classify the type of accounting documents and
allow to posting of transactions In sap system.
3.It controls Account types allowed for postings e.g. Assets, vendor, Customer,
Normal G l Account
4.Document type that to be used for reversal postings.

52.Table to Check All OBYC G L Accounts

Go to SE16N And Enter T030

53.Few Important Material Types

ROH-Raw Material
FERT-Finished Goods
HALB-Semi Finished Goods
HAWA-Trading Goods

54.How To View MM Document

MB03

55.What is Business Area

An Organizational Unit of Financial Accounting that Represents Separate area of

Operations or Responsibilities within an organization and You Can create Financial
Statements for business areas, and use this statement for various internal
reporting purpose.
56.What is Functional Area In SAP FICO

The Functional Area is Required to create a profit & lose accounts in Financial
Accounting using cost of sales accounting. In sap functional areas are
Manufacturing, Administration, Sales Department, Purchase Dep, R&D Dep

57.What is Types of Posting Keys In SAP FICO

General Ledger -40-Debit ,50-Credit

Vendors -31-Invoice Credit ,25-Outgoing Payment Debit ,39-Spl G l Credit
Customers -01-Invoice -Debit ,15-Incoimg Payment -Credit ,09-SPL GL Debit
Asset Accounting -70-Asset Debit ,75-Asset Credit

58.What is Difference Between Business area and Profit Center

Business Area Is an Optional Entry, whenever Company Wants Financial

Statements Business area wise, we can maintain Business areas in SAP. And also,
we can Maintain Business as segment wise, geographical location wise.
Profit center Is Used to Know the profit of Companies. Profit center is also used
for to know the profit as product wise, segment wise, geographical location wise.

59.How Part of Payment will be done in APP Is it Possible.

Yes, If You Use Instalment Payment terms, this will split the total invoice to
multiple due dates which app picks periodically.

60.What is T. code of Material Valuation type, Class and Group.

1.Valuation Class is Maintain in accounting view 1 Tab in material master Data

MM01
2.Valuation area is Defined at Plant level or Company Code Level
3.Valuation Grouping Code Is A club of Valuation area, Company Code and Chart
of Accounts OMWD
4.In OBYC, we Maintain Valuation Grouping Code, Valuation Area, Account
Modifier and G L Accounts.

61. I Have total 10 Invoices for a customer but I want to send only 5 invoices

If You Want to make only 5 invoices out of 10 invoices. then You Need to block
the Remaining 5 invoices which you don’t want to send and make payment

62. Where do you assign cost element in company code

We Can assign cost elements In Fs00 and KA01 Also. Primary Cost Elements Can
Create at FI And Controlling level. but Secondary Cost Elements Can Create at
Controlling Level only. for primary cost elements creation G L Ac is Must

63.What is Payment Advice in Terms of Automatic Payment Program?

Payment advice is the document which is sent to vendor mentoring about details
of Clearing Document such as amount date etc. it sent by email.

64.A customer has more than one bank account configured. However, he
specifies that all purchases of stationery should be paid through a particular
bank account only. How can this arrangement be made?

The ‘Bank Type’ field in the customer master data can be specified against the
particular bank account. This value has to be supplied in the line item when
entering stationery purchases

65.What is the steps involved in configuration Electronics Bank statement?

1.Define Account Symbols

2.Assign Accounts to Accounts Symbols
3.Craete Keys for Posting Rules
4.Define Posting Rules
5.Create Transactions Types
6.Assign Transaction types to posting rules
7.Assign Banks to Transaction types

66.What is Business Transactions in Cash Journals

Business transaction Represents Any Transaction posted in Cash Journals.

Example of Business Transaction Types In Cash Journal
1.B-Cash Transfer to Bank
2.C-Cash Transfer from Bank
3.E-Expernce
4.R-Revenue
5.K-Vendor outgoing payment
6.D-Customer Incoming Payment

67.What is The Different Type of COA In SAP FICO?

Chart of Accounts Nothing but Its List of General Ledger Accounts. In sap 3 Types
Of Chart of Accounts ..1.Operational COA 2. Country Specify COA 3. Group Of COA
Operational COA: -Operational COA are used to Record All Business Transitions In
General Ledgers day to day postings
Country Specify COA:- Country Specify COA Used to fulfill Legal Requirement of a
particular County
Group Of COA: - Group of Chart of Accounts Are used by the Entire Corporate
Group & Consolidation Report purpose.

68.What is the main Use of SAP FI-CO?

We use sap fico modules within a company to manage financial tasks within an
international framework of multiple languages and currencies.
Sap fi used for fixed assets, tax accounting, general ledger, accounts payable,
Accounts Receivables
Sap co used for cost sheet, internal orders, cost assignments

69.What Is Accounts payables?

Accounts Payable is any sum of money owed by a business to its suppliers shown
as liability on a company balance sheet .in simple words when you buy goods or
services with an agreement to pay sundry creditor, such amount till paid is
referred to as accounts payable

70.What is Vendor Account Group?

Vendor Account Group is to bifurcate the vendors like Fi Vendors, MM Vendors,

Domestic vendor, Foreign Vendors

71.What are steps to Create for Creating Vendor?

a) Account Groups for vendors -OBD3

b) Create Number Ranges for Vendor Groups -XKN1
c) Assign Number Ranges for Vendor Groups -OBAS
d) Document Types for Vendor Accounts -OBA7
e) Number Ranges for Document Types -FBN1
f) Create G l Accounts (Reconciliation, Inventory G L) -FS00
g) Create Vendor Master Record -XK01, FK01, MK01

72.What Is a Special G l Transactions?

Special G L Transactions are transactions that are not normal business
transactions with our business partners. they generally shown in different control
ledgers and it not grouped with normal transactions. Example Down payments.

73.What is the impact on the old balance when the reconciliation account in the
vendor master is changed?

Any Changes You Make to the reconciliation account is prospective & not
retrospective. the old items and balance do not reflect the new account. only new
transactions reflect the account.

74.What do you mean by Down Payment?

Down payment is used for short or medium financing. down payments are
generally made before production. down payments must be displayed separately
in the balance sheet.

75.What are Terms of Payment?

Terms of payment nothing but Determine Base line Date for Due date of Invoice.
Terms of Payment Determine Which Date from Payment Term Applied and
Calculating Cash Discount Periods and Cash Discount Percentages
In Payment Terms Consist of *. No Default * Posting Date * Document Date
*Entry Date
*Posting Date: - Goods Receipt Date
* Document Date: - Party bill Date
* Entry Date: - Quality Approved Date

76.There is Two Company Code with a Common Tax Code. Can it Possible to
define Different G L Accounts with single tax code & the chart of accounts is same
for both Company codes?
Tax Code Is Always Been Define Country Level Only. for Single Tax Code We
Cannot Define Two Different G L Accounts .at the time of Defining only it will
show the error of Duplicate entry.

77.tell me Something About Parallel Currency in SAP?

Each Company Code Have 3 Types of Currencies there are Local Currency and
Parallel Currencies. It Parallel Currencies are Called Group Currency and Hard
Currency ..Parallel Currencies can be used in the transactions made at
International Level By Organization .

78.What are the Biggest Benefits that you can have with SAP FICO?

There are Certain Major benefits

*One Of the Major Benefit Is Accounting Data is Always Correct. The User Doesn’t
Need Worry about this
* A lot of Money and Time Can be saved
* There is No Upper Limit on Handling the Accounts. Any Number of accounts can
be managed

79.What is Credit Control Area in SAP FICO?

In SAP Provided Credit Control Area to Avoid the Risk of Bad Debts and Multiple
Outstanding Receivables from You Customers, You Can Set Credit Limit for Your
Customers by Using Credit Control area. You Can Block the delivers to you
customer based on the Credit Limit Credit Control area in SAP Enable
Organization to Impose Strict Upper Limit on the Credit for the Customers... We
will Define Credit Control Area by Using T Code OB45 …in that time we will fill the
fields like, Credit Control Area Key, Description currency, risk category credit limit,
Fiscal Year variant also be provided

80.What is SAP FI-MM Integration?

SAP FI-MM Integration are Under Chart of Accounts Level. SAP Will Integrated
with Other Modules .in SAP FI-MM integration Data Flow SAP MM to SAP FI
Module. at the time of Data will Triggers Automatic postings in SAP FI Module
81.What is a “Purchase Requisition “(PR)

A Purchase Requisition is The Document that outlines Company’s Purchasing

Needs of a Material or Service from Vendors .PR Typically an Internal Document
that can be created by MM team automatically or manually. Purchase
Department need any material or Service they will send this PR Request for
Quotation.

82.What is Purchase Order (PO)

A purchase order is Legal Contract Between a Vendor and Buyer. the Material or
Service to be purchased on certain terms & Conditions. the order mention Along
with Quantity of Material, Price per unit, payment information, Delivered related
conditions.

83.How do you go about settings the FI-MM Account Determination?

FI-MM Integration settings are maintained in OBYC Transaction code. Within

these are various transactions keys to be maintained like BSK, WRX, GBB, PRD
…Each transaction keys assigned with specify G L Accounts for automatic postings
at the time of entry posting
* BSK - inventory Postings
* WRX - GR/IR Clearing Account
* GBB – Goods Issue to productions
* PRD - Price Differences

84.What is Valuation and Account Assignment in SAP?

This is Actually the Link Between Material Master and Finance. The Valuation in
SAP Can be at the Plant level or company code level. if you define Valuation at the
plant level then you can have different prices for the same material in the various
plants. if you keep it at the company code level you can have the only prices.
across all plants

85. What is Valuation Class?

The Valuation Calss in Accounting 1 View in Material Master is the main link
between material master and finance. This valuation class along with
Combination of the Transaction keys like BSX, WRX. This Transaction keys
assigned to particular General Ledger
We can group together different materials with valuations class like Raw Material
Finished Goods, Semi Finished Goods
Materials with different material types are assigned to a single valuation class

86.Can we Change the Valuation Class in the Material Master Record?

Yes, We Can Change it only if the Stock for that material is nil. if the stock Exists
for that material, then we Cannot Change the Valuation Class. if the stock exists,
we have to Transfer the Stocks or issues the stock nil for the specific valuation
class. then only we will able to change the valuation class

87.What is the benefit of implementing SAP?

The Benefits of implementing SAP

* Efficient use of Resources
*It helps to formulating effective plan for the organization
* It provides the best industry solutions

88.Tell me About Development Environment

The Development Environment is an environment where most of the

implementation work Of SAP Take Place. it is divided in to three parts
* SANDBOX
*CONFIGURATION
*DEVELOPMENT TESTING
89.What is the Important of GR/IR Clearing Account?

*GR/IR is interim account .in the legacy system, if the Goods are Received and
Invoice Not Received, The Provision is Made, in SAP at the goods receipt.it Passes
*Accounting Entry Debiting the Inventory and Crediting the GR/IR Accounting.
*When Invoice is Received the GR/IR Account is Debited
Vendor Account is Credited, and
*GR/IR Clearing Accounting, Mian Purpose Matching the Debits and Credits
Inventory ac –Dr GR/IR ---DR
TO VENDOR –CR To GR/IR Ac –Cr

90. What is IBAN Number in SAP? What does it work?

IBAN stands for "International bank account number" while

creating bank accounts in FICO we can use this. Most of
the time IBAN is used for foreign currency payments time.

91.How can we block, a particular payment term for a particular vendor?

We have Two Methods for Vendor Block in APP

1. Vendor Creation: Block under Automatic Payment

Transaction
2.APP Run: Edit Proposal Button in APP.

92. I run my app and I printed my check and after that I find that I made a
mistake of wrong payment to related vendor…. now what can I do…. can I stop
app.. And can I stop payment and can I delete proposal and payment in
app???? And can I run new app towards new vendor…..
You will not be able to delete proposal after payment run. If you want to
delete proposal then,

First you have to manually reset & reverse the posting generated FBRA.

Second, You have to delete payment run from EDIT > PAYMENT > DELETE
OUTPUT.

Third and then you will be able to delete proposal EDIT > PROPOSAL >
DELETE.

93. I have two companies one is parent company & another sister company.
Both companies have same vendors & customers. Can I assign dunning
procedure for both companies?

U have to assign a dunning procedure separately for each customer and

vendor in their respective master record in company code level
And then select company codes both
parent and sister concern. T hen select customer and vend in
parameter maintain.

94. What is internal number range? What advantages & risk?

if we assign internal num range it picks up automatically

like 1,2,3, that of documents numbers

If we assign external num range to system then we can

assign any number in between the range. if given 10000 to
199999. we can pick up 100000 num then 100020 100030 100007
like that.

95. We have a company with 4 branches and one factory. How do you start
configuring?

if this is the case first, we need to define a company code in FI(OX02), AND
Define business areas as given 4 branches in questionary.
Define plant that to be assigned company code.

96. Can u explain what is the purchase life cycle and with entries?

1.When PO is created:

---- No Entry -----

2. When GR is posted

Inventory Account D.R (Transaction Key BSX in OBYC)

To GRIR account (T. Key WRX in T-code OBYC)

3. When Invoice is posted

GRIR account Dr.

To Vendor account Cr.

4. Payment made to Vendor

Vendor A/c Dr
To Bank Clearing A/c Cr.

97. What is the t-code to see the error message list in sap?

1 You can see the SAP error message details through SAP transaction
code: SE91
2 In SAP FI Module, you can control the SAP error message number
through SAP transaction code: OBA5

98. What are the alternative g/l accounts?

The account number from your legacy system or

Account number from a country chart of accounts if your
corporate group uses a standard chart of accounts.

99. What is the entry date, document date, posting date, value date, and next
run date?

Entry Date - System Date on which document is entered

Document Date - Date of the supporting document ie PO/

invoice/ Bill date

Posting date - date on which entry is posted to the ledger

or accounting date

Value date - the date on which doc is valued. ie for forex

valuation the value date is needed for calculating the
exchange rate difference

Next run date - this is for payment run. what the next day
for calculating the payment due document and discount
calculation

100. How a ticket (run time problem) comes to a junior sap consultant
support level)? In which server he solves the ticket (run time problem)?

Tickets will be receiving from Production Server.

Solutions should be depending on client service desk. We
have to give the answers through emails. If it is configuration change, we
have to ask Change Request
form from the client. Then we have to do configuration
after that it moves to testing server. Once consultant
checks if there is no error it will be transported to
Quality server, there user has to check and give User
Acceptance testing. Then only the requests move to
production server.
101. How to find particular G/L accounts relate to Cost center.

The cost Centre will be assigned to Cost element (GL account) by default in
t. code-KS02 or if automatic default, account has to be assigned to GL
account maintain in t code-
OKB9.
If not cost center related to company code can be manually
entered to Any GL account

102. Brief about g/r I/r clearing. Can’t v avoid this a/c? Process?

Quantity differences between goods receipt and invoice

receipt for a purchase order result in a balance on the
GR/IR clearing account.

If the quantity invoiced is larger than the quantity

received, the system then expects further goods receipts
for this purchase order to clear the balance.
If the quantity received is larger than the quantity
invoiced, the system then expects further invoices for this
purchase order to clear the balance.
If no more goods or invoices are to be received, you must
clear the balance manually.

This can be done in different ways:

You can return the extra goods to the vendor

You can cancel the invoice.
You can clear the GR/IR clearing account manually.

103. Disadvantages of Distribution in Controlling

distribution cannot be used for the allocation of

secondary cost
104.Can we create P. O. for multiple vendors? How can we create it?

Yes, you can create P. O for multiple vendors by using "ME21N"

Only one P.O number can belong to one vendor. same P. O
number cannot belong to multiple vendors

105.What is the T-code of transferring G l balances from one fiscal year to

another fiscal year?

GL balance transfer F.16/FAGLGVTR

Vendor/Customer balance transfer F.07

List of Vendors line items -S-ALR-87012103

List of Vendors Open items-S-ALR-87012083

All Vendor List -S-ALR-87012086

Vendor Balances In Local Currency -S-ALR-87012082

106. if a document parked in one fiscal year can be posted in next fiscal year.?

NO, it is not possible to forward the parked document into

the next fiscal year because parked document means if any
adjustments can be happened in the future days, for that
purpose we have temporarily saved that document. After
doing the complete transactions in that we will save that
document.

107.if customer is a vendor in this scenario how u customize?

If a vendor is also a customer, or vice versa, you can have the payment
program and the dunning program clear the vendor and customer open
items against each other. You can also select the customer line items when
you display the vendor line items for this account.

Before you can clear items between a vendor and customer account, you must:

1. Create a customer master record for the vendor who is also a customer.
2. Enter the customer account number in the Customer field in the control
section of the general data in the vendor master record.
3. Enter the vendor account number in the Vendor field in the control
section of the general data in the customer master record.
4. Select Clrg with vend. and Clrg with cust. in the company data in both
the customer and vendor master records. In this way, each company
code can decide separately whether it wants to clear the customer with
the vendor.

108. Bank Master Key is created at client level or Company code level?
Illustrate with examples & your prior project experience?

Bank Keys can be created at country level in FI01 T-Code

not at company code level. Here bank keys are different from House Banks.

109. Can I know what are the T. Codes for calculating Tax Procedure.AND
Assigning tax procedure to Country of our Company Code.?

for calculating tax procedure, we use t. code OBYZ

hear we give procedure for tax
step1 Condition type and Account Key
1 BASB (Base amount)- default
2 MWVS (Out Put) - default 1 1 vst
3 MWAS (Input) - default 1 1 mws

assign tax procedure to country of our company code t. code

OBBG
110. What is enterprise structure? What all comprises an enterprise
structure?

Enterprise structure is the base of configuration of an

organization. Here we have to configure Company Code,
Business areas, fiscal year variants, controlling area,
chart of accounts.

111.How due date of a document is calculated

Due date of a document is calculated according to the terms of payment and

the base line date.
Terms of payment tell us what rate of discount (if any) is
entitled on various time lines.
Baseline is the date from which we start calculating the
due date. Meaning if we allow our customers 14 days
credit period and the sales were made on the 1st of June,
the baseline would be 1st June and Due date would be the
15th June. (1st - 14th credit period, Due on 15th)

112.What does document header control?

* Document date

* Posting Date

* Company Code

* Fiscal Year

* Document Type

113.Which dates are taken into consideration while running a payment run?

while running a payment run, we need to

consider three dates
1. Payment run date

2. Documents entered up to date &

3. Next payment run date.

114.What is sub ledger? How is it linked

to GL?

Sub Ledgers are A/P, A/R and Asset

Accounting to FI Module. All the Postings
to these sub modules must reflect in
general ledger
1) All the postings of A/P and A/R will
reflect in general ledger through
reconciliation accounts.
Reconciliation accounts must be
mentioned in customer and vendor
master records (XK01 and XD01.

2) All the postings of Asset Accounting

will reflect in general ledger through
Account Determination. Account
Determination mentioned in Asset Class.
Asset Master
record is created using this asset class.
All g l accounts are assigned in "assign g l
accounts config
step (AO90)

115.suppose we have created a organizational structure in a non-sap

system and how we will transfer this organizational structure to another
non-sap systems?
Through Batch job we can transfer non spa org structure to
another non sap org structure.
we can transfer non sap to sap and sap to non-sap through
Batch Job. check SM36
To monitor batch job SM37

116.Profit Center is created before Cost Center in CO? if yes, then why?

yes, u can, because cost center has to assign with profit

centers.

117.My company has 2 mode of payment method. 1- is residual method and 2.

is partial method. Now the scenario was I have to clear the customer, which
haven't made payment within the specified time, in that case I have to charge
interest on that customer. Now, the question is that which mode of payment
should I follow to clear that customer. What will be the appropriate payment
method in respect of company rules? and please . give the reason.

Normally in the company's when they are clearing the payment

they will use standard payment so in your company if u don’t
have that option or else rights then payment need to pay
like last partial payment because residual payment will use
when agreement will close, so at last residual payment
will use for re-agreement not for payment clearing

118. In ECC 6 during APP run for say vendor (1000) system is printing single
check for few open items and for few open items individual checks are
printed. My client ways to print single check for on vendor.

Go to Setup Payment Method Per Company code for payment

transaction by FBZP t. code.
you will find two field for grouping items.
Please de select both options. your requirement will fulfill

119.If we have received a check from customer on 02 feb.10, deposited in

bank on 3rd and check cleared on 5th feb. what are the journal entries should
be passed for all three days? Also, what would be entries if check gets
dishonored in SAP?

02.feb.2010- Bank Sub-account Dr.

To Customer A/c
03.feb.2010- No entry in SAP

05.feb.2010- bank will sent BANK RECONCILIATION STATEMENT

Bank Main-account Dr.

to Bank-sub a/c

120.How do you make an advance payment to a vendor through?

the APP?
You need to use a down payment request to a vendor. This will create a noted
item, in the vendor, which you need to include with the APP. This will post the
advance

to the vendor as a special G/L transaction.

There are two steps to make an advance payment to a vendor:
1. Create a down payment request through T-code F-47.
2. Post the down payment through T-code F110 (APP).
The system will pay for all down payment requests by check or bank
transfer.

You can clear two general ledgers through transaction code F-04 (posting
with
clearing), provided both general accounts are open item managed accounts

121.There is two company code with a common tax code. can it possible to
define different g/l accounts with single tax code...and the chart of A/c is same
for both company codes?

Tax code is always been defined at country level only, for

Single tax code we can't define two different G/L accounts,
at the time of defining only it will thru the error of
duplicate entry.

122.How can I copy the G/L accounts from one company code to Company
Code 1) Within the same client 2) Without the same client Please tell me step
by step, if possible?

use T code FS15 to copy withing the same client

Program RFBISA10 allows to export GL account master data

from one client to another client

And the same program allows to create a file to upload into

another client.

Program RFBISA20 allows to import the file which is

exported by using RFBISA10 program.

The downloaded file we have to place in correct path to

upload in another client by using RFBISA20.

Take BASIS consultant help to place the downloaded file in

correct path
And

123.What are the various organizational assignments to a company code?

Company code is a legal entity for which financial statements like Profit and
Loss and Balance Sheets are generated. Plants are assigned to the
company code, purchasing organization is assigned to the company code
and Sales organization is assigned to the company code.

124.What is the relation between a Controlling Area and a Company Code?

A controlling area can have the following 2 types of relationship with a
company code
a. Single company code relation
b. Cross Company code relation
This means that one single controlling area can be assigned to several
different company codes. Controlling area can have one is to one
relationship or one is to many relationships with different company codes.
Controlling Area is the umbrella under which all controlling activities of Cost
Center Accounting, Product Costing, Profit Center and Profitability Analysis
are stored.
In the similar way Company codes is the umbrella for financial activities

125.How does posting happen in MM (Materials Management) during

special periods?
There is no posting which happens from MM in special periods. Special
periods are only applicable for the FI module. They are required for making
any additional posting such as closing entries, provisions, which happen
during the quarter end or year end.

126.How many currencies can be configured for a company code?

A company code can have 3 currencies in total. One which is called the
local currency ( company code currency ) and 2 parallel currencies can
be configured.
When you do that the system has the flexibility to report in the different
currencies.

127.Do you require to configure additional ledger for parallel currencies?

In case 2 currencies are configured (Company code currency and a parallel
currency) there is no need for an additional ledger. In case the third parallel
currency is configured and is different than the second currency, you need
to configure additional ledger.

128.If there are 2 company codes with different chart of accounts, how can
you consolidate their activities?
In this case you either need to write an ABAP programmed or you need to
implement the Special Consolidation Module in SAP. If both the company
codes use the same Chart of Accounts then Standard SAP Reports give
you the consolidate figure
129.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 G/L account master record, a check box
exists wherein the automatic posting option is selected called “POST
AUTOMATICALLY ONLY”

130.What is an 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 master record. Account groups exist for the definition of a G/L
Account, Vendor and Customer master. It basically controls the fields which
pop up during master data creation.

131.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 this
configuration.
132.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.

133.What are the Customizing pre-requisites 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)
134.How many numbers of line items in one single entry you can have?
You can enter 999-line items in one document or in one single entry.

135.In Assignment Field in the Document, you get some reference, which
comes from where?
This is on the basis of Sort Key entered in the master.
136.How do you maintain the number range in Production Environment?
By creating in Production or by Transport?
Number range is to be created in the production client. You can transport it
also by way of request but creation in the production client is more
advisable.

137.In customizing “company code productive” means what? What it

denotes?
Once the company code is live this check box helps prevent deletion of
many programmers accidently. This check box is activated just before go
live.
138.Where do you attach the check payment form?
It is attached to the payment method per company code.

139.Payment terms for customer master can be maintained at two places

i.e., accounting view and the sales view. Which is the payment term which
actually gets defaulted in transactions?
The payment term in the accounting view of the customer master comes
into picture if the transaction originates from the FI module. If an FI invoice
is posted (FB70) to the customer, then the payment terms is defaulted from
the accounting view of the customer master.
The payment term in the sales view of the customer master comes into the
picture if the transaction originates from the SD module. A sales order is
created in the SD module. The payment terms are defaulted in the sales
order from the sales view of the customer master.
140.Payment terms for vendor master can be maintained at two places i.e.,
accounting view and the purchasing view. Which is the payment term which
actually gets defaulted in transaction?
The payment term in the accounting view of the vendor master comes into
picture if the transaction originates from the FI module. If an FI invoice is
posted (FB60) to the vendor, then the payment terms is defaulted from the
accounting view of the vendor master.
The payment term in the purchasing view of the vendor master comes into
picture if the transaction originates from the MM module. A purchase order
is created in the SD module. The payment terms are defaulted in the
purchase order from the purchasing view of the vendor master.
141.Explain the entire process of Invoice verification from GR to Invoice
verification in SAP with accounting entries?
A goods receipt in SAP for purchased material is prepared referring a
purchase order.
When goods receipt is posted in SAP the accounting entry passed is :
Inventory A/c ………. Dr
To GR/IR A/c ………. Cr
A GR/IR (which is Goods receipt / Invoice receipt) is a provision account
which provides for the liability for the purchase. The rates for the valuation
of the material are picked up from the purchase order.
When the invoice is booked in the system through Logistics invoice
verification the entry passed is as follows:
GR/IR Account …….. Dr
To Vendor A/c ………Cr

142.Can we change the reconciliation account in the vendor master? If so,

and how? What is the impact on the old balance?
Reconciliation account can be changed in the vendor master provided that
authority to change has been configured. also any change you make to the
reconciliation account is prospective and not retrospective. The old items
and balances do not reflect the new account only the new transactions
reflect the account.
143.Is it possible to keep the FI posting period open only for certain GL codes?
Yes. It is possible to keep open the FI posting period only for certain GL codes.
How do you keep the FI posting period open only for certain GL codes? In
transaction code OB52 click on new entries and maintain an interval or a single GL
code for the account type S with the posting period variant. If the GL codes are
not in sequence, then you need to maintain further entries for the posting period
variant and account type S.

144.What is “Open Item Management

In sap Technical Point of View Open Item Management is Just a Check Mark In
General Ledger Master Creation In FS00.Under Control Data Tab.
And Functional point view its would be control all outstanding from
Customers and Vendors

Open item management manages your outstanding account, i.e. account payable
and account receivable. For instance, an invoice item that has not yet been paid is
recorded as open account until it is paid

145.What is Retained Earning Accounts

Retained Earnings Account is used to carry forward the balance from one
fiscal year to the next fiscal year. You can assign a Retained Earning
Account to each P&L account in the chart of accounts (COA). To
automatically carry forward the balance to the next fiscal year, you can
define P&L statements as per COA and assign them to the retained
earning accounts.

a) Yearly net Income

b) Distribution of Dividends
c) Transfer to minority interest and deductions from minority interest

146.How Master Data Field Control in Accounts Payable and Accounts

Receivables

Vendor And Customer Accounts Groups Control the Fields in Master

Record.

147.What is Screen Layout in SAP FICO

Screen Layout means customization of things how you like.

Example. when you are booking invoice in G L, how do you want to see
your Screen layout …cost center, profit center like this you will set or the
default.

148.How to Post a Raw Material in two different g l accounts? When the

material procured from Domestic
Using Split Valuation, the same material can be posted in to Two Different
G L Accounts. Split Valuation process serves the procurement of material
in Domestic and foreign.

149.Example in Salary G/L Account instead of giving P&L they Selected

Balance Sheet and saved it …now we want to select Balance sheet ..How
Can you solve?

At the time of G/L Master Data System Does Not Allow or Consider to
Create Salary Account as Balance sheet. if Support this Situation then
Clear the G/L then Change the G L Master.

150.Can we Maintain Two Fiscal Year Variants for one Company Code?

No. We Can’t Maintain Two Fiscal Year Variants for Same Company Code.
Yes, in Case of Controlling we Can maintain different number of Special
Posting Periods.

151.Why We Use Document Splitting Functionality?

Document Splitting Enables a Complex Display of Documents. Line-items

are split here for selected dimensions. this ensure that you can draw up
complete Financial Statements for the Selected Dimension at any time.
Using the Document splitting procedure, you can also create a segmented
display of a balance sheet according to legal requirement .in addition, you
can allocate at the time of posting additional costs, exchange rates to the
CO Account assignment objects.

152. How do you configure electronic bank statement?

Step1: Create account symbols for the main bank and the sub accounts

Step2: Assign accounts to account symbols

Step3: Create keys for posting rules

Step4: Define posting rules

Step5: Create transaction type

Step6: Assign external transaction type to posting rules

Step7: Assign Bank accounts to Transaction types

153.At what level is the FI-MM, FI-SD account determination settings?

They are at the chart of accounts level.

154.What are the additional settings required while maintaining or creating the GL
codes for Inventory accounts?

In the Inventory GL accounts (Balance sheet) you should switch on the ‘Post
automatically only’ tick. It is also advisable to maintain the aforesaid setting for all
FI-MM accounts and FI-SD accounts. This helps in preserving the sanctity of those
accounts and prevents from having any difference between FI and MM, FI and SD.

155. What is Valuation and Account assignment in SAP?

This is actually the link between Materials Management and Finance. The
valuation in SAP can be at the plant level or the company code level. If you define
valuation at the plant level then you can have different prices for the same material
in the various plants. If you keep it at the company code level you can have only
price across all plants. Valuation also involves the Price Control. Each material is
assigned to a material type in Materials Management and every material is
valuated either in Moving Average Price or Standard Price in SAP. These are the
two types of price control available.

156.What is Valuation Class?

The Valuation Class in the Accounting 1 View in Material Master is the main link
between Material Master and Finance. This Valuation Class along with the
combination of the transaction keys (BSX, WRX, GBB, PRD) defined above
determine the GL account during posting. We can group together different
materials with similar properties by valuation class. Eg Raw material, Finished
Goods, Semi Finished We can define the following assignments in customizing:
All materials with same material type are assigned to just one valuation class.
Different materials with the same material type can be assigned to different
valuation classes. Materials with different material types are assigned to a single
valuation Class.

157.Can we change the valuation class in the material master once it is assigned?

Once a material is assigned to a valuation class in the material master record, we

can change it only if the stocks for that material are nil. If the stock exists for that
material, then we cannot change the valuation class. In such a case, if the stock
exists, we have to transfer the stocks or issue the stocks and make the stock nil for
the specific valuation class. Then only we will be able to change the valuation
class.

158.Does the moving average price change in the material master during issue of
the stock assuming that the price control for the material is Moving Average?

The moving average price in the case of goods issue remains unchanged. Goods
issue are always valuated at the current moving average price. It is only in goods
receipt that the moving average price might change. A goods issue only reduces
the total quantity and the total value in relation to the price and the moving price
remains unchanged. Also read the next question to learn more about this topic

159.What is the accounting entry in the financial books of accounts when the
goods are received in unrestricted use stock? Also mention the settings to be done
in the ‘Automatic postings’ in SAP for the specific G/L accounts.

On receipt of the goods in unrestricted-use stock, the Inventory account is debited

and the GR/IR account gets credited. In customization, in the automatic postings,
the Inventory G/L account is assigned to the Transaction event key BSX and the
GR/IR account is assigned to the Transaction event key WRX.

160.What is the procedure in SAP for Initial stock uploading? Mention the
accounting entries also.
Initial stock uploading in SAP from the legacy system is done with inventory
movement type 561(a MM transaction which is performed).

Material valuated at standard price: For a material valuated at standard price, the
initial entry of inventory data is valuated on the basis of standard price in the
material master. If you enter an alternative value at the time of the movement type
561, then the system posts the difference to the price difference account.

Material valuated at moving average price: The initial entry of inventory data is
valuated as follows: If you enter a value when uploading the initial data, the
quantity entered is valuated at this price. If you do not enter a value when entering
initial data, then the quantity entered is valuated at the MAP present in the material
master.

161.What are the Month End Closing Activities in Finance?

1. Recurring Documents.

a) Create Recurring documents

b) Create Batch Input for Posting Recurring Documents

c) Run the Batch Input Session

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.

162.How do you go about configuring material ledger?

The following are the steps: -

1) Activate Valuation Areas for Material Ledger

2) Assign Currency Types to Material Ledger Type

3) Assign Material Ledger Types to Valuation Area

4) Maintain Number Ranges for Material Ledger Documents

5) Activate Actual costing (whether activity update relevant for price

determination)

6) Activate Actual cost component split

7) Customizing settings in OBYC

163.How will you maintain Periods for a Calendar-year specific Fiscal Year
Variant?

Periods cannot be maintained for Calendar-year specific FYV.

164.What are the various account types in SAP?

A - Assets

D – Customers

K – Vendors

M - Material S - G/L

165.In the G/L a/c master data which fields are mandated for entry, ie.,
REQUIRED fields?

(a) Account Currency (b) Field Status Group

166.What is Global currency? Where is it specified?

Global currency is the currency used for internal trading partner. It is defined
when defining a ‘Company’.

167.What are the standard exchange rate types used?

G – Standard Translation at Bank Buying Rate

 B – Standard Translation at Bank Selling Rate

M – Average rate

168.An account has a balance of Rs.1,00,000/- to its credit. You now want to
enable Open Item Management for this account. How will you do this?

Open Item Management can be activated only if the account has ‘Zero’ balance.

169. If you activate Open Item Management sometime in middle of the year when
balance is Zero, does this be applicable for the past entries also?

No. The setting applies to entries made after that date only. Past entries cannot be
managed on OI basis.

170.A customer has more than one bank account configured. However, he
specifies that all purchases of stationery should be paid through a particular bank
account only. How can this arrangement be made?

The ‘Bank Type’ field in the customer master data can be specified against the
particular bank account. This value has to be supplied in the line item when
entering stationery purchases.

171.Which date is used by the system to determine the rate of tax on purchase or
sales?

By default, the system uses the posting date. However, this default could be
changed in configuration and set to Document date.

172.Can you directly assign ‘Business Area’ to ‘Company Code’?

No. Business Area cannot be directly assigned to Company Code

173.What are the most important control functions of ‘Document Type’?

a. Document Header
b. Account Type c. Doc. Number Range

174. What are the most important control functions of ‘Posting Key’?

a. Account type

b. Debit / Credit c. Field Status

175. What are the points in a document where you can call validation procedure?

a. Document Header

b. Line Item

c. Complete Document

176.If a particular field status is set ‘Required’ in Posting Key but ‘Hidden’ in
Field Status Group, what status will be adopted by the field?

The system will display an Error message.

177.What are the two radio buttons in the CoA segment of G/L master?

Indicator: Profit & Loss Account or Balance Sheet Account.

178.Give some examples of accounts which need to be managed on Open Item

basis.

GR/IR Clearing A/c, Cash Discount Charges a/c, Bank Clearing A/c

179.What are the options for Clearing?

a. Full payment clearing

b. Partial payment clearing

c. Residual clearing
180. What transactions could be blocked in G/L master records?

- Blocked for Creation

- Blocked for Posting

- Blocked for Planning

- Blocked for Posting (in Co.Code)

181.The company desires that the opening and closing of posting periods for a
specified group of customers / vendors be controlled in a different manner, how
will you configure this?

A separate reconciliation account could be defined for the specific group of

customers / vendors. A posting period variant could be defined for account type
‘D/K’ with the G/L a/c range containing the above recon. Accounts. Thus, posting
periods of the sub-ledger postings could be treated individually through the G/L
account posting period.

182.What are tolerance groups? What are the different groups relevant in FI?

Tolerance groups are used to limit authorization on the transactions that could be
posted. Tolerance groups could be defined for:

1. Employees

2. G/L Accounts

3. Customers / Vendors

183.What limits can you impose through Employee tolerance groups?

a. Upper limit for posting procedures

b. Permitted payment differences

184.What limit can you impose through G/L account tolerance groups?
You can limit permitted payment differences (for eg., at the time of automatic
clearing)

185. What are the two important fields in Customer a/c which affects the
accounting entries?

a. Reconciliation Account

b. Head Office (all entries posted in branch are automatically transferred to HO

a/c)

186.How do you delete Customer / Vendor master records?

Customer/Vendor master records can be deleted using Code: OBR2. However, this
can be only done in test phase and not in a productive Co. Code. No transaction
should have been entered for the master record. The general customer master data
which are created in SD (Purchasing in case of Vendors) cannot be deleted.

187.Can you enter terms of payment for a non-invoice related credit memo? Is
there any way this could be done?

You cannot enter terms of payment for a non-invoice related credit memo
normally. However, this could be done by typing ‘V’ in the Invoice Reference field
of the credit memo.

188.HOW COME THE BANKER WILL COME TO KNOW WHETHER THE

PAYMENT HAS BEEN MADE TO VENDOR?

As a result of F110, output payment file gets created and stored at a particular
location in company’s server. This file is then sent to bank’s server by an
automated batch job program. Once bank receives the payment file, bank does
payment to vendor as per data provided in payment file.

189.HOW TO STOP INVOICE PAYMENT TO VENDOR IN APP?

We can stop the payment from F110 in proposal by blocking the invoice or if the
payment already released, we can send a request to banks by raising IDOC to stop
particular invoice to vendor

190.WHAT IS THE JOURNAL ENTRY IF GOODS RECEIPT AND INVOICE

RECEIPT ON SAME DAY?

Inventory a/c……..Dr

To Vendor a/c

191.what is NEXT PAYMENT RUN DATE in APP

When the system processes the payment to vendor/customer, the system checks
what is the next payment date and before those whatever OVERDUE payments are
there to vendor/customers, system collect all these documents to processing as on
RUN date. The next payment run date has to be at least 2 days from the run
date….

192.AFTER CONFIGURE NEW GL, WHAT KIND OF ERRORS MAY ARISE

WHILE PROCESSING?

1. If number ranges are not maintained

2. After activation of splitting Clearing account not assigned. The balance of
the account assignment of the object is zero - after Document splitting.
3. not assigning default profit centers

193. HOW CAN YOU CHANGE THE MATERIAL PRICE, WHEN YOU
WANTED TO RE-CALUCULATE?

You can change the MOVING AVG price by using T CODE: mr21, you can
also change the STD price through T CODE MR21 when stock should be zero
for that material.

194.WHAT IS THE PROCEDURE WHEN YOU WANT RUN FOREIGN

CURRENCY REVALUATION AGAIN?
 While doing FCV by the T CODE; FAGL_FC_VAL, there is a check button
option that is RESET/ REVALUATION. We need to check the option

195. CAN WE ASSIGN ONE PROFIT CENTER TO MULTIPLE COMPANY

CODES? IF YES, WHERE WE CAN ASSIGN?

Yes, we can assign one profit center to multiple company codes by the T CODE
KE52 in company code tab.

196.HOW TO PROVIDE CONNECTION TO MULTPLE CHART OF

ACCOUNTS ( 3 COA), WHEN YOU HAVE CREATED GL A/C.?

we can assign GL account to multiple COA, while your creating CHART OF

ACCOUNT ( T CODE OB13), there is a check list "assig group chart of a/c"
we need to check that and in OB62 assign your company code to OP COA &
COUNTRY COA.

197. Explain the ‘Account Payables’ Sub module?

Accounts Payables a sub module under Financial Accounting (FI), takes

care of vendor-related transactions as the module is tightly integrated with
the purchasing transactions arising from the ‘Procurement Cycle.’ The
module helps in processing outgoing payments either manually or
automatically through the ‘Automatic Payment Program.’ In Simple Words
Accounts Payable Process any sum of money owed by a business to
supplier it shown as a lability on company balance sheet.

198. What is a ‘Purchase Requisition’ (PR)?

A ‘Purchase Requisition,’ PR, is the document that outlines a company’s

purchasing needs of a material/service from vendor(s). A PR, typically an
internal document that can be created automatically or manually, identifies
the demand for a product and authorizes the purchasing department to
procure it. In the automatic creation of a PR, this is done as a result of MRP
(Material Requirements Planning). The PR, after identifying the vendor, is
processed further to result in a RFQ (Request for Quotation) or directly to a
Purchase Order (PO).
199.What is a ‘Purchase Order’ (PO)?

A ‘Purchase Order’ (PO) is a legal contract between a vendor and a buyer

concerning the material/service to be purchased/procured on certain terms
and conditions. The order mentions, among other things, the quantity to be
purchased, price per unit, delivery related conditions, payment/pricing
information, etc.
A PO can be created:
1. Directly or
2. With reference to a PR/RFQ/contract or another PO. Remember, all
items on a PO
should relate to the same Company Code.

200.Will the FI Document be created with the Purchase Order (PO)?

No. There will not be any document created on the FI side during creation
of a PO. However, there can be a document for posting a ‘commitment’ to a
Cost Center in CO. (The offsetting entry is posted at the time of GR.)

201. What Happens, in SAP, when You Post a ‘Goods Receipt’?

When you post a ‘Goods Receipt’ (GR), the stock account is debited (stock
quantity increases) and the credit goes to the GR/IR Clearing Account) a
material document is created, (2) an accounting document to update the
relevant GL account is created, (3) PO order history is updated,

202.Can You Pay a Vendor in a Currency Other than the Invoice

Currency?

With release 4.5A, you can pay a vendor in a currency that is different from
that of the
transaction/invoice currency. This is achieved by entering the required
currency code directly in the open item. Prior to this release, to pay in a
different currency, you had to manually process the payment.

203. What is a ‘Payment Block’?

A ‘Payment Block’ prevents you from paying an open item of a vendor. The
payment block is entered in the ‘Payment Block’ field in a vendor master
record or directly in the open line item. Use the payment ‘Block Indicators’
to define the ‘Payment Block Reasons.’ You may use the SAP delivered
payment block indicators (A, B, I, R, etc.) or create your own. An indicator
such as is used when you want to skip the particular account, you may also
propose a ‘payment block indicator’ while defining Terms of Payment

204. How do You Release Blocked Invoices for Payments?

The system will block an invoice if it comes across with an item with a
‘Blocking Reason.’ The blocking reason may be due to variances or
inspection-related issues. When the system blocks an invoice for payment,
the ‘payment block’ field is checked by the system. You will use an ‘Invoice
Release Transaction’ to select the blocked invoices for processing further.
The ‘release’ of blocked invoices for payments can be handled either
manually or automatically.

205.What is a ‘Credit Memo’?

A ‘Credit Memo’ is issued by a vendor who has earlier supplied you some
services or materials. The occasion is necessitated when the delivered
goods are damaged or you have returned some of the goods back to the
vendor. The system treats both the invoices and the credit memo in the
same way, except that the postings are done with the opposite sign. If the
credit memo is for the entire invoiced quantity, the system generates the
credit memo automatically. However, if the credit memo relates to a portion
of the invoiced quantity, you need to process it manually in the system.

206.What are ‘Special GL Transactions’?

Special GL Transactions are not directly posted to the GL (Reconciliation
Accounts) though these are related to sub ledger accounts such as AR/AP.
The transactions to these accounts are shown separately in the balance
sheet. There are specific posting keys/indicators defined in the system to
regulate the postings to these items. You need to specify a Special GL
Indicator (such as a F-Down Payment Request, A-Down Payment) for
processing such a transaction. And the system will make use of the
specially defined posting keys (09-customer debit, 19-customer credit, 29-
vendor debit, and 39-vendor credit) for posting these special GL
transactions.
There are three types of Special GL transactions:
1. Free Offsetting Entries (Down Payment)
2. Statistical Postings (Guarantee)
3. Noted Items (Down Payment Request)

207.Who is an ‘Alternate Payee’?

A customer who pays on behalf of another customer is known as an

‘Alternate Payee’ (or Alternate Payer). Though the alternate payee pays on
behalf of another, the system maintains all the transaction details in the
account of the original customer.

208. What is the ‘Trading Partner’ concept?

The ‘Trading Partner’ concept is used to settle and reconcile ‘inter-

company transactions,’ both sales and purchases. This is generally
achieved by entering the Company-ID (not the Company Code) to which a
customer belongs in the ‘trading partner’ field under the tab ‘Account
Control’ in the customer master record. You can do a similar entry in the
vendor master record.

209. What is a ‘House Bank’?

A ‘House Bank’ is the bank (or financial institution) in which the Company
Code in question keeps its money and does the transactions from. A house
bank in SAP is identified by a 5-character alphanumeric code. You can
have any number of house banks for your Company Code, and the details
of all these house banks are available in the ‘bank directory.’

210.What is a ‘Credit Check?

A ‘Credit Check’ is defined for any valid combination of the following:

Credit control area
Risk category
Document credit group

211.What is the ‘Dunning Area’?

The ‘Dunning Area’ is optional and is required only if dunning is not done at
the Company Code level. The Dunning area can correspond to a sales
division, sales organization, etc.

212.Can you ‘dun’ customers across ‘Clients’ in a Single ‘Dunning

Run’?

No. All the data processing is carried out per Client.

213. What are the Components of the SAP SD Module?

The important Components in SAP Sales & Distribution module include:

• Master data
• Basic functions
• Sales (including foreign sales and sales support)
• Shipping and transportation
• Billing
• Sales support
• Information systems
214. What are the Important Organizational Elements of SAP SD?

The important Organizational Elements in SAP Sales & Distribution include:

• Sales organization
• Distribution channel
• Division
• Sales area
• Sales group
• Sales person

215. What is a ‘Division’?

A ‘Division’ depicts the product or service group for a range of

products/services. For each division, you may define and maintain
customer-specific parameters such as terms of payment, pricing, etc. The
division may come under one or more distribution channels.

216. What is a ‘Sales Area’?

A ‘Sales Area’ is a combination of the sales organization, distribution

channel, and division. Which in fact represents that the product ‘TV’ is sold
through the ‘resale’ distribution channel from sales organization ‘Detroit.’
Usually, you will use sales areas for reporting purposes

217. Where and how is a ‘Business Area Assignment’ done?

Business area assignment is done at two levels:

• Plant level
• Valuation area level

The ‘business area’ is assigned to the combination of ‘plant’/‘valuation area’

and the ‘division.’
218. A ‘Plant’ is assigned to which of the Entities in the SD
Organization?

A Plant is assigned to:

• Company Code
• Combination of Sales Organization & Distribution Channel
• Purchasing Organization

219.What is the ‘Storage Location Rule’?

The ‘Storage Location Rule’ assigned in the Delivery Document type

determines the Storage Location, even when the storage location is
entered during delivery creation. This is based on the following rules:
• MALA: Shipping Point/Plant/Storage condition
• RETA: Plant/Situation/Storage condition
• MARE: MALA then RETA

220. What Functions are supported in the SAP ‘Material Management’

(MM)?

The MM module of SAP supports the following functions:

• MRP (Material Requirements Planning)
• Procurement
• Inventory Management
• Inventory Valuation
• Invoice Verification

221. What is ‘MRP’?

‘MRP (Material Requirements Planning)’ is nothing but the determination of
which materials are required, when and in what quantities, based on
current information and forecasts.

222. Explain the Basic ‘Organizational Structure’ in MM?

The major Organizational Elements of MM include:

• Purchasing Organization
• Plant
• Storage Location

The Purchasing Organization is typically attached to one Company Code.

But a single
Company Code can have one or more purchasing organizations. One or
more Plants are attached to a purchasing organization. One or more
Storage Locations are attached to a plant. One or more plants are assigned
to a Company Code, but one plant is attached to only one Company Code.

223.Define ‘Plant’ in SAP

‘Plant’ in SAP can denote a manufacturing location, distribution center, or a

warehouse. With unique numbers identifying each of the plants, though
these are all not all necessarily financial entities, they can still be linked to a
Business Area. The Plant is the place where you normally valuate the
inventory in SAP. The system, however, checks for the inventory either at
the Plant or Plant/Storage Location during an Order entry.

224. What is a ‘Goods Receipt’?

A ‘Goods Receipt (GR)’ results in an increase in the quantity/value of the

stock in a
plant/warehouse. A GR may be ‘with/without reference to a Purchase
Order.’ A GR leads to:
 • A Material documents
• An Accounting document (not always)
�� GR Slip printing
�� GL Account update
o Consumption Account
o Stock Account
�� Quantity updating
o Stock quantity
o Consumption statistics
o Vendor Evaluation
�� Other updates (if applicable)
o Cost Center
o Project
�� A Stock Transfer Order
�� Purchase Order History updates

225. How Does ‘Automatic Account Assignment’ Work in MM?

1. ‘GL accounts’ are assigned to ‘Transaction Keys’ (BSX, WRX, PRD,

UMG, GBB, etc.).
2. Transaction Keys identify which GL Accounts are to be debited or
credited.
3. Transaction Keys are assigned to ‘Value Strings’ (for example, WA01).
4. ‘Movement Types’ (for example, 901) are associated with a ‘Value
String.’

226.. Explain the ‘Transaction Keys’ in MM?

Also known as ‘process keys,’ the ‘Transaction Keys’ are pre-defined in the
system to enable transaction postings in Inventory Management and
Accounting (Invoice Verification). For each of the movement types in MM,
there is a value string that stores these possible transactions.
The pre-defined transaction keys are:
• BSX (used in Inventory Postings)
• WRX (used in GR/IR Clearing Postings)
• PRD (used to post Cost/Price differences)
• UMB (used to post Revenue/Expenses from revaluation)
• GBB (used in offsetting entries in Stock postings)

227.You have four house banks. The end user has to use the third
bank (ranking order) only for check payments. Can you make
payments through the third house bank? If so, how is it possible?

Customize the priority as 1 for the third house bank. Otherwise, while
posting the invoice, you can specify the house bank from which you intend
to make the payment

228.How do you configure check deposit?

The following are the steps for configuring check deposit: -

Step1: Create account symbols for the main bank and incoming check
account.
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create business transactions and assign posting rule
Step6: Define variant for check deposit

229.How do you configure electronic bank statement?

The steps for Electronic Bank Statement are the same except for couple of
more additional steps which you will see down below
Step1: Create account symbols for the main bank and the sub accounts
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create transaction type
Step6: Assign external transaction type to posting rules
Step7: Assign Bank accounts to Transaction types

230.What is a house bank? What information does it contain?

A house bank refers to the bank a company uses for receivables and/or
payments. It is any bank with which your company code does
business. Each house bank contains a company’s bank accounts. It also
contains a bank key that defines address and control data for the
bank. The house bank establishes a link between the various G/L cash
accounts and the actual bank accounts.

231.What is the relationship between a bank account and a G/L

account master record?

A G/L account master record must be created for each bank account. The
house bank and account ID must be entered in the GL account master
record to ensure the accounting transactions involving the bank account
will be reflected in the general ledger.

232.Where are bank master records created in SAP?

Unlike customer, and vendor master records, the bank master records may
be maintained on the configuration side in SAP. They are also created on
the application side in the Banking and Treasury sections.

233.Describe the purpose of the Bank Key.

The Bank Key is a unique country-specific code. The system uses a

combination of the Country Code/Bank Key to identify the house bank.

234.Describe the Account ID.

Each of the bank accounts created within a house bank must be assigned
a unique freely definable five-character Account ID. The Account ID is
used for the payment program specifications and in the account, master
records to make a reference to the bank ac count

235.What Do You Mean by “Down Payment “

Down payment is used for short or Medium Financing. Down Payments Are
Generally Made before Production. Down Payments must be Displayed Separately
in The Balance sheet

236. What are Terms Of payment (Conditions of Payment or Payment Terms)

Terms of Payment are the Condition to Settle the Invoices. The Payment terms
are used to Determine base Line Date for due Date of Invoice and Payment terms
Determine the Cash Discount periods, Cash Discount Percentage.

237.What steps would you take before Making a Payment?

a) We Should Verify that the any advance payments have been made
b) see that all the Services or Goods Delivered according to bill
c) any Query is there to attend on that Ultimately Can be Made Payment

238.Can you Give a sample Process Flow for Procure to pay Cycle?

a) Receipt of Invoice and Goods

b) Quality Check Approval
c) Verification with PO Terms
d) Creation of Liability
e) Payment after Due Date

239.What Does 3 Way Match mean in Accounts Payable Process?

A three Match is the Process of Comparing the Purchase Order, the Goods Receipt
note and the supplier’s invoice before approving a supplier invoice payment.

240.How Can 3 Way Matching benefit for your Business?

Three-way Matching helps to Business Track the Origin of Invoices and Confirm
their Legitimacy to avoid the Frud

241.What is Meaning of Invoice?

Invoice is Commercial Document Issued by Vendor to the Account payable team

of the buyer Demanding Payment for the Goods services Delivered invoice Details
Like Invoice Date, Invoice Number

242.How Many Types of Invoices are There in Account Payable?

Some Important Invoices are In Accounts Payable

Standard Invoices, Credit Memos, Debit Memos, Recurring Invoices, Expenses
Invoices, Interest Invoices, Tax Invoices, withholding Tax Invoices, e-Invoices.

243.What Is the Difference Between 2- Matching , 3- Way Matching and 4 -way

Matching ?

2-Way Matching: - It is Used to Compare the Invoice Received from vendor with
the Purchase order .
3-way Matching- it is used to match the Details purchase order, Goods Receipt
note, Invoice Document Received from Vendor .in Three way match the quality &
Price is Matched between PO, GRN, Invoice Receipt
4-way Matching: -Its PO + Goods Receipt + Invoice +Inspection

244.Tell Us the Accounts payable Challenges?

a) Slow Processing
b) Matching Errors
c) Unauthorized Purchases
d) Frud and Theft
e) Disappearing Invoices
f ) Double Payments
245.Is TDS Applicable on Advance Payment and Provisions for Expenses?

Yes, TDS Applicable on Advance payments as per threshold .and On Provisions for
payments when we Close the Financial Year

246.What is mean by Vendor Reconciliation?

Vendor Reconciliation means Statement Showing Difference of Company payble

to vendor account Balance And Vendor Outstanding Balance .it is Reconciliation
from Both Account Balance Company and Vendor. If there is any advance to
vendor it will Reduce the balance from company payable account

247.What is “Open Item “in SAP FI?

Open Item is an Unfinished Transactions in SAP. That Means the Line items is
Open and It is Not Cleared by A Clearing Transaction

248.What is “Reconciliation Account “Can you Enter any Entry Directly?

Reconciliation Account are General Ledger accounts Assigned to the Master

Records Like Customer and Vendor, asset Master Data.to automatically Record all
Translations in the Sub-Ledger. Once we Posted any Transection from a Subsidiary
ledger account, the SAP System Automatically Posts the data to main General
Ledger at the same time. Reconciliation Account Basically Balance sheet account
so we Cannot Post Any Entry Directly to this Account.

249.What is Difference Between “Reset “and “Reversal “In SAP?Reset Will set the
Clearing Document as an Open item and All Documents the were Cleared by the
Clearing Document. Reverse will Actually Reset all Cleared Items as Open Items
and Reverse the Clearing Document

250.How Can we see line-item for G/L Account with line-item display Not Active?
How to Activate Line-Item Middle of The Year?
The Procedure Would be to create an interim account. transfer the Balances of
your Original Account to this interim account and block the original account ..next
activate line item display by using program called “RFSEPA01” .Unblock the
original account and get the balances Populate again though Transfer from
interim account .if this had been done then you could view line item for your
original account retro-actively also.

251.When we use the open and Closing Posting Periods?

Let me to tell with one Example. Go to OB52 Transaction code we will define
from period 1 to 12 for our Fiscal Year. Instead of Giving 1 to 12 give 1 to 3 and try
to post the transaction with F-02 With period 4 you get the Error Message that
“Posting Period 004 in current Year not Open “it means the periods which
transactions are made has to be open

252.Foreign Currency Re-Valuation why its Required?

Foreign Currency Valuation is done not only for Vendor Open items but also for
Customers as well as G/L Accounts. Where ever there is Transactions Involving
foreign currency, will do valuation of the same to arrive at gain/loss with a change
in exchange rate.

253.When Keeping Postings in FI, how it will Reflect in MM? Can You Explain?

While Implementing or Configuration Fico Module if we want to integration

between FI And MM Then we need to do Account Determination Though T. code
“OBYC” And we have to Assign G/L Codes (Inventory G/L and GR/IR Clearing
Account) to transaction keys like for Example for Inventory G/L We Have to Assign
transaction keys Like “BSX” And for GR/IR Clearing Account transaction key
“WRX”. While Posting MIRO Or Invoice verification in FI Automatically it will link
to MM Also and Vise Versa.

254.How Many Types of Variants available in SAP?

In SAP 3 Types of Variants are available there are

*Fiscal Year Variant
*Posting Period Variant
*Field Status Variant

255.What is Transactional Data and Master Data In SAP?

Transactional Data: - These are the Business Documents. that you Create Using
the Based-on Master Data. Transactional Data Like Purchase Order, Sales order,
Sales Invoice, Purchase Invoice, Outgoing Payments, Incoming Payments.
Transactional Data Can Change Very often and Not Constant. this Data Can
Modified also.
Master Data: - In SAP Master data Refer to those records based on which the
various Transactional Takes Place. Master Data Contains Various Information Like
Vendor Master Data, Material Master Data, Customer Master Data, G/L Master
Data, Asset Master Data and Bank Master Data.

256.What is Account Groups In SAP

The ‘Account Group’ (or GL Account Group), a 4-character alphanumeric key. An

Account Group in Segregate or Grouping the Similar Accounts into Single Group.
Each account Group in SAP Assigned with Assigned Chart of Accounts.so You Can
Only Use Account Group if the Controlling areas use Same Chart of Accounts .in
SAP Accounts Groups Like G/L Account Groups, Vendor Accounts Groups,
Customer Account Groups.

257.What is “Valuation Modifier” In SAP?

Valuation Modifier is also Called “Valuation Grouping Code”. You Can Assign the
G/L Accounts for Automatic Account Determination indirectly. depends on the
Valuation area. valuation areas with the same account numbers assignment can
be Grouped.

258.In SAP FI-SD Integration Which type of Parameters on Depending?

SAP FI-SD Integration Depending on below Parameters
*Application Key for the Sales and Distribution
*Account Determination Type
*Chart of Accounts
*Customer Assigned Groups
*Account Keys

259. Is it Possible to Change an Existing B/S GL A/C to the P&L Type?

Technically, you will be able to change all the fields, except the account number,
of a GL account in the Chart of Accounts area. However, in this particular instance
when you change the ‘GL account type’ from ‘B/S’ to ‘P&L,’ make sure that you
again run the ‘balance carry-forward’ program after saving the changes so that
the system corrects the account balances suitably

260. 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.

261. Tell me the Two uses of ‘Blocking’ an Account.

You may use ‘Blocking’ to:

1. Block an account from further postings.
2. Block the creation of the account itself (at the Company Code level or Chart of
Accounts area)
262. What Items are Required in a ‘Financial Statement Version’?

Irrespective of the details you require in a ‘Financial Statement Version,’ it is

mandatory that you have, at least, the following items defined:
1. Assets
2. Liabilities
a. Net Result: Profit
b. Net Result: Loss
3. P/L result (during annual closing, when you run the program RFBILA00, the
system calculates the profit or loss by subtracting the ‘total liabilities’ from ‘total
assets’ and updates the relevant Net Result item—Profit or Loss).
4. Not assigned (posted amounts but not yet assigned to any of the account
groups)

263. What is a ‘PO History’?

The ‘Purchase Order History’ (PO History) lists all the transactions for all the
items in a PO such as the GR/IR document numbers.

264. Will the FI Document be Created with the Purchase Order (PO)?

No. There will not be any document created on the FI side during creation of a
PO. However, there can be a document for posting a ‘commitment’ to a Cost
Center in CO. (The offsetting entry is posted at the time of GR.)

265. What is a ‘Credit Memo’?

 A ‘Credit Memo’ is issued by a vendor who has earlier supplied you some services
or materials. The occasion is necessitated when the delivered goods are damaged
or you have returned some of the goods back to the vendor. The system treats
both the invoices and the credit memo in the same way, except that the postings
are done with the opposite sign. If the credit memo is for the entire invoiced
quantity, the system generates the credit memo automatically. However, if the
credit memo relates to a portion of the invoiced quantity, you need to process it
manually in the system

266. Where do You Define the ‘Terms of Payment’ for a customer?

The ‘Terms of Payment’ for a specific customer is defined in the Customer

Master>Company Code Data>Payment Transactions Tab, and also in the Billing
Document Tab in the Sales Area Data of the Customer Master

267. What Information is Available in the ‘Accounting View’ of a ‘Material

Master’?

The most important information maintained in the ‘Accounting View’ of a

material master is the valuation class, which needs to be assigned to individual
materials. The valuation class, in turn, helps in determining the relevant GL
accounts for posting valuation-relevant transactions such as GR, GI, etc. You will
maintain the price control indicator in the accounting view, which enables
determining how the stock of a material is to be valued (at Standard price (S) or
moving average price (V))

268. What is ‘Goods Movement’?

‘Goods Movement’ represents an event causing a change in the stock, with the
change being value or status, stock type, or quantity. It also represents the
physical movement of stock from one location to another. Goods movement is
classified into:
ƒ Receipt of goods/services ƒ Issue of materials ƒ Stock transfer

269. Explain the ‘Transaction Keys’ in MM

Also known as ‘process keys,’ the ‘Transaction Keys’ are pre-defined in the system
to enable transaction postings in Inventory Management and Accounting (Invoice
Verification). For each of the movement types in MM, there is a value string that
stores these possible transactions.
* BSX (used in Inventory Postings)
*WRX (used in GR/IR Clearing Postings)
*PRD (used to post Cost/Price differences)
*GBB (used in offsetting entries in Stock postings)

270.What is the Difference between “Valuation Modifier “and General Modifier In

SAP?

Valuation Modifier is also Called “Valuation Grouping Code”. You Can Assign the
G/L Accounts for Automatic Account Determination indirectly by using this
Valuation Modifier. depends on the Valuation area. valuation areas with the same
account numbers assignment can be Grouped. General Modifier aides in
Providing offsetting Account Depending upon the type of transaction.

271.What is noted items?

Noted items are treated as Special GL Items in SAP. they do not have any
accounting effect in SAP as they do not post to any account. An example of
such an item is the down payment request. They are not displayed in the
account books but act as reminders for payments of advances

272.Where we have to define the group a/c number?

To use Group COA, you need to assign it to the Operating COA of a

company code. When you assign it, Group A/c Number field in the COA
segment of the operating chart of account (COA) becomes a mandatory
entry

273.What is the purpose of keyword translation tab in FS00

Here you can enter the GL account short text and long text in different
languages (other than COA language). This text will display to the GL
account when you login SAP in that particular language. If you not maintain
translation language, the original language will display

274.What is the purpose of sort key, is that mandatory?

Sort Keys are used to populate the Assignment number field in the line
items of customers or vendors or general ledgers. The content of this
Assignment number field can be populated in a customer or vendor or
general ledger document when the document is created.

275.which table vendor ac group will be saved

The General data pertaining to a vendor is stored in the LFA1 table while
the company code data is stored in the LFB1 table. The purchasing
organization data for a vendor is stored in the LFM1 table.

276.Where the payment method for customer will be assigned in SAP?

Payment method assignment

The payment methods defined in Customizing of Financial Accounting can

be assigned in the master data of a lease-out as well as in the master data
of a business partner with customer account (tenant, subsidizer, payer)

277.What are customer master tables

KNA1-General Data in customer master

KNB1-customer master (Company Code)
KNVV-customer master Sales Data

278.Give an example for which GL ac post automatically check box should

be selected
Basically, Posting Automatically will be selected for GL accounts where
manual postings will not happen. Means take a example of Cash Discount,
GR/IR Clearing, Foreign Exchange Difference accounts these accounts will
be posted automatically.

eg: When u run F110 for doing vendor payments and cash discount is
received from vendors then cash discount account will be automatically
posted with the discount amount.

279.What is the difference between F-53 and F110?

Both F-53 and F110 are used for processing outgoing payments in SAP.
The only difference is that F-53 is used to post manual payments against
an open invoice whereas F110 is used for making automatic payments

280.What is the difference between F-53 and F-58?

Two transaction codes are used for manual payments: Transaction F-53
and Transaction F-58. The main difference between the two is
that Transaction F-58 prints payment output forms (i.e., checks), and
Transaction F-53 doesn't. Both create a payment document, which clears
open AP invoices and updates the G/L.

281.I have a House Bank with 2 identical accounts. While setting up FBZP,
I have always realized that in setting up Bank Determination->Bank
Accounts, the key for the setup is House Bank + Payment Method +
Currency - thus for a situation where I have 2 accounts in the same House
Bank, I am unable to set up these two accounts unless I set up a different
House Bank?

You can have two accounts in the same house bank, you need to have a
different account ID for both, then you can configure both the bank account
under the same house bank.
System will take the account number with the combination of House Bank-
>Pay method->currency->account id.

You can also choose ranking order, based on which system will take the
account on priority which you have maintained.

You don't have to create one house bank for one account number, it is not
the standard

282.During payment run we can maintain multiple payment methods in one

run. I have maintained multiple payment methods ..., during the run which
payment method will system picks first? what is the required configuration?

As you said, suppose there are multiple invoices you want to pay from
different banks. You can assign those banks in Vendor Master - Payment
Data Tab - House Bank field. Then adjust your F110's payment run's
variant accordingly. E.g., If you want to pay one vendor from ICICI and one
from HDFC, assign house bank accordingly in Master. Then add those
banks in payment run program variant. You can add multiple house banks
in variant. System, while executing program, check out invoice with vendor
master for house bank and then go to payment method assign to those
house bank. and make the payment. So, answer to your question is, you
need to choose those multiple banks in payment program's variant and
obviously this you can choose from FBZP - House bank set up. you can
maintain multiple payment methods in payment run. Now you can either
restrict at Master level which payment method should use. And out of
multiple payment methods, first one will pick up by "Ranking Order"
maintain in FBZP configuration. Whichever payment method you
maintained as 1 along with combination of House Bank and Currency in
FBZP - Bank Determination - Ranking Order, that will be picked up by
system as first and so on...

283.My client raised a PO at USD 13 for 60 quantities. A goods receipt

MIGO transaction was done at that price. Now my client wants to do a
MIRO transaction at USD 14 for 60 quantities.
Two Solutions to this SAP FICO Issue

(1) The price difference – At the time of the MIRO transaction, you have an
option to post a price difference. In the MIRO transaction, enter the G/L
account for the price difference and amount (i.e. $1).
(2) Reversing MIGO and repost MIGO with the correct price – Reverse the
MIGO entry, make changes in the PO (Purchase Order), then once again
do the MIGO and MIRO transactions.

284.The user is not getting the drop-down list of G/L accounts that he
defined through FS00 while posting through transaction code FB50/F-02.

While entering a transaction, the user usually presses F4 to select a G/L

account from the chart of account (COA). The SAP R/3 system displays all
available accounts that you created for the desired company code and
COA in question. If the user is not getting the G/L account in the dropdown
list. Try one of the following

• Check if the G/L accounts have been created in the company code
you are posting.
• Make sure you have selected the correct company code in T-code
FB50
• The drop-down has a personal list and a global list. If you are on the
personal list, switch to the global list

285.How can you add a new column in an open item clearing transaction
with T Code- F-03? Right now, you have a document number, document
date, document type, posting key and amount. You need to add a posting
key and amount in the transaction fields on the screen.

• Go to the clearing G/L Account process Open Item screen using T

Code-F-03 from the menu bar.
• Select Settings and change Line Layout.
• Then, select the line layout a name and description and press enter.
• Choose the insert after button to view the available fields
• Select the required field by double-clicking on the field. The required
field is automatically listed under your own layout.
 • Repeat the process for each field required to create your layout and
save.
• Go back to the clearing G/L Account Process Open Item screen and
select the Editing option button under the line layout variant for the
G/L account clearing transaction.
• Give your variant name and save.

286.The user wants to add a trading partner as selection criteria in the F-03
screen. How would you do this?

Solution

You are using transaction code F-03 to clear open items for a particular G/L
account. While offsetting debit transactions with credits, depending upon
business requirements, the user will select one of the selection options
provided in that screen.
The SAP system will pull all open items based on the selection criteria. The
standard SAP system comes with very limited selection criteria. However,
you can include a new selection field and change the sequence of the
selection criteria. To add a new selection field or change the election
criteria sequence you have to configure the SAP system through
transaction code O7F1.

287.There are a few G/L accounts where line-item displays are not
activated. The client would like to see what entries are actually hitting these
accounts.

Two Possible Solutions to these Scenarios in SAP FICO.

Standard Solution
Create a new account and set the options according to your requirements.
Be sure to set the line -item display indicator (SKB1-XKRES)
Transfer the line items from the old account to the new account. You can
only do this for accounts that you cannot automatically post to. As an
alternative, you can transfer the balance completely. Don’t forget to lock the
old account for postings.
Consulting Solution
Manipulate all documents that you posted in the past. You can use the
correction program RFSEPA01.
While creating the G/L account, you should take the utmost care with the
open item management and line -item management attributes of the G/L
account.
SAP recommends the first solution because only standard means are used.
The second solution requires the usage of a correction report and is,
therefore, a consulting solution

288.The client processed a bank statement and one of the line items in the
bank statement overview in transaction FEBA shows the status as
“Complete”. However, the client used a wrong posting rule here. How can
you change to the correct posting rule and process the transaction again so
that the status is changed to “posted”.

Again, two Solutions to handle this type of issues or SAP FICO Scenarios: -

Solution One: -
With a reverse bank reconciliation posting document by deleting the bank
statement from the SAP system.
To delete the bank accounting statement, follow the below steps: -

• In T. Code SE38, Enter RFEBKA96

• Execute the program. – It will open the posted statement of bank
accounting.
• Select the statement that is wrongly posted to delete it.
Solution Two:-
Repost the Bank accounting statement again FF67 T. Code.

289 How do you create movement type types? What are the steps
involved? When will you recommend a new movement type?

We can create a movement type using the T Code OMJJ. Further, copying
an existing movement type and modifying the field contents can create a
new movement type.
Importantly, the SAP system comes with some pre-defined movement
types from 100 to 899.

290. What are the fields in the purchasing view?

The fields in the Purchasing view are:

• RFQ/Quotation Purchase requisition

• Purchase order
• Master data (Info record, source list, conditions, vendors, etc.)

Outline agreements.

291.What is the role of ABAPers? What is the Work Bench?

ABAP is an application program that retrieves the data from the database
and shows it to the end-user with the help of the report. Out of three layers
of SAP, the ABAPer position is on the Application layer in which SAP
programs are developed and then transported to the production server.
Workbench– The ABAP Workbench contains several tools that allow you to
edit specific repository objects like ABAP Editor, Manu Painters, etc.

292.What is the work relation between SAP MM-SD and FICO modules?

SAP is the integration of all the modules. It connects from manufacturing

the product/goods/services to reaching the customer.
All its transaction process depends on sales area, sales document, item
proposals, shipping, delivery, and billing.

293.What is the difference between stock transfers between two plants

belongs to the same company code and to that of different company
codes?

In 1st case, it is called an intercompany stock transfer and the 2nd case is
an intercompany stock transfer. Stock Transfer between plants of the same
company code only includes inventory movement without any pricing and
so-called Stock Transfer Order where Stock Transfer between plants of
different company codes same as purchase order as along with the
inventory.

294. What is the manufacturing cost of a product?

Manufacturing cost is a combination of Material Cost & Production Cost.

295.What is the Ranking Order in the Automatic Payment Program?

It’s the priority assigned to each house bank that helps the Automatic
Payment Program choose the house bank for payment in case there is
more than one bank satisfying the payment program. If a payment program
ends up selecting more than one example 3 banks for payment, the ranking
of the banks helps it select one bank from the list of 3 selected banks.

296.if i want 10 payment instalments how to do in payment terms?

We are Creating only one installment method, but in this

method we will have 10 terms of payment. In transaction level we will
assign this installment method. Based on the 10 terms of payments, the bill
will split into ten.
( or )
Based on the 10 terms of payments, the bill will split into
ten. Then we have to create 11 terms of payment (in OBB8).
In this on terms of payment is ticked as a instalment method
(in OBB8).
IN OBB9 we will specify the Percentage and payment term
against the instalment.

297.What is an Asset Class?

An “Asset Class” in SAP is the basis for classifying an asset based on

business and legal requirements. It is essentially a grouping of assets
having certain common characteristics. Each asset in the system needs to
be associated with an asset class. An asset class is the most important
configuration element that decides the type of asset (such as land,
buildings, furniture and fixtures, equipment, assets under construction,
leased assets, low value assets, etc.), the document number range, data
entry screen layout for asset master creation, GL account assignments,
depreciation areas, depreciation terms, etc. An asset class is defined at the
Client level and is available to all the Company Codes of that Client.

The asset class consists of:

• A header section—control parameters for master data maintenance

and account determination.
• A master data section—default values for administrative data in the
asset master record.
• A valuation section—control parameters for valuation and
depreciation terms.
The asset class can be:

• Buildings
• Technical assets
• Financial assets
• Leased assets
• AuC (assets under construction)
• Low value assets

298. Why do you need Asset Classes?

An ‘Asset Class’ is the link between the asset master records and the
relevant accounts in the GL. The account determination in the asset class
enables you to post to the relevant GL accounts. Several asset classes can
use the same account determination provided all these asset classes use
the same chart of accounts and post to the same GL accounts.

299. What is a Depreciation Key?

Depreciation is calculated using the ‘Depreciation Key’ and Internal
Calculation Key in the system. Depreciation keys are defined at the
chart of depreciation level, and are uniform across all Company Codes,
which are attached to a particular chart of depreciation. The depreciation
key contains all the control amounts defined for the calculation of
planned depreciation. The system contains a number of predefined
depreciation keys (such as LIMA, DWG, DG10, etc.) with the controls
already defined for calculation method and type. A depreciation key can
contain multiple internal calculation keys.

300. How does the System Calculate Depreciation?

1. The system takes the ‘depreciation terms’ from the asset master
record and calculates the annual depreciation for the asset taking into
account the ‘useful life’ and the ‘depreciation key.’ The start date for
depreciation is assumed to be the first date of
acquisition of the asset.
2. The system may also calculate other values such as interest,
revaluation, etc.
3. The depreciation and other values are calculated for each of the
depreciation areas.
301. What is the Available amount in APP and the principle
behind it?

The available amount represents the maximum amount that can be paid out
from the APP per entry. This principle/concept is similar to the process
followed by banks to process cheques. A given set of signatories cannot sign
a cheque above a certain amount.

Similarly, the system will not allow the user to process the APP transaction
for more than the available amount.

302.While posting through APP, Payment documents got

terminated due to server shutdown. How to start the
terminated payment run?

You can restart F110 & select the same run id and run date. By doing this,
scheduled payment will run again. One can also do a drop-down for
identification. All the payment that runs for a particular date can be
displayed.

303.If we change the reconciliation account in the vendor

master, what is the impact on the old balance?

The vendor's reconciliation account cannot be changed unless the vendor

has NIL open items. Once the reconciliation account is changed, the old
balances appear in the old reconciliation account. Since there are already old
entries, it does not have any problems reporting updated balances.

304 Is it possible to mention the purchase organization after posting in

vendor master? If yes, then how?

Yes, purchasing organizations can be updated in the vendor master after

posting. We can do this by enabling the MM module (extend it to the MM
module).

One can easily update the changes to an existing vendor from transaction
code XK01 or MK01. Just make sure to put the same vendor account in the
"reference" field.
305. If we have multiple assets, can we depreciate only one asset?

Yes, it is possible to depreciate only selective assets in SAP using Asset master
AS0. In Asset Master AS0, an option for "asset shut down" signals SAP to stop
calculating any selective asset(s) depreciation.

You can also schedule this "asset shut down" feature, allowing you to set a
period to halt depreciation and restart when this period is over.

306.What is the Available amount in APP and the principle

behind it?

The available amount represents the maximum amount that can be paid out
from the APP per entry. This principle/concept is similar to the process
followed by banks to process cheques. A given set of signatories cannot sign
a cheque above a certain amount.

Similarly, the system will not allow the user to process the APP transaction
for more than the available amount.

307. Imagine a user has posted wrong depreciation data for

ten assets, and the financial year is closed. Now, how will you

rectify this issue and reset this data?

If the financial year is closed, the rectification can be done only in the next
financial year.

For reversing the excess depreciation that has been posted, use
transaction ABSO and transaction type 700. The financial entry will be
generated at the time of posting depreciation (AFAB).
308.While posting through APP, Payment documents got
terminated due to server shutdown. How to start the
terminated payment run?

You can restart F110 & select the same run id and run date. By doing this,
scheduled payment will run again. One can also do a drop-down for
identification. All the payment that runs for a particular date can be
displayed.

309.If we change the reconciliation account in the vendor

master, What is the impact on the old balance?

The vendor's reconciliation account cannot be changed unless the vendor

has NIL open items. Once the reconciliation account is changed, the old
balances appear in the old reconciliation account. Since there are already old
entries, it does not have any problems reporting updated balances.

310. Is it possible to mention the purchase organization after

posting in vendor master? If yes, then how?

Yes, purchasing organizations can be updated in the vendor master after

posting. We can do this by enabling the MM module (extend it to the MM
module).

One can easily update the changes to an existing vendor from transaction
code XK01 or MK01. Just make sure to put the same vendor account in the
"reference" field.

311. While uploading the vendor's master data, how to upload

the opening balance of the vendor?

Balances of vendors & customers should be uploaded line by line, i.e., all the
open items in legacy systems should be uploaded as open items in SAP.
While uploading, make sure to fill in the purchase or sales invoice number in
the reference field. This will help in the future clearing.
Also, while receiving payment or making payment, the relevant open items
will be cleared automatically. Just make sure to upload the baseline date.

312. Can you make multiple cash journals with different

currencies posted in one Cash GL account with local currency?

Yes, this is possible, but it is not advised because it is complex and

welcomes errors.

A better practice is to maintain a separate GL account for different cash

journals.

313.What is foreign currency valuation? Why do we need to

maintain ratios?

According to IAS 21, a foreign currency transaction should be recorded

initially during the rate of exchange of the date in the transaction. Then, the
foreign currency monetary amounts should be reported using the closing
rate at each step, subsequent balance sheet date.

Vendors and customers fall under the category of monetary items.

Therefore, the transaction code FAGL_FC_VAL is used to post the foreign
currency valuation.

A separate exchange rate type should be maintained for doing foreign

currency revaluation. The exchange rate ratio associated with each exchange
rate type should also be maintained in OB08 for the relevant closing date

314.Imagine a company having different branches in each state

and having a unique bank a/c for each branch under SBI. Next,

Should we create one house bank or create a house bank for

each branch a/c?

The creation of multiple house banks for each separate account number is a
good practice. While doing FBZP, the ranking order can be set up for every
house bank.
According to this ranking order, the house bank is picked during APP. For
branch-wise APP, users can fill the house bank in vendor masters or at the
transaction time (FB60 or MIRO).

315. In SAP FICO what does a 'Posting Period' refer to?

SAP is divided into several posting period, in a typical fiscal year, with a
definite start and end date and the same is defined specifically for each of
these periods. Only when the posting periods are in place that's when in the
system any document posting. Generally, there are 12 posting periods.
Each posting period comprises of a month and a year.

316.If we have multiple assets, can we depreciate only one

asset?

Yes, it is possible to depreciate only selective assets in SAP using Asset

master AS0. In Asset Master AS0, an option for "asset shut down" signals
SAP to stop calculating any selective asset(s) depreciation.

You can also schedule this "asset shut down" feature, allowing you to set a
period to halt depreciation and restart when this period is over.

317. What is the Available amount in APP and the principle

behind it?

The available amount represents the maximum amount that can be paid out
from the APP per entry. This principle/concept is similar to the process
followed by banks to process cheques. A given set of signatories cannot sign
a cheque above a certain amount.

Similarly, the system will not allow the user to process the APP transaction
for more than the available amount.
318.Imagine a user has posted wrong depreciation data for ten
assets, and the financial year is closed. Now, how will you
rectify this issue and reset this data?

If the financial year is closed, the rectification can be done only in the next
financial year.

For reversing the excess depreciation that has been posted, use
transaction ABSO and transaction type 700. The financial entry will be
generated at the time of posting depreciation (AFAB).

319. While posting through APP, Payment documents got

terminated due to server shutdown. How to start the terminated
payment run?

You can restart F110 & select the same run id and run date. By doing this,
scheduled payment will run again. One can also do a drop-down for
identification. All the payment that runs for a particular date can be
displayed.

320.If we change the reconciliation account in the vendor

master, What is the impact on the old balance?

The vendor's reconciliation account cannot be changed unless the vendor

has NIL open items. Once the reconciliation account is changed, the old
balances appear in the old reconciliation account. Since there are already old
entries, it does not have any problems reporting updated balances.

321. Is it possible to mention the purchase organization after

posting in vendor master? If yes, then how?

Yes, purchasing organizations can be updated in the vendor master after

posting. We can do this by enabling the MM module (extend it to the MM
module).
One can easily update the changes to an existing vendor from transaction
code XK01 or MK01. Just make sure to put the same vendor account in the
"reference" field.

322.While uploading the vendor's master data, how to upload

the opening balance of the vendor?

Balances of vendors & customers should be uploaded line by line, i.e., all the
open items in legacy systems should be uploaded as open items in SAP.
While uploading, make sure to fill in the purchase or sales invoice number in
the reference field. This will help in the future clearing.

Also, while receiving payment or making payment, the relevant open items
will be cleared automatically. Just make sure to upload the baseline date.

323.While uploading data, how do we confirm that the data we

have uploaded is correct?

Legacy balance upload GL accounts are created for uploading the opening
balance. Ideally, at least 5 Legacy balance upload GL accounts should be
created, like:

1. Legacy balance upload Vendors

2. Legacy balance upload Customer
3. Legacy balance upload Fixed Asset
4. Legacy balance upload Inventory
5. Legacy balance upload GL accounts

Once the upload is done, Check the closing balance in all these accounts. It
should be zero, which will confirm the correct upload in all the required
fields. You can also pass a JV for verifying the balance in all these accounts
once your uploading activity is over.

324. Can you make multiple cash journals with different

currencies posted in one Cash GL account with local currency?

Yes, this is possible, but it is not advised because it is complex and

welcomes errors.
A better practice is to maintain a separate GL account for different cash
journals.

325.How do you maintain multiple shift depreciation in asset

master?

While creating a Depreciation Key, users can select the option of multiple
shifts & increasing the depreciation. In the asset master, under time-
dependent data, the user can define a shift factor.

326. What do you understand by WRICEF?

Typical SAP implementation involves different types of custom developments

to address various business requirements. These Custom developments in
SAP implementation projects can be broadly classified into six distinct
categories of development types: workflow, report, interface, conversion
enhancement, and forms (WRICEF).

327. As you know, While creating an asset master, we have

two options. One is using asset classes, and another one is

using an existing asset master. So my question is, what default

values should be provided by asset class and existing asset

master to a newly created asset master?

If you create a new asset with reference to an existing asset master data, all
the data of the existing asset gets copied to the new asset code, and the
user can make the changes while creating the new asset code.

Suppose you create a new asset with reference to an asset class. In that
case, only default account assignments will be copied to the new asset class,
Such as depreciation keys.

328. What is foreign currency valuation? Why do we need to

maintain ratios?

According to IAS 21, a foreign currency transaction should be recorded

initially during the rate of exchange of the date in the transaction. Then, the
foreign currency monetary amounts should be reported using the closing
rate at each step, subsequent balance sheet date.

Vendors and customers fall under the category of monetary items.

Therefore, the transaction code FAGL_FC_VAL is used to post the foreign
currency valuation.

A separate exchange rate type should be maintained for doing foreign

currency revaluation. The exchange rate ratio associated with each exchange
rate type should also be maintained in OB08 for the relevant closing date.

329.Imagine a company having different branches in each state

and having a unique bank a/c for each branch under SBI. Next,
Should we create one house bank or create a house bank for

each branch a/c?

The creation of multiple house banks for each separate account number is a
good practice. While doing FBZP, the ranking order can be set up for every
house bank.

According to this ranking order, the house bank is picked during APP. For
branch-wise APP, users can fill the house bank in vendor masters or at the
transaction time (FB60 or MIRO).

330. In SAP FICO what does a 'Posting Period' refer to?

SAP is divided into several posting period, in a typical fiscal year, with a
definite start and end date and the same is defined specifically for each of
these periods. Only when the posting periods are in place that's when in the
system any document posting. Generally, there are 12 posting periods.
Each posting period comprises of a month and a year.

331.In SAP FICO what is a 'Special Period'?

SAP permits the defining of a maximum of four more posting periods, which
are referred to "Special Periods", as these are utilized for year-end closing
activities. All of this is made possible by dividing the last posting period into
more than one, but a maximum of four, period. Typically, all the postings in
these special periods should be counted in the last posting period. It is not
possible to determine the special periods automatically based on the posting
date of the document. The special period has to be entered manually in the
document header, in the 'posting period' field.

332. What are the component of GL documents?

• Company code
• Fiscal year
• Posting periods
• Field status group
• Tolerance
• Document type

333.Which Transaction code to know that new General Ledger

is activated?

There is no T. code for New G/L and we can activate it through this
path financial a/c-FAGL-Activate New G/L then you can tick mark and
activate the New G/L after this configuration you can new changes in
configuration path under Financial Accounting.

334. If we have multiple assets, can we depreciate only one

asset?

Yes, it is possible to depreciate only selective assets in SAP using Asset

master AS0. In Asset Master AS0, an option for "asset shut down" signals
SAP to stop calculating any selective asset(s) depreciation.

You can also schedule this "asset shut down" feature, allowing you to set a
period to halt depreciation and restart when this period is over.

335. What is the Available amount in APP and the principle

behind it?

The available amount represents the maximum amount that can be paid out
from the APP per entry. This principle/concept is similar to the process
followed by banks to process cheques. A given set of signatories cannot sign
a cheque above a certain amount.
Similarly, the system will not allow the user to process the APP transaction
for more than the available amount.

336. Imagine a user has posted wrong depreciation data for

ten assets, and the financial year is closed. Now, how will you
rectify this issue and reset this data?

If the financial year is closed, the rectification can be done only in the next
financial year.

For reversing the excess depreciation that has been posted, use
transaction ABSO and transaction type 700. The financial entry will be
generated at the time of posting depreciation (AFAB).

337. While posting through APP, Payment documents got

terminated due to server shutdown. How to start the

terminated payment run?

You can restart F110 & select the same run id and run date. By doing this,
scheduled payment will run again. One can also do a drop-down for
identification. All the payment that runs for a particular date can be
displayed.

338. If we change the reconciliation account in the vendor

master, What is the impact on the old balance?

The vendor's reconciliation account cannot be changed unless the vendor

has NIL open items. Once the reconciliation account is changed, the old
balances appear in the old reconciliation account. Since there are already old
entries, it does not have any problems reporting updated balances.

339. Is it possible to mention the purchase organization after

posting in vendor master? If yes, then how?

Yes, purchasing organizations can be updated in the vendor master after

posting. We can do this by enabling the MM module (extend it to the MM
module).
One can easily update the changes to an existing vendor from transaction
code XK01 or MK01. Just make sure to put the same vendor account in the
"reference" field.

340.While uploading the vendor's master data, how to upload

the opening balance of the vendor?

Balances of vendors & customers should be uploaded line by line, i.e., all the
open items in legacy systems should be uploaded as open items in SAP.
While uploading, make sure to fill in the purchase or sales invoice number in
the reference field. This will help in the future clearing.

Also, while receiving payment or making payment, the relevant open items
will be cleared automatically. Just make sure to upload the baseline date.

341.Can you make multiple cash journals with different

currencies posted in one Cash GL account with local currency?

Yes, this is possible, but it is not advised because it is complex and

welcomes errors.

A better practice is to maintain a separate GL account for different cash

journals.

342. How do you maintain multiple shift depreciation in asset

master?

While creating a Depreciation Key, users can select the option of multiple
shifts & increasing the depreciation. In the asset master, under time-
dependent data, the user can define a shift factor.

343.What is foreign currency valuation? Why do we need to

maintain ratios?

According to IAS 21, a foreign currency transaction should be recorded

initially during the rate of exchange of the date in the transaction. Then, the
foreign currency monetary amounts should be reported using the closing
rate at each step, subsequent balance sheet date.
Vendors and customers fall under the category of monetary items.
Therefore, the transaction code FAGL_FC_VAL is used to post the foreign
currency valuation.

A separate exchange rate type should be maintained for doing foreign

currency revaluation. The exchange rate ratio associated with each exchange
rate type should also be maintained in OB08 for the relevant closing date.

344.Imagine a company having different branches in each state

and having a unique bank a/c for each branch under SBI. Next,

Should we create one house bank or create a house bank for

each branch a/c?

The creation of multiple house banks for each separate account number is a
good practice. While doing FBZP, the ranking order can be set up for every
house bank.

According to this ranking order, the house bank is picked during APP. For
branch-wise APP, users can fill the house bank in vendor masters or at the
transaction time (FB60 or MIRO).

345.In SAP FICO what does a 'Posting Period' refer to?

SAP is divided into several posting period, in a typical fiscal year, with a
definite start and end date and the same is defined specifically for each of
these periods. Only when the posting periods are in place that's when in the
system any document posting. Generally, there are 12 posting periods.
Each posting period comprises of a month and a year.

346. In SAP FICO what is a 'Special Period'?

SAP permits the defining of a maximum of four more posting periods, which
are referred to "Special Periods", as these are utilized for year-end closing
activities. All of this is made possible by dividing the last posting period into
more than one, but a maximum of four, period. Typically, all the postings in
these special periods should be counted in the last posting period. It is not
possible to determine the special periods automatically based on the posting
date of the document. The special period has to be entered manually in the
document header, in the 'posting period' field.
347. What does APP in SAP Fico refer to?

APP refers to 'Automatic Payment Program' this is a tool provided

by SAP to companies for paying the customers and vendors. The APP tools
helps in avoiding any mistakes which take place in posting manually. The
payment through APP becomes more reasonable and doable when the
number of employees is more in the company.

348. In APP, can we use check and bank transfer

simultaneously to send the payments to vendors?

You have to assign APP payment method to bank & vendor.

349. In finance accounting, what is General Ledger?

A General Ledger comprises of all the transaction details listed in a

company. This serves as primary record for maintaining all accounting
details. Common general ledger entries include purchases from vendors,
customer transactions, along with internal company transactions.

350. What are the component of GL documents?

• Company code
• Fiscal year
• Posting periods
• Field status group
• Tolerance
• Document type

351. Transaction code to know that new General Ledger is

activated?

There is no T.code for New G/L and we can activate it through this
path Financial a/c-FAGL-Activate New G/L then you can tick mark and
activate the New G/L after this configuration you can new changes in
configuration path under Financial Accounting.
352. What are some of the std SAP reports available on
allocations (assessments and distribution)?

• KSU6 for actual assessment.

• KSV6 for actual distribution.
• KSVC for planned distribution.
• KSUC for actual distribution.

353. How to Close Outstanding Items for Output Control

Documents that Cannot be Cleared?

Please use the below transaction codes:

• GL clearing - F-03
• Customer clearing - F-32
• Vendor clearing F-44

354.How many chart of A/c will be used if the client have two
company code One in INDIA and other One in US?

It depends on client requirements. If client wants to have single COA for

both Country or If they want to have different COA they can go ahead. If
they want to have both company codes reports in single as consolidation,
they can use group COA which captures consolidation report.

355.How can be or in what way baseline date is important in

Automatic Payment Program run?

The Baseline date is used to calculate the due date by taking into account
the payment terms. On the APP, the baseline date helps to pick the relevant
invoices for payment. During the APP run when invoices are pulled into the
run, the system checks the ‘Next Payment Date’ before picking the invoices
to be paid.
356.Is it possible to activate the new General Ledger at the company
code level?

No. You activate the new General Ledger at the client level. This means that
the new General Ledger is active for all company codes in the client at the
same time.

357. During document splitting, what must I consider in connection

with cross-company postings?

If you post across company codes, the settings for document splitting must
be consistent in all pairs of relevant company codes. This means that
document splitting must be either active or inactive in both company codes
forming a pair for cross-company postings.

358. How do you define ‘Year Shift’?

Within a company, the calendar year does not always match the financial
year. For example, you may need to remove or add certain months. You can
do this using SAP and the procedure is called ‘Year Shift’.

359. What are the major applications of SAP FICO?

SAP FICO has many real-time applications.

a. Handling financial tasks vital to the company
b. Asset and cost accounting
c. Consolidation
d. Real estate

360.What are the common reasons for errors in accounting and what
impact do they actually have on the organization?

Errors are of a lot of types and can be due to a diverse array of reasons. The users can
often make mistakes. A single wrong entry of only one digit can bring a lot of issues in
the organization and can mislead about the profits and losses. Errors can be due to
negligence of users, fault in the system, wrongly prepared bills or claims, gross errors,
basic accounting errors, errors due to not updating the sheets, and so on.

361. How taxes are taken care of in the SAP FICO?

One of the major issues is Tax Slabs are not similar in all countries. Also, there are
additional taxes applicable there. SAP FICO has a 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

362. What is the Financial Statement version in the SAP FICO?

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 betterment.

363. What prerequisites are there which users need to handle when it

comes to document clearing?

The first thing to make sure of is whether the items get cleared status by the
management or not. Next is to make sure that the document is valid or not.

364. What exactly do you call a short-end Fiscal Year?

A Short-end Fiscal Year is basically when a calendar year is modified as per need. This
can happen due to a very large number of reasons and the organizations have to adopt
the new calendar.
365. What is Cash Management Group?
In the cash management group customer and vendors are allocated to planning
groups by means of an entry made in the master record.

Vendor Master Group Customer Planning Group

E1 – Domestic vendor R1 – Customer Paying by bank
E2 – Vendors abroad R2 – Other domestic customers
E3 – Affiliate Company vendors R3 – Customer abroad
E4 – Major Vendor R4 – Affiliate company customers

366. Can we change the reconciliation account in the vendor master?

Yes, Reconciliation account can be changes in the vendor master provided that
the authority to change has been configured. Normally we should not change the
reconciliation account.

367. How do you configure a special G/L indicator for the Vendor and
Customer?
You can use the existing special G/L indicator ID or create a new one. To update
the chart of accounts and the reconciliation account. also, the last steps you
need to update the special G/L code.

368.What controls the Customer/Vendor master records field status?

The account group controls the numbering for the Vendor master record. A
number range is assigned to an account group. The account group also
determines the field status group and is used to designate one-time
accounts.

369. What is ‘Payment Advice’?

‘Payment Advice’ helps in the automatic searching of ‘open items’ during the
‘clearing’ process to find a match for an ‘incoming payment.’ This is possible
because you can use the ‘payment advice’ number instead of specifying
parameters in the ‘selection screen.’ A typical payment advice may contain details
such as document number, amount, currency, reason for underpayment, etc. The
payment advices are of various categories; the first 2 digits of the payment advice
number help to differentiate one payment advice from another: ƒ Bank advice ƒ
EDI advice ƒ Lockbox advice (created during the clearing process, available in the
system whether clearing was successful or not) ƒ Manual advice ƒ Advice from a
bank statement Most of the payment advices are deleted as soon as the clearing
is successful in the system.

370.What is stored in table T001?

This is the main company code configuration table and includes such assignments
as fiscal year variant, company assignment, local currency setting, and credit
control area.

371.Explain what “batch input sessions”’ are, some examples of where they are
used in FI/CO, and the terms “background” and “foreground” processing.

Batch input sessions are batches of SAP data (either master data or transactional
data) generated through an interface/report/bespoke user application.
For example, when creating cost elements automatically using SAP transaction
OKB2/OKB3, the system creates a batch session containing all the data required.
Batch input sessions are used extensively throughout the FI/CO modules
including:
• Depreciation run
• Recurring entries
• CO reconciliation ledger
• Master data creation in FI/CO
• FX revaluation
Foreground/background refers to how the users view the data being created by
the SAP system. In foreground, the user can step through each screen during data
creation and correct any errors as they occur. In background, the system tries to
create the data for the entire batch and reports errors following completion.
372.What is the special purpose ledger, and what would be some reasons for
using it?

The SPL is a user-defined ledger which can be built to support reporting

requirements that cannot normally be met through the usual SAP modules. You
can pull information from many SAP modules such as FI, CO, MM, SD and build
user-defined fields whose contents are based on calculations from other SAP
standard information.
Typical uses include:
• Reporting using an alternative fiscal year variant other than the one assigned to
the entity.
• Reporting in a different currency (maybe to meet a new head office reporting
currency).
• Meeting US GAAP and local reporting requirements.
373.Explain the purpose of the following SAP R/3 FI tables: BSEG, BKPF, GLTO.
BKPF is the document header table. It stores all the fields common to all of the
document line items such as posting date, currency key, document number, etc.
BSEG is the associated line- item table to BKPF. Specific line -item information
such as posting key, GL account, document amount are stored here.
GLT0 is the summarized account balances table showing account balances by
period, account, or fiscal year.
Questions regarding tables may seem overly technical, but interviews can quickly
ascertain whether a potential candidate has worked in a pure end user role or in a
hands-on configuration role

374. Is it Possible to Create Asset Classes Automatically?

One of the benefits of lean implementation configuration is the ability to

create asset classes automatically from the asset GL accounts. This tool
selects only necessary system settings so that the asset classes are
created automatically in a very short time. During the process of creation,
the system allows you to delete all the existing objects (i.e., asset classes,
number ranges, account allocations, field selections, etc.) before creating
the new ones.

The prerequisites for automatic asset class creation include:

• Company Code must be assigned to a chart of depreciation

• Depreciation areas have already been defined
• GL account number is not more than 8 digits (otherwise you need to
assign the classes manually)

Also note that you may need to maintain the GL account for ‘accumulated
depreciation’ manually. The system maintains the necessary account
assignment only with regard to the depreciation area 01 (book
depreciation). If you need more areas, you may need to do that manually in
the IMG.

375. What is an Asset Value Date?

The ‘Asset Value Date’ is the start date of depreciation for the asset. The
‘planned depreciation’ is calculated by the system based on this
depreciation start date and the selected ‘depreciation term’ for that asset.
Be careful with the posting date and asset value date. Both dates need to
be in the same fiscal year.

376. Explain the Two Ways used to Create Asset Masters?

• Copy an existing asset as a reference for creating the new one.

• From an existing asset class create a new asset so that this asset
class provides the
default control parameters for the new asset
377. Is it Possible to Create Multiple Assets in a Single Transaction?

SAP enables you to create multiple (but similar) assets in one transaction.
What you need to know is that all these assets should belong to
the same asset class and the same Company Code. Enter the number of
assets you need to create in the ‘Number of similar assets’ field. After
creating the assets, you will be able to change the individual
descriptions/inventory numbers when you are about to save the master
records. When you save the master records, the system assigns a range of
asset numbers.
The only drawback of using this method of creating assets in bulk is that
you will not be able to create long text for any of these assets.

378. How do you delete an Asset Master?

You can ‘Delete an Asset Master’ record from the system only when there
are no transactions posted to it. The system will not allow you to delete the
master record if there are transactions against the asset, even if you
reverse all the previous transactions pertaining to the asset and bring down
the asset value to zero. However, unlike FI-AR, FI-AP, or FI-GL where
archiving is a prerequisite to delete the master records, you may delete the
asset master records without archiving. When deleted, the system also
deletes the asset number.

379. Explain Assets under Construction (AuC) in SAP?

The goods and/or services produced, in-house, can be capitalized into

asset(s). But, there are two distinct phases during this process:

1. Construction phase (AuC)

2. Utilization phase (useful or economic life phase)

It then becomes necessary to show the assets under these two phases in
two different balance sheet items:

The ‘construction phase’ is one in which you start producing or assembling

the asset but it is not yet ready for economic utilization. SAP categorizes
these kinds of assets into a special asset class called ‘Assets under
Construction’ (AuC).The AuC is managed through a separate asset class
with a separate asset GL account. SAP allows posting ‘down payments’ to
AuC. It is also possible to enter credit memos for AuC even after its
complete capitalization, provided you are managing this asset class and
allowing negative APC (Acquisition and Production Costs). The IM
(Investment Management) module helps to manage internal orders/projects
for AuC. It is necessary to use the depreciation key ‘0000’ to ensure that
you are not calculating any depreciation for AuC. But you can continue to
have special tax depreciation and investment support even on these
assets.

380. How do You Capitalize AuC in SAP?

An ‘Asset under Construction’ can be managed in two ways as far as the

asset master is concerned:
• As a ‘normal’ asset.
• As an asset with ‘line-item management.’
Later on, the AuC is capitalized and transferred to regular asset(s) by
‘distribution’/‘settlement.’
While doing so, the system, with the help of different transaction types,
segregates the
transactions relating to the current year with that of the previous years. The
capitalization can be:
1. Lump sum capitalization.
2. With line- item settlement (when capitalized using line- item settlement, it
is not necessary to settle all the line items and 100% in a particular line
item).
In the case of integration with SAP-IM (Investment Management), capital
investments can be managed as an AuC by:
• Collecting the production costs associated with an order/project.
• Settling the collected costs to an AuC.
• Capitalizing the AuC into new assets by distribution/settlement.

381. What is known as a Depreciation Run in SAP?

The ‘Depreciation Run,’ an important periodic processing step, takes care

of calculating
depreciation for assets and posting the corresponding transactions in both
FI-AA and FI-GL. The depreciation calculation is usually done in sessions,
and the posting session posts the different depreciation types, interest/re
valuation, and also writing off/allocating special reserves.

The depreciation run should be started with a ‘test run’ before making it the
‘production run,’ which will update the system. The system will restart a run
session should there be problems in the earlier run. The depreciation run
needs to be completed per period. During every depreciation run, the
system will create summarized posting documents per business area and
per account determination; no individual posting documents are created.