 Q1. What is ACDOCA ?

A : It is One Database Tabel. The ACDOCA Table helps to keep Reports

and tables in one database itself. It does not need to store balanced and
open items separately.

However, this was not the same way in SAP’s ECC model. In ECC, the
system stores SAP General Ledger (G/L), customer and vendor
balances and open items in various database tables to support reporting.

All the fields from sub-modules of S/4HANA Finance are available in the
table ACDOCA. These Sub-modules are:

 Controlling (CO)
 Asset Accounting (FI-AA)
 Material Ledger (ML) in S/4HANA
 Profitability Analysis (CO-PA) and more.

ACDOCA c
\ontains all fields (360+)

 Table ACDOCA contains all fields (360+) required for G/L, CO, FI-
AA, ML, and CO-PA
 Table ACDOCA has fields from CO, ML, and FI-AA that aren’t in
table BSEG.

Additional Features of ACDOCA

1. No Limitation of 999 Document Line Item: Due to the 999-

document line item posting limitation, table BSEG is usually
aggregated. This limitation doesn’t exist in table ACDOCA.
2. Store all CO Postings: Table ACDOCA stores all CO internal
postings. While BSEG does not store these postings.
3. Store Carry Forward Postings: Table ACDOCA stores carry
forward transaction postings and correction line items from
migration. However, Table BSEG does not store these lines.
4. Fast multidimensional reporting: This is possible from table
ACDOCA without replicating data to SAP Business Warehouse
(SAP BW).
Entries in Universal Journal in SAP

There are several technical changes in general Ledger

Accounting such as:

1. The old data stored in table “ FAGLFLEXA” and “FAGLFLEXT”

now stored in ACDOCA
2. The ACDOCA also stores the data of new G/L public sector
industry tables and joint venture accounting.
3. Customer-specific new G/L fields ZZ( cust) and ZZ(CUST)A are
stored in table ACDOCA
4. A compatibility view is provided for the new G/L industry table and
customer-specific new G/L tables.
5. Access to old data in tables is still possible via the
V_TABLENAME_ORI Example V_FAGLFLEXA_ORI
6. The old data of table FAGLFLEXT is stored in table
FAGLFLEXT_BCK
7. Customers can access the old data in customer-defined new G/L
tables that are created as views in the Data Dictionary ( DDIC) .
The V_FAGLFLEXA_ORI view can be used as a template.
Functionality Impact of Universal Journal in SAP

SAP S/4 HANA Finance has two major functionality impacts on General
Ledger Accounting.

1. Open Item reports have been removed from SAP S/4 HANA due to
introduction of Universal Journal .

2. Processing of Transaction FAGLGVTR for balance carry forward

has now been simplified with SAP S/4 HANA Finance.
New Table Introduced in S/4 HANA Finance

 ACDOCA (This one table includes all)

Obsolete tables removed in SAP S/4 HANA Finance, along with

Index tables:

 BSIS
 BSAS
 GLT0
 BSID
 BSAD
 KNC1
 KNC3
 BSIK
 BSAK
 LFC1
 LFC3
 FAGLFLEXT
 FAGLFLEXA

 Q2. What is SAP S/4HANA?

SAP S/4HANA is an enterprise resource planning (ERP) software

package. Organizations use SAP S/4HANA to integrate and manage
business functions – such as finance, human resources, procurement,
sales, manufacturing and service – in real time.

SAP S/4HANA is a complete enterprise resource planning

(ERP) system with built-in intelligent technologies, including AI, machine
learning, and advanced analytics. It helps companies adopt new
business models, manage business change at speed, orchestrate
internal and external resources, and use the predictive power of AI.
Benefit from tight, native integration between processes, industry depth,
and a consistent in-memory data model.

S/4HANA features
S/4HANA was designed to make ERP more modern, faster and easier to use
through a simplified data model, lean architecture and a new user experience
built on the tile-based SAP Fiori UX. S/4HANA includes or is integrated with a
number of advanced technologies, including AI, machine learning, IoT and
advanced analytics. The SAP HANA in-memory database architecture and the
integration of advanced technologies allow S/4HANA to help solve complex
problems in real time and analyze more information faster than previous SAP
ERP products.

The on-premises version of S/4HANA can also be deployed in public or

private clouds or a hybrid. There is also a multi-tenant SaaS version, SAP
S/4HANA Cloud, whose modules and features differ from those of the on-
premises version.

Q3. What are the major differences between S4HANA and ECC ?
Q4 With Holding Tax Configuration ?

Withholding Tax is also called as retention tax. Its requirement of Government

to deduct or withhold a particular percentage from paying to the vendor and pay
such amount to the Government on behalf of other person. It’s a kind of Indirect
Tax.

[A] CONFIGURATIONS:

All the configurations for the Withholding Tax is done in the following Tab
only:
Define Business Places: Business Place is to be created for each
Tax Deduction Account Number (TAN) that company has.
Define Section Codes: In India for each Business Place a
Section Code is created and mapping is done on one to one basis. In Section
code information about Local Tax office as well as District Tax office can be
made.

The flow for the configuration is such that firstly the Withholding Tax Key (e.g.
194C) is to be created then under that Withholding Tax type is created one at
the time of invoice and other at the time of payment and then based on the
different rates prevailing in the Income tax Act, different Tax Codes are to be
 created (e.g. for 194C, 2 different rates are there in the Act, one is 1% TDS on
the contract basis and second is 2% TDS on the sub-contract basis)

E.G. 194C à Invoice / Payment Posting àC1/C2 based on different rates.

Define Withholding Tax Keys: Withholding Tax key is used to identify

different withholding tax types. A name is to be given with the official key.

Withholding Tax can be deducted at two point of time; it can be either at the
time of invoice or at the time of payment. So for this Withholding tax types are
to be created one for invoice and second for payment.

Define Withholding tax Type for Invoice Posting: Here the withholding

tax type is assigned for the invoice purpose and the same will not get triggered
at the time of Payment Posting.
Define Withholding Tax Type for Payment Posting: Here the
withholding tax type is assigned for the payment purpose and the same will not
get triggered at the time of Invoice Posting. The withholding information is to
be provided while posting for such document for Withholding Tax payment.
 For each Withholding Tax Type, according to the different rates available in the
Income tax rates, the different Withholding Tax Codes are to be created based
on the Withholding Tax Type.

Define Withholding Tax Code: In withholding tax code, different

rates are maintained and on what basis the TDS should be deducted is
maintained.
 Here above configuration is done and on the above basis the TDS amount will
be deducted from the invoice or payment.

Defining Document Type for Challan:

Here we maintain the Document type for posting Challan.

Define Number Ranges for the Challans create: Here this is important on
the basis that the client requires that he want details about the combination of
Section Code and the Withholding Tax Key basis, so then different number
range can be assigned and so he will be able to know the TDS Challans that are
generated for each area.
Maintain Number Groups: Here a Number Group is assigned to the
combination of Company Code, Section Code and Withholding Tax Key. From
below we can see that Number Group ‘01’ is assigned to the combination of
AP01 and all the Tax Types.
Assign Number Ranges to Number Groups: In this step of configuration,
the number Group created above is assigned to an Internal Number Range for
the challans.

Maintain Number Ranges: Here we maintain the number ranges for

Challans. The number groups are assigned to number range and these number
ranges are maintained for fiscal years which are consumed while challan
posting.

Here we Edit Groups by clicking on Groups button for defining number ranges
specific to Number groups.
          

For example, if we want to maintain the number range for number group 01,
then we have to select the number group 01 and then insert the number range
for the same.

Here we can add or delete the number ranges for particular fiscal years.

TDS JV Configuration:
For passing the TDS JV for the rectification amount, we need to define the
Document Type and the GL account for JV Losses. Following are the
configuration nodes for the same.

The Document types are configured here in the following Node.

The JV Losses GL accounts are configured in the following Node.

Above is the full configuration document for the purpose of implementing

Withholding Tax in the system.

Q5. Electronic Bank Statement Configuration ?

A:
 Electronic Bank Statement Configuration
The following SAP training tutorials guide how to define SAP Electronic Bank
Statement (SAP EBS) in SAP FICO step by step. The Global settings for
Electronic Bank statements are as follows.
 Creation of Accounts Symbols
 Assign Accounts to Accounts symbols
 Create Keys for Posting Rules
 Define Posting Rules
 Create Transaction Type
 Assign External Transaction Types to Posting Rules
  Assign Bank Accounts to Transaction Types

Free SAP EBS Tutorials

Sap Menu Path :– SPRO –> IMG –> Financial Accounting –> Bank Accounting –
> Business Transactions –> Payment Transactions –> Electronic Bank Statement –
> Make Global Settings for Electronic Bank Statement
Enter chart of Accounts and enter

Step 1:- Creation of Accounts Symbols

Click on new entries and update the following fields
> Enter the Account and name of the account.

Click on the save icon to save the entries.

Step 2:- Assign Accounts to Accounts symbols.
Here we are assigning accounts to accounts symbols; double click on “Assign
Accounts to Accounts Symbols.”

Click on “New Entries” and assign accounts to the accounts symbols

 Click on the “Save icon” to save the entries.

Ste p 3:-  Create Keys for Posting Rules
Double click on “create keys for posting rules.”

Click on “New Entries” and update the following data.

Click on the save icon to save the entries
Step 4:- Define Posting Rules
In this step, we are assigning posting rules to the account’s symbols. Click on
“New Entries” and update the following data.
 Posting Rule:- Enter the Posting rule key.
 Posting area:- select the posting area value 1 (Bank accounting)
 Accounts Symbols:-  Update the account symbols in Debit and credit fields
 Update the appropriate document type and posting type

Click on the save icon to save the entries.

Q6 . Bank Account Number Increase is possible or Not ?

A : Yes . It is Possible . SAP provides as 18 charcter by default.

Q7 . What is Note to Payee ?

PART 1
A : 1.1 Introduction
Note to payee is a part of a data medium that contains additional
information about payments, which might be relevant for payee or is
required legally. As a rule, note to payee is transferred in fields of data
medium, which from bank’s perspective are freely definable. That means
that if there are no explicit legal or technical bank platform requirements,
you can fill it with whatever information you want. Typical usage cases:
 To provide list of vendor invoice numbers, which are being paid (e.g.
CITI Direct);
 To provide information on payment purpose and VAT amount paid
(e.g. typical business practice in Ukraine, Russia);
 To provide specific legally required details (e.g. typically budget-
related payments require additional details).

You can use a lot of standard mapping options in DMEE-tree to generate

note-to-payee quite flexibly, but you can also use dedicated note-to-payee
functionality to achieve greater flexibility.

1.2   Define technical attributes of note to payee

Technical attributes of note to payee should be defined during creation of

payment medium format (hereinafter referred to as PMW). Use the
following menu path or transaction OBPM1 to access the customizing:

SPRO → Financial Accounting (new) → Accounts Receivable and Accounts

Payable → Business Transactions → Outgoing Payments → Automatic
Outgoing Payments → Payment Media → Make Settings for Payment
Medium Formats from PMW → Create Payment Medium Formats.

Select your PMW and navigate to tab “Text Fields for Reference
Information”:

Add an entry with note to payee type 1, indicate the length of the field and
number of fields. Length of note to payee field usually depends on the
requirements of your bank. Number of fields depends on the approach to
payments:
  if you pay each document separately, it would be enough to set up
this value to 1 (i.e. one note to payee for each payment document);
 if you use grouped payments (i.e. one payment for many vendor
invoices), number of fields should be high enough to allow creation
and storing of note to payee details for each paid invoice.

if number of lines is not enough, you’ll encounter error BFIBL02231

“Payment advice note created for payment document XXXXXXXXXX” and
note to payee will not be generated properly.

1.3   Create note to payee

Note to payee is a functionality of SAP that allows to creation and storing of

note to payee information (i.e. payment details) that can be used in
payment file. Note to payee can be defined via customizing or with help of
custom FM. Launch t-code OBPM2 and define note to payee using FM or
using customizing. This post will focus on note to payee using FM-based
approach, customizing-based note to payee will be covered in upcoming
post.

Menu path to access note to payee settings is provided below:

SPRO → Financial Accounting (new) → Accounts Receivable and Accounts

Payable → Business Transactions → Outgoing Payments → Automatic
Outgoing Payments → Payment Media → Make Settings for Payment
Medium Formats from PMW → Adjust Note to Payee.
If note to payee is FM-based, no additional customizing is necessary in this
view. Additional customizing steps for customizing-based note to payee are
described in separate post.
1.4   Assign note to payee to payment method

Note to payee should be assigned to a payment method on country level

per origin in FBZP (example below):
The purpose behind this customizing is that note to payee can be generated
differently depending on the origin of payment data. Origin refers to the
source of payment data e.g.:

 FI-AP – payment of vendor items (from F110);

 FI-AR – payment of customer items (from F110);
 FI-AP-PR – vendor payment requests (from F111);
 FI-AR-PR – customer payment requests (from F111);
 FI-BL – other payments (e.g. free-form payments, also triggered in
F111).
Please check out OSS-note 1977304 “FBZP: Explanation of origins when
assigning a note to payee” for details on origins in APP.
1.5   Create FM to build note to payee

FM should be created by copy of standard FM

FI_PAYMEDIUM_SAMPLE_DETAILS which provides an interface to build
note to payee details. This FM will be triggered during proposal / payment
run when option “Create payment medium” is ticked off. The result of FM
execution will be saved into database table DFPAYHT – it will store one or
more line for each payment document and might store additional technical
information as well.
Sample source code for FM that generates note to payee can be found
below:

function zdmee_build_note_to_payee.
*"--------------------------------------------------------------------
*"*"Local Interface:
*" IMPORTING
*" VALUE(I_FPAYH) LIKE FPAYH STRUCTURE FPAYH
*" VALUE(I_FPAYHX) LIKE FPAYHX STRUCTURE FPAYHX
*" TABLES
*" T_FPAYP STRUCTURE FPAYP
*" T_PAYMENT_DETAILS STRUCTURE FPM_PAYD
*" CHANGING
*" REFERENCE(C_XAVIS_REQ)
*"--------------------------------------------------------------------

data:
ls_note type fpm_payd,
lv_note type string.

constants: lc_inv type string value 'INV'.

field-symbols: <doc> like line of t_fpayp.

ls_note-type = 1.
ls_note-line = 1.
ls_note-text = lc_inv.
ls_note-length = strlen( ls_note-text ).

loop at t_fpayp assigning <doc>.

clear: lv_note.

append ls_note to t_payment_details.

 lv_note = <doc>-xblnr.

ls_note-length = strlen( lv_note ).

ls_note-text = lv_note.
add 1 to ls_note-line.
append ls_note to t_payment_details.

endloop.

endfunction.

1.1.6   Create FM for DMEE-tree

Another FM (e.g. ZDMEE_NOTE_TO_PAYEE) should be created to retrieve

note to payee details from DFPAYHT table and link it DMEE-tree. From
technical perspective this FM is concatenating all lines from table DFPAYHT
into one line.

This FM should be created via copy of standard template

DMEE_EXIT_TEMPLATE_ABA. Please check out my post on “Exit modules in
DMEE” for more details on this mapping options in DMEE-tree. Proposed
source code for this FM can be found below.

function zdmee_note_to_payee.
*"--------------------------------------------------------------------
*"*"Local Interface:
*" IMPORTING
*" VALUE(I_TREE_TYPE) TYPE DMEE_TREETYPE_ABA
*" VALUE(I_TREE_ID) TYPE DMEE_TREEID_ABA
*" VALUE(I_ITEM)
*" VALUE(I_PARAM)
*" VALUE(I_UPARAM)
*" REFERENCE(I_EXTENSION) TYPE DMEE_EXIT_INTERFACE_ABA
*" EXPORTING
*" REFERENCE(O_VALUE)
*" REFERENCE(C_VALUE)
*" REFERENCE(N_VALUE)
*" REFERENCE(P_VALUE)
*" TABLES
*" I_TAB
*"--------------------------------------------------------------------

data:
 result(160) type c,
linetab type standard table of text_fpm with header line.

field-symbols:
<fs> type dmee_tab_type_aba.

loop at i_tab assigning <fs>.

linetab = <fs>-text.
append linetab.
endloop.

concatenate lines of linetab into result separated by space.

c_value = result.

endfunction.

Sample note to payee generated by this FM can be found below:

This example might be rather simple, but I hope it provides enough details
to understand where to start if you would like to implement more
complicated logic for note to payee.

Your suggestions and comments are welcome!

PART 2
1.1. Introduction
As mentioned above, there are two approaches to create note to payee in SAP –
via customizing or using custom FM. Some of the settings are the same
regardless the approach e.g. you should define technical requisites of note to
payee in t-code OBPM1, create definition of note to payee in OBPM2, assign it
to payment method in FBZP, build DMEE-tree etc. Most of these basic settings
are described in my previous post. This blog will cover two areas which differ –
definition of note to payee and customizing of DMEE-tree.
1.2. Create note to payee

Launch t-code OBPM2 and create note to payee by indicating its name and
description. Activate checkbox “Note to payee layout using customizing” as a
controlling option.

Save the entry and navigate to “Default Note to Payee” tab to define the
structure of note to payee information.

Indicate note to payee type 1 and number of line item. The type of note to payee
in OBPM2 should be the same as defined in technical attributes in t-code
OBPM1. Indicate the reference to the variables which will be used to generate
note to payee text. Note to payee can include:
– references to system variables (e.g. FPAYP-XBLNR);
– fixed text constants (e.g. “Invoice #:” etc.);
– controlling parameters (e.g. X, Z, R, S etc.) to impact the formatting of the
values.
System variables include fields from the same structures FPAYP, FPAYH,
FPAYHX that are used in DMEE as mapping options. To get an overview of all
values, select the field “Note to payee text” and press F4 to retrieve search help:
As you can see, search help is divided into two parts – each of them is
referencing the same structures, but the first one contains primarily business
information (name of the vendor, invoice number etc.), whereas the second one
contains fields of technical nature (sorting / grouping fields, sequential payment
number etc.). Select the field you need (1) and press “Copy” (2) button to insert
it into note to payee definition.
If note to payee is to be used for payments to vendors from several countries,
you can define language-dependent note-to-payee. Technically speaking,
configuration is the same, but you can translate fixed text elements into
different languages (see example below).
Selection of note to payee depends on the language of payee (i.e. payment
recipient). Note to payee maintained in language of payee has higher priority
over default note to payee.
SAPscript formatting options can be used to format output of values for
example:

&VARIABLE+4(X)&  – Offset and take X number of characters (e.g.

&FPAYH-DOC1R+4(10)&)
&VARIABLE(X)&      – Display only X characters of variable value;
&VARIABLE(C)&      – Condense variable value (i.e. remove empty spaces
e.g);
&VARIABLE(Z)&      – Remove leading zeros (e.g. &FPAYP-ZBLNR(Z)&);
&VARIABLE(.2)&     – Indicate number of decimal places to be displayed;
&VARIABLE(I)&       – Do not display initial value;
&VARIABLE(R)&     – Right-justified display;
&VARIABLE(S)&     – Remove leading sign.

1.3. Configure DMEE tree

Configuration of DMEE tree for note to payee involves creation of quite many
technical nodes. To begin with create a composite node to group together 10
technical nodes which will store 10 references to vendor invoice number. The
length of each node should 16 characters i.e. the same as for field BKPF-
XBLNR, which stores vendor invoice number in accounting document.
These technical nodes will not be displayed in payment file but will be used as a
source of data by other fields in DMEE tree. Each node contains reference ID
(INV_X) which will be used by other nodes.
Each technical node uses structure field DMEE_PAYD-TEXT as a mapping
option. Key field 1 in the settings of source field indicates type of note to payee.
10 consecutive references to the structure DMEE_PAYD ensure that the system
will retrieve first 10 values from table DFPAYHT.

Note to payee is split into four parts i.e. segments due to layout requirements
from the bank. The length of each segment is 35 characters. Thus, each segment
can contain 2 maximal 3 references to vendor invoice number. Each segment
uses own mapping as a mapping procedure which basically concatenates the
values of all child atoms into value without spaces.
First segment contains atom “note_beginning” that contains constant value
“Inv.:” that will be displayed once at the beginning of note to payee.
Each atom with name “line_x” will contain a reference to vendor invoice
number. Mapping option “Reference to tree node” will be used to get values
from technical nodes at the beginning of DMEE-tree (i.e. atom line_x will use
Reference Node ID INV_X).

Each “delimiter” atom has a constant value “,”. To make sure that comma is not displayed
unnecessary condition is set up for each delimiter. The condition checks whether a next line
with vendor invoice number is not empty. Delimiter will be displayed only if next line is not
empty.
That’s basically all you need to configure to generate note to payee in necessary
format. The only advantage of this approach (at least for this requirement) is
that you can do without any development efforts at all. Disadvantages are
obvious: you’re limited to display of X invoice numbers only and you must do a
lot of technical setup, which is not straightforward and might be difficult to
support. Development approach i.e. via custom FM would be much more
efficient and easier at least in my humble opinion?.

Hope this post was useful and you found something of value. Please comment
and let me know if you have any questions or suggestions. Please also check out
other posts on this and related topics.

Questions & Answers

 Scenario 1 – SAP Purchase Order

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.
  Scenario 2 – SAP FICO General Ledger
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.

Solution
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.

Scenario 3 – Adding a new column in open item

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.
Solution to this SAP FICO Scenario

 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.

Scenario 4 – Add a Trading Partner

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.

Scenario 5 – Line Item Display Issue in GL Accounts

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.

Scenario 6 – Wrong Posting Rule in Bank Statement

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 TCode 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 TCode.

Scenario 6 – Wrong Posting Rule in Bank Statement

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 TCode 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 TCode.

Scenario 6 – Wrong Posting Rule in Bank Statement

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 TCode 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 TCode.

Scenario 6 – Wrong Posting Rule in Bank Statement

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 TCode 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 TCode.

Suggestion
Many such scenarios in SAP FICO comes under the roles and responsibilities of a
FICO consultant. He/she face them in real-time work. Thus, they are expected to
know the solutions to these kinds of issues quickly and efficiently as well. That’s why
these kinds of problems become part of many of the FICO interview questions, so as
to check the knowledge of the candidate.

I suggest you not only learn, but also practice these scenarios in the system to check
the whole process of resolving such problems. This is also required for growing into
the next phase of your SAP career i.e. SAP S/4HANA Finance. For upgrading into
the new technology you should be expert in the current position which needs
knowledge of every aspect of Financial Accounting. Here these kinds of scenarios

Why you should learn about common Errors in SAP

FICO?
Errors are very common during the configuration and implementation of SAP. In your
day to day activities as an SAP consultant, you would face a lot of real-time issues in
various areas of this subject. Therefore, you should be aware of all possible aspects
where you may have some errors or issues.

A lot of people like you are looking for these kinds of common errors in SAP FICO.
Thus, I have collated the 10 most common errors with their error codes and solutions
that come while configuration. Additionally, these are very frequently
asked questions in SAP FICO interviews. Thus, you should pay good attention to
these errors.

Error 1 – While executing Depreciation Run

Why transaction in area NN contradicts the net book-value rule
You get this error when you try to post value to an Asset such as special or
unplanned depreciation. This would make the Net book value of assets negative.

This issue can be fixed by going to depreciation area configuration for the chart of
depreciation and changing the value allowed to “All Values Allowed”. However,
before you change the configuration, ensure that you truly want to allow negative net
book value. Otherwise, go back and check your transaction.

Error 2 – While Posting the Customer Invoice

Why only output tax is allowed for account xxxxxxx xx
You get these types of errors when there are restrictions on the type of tax codes
allowed for GL accounts. Go to FS00 and check the Control data tab/Tax Category
field. Check the posting for the correct tax code. If you still want to eliminate the
error, you would need to change the Tax category.

Error 3 – During APC transfer

Why Balancing field “Profit Center” in line 01 not filled Error in ASKB
ASKB is the transaction in SAP used for periodic posting of Asset APC values to
G/L.

You get a Profit Center balancing error if you do not maintain the necessary account
determination in Configuration. To fix the error look for the depreciation area with the
issue and check if the account determination Cost objects have been maintained in
ACSET. Maintain the values and issues that should be fixed.

Error 4 – While Posting an Asset Invoice, your client

gets an error in SAP FICO
Transaction key XXX YY Chart of Accounts ZZZZ not defined in table
T030K
These errors like charts of accounts not defined in SAP FICO Tables, occur when
you try to post an Invoice and the tax code has not been maintained in Configuration.

To resolve the issue, you have everything in the Error message except the G/L
account that needs to be assigned to the Tax code. Go to Tcode OB40 => Provide
Chart of Account (ZZZZ) => Transaction (XXX) => and assign G/L to the tax code
(YY).

Error 5 – During Intercompany transaction posting

Company codes have different settings for withholding tax treatment.
You receive these kinds of errors in SAP FICO when you try to post intercompany
posting, but one of the company codes is on standard withholding tax setting while
another one is on extended withholding tax setting.

Check the setting in IMG –> Financial Accounting –> Financial Accounting

Global Setting –> Company Code –> Activate Extended Withholding Tax.

Since you won’t be able to post a single cross-company code posting. Thus you
would need to post 2 entries, one in each company code separately. At a later stage,
check if you want to bring both company codes to extended withholding tax.

Error 6 – While posting a voucher entry in FI

Why Account XXXXXXXX requires assignment to CO object.
You get this error message (Account XXXXXXXX requires an assignment to a CO
object) when the GL account is relevant for Cost posting i.e. Primary Cost element is
created for the account. In this case, the system is going to need a Cost Object (Cost
Centre, Internal order, WBS element, etc) in the posting as a posting needs to be
automatically done in SAP Controlling.

Error 7 – During the Automatic posting

What should I do to solve these sorts of errors in SAP FICO?
In the case of auto-posting (such as gain/loss posting), you will not be able to assign
the Cost objects manually. In that case, you will need to assign a default cost object
to the account (OKB9).

Error 8 – Withholding Tax Errors in SAP FICO

An entry with this withholding tax type already exists. How to resolve
this error in SAP FICO?
This error in SAP FICO occurs when you try to assign multiple lines with the same
tax type to the business transaction. SAP only allows one entry for tax type in a
business transaction. If multiple lines need to be inserted, then multiple tax types
must be created.

Error 9 – During intercompany transaction posting

No clearing accounts specified for company codes NNNN/MMMM
You receive this error when you try to post intercompany posting, but the company
code pair has not been set up for cross-company code posting.

To resolve, make a configuration change in OBYA. Company Codes must be on the

same Withholding Tax setting (Classic or Extended).
Error 10 – NetWeaver Settings Errors in SAP FICO
Maintain conversion factors for XXX/YYY (currency type NN).
This error indicates that the Conversion factor has not been maintained for the
currency pair in the system. Check the currency pair in IMG -> General Settings ->
Currencies -> Define Translation ratios.

If the currency pair is not maintained, maintain the pair for XXX/YYY and YYY/XXX
(for example USD/CAD and CAD/USD).

Why you should know the common Errors in SAP

FICO? – The Conclusion
SAP FICO is the first step towards S4HANA Finance. To grow further in your career,
make sure you clear all your FICO concepts thoroughly. For this, you need to learn
all real-time issues, common errors that you may face during implementation. This
will help you to understand how to become a successful SAP S/4HANA Finance
Consultant.

I hope this article would have helped you in understanding some popular scenarios
in SAP FICO.

SAP FICO Questions – Bank Accounting

Q1. – How would you handle Bank Reconciliation in SAP?
Ans. – First, post the vendor payment to an Interim bank clearing account.
Subsequently, while performing reconciliation, post an entry to the Main Bank
account. You can do bank reconciliation either manually or electronically.

(Reconciliation is an important work in Bank Accounting in SAP. This involves

working upon all P&L accounts, Balance sheets, General Accounts etc. So you
require its good knowledge to work perfectly).

Q2. – How do you configure the cheque deposit?

Ans. – Follow the below are the steps:

 Step-1 Create account symbols for the main bank and incoming cheque account
 Step-2 Assign accounts to account symbols
 Step-3 Create keys for posting rules
 Step-4 Define posting rules
  Step-5 Create Business transaction and assign posting rule
 Step-6 Define variant for cheque deposit

Q3. – What is the clearing basis for the cheque deposit?

Ans. – In the variant for cheque deposit, we set up the field’s document
number (Invoice Number), amount and a short description of the customer. The
document number and the invoice amount acts as a clearing basis.

Q4. – How do you configure manual bank statement?

Ans. – Follow the below-mentioned steps:

 Step-1 Create account symbols for the main bank and the sub-accounts
 Step-2 Assign accounts to account symbols
 Step-3 Create keys for posting rules
 Step-4 Define Posting Rules
 Step-5 Create Business Transaction and assign posting rule
 Step-6 Define variant for Manual Bank statement

Q5. – How do you configure the Electronic Bank Statement?

Ans. – Follow the below steps:

 Step-1 Create account symbols for the main bank and the sub-accounts
 Step-2 Assign accounts to account symbols
 Step-3 Create keys for posting rules
 Step-4 Define Posting Rules
 Step-5 Create transaction type
 Step-6 Assign external transaction type to posting rules
 Step-7 Assign Bank accounts to Transaction types

SAP FICO Questions – Fixed Assets

Q6. – What are the organizational assignments in Asset Accounting?
Ans. – Chart of Depreciation is the highest node in Asset Accounting and this is
assigned to the company code.

The chart of depreciation stores all the depreciation calculations.

Q7. – Explain the importance of Asset classes. What asset classes are
there?
Ans. – The asset class is the main criterion to classify assets. We must assign every
asset to only one asset class. Examples of asset classes are plant & Machinery,
Furniture & fixtures, Computers, etc. The asset class also contains the GL
accounts which are debited when any asset is procured. It also contains the GL
accounts for depreciation calculation, scrapping, etc.
Whenever you create an asset master you need to maintain the asset class for
which you are creating the required asset. In this manner whenever any asset
transaction happens, the GL accounts attached to the asset class are automatically
picked up and entry is passed.

You can also specify certain control parameters and default values for depreciation
calculation and other master data in each asset class.

Q8. – How would you define depreciation keys?

Ans. – We should enter the specifications and parameters, that the system requires
to calculate depreciation amounts, in calculation methods. Calculation methods
replace the internal calculation key of the depreciation key. Depreciation keys default
in Asset Master from the asset class.

Refer to the configuration for more details on how to calculate depreciation.

Q9. – What steps you should take to ensure that integration into the
general ledger for the depreciation posting run works?
Ans. – To ensure the integration into the GL for depreciation posting, specify the
following for each depreciation area and company code:

1. The frequency of posting depreciation (monthly, quarterly, etc.)

2. CO account assignment cost (center)
3. For each company code, you must define a document type for automatic
depreciation posting only. This document type requires its own external number
range.
4. You also need to specify the accounts for posting (account Determination)

To ensure consistency between Asset Accounting and Financial Accounting, You

must process the batch input session created by the posting report.

If you fail to process the batch input session, an error message will appear at the
next posting run. The depreciation calculation is a month-end process, run in
batches. Then, once the batch input runs, the system posts the accounting entries
into SAP Finance.

Q10. – How you change Fiscal Year in Asset Accounting?

Ans. – The fiscal year change program opens new annual value fields for each asset
i.e. that is next year. The earliest you can start this program is in the last posting
period of the current year. You have to run the fiscal year change in the subsequent
year if the previous year has already been closed for business.

Take care, not to confuse the fiscal year change program with year-end closing for
accounting purposes. You need this fiscal year change only in Asset Accounting for
various technical reasons.

Q11. – Is it possible to have depreciation calculated for the day?

Ans. – Yes, it is possible. You need to switch on the indicator Depreciation to the day
in the depreciation key configuration.

Q12. – Is it possible to configure that no capitalization be posted in

the subsequent years?
Ans. – Yes, it is possible to do not have asset capitalization in subsequent years.
You need to set it in the depreciation key configuration.

Q13. – How are Capital WIP and Assets accounted for SAP?
Ans. – Capital WIP is referred to as Asset Under Construction in SAP and is
represented by a specific Asset Class. Usually, we don’t change depreciation on
Capital WIP. We can book all costs incurred in building a capital asset to an Internal
Order. Through the settlement, you can post the procedure onto an Asset under
Construction. Subsequently, on the actual readiness of the asset for
commercial production, the Asset Under construction gets capitalized to an actual
asset.

Q14. – What is the purpose of defining Internal Orders?

Ans. – Internal Orders are used for tracking costs, which are proposed to the
incurred over a short term basis and time tracking is not of much essence eg an
Advertisement campaign. Sales Promotion and Exhibition expenses etc.

SAP FICO Questions – Integration of FI-MM, FI-SD

In interviews, some SAP FICO questions are based on SAP FI-MM
integration and FI-SD integration. This is because FI-MM and FI-SD integrations are
important parts of FICO configuration. Thus, you should be prepared for some
relevant issues and scenarios related to these integrations. Below are some SAP
FICO questions on this part.

Q15. – How do you go about settings the FI MM account

determination?
Ans. – We maintain FI MM settings in transaction OBYC. Within these, the system
maintains various transaction keys like BSX, WRX, GBB, PRD, etc. In each of these
transaction keys, you specify the GL accounts which get automatically passed at the
time of entry.

Example – BSX – Stands for Inventory posting Debit

                    GBB – Stands for Goods issue/scrapping /delivery of goods

                    PRD – Stands for Price Differences

Q16. – At what level are the FI-MM, FI-SD account determination

settings?
Ans. – They are at the chart of accounts level.
Q17. – What are the additional settings required while maintaining or
creating the GL codes for inventory accounts?
Ans. – In the inventory GL accounts (Balance sheet) you should switch on the “post
automatically only“ tick. It is also advisable to maintain the settings 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-MM & FI-SD.

Q18. – How do you configure FI-SD account determination?

Ans. – The FI-SD account determination happens through an access sequence. The
system goes about finding accounts from more specific criteria to less specific
criteria.

Thus first it will access and look for the combination of customer accounts
assignment group/Material account assignment group/Account key. if it does not find
an account for the first combination it will look for the customer account assignment
group and account key combination.

Further, if it does not find accounts for the first 2 criteria then it will look for the
Material account assignment group/key. If it does not find accounts for all earlier
criteria then finally it will look for the Account key and assign GL code.

Thus posting sales invoices into FI are affected based on a combination of a sales

organization, Account Type or customer and Material Account assignment groups
and the following are the options available.

1. Customer AAG/Material AAG/Account Type

2. Material AAG/Account Type
3. Customer AAG/Account Type

For each of these options, you can define a GL account. Thus the system uses this
GL account to automatically pass the entries.

Q19. – What is Valuation and Account Assignment in SAP?

Ans. – This is the link between Material Management 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 price. Across
all plants.

Valuation also involves price control. Each material is assigned to a material type in
Material Management and every material is evaluated either in moving average price
or Standard price in SAP. There are two types of price control available.

Q20. – What is the Valuation class?

Ans. – The valuation class in 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
determines the GL account during postings.

We can group different materials with similar properties by valuations class. Eg Raw
material, Finished Goods, semi-finished.

We can define the following assignments in customizing:-

All materials with the 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.

Q21. – Can we change the valuation class in the material

master record?
Ans. – 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 stock nil for the specific
valuation class. Then only we will be able to change the valuation class.

Q22. – If the material is assigned a moving average price in the

material master and the stock of such material is issued, then does
the moving average price change in the material master?
Ans. – The moving average price in the case of goods issue remains unchanged.
Goods issues are always evaluated at the current moving average price.
Consequently, a goods issue reduces the total quantity and total value of the price
and the moving price remains unchanged.

Q23. – What is the accounting entry in the financial books of accounts

when the goods are received in unrestricted use stocks? Also,
mention the settings to be done in the “Automatic postings” in SAP
for the specific G/L accounts.
Ans. – On receipt of the goods in unrestricted-use stock, the inventory account is
debited and the GR/IR account gets credited. In the customization, in the automatic
postings, the inventory G/L account is assigned to the Transaction event key BSX
and GR/IR account is assigned to the Transaction event key WRX.

If a material has no material code in SAP, we can still, default the G/L account with
the help of material groups. We can assign the valuation class to a material group
and then in FI-automatic postings, we can assign the relevant G/L account in the
Transaction event key. The assignment of a valuation class to a material group
enables the system to determine different G/L accounts for the individual material
group.
SAP FICO TCodes – What they do?
SAP FICO Tcodes helps in the fast execution of programs in the Financial
Accounting application of the SAP system. By using these Tcodes, you can easily
avoid multiple steps of work which would otherwise be done by navigating through
the menu system. Which obviously be a time-consuming process.

To understand this more clearly, let us first know what are Tcodes in SAP.

What are Transaction Codes?

In SAP, Transaction codes are used to access functions or executing ABAP
programs in SAP application for fast processing and executions. Instead of using the
menu, the navigation and execution are combined into a single step. These are
called as TCodes.

It is very helpful while working in the system. This one is the preferred method of
using the SAP application because navigating the menu path is time-consuming and
the user needs to remember where to look in the navigation menu path.

An example – GL Master Creation

Method One – Use System Navigation.

To do this, you need to follow this navigation path:-

SAP Easy Access => Accounting => Financial Accounting => General
Ledger=> Master Record => GL Accounts => Centrally
Method Two – Simply use Transaction Code- FS00

Here is a screenshot for it.

This means, if you use Tcodes, you shorten your work and save your time. It is
equally important to Byheart the frequently used (key) Tcodes, that would even help
you more as you don’t need to see the codes again and again.

(It is somehow like using short-cut keys on a keyboard instead of using a mouse, to
save your time and effort).

If you are working or practising SAP Financial Accounting, you should definitely
know the important Tcodes in SAP FICO. Here a list of them with their basic use.

Learn SAP FICO Tcodes for Interview Preparation

 You should learn the most important or frequently used SAP FICO Tcodes for your
interview preparation as well. As these are commonly asked in interviews to check
your preparedness for real-time work.

If you are an SAP consultant or working towards getting into the SAP sector, you
must learn them. Further, if you can by-heart the key Tcodes in SAP FICO, it would
be an added advantage.

SAP FICO Fields it is Used

Description of the Fields
TCodes For

An implementation guide that adjusts the SAP System to the requirements of a

SPRO Enter IMG
company.

Company Code – The company code is the central organizational unit of external accounting within
OX02
Create, Check, Delete the SAP System.

Business Areas are used to differentiate transactions that come from different lines
OX03 Create Business Area
of business in a company.

Functional area is an account assignment characteristic that sorts operating

OKBD Functional Areas
expenses according to functions. Example Production, Administration.

Create Credit Control The organizational unit represents the area where customer credit is awarded and
OB45
Area monitored. This can be either be a single or for several company codes.

In SAP the fiscal year is assigned as a variant. Posting periods can further be defined
Maintain Fiscal Year
OB29 in each fiscal year variant. SAP allows a maximum of 16 posting periods in each
Variant
fiscal year.

Assign Co. Code to As Fiscal Year Variant created at a client level, it is required to assign to company
OB37
Fiscal Year Variant code.

Creation of Chart of Chart of Account is the list of General Ledger Account Master. Chart of Accounts is
OB13
Account (CoA) defined at the client level and assigned to each company code.
SAP FICO Fields it is Used
Description of the Fields
TCodes For

Copy Chart of Account

OBY7
(CoA)

Transport Chart of
OBY9
Account

An account group is segregating or grouping similar accounts into a single group.

OBD4 Define Account Group Each account group in SAP is assigned to a chart of accounts, so we can only use an
account group if the controlling areas use the same chart of accounts.

Copy GL Accounts
OBY2 from the Chart to Co.
Code

Retained Earnings account defines to be used for posting the expenditure and
Define Retained
OB53 income of the year. It is used to carry forward the balance from the current fiscal
Earnings
year to the next fiscal year.

Maintain Financial
OB58
Statement Versions

Field status variant is used to define the fields which are used for input like a cost
Maintain Field Status centre, profit centre, plant etc which are entry fields and hidden fields. Field status
OBC4
Variant Variant is a tool that is provided by SAP to assign the same set of properties to more
than one object.

SAP Finance posting period variant is used to maintain accounting periods that are
Define Posting Period open for posting and all closed periods are balanced. This is used for the opening
OBBO
Variant and closing period in the fiscal year for posting purposes. As it is created client level
it is required to assign to company code.

OB17 Define Document Document Type in SAP is defined to distinguish business transactions. For example,
Type & Number transactions like customer payment and vendor credit memos are distinguished
SAP FICO Fields it is Used
Description of the Fields
TCodes For

Ranges with two different document types in SAP to identify it in future.

The posting key in SAP is a two digits numerical key that determines the type of
OB41 Maintain Posting Keys transaction entered in a line item. Posting keys in SAP controls the entries in a line
item of document entries.

SAP Tolerance Groups define posting authorizations of users in SAP. These postings
Create Tolerance
OBA4 permissions define the amounts that certain groups of accounting users are allowed
Groups
to post.

Document Numbers uniquely identifies every transaction within a fiscal year in a

Create GL Number
FBN1 company code. Number ranges for a document type in SAP are used to define how
Ranges
numbers can be assigned to the transaction.

Automatic Posting
OBL1
Documentation

Automatic Account
FBKP
Assignment

Configuration transaction OBYC creates the core of SAP integration between the
MM Automatic
OBYC MM, FI and Controlling modules in a traditional SAP. Transaction keys are used to
Account Assignment
determine general ledger accounts used by the system.

Enter Global
OBY6
Parameters

With the transactional app Manage G/L Account Master data, you can display
Creation of GL Master
FS00 create and edit the master data of G/L accounts. You can also easily add new G/L
Records
accounts from scratch or based on existing accounts.

F-02 Posting of GL This FI transaction code is used to post any JV entry.

SAP FICO Fields it is Used
Description of the Fields
TCodes For

Transactions

Display of GL After posting any transaction, the system will generate an accounting document. So,
FB03
Document to view that accounting document we can use this SAP FICO TCode FB03.

Display of GL
FS10N To get the GL total balance.
Accounts

Define Interest
OB46
Calculation Types

For creating a vendor master record, we have to specify an account group. Via
Vendor account group we determine the interval for the account numbers, whether
Define Vendor
OBD3 the number assigned internally by the system or externally by the user. Whether
Account Group
one-time account. Which fields are ready for input or must fill when creating and
changing master records.

Creation of Vendor By using this SAP FICO TCode, we can create a vendor Master and update, General
XK01
Master information, accounting information and Purchasing information.

Purchase Invoice How to post one vendor invoice only from an accounting point of view. However, it
F-43
Posting excludes logistic vendor invoice posting.

Display Vendor
FK10N A particular vendor total account balance.
Account

F112 Define House Bank To create one House Bank in SAP ERP.

Maintain Terms of To calculate the discount on Customer/vendor we need to assign payment term on
OBB8
Payment (ToP) master record or document.
SAP FICO Fields it is Used
Description of the Fields
TCodes For

For creating a customer master record, we have to specify an account group.

Further, via the customer account group, we determine the interval for the account
Creation of Customer
OBD2 numbers, whether the number assigned internally by the system or externally by
Account Group
the user. Whether one-time account. Which fields are ready for input or must fill
when creating and changing master records.

Customer Tolerance Tolerance Groups contain the details that control the way the system processes the
OBA3
Groups cash discount and payment difference.

Creation of Customer By using this TCode in SAP FICO, we can create a customer Master and update
XD01
Master General information, accounting information and Sales information.

Display Customer
FD10N A particular customer total account balance.
Account

Incoming Payment
F-28 To process collection from the customer.
Posting

An organizational unit that you use to process the dunning program. For example,
OB61 Define Dunning Area
By Division, sales Organisation etc.

Copy Reference Chart

EC08
of Depreciation (CoD)

Define Depreciation The depreciation area is used to calculate different values in parallel for each fixed
OADB
Area asset for different purposes.

Assign Chart of
OAOB Depreciation to Co.
Code

OAOA Define Asset Class Asset classes are used to classify the fixed assets in asset accounting according to
SAP FICO Fields it is Used
Description of the Fields
TCodes For

the asset types. Also, these are defined at the SAP client level and contain key
control parameters.

Assignment of
AO90
Account in Asset Class

Determination of
OAY2 Depreciation Area in
Asset Class

Creation of Asset
AS01
Master

AS11 Creation of Sub Asset

Asset Purchase
F-90
Posting

AFAB Depreciation Run Calculating depreciation in SAP or depreciation program execution

F-92 Asset Sale Posting

AW01N Asset Sale Posting

List of Important TCodes in SAP FICO

Where you can find the complete list of Tcodes in
SAP?
The above mentioned are the most frequently used Tcodes in sap fico. However,
there are approximately 1000 Tcodes in the whole Financial Accounting. Likewise,
the list of all Tcodes in SAP is extensive and huge. Thus, to view the Tcode you
need, you can refer to the SAP guide available in the system.
There are two ways where you can get to the list of Tcodes in SAP.

1. Easy Access.
2. IMG

How to get TCodes from Easy Access Screen

Follow the path:-

Login in SAP => Easy Access => SAP menu => Accounting =>Financial
Accounting=> (Subsequent Sub-module)

Then open the respective sub-module to see its Tcodes. The example below is for
Entering G/L Accounting Document which is found in:-

Financial Accounting => General Entry => Document Entry => FB50

How to get TCodes from IMG

Login in SAP => SPRO => SAP Customizing Implementation Guide =>
Financial Accounting => and Further sub-module

In the below example, you can see the Tcode for Field Status Variant (OBC4):-

Financial Accounting => Financial Accounting Global Settings => Ledgers =>
Fields => Define Field Status variant (OBC4)
EndNote
Tcodes are user-friendly tools that help in saving time and effort. Thus, I advise you
also to learn and practice the common Tcodes in SAP FICO so as to get comfortable
with their use and to be efficient on them.
What is Asset Capitalization Process in SAP?
Asset Capitalization Process in SAP is the way to record an asset in the fixed asset
register in SAP S/4 HANA. We can capitalize on an asset externally and internally.

With the External method, we-purchase assets from the vendor. While, with the
internal method, we capitalize expenditures as an asset.
Types of Asset Capitalization Process in SAP
We have several Asset capitalization processes in SAP. The method chosen will
depend on some factors, not least the complexity of the organization.

Simple Vs. Complex

You can use a simpler process for assets that the system brings in to use
immediately. Such as computers or office equipment and While you can take a more
complex process for long-term projects to construct buildings or factory plants that
may continue over a while. It may be even years.

Most of the processes after capitalisation such as depreciation or retirement are not
affected by the method of capitalisation used. Unless you have used the post-
capitalisation process.

Let us see the types of Asset Capitalization Processes in SAP.

1. Asset Acquisition without Investment Management

We start by going through some direct finance and purchasing acquisition
transactions without using Investment Management.

2. Non-integrated Journal with an offsetting Account

You can post the Costs between an offsetting account and an asset without any
integration to Accounts Payable (AP) or a vendor account at the time of the asset
posting. We generally receive the vendor invoice at some point in time but post it
independently of the asset posting.

Segregation of duties may require AP to post the invoice at an initial suspense

account or an offsetting account. Further, the asset accounts may need to transfer
the costs to the asset in a separate posting. Alternatively, there may be a
requirement to capitalize the asset separately.

This is because it’s already in use. Even though we have not received the vendor
invoice yet. Or the costs have been posted elsewhere and needed to be transferred
back to the asset.

Transaction ABZON has fields allowing you to select accounting principles

and depreciation areas independently if required.

SAP Fiori Equivalent

The SAP Fiori equivalent is called Nonintegrated Asset Acquisition. In both
transactions, you can either create the asset beforehand or during the transaction.
After you have entered the dates and amount, the transaction will post automatically
between the asset. Further, the normal offsetting account is set up in the
configuration.
 You can also override the offsetting account by entering an account of your choice

on the “Additional Details” tab.

Before New Asset Accounting, only the leading ledger was updated in real-time. You
needed to run Transaction ASKB (APC Value Posting) at the period-end to post to
the other ledgers. However, with SAP S/4 HANA you no longer require this step as
the system updates all the ledgers at the time of transaction.

If after you have capitalized the asset, the invoice arrives with a slightly different
value. You may need to make a second adjustment posting.

3. Integrated with Vendor but without Purchase Order

This is when we receive and post an invoice directly to the asset (or the AUC) as
well as the vendor at the same point in time.

This process may suites to companies that don’t have a formal PO process in place
for Asset Accounting. And they want to record the costs against the asset at the time
of posting the invoice.

When making a posting to a vendor, you must post to all ledgers at the same time.
So in SAP S/4 HANA, a technical clearing account allows you to split out the
postings and post independently to each ledger for the asset.

This allows you to post differently to each accounting principle. To maintain integrity,
the system doesn’t allow you to post the technical clearing account manually. 

Ledger Group Vendor Invoice Posting Asset Posting

Debit Technical Clearing Account

All Ledgers
Credit Vendor

Debit Asset
IFRS
Credit Technical Clearing Account
Ledger Group Vendor Invoice Posting Asset Posting

Debit Asset
GAAP
Credit Technical Clearing Account

Things to remember while using this Asset Capitalization process in

SAP
Before posting the invoice, you need to create the asset or AUC master record. This
is because you have to enter the asset or AUC number during the transaction. The
transaction for this type of posting using the SAP GUI is Transaction F-90
(Acquisition from Purchase with Vendor). And SAP Fiori equivalent based on the
same transaction is Acquisition without Order.

This is not the most user-friendly process. Because in both cases you have to
manually enter posting keys and transaction types. Regardless of whether you are
using SAP FIORI or not.

The normal vendor invoice Transaction FB60 is an FI only transaction. It does not
allow you to enter an asset.

But technically you can still use any transaction you are more familiar with. These
are the transactions that allow you to enter a vendor, posting keys and an asset
transaction type. 

4. Purchase Order Processing

This process may start with a purchase requisition (pr) or with a PO. Here the
system creates the asset master data at or near the start of the process. Then when
we receive the asset, we can either capitalize it at the time of posting the G/R or at
the time of invoice posting, depending on the settings. 

The asset or AUC master is created first. Then while entering the PR or the PO
using account assignment category A-Asset, You need to enter the asset number in t
he Asset Field in item details.

Posting a Valuated Goods Receipt 

If you select a valuated GR in the vendor master data or PO settings, then the
system posts the asset at the point of GR.

Sometimes, the invoice has a slightly different amount from the original PO.
Therefore the GR amount is different from the invoice. In that case, the system will
automatically make an adjustment posting of the difference to the asset when the
invoice is posted.

Posting a Non-valuated Goods Receipt 

In some countries, even if we receive the asset, we still cant capitalize the asset until
we receive the invoice.

As per the following diagram, you choose a non-valuated GR setting in the PO.
Here, no value is posted at the point of GR. This also means that the asset will only
be capitalized at invoice receipt.
5. Without Purchase Order Processing
You can create one or more AuC and the related settlement rules automatically at
the time of releasing the order or WBS elements. Although you can choose to create
them manually as well.

You can post directly to the order or WBS elements by journaling costs there from
another account. This is a non-integrated posting as there is no vendor involved.

You can also post a vendor invoice directly to an investment measure such as a
WBS element or investment. This is an integrated posting. So, you can use the
technical clearing account to allow separate documents for the asset postings to the
different ledgers. 

In both cases, you can’t use the availability control to prevent costs from going over
budget. This is because the system updates the investment order or WBS element
only after incurring the costs.

Periodically, the system settles the costs first to the AUC and then to the asset when
its brought into use. Technically you can also settle directly from an investment order
or WBS element. But if you want to settle directly for the asset anyway.

6. Internal Order/WBS Element – Asset Capitalization

Process in SAP

As and when the cost is incurred, we need to record the cost with the cost object.
For e.g. Internal Order/WBS element. We need to capitalize that expenditure on
assets under construction.

In SAP S4 HANA, when you settle on the final asset, you can create a different
settlement rule for each ledger group. Line item distribution rule (Transaction AIAB,
Distribute ) is where you select the items that you want to settle. This is because you
may have collected several different costs for many assets. 
Which is the Best Asset Capitalization Process in
SAP?
Well, it depends on the circumstances. As mentioned above the types of Asset
capitalization process in SAP. These are the scenarios based on which we decide
the right process to capitalize the assets.

In SAP S/4HANA Finance implementation, we may need this activity. This is only

possible when you have a good knowledge of Asset Accounting in SAP S/4HANA
and its workflow. The SAP HANA Finance consultants are responsible to do the
asset capitalization process in SAP S4 HANA. So getting its knowledge is of utmost
importance. I hope you get my point here. So do learn well this concept for a good
knowledge of S/4HANA Finance sub-topics.
Why read these SAP FICO Interview questions?
These SAP FICO interview questions are collected from the true experiences of
past students (alumni) that they had in their interviews. I made this list of questions
in reference to the queries and experiences of my students and the best answer that
I suggest to them.

Hence these questions would give you the best answers for those questions that
usually interviewers ask in SAP FICO interviews.

SAP FICO interview questions is a highly searched term for those who want to get
their desirable SAP FICO job. By seeing these SAP FICO interview questions and
answers, you get a basic idea of what employers look for while hiring their
workforces.

Do reading these SAP FICO interview questions really help?

Honestly speaking, nobody can give a surety that the given questions would actually
be asked in interviews. Since it depends on the interviewer, the company & position
you are applying for (role of SAP FICO End-user or an SAP FICO consultant), and
their core requirements. Thus, based on these, they make a list of the SAP FICO
interview questions to ask you.

So you should not only rely on just reading these questions only for preparing for
your interview. You should also work hard on learning SAP FICO and its core
competencies such as knowledge of business processes, configurations,
implementation processes, key components of SAP FICO, submodules and their
functionalities etc.

In other words, if you have done your homework properly, then only these SAP FICO
interview questions would help you the best.

SAP FICO Interview questions – Covers key competencies

These SAP FICO Interview Questionsare based on key topics of Finance and
Controlling like Organisational structure, Company Codes, Charts of Accounts,
Fiscal Year variant. These topics show practical aspects of the configuration in
FICO. Thus, I can say, these are some of the most frequently asked questions
during FI & CO job interviews.

Let us go ahead as per the different categories!

SAP FICO Interview Questions on Implementation and

Configuration
Q1. – What is the relation between an SAP Controlling Area and
Company Codes?
Ans. – Controlling Area may have two types of relationship with company Code:

1. Single Company Code relation

2. Cross Company Code relation

This means you can assign one single controlling area to several different company
codes. Controlling can have relationships with different company codes, either
as, one: one or, one: many.

Controlling Area is the umbrella under which you can store all controlling activities
of cost center accounting, product costing, profit Centre and Profitability Analysis.

Q2. – How many Charts of Accounts can a company code have?

The chart of Accounts is nothing but the list of General ledger accounts.

Ans. – You can assign two charts of accounts to a single company code.

One is the Operational Chart of Accounts which is mandatory to perform all

operational activities.

Second, we can use (rarely) Country-specific charts of accounts in some

scenarios.

Q3. – What are the options in SAP when it comes to Fiscal Years?
The Fiscal Year is nothing but the way financial data is stored in the system.
We can take a maximum of up to 12 periods and 4 special periods. These periods
are stored in what is called the Fiscal Year Variant.

Answer to Question:

You can take the Fiscal Year Variant either as:

 A Calendar Year (Jan-Dec), or
 A Non-Calendar Year (April-March, June –May, etc).

Since you create a Fiscal Year Variant at the client level, you need to assign it to a
company code.

You can define a fiscal Year with 2 digit code. The table for the Fiscal Year
Variant is T009.

In SAP ERP (ECC) you can assign two different FYV to the company code and
controlling area. For example, you can assign K4 (Jan-Dec) to the Company code
and V3 (April-March) to the controlling Area.

However, in S4 HANA Finance, you need to assign the same Fiscal Year Variant to
both, the company code and the Controlling Area.

Q4. – What is the Year Dependent Fiscal Year Variant?

Ans. – In a Year dependent fiscal year variant, the number of days in a month is not
as per the calendar month.

Lets us take an example– for the year 2010, the period January ends on 29 th, Feb
ends on 27th and March ends on 29.

For the year 2011, January ends on 30th, Feb ends on 26th, March ends on 30th, etc.
This applies to many countries, especially to the USA. Accordingly, we need to
configure the Fiscal Year Variant.

Q5. – How does posting happen in MM during special Periods?

Ans. – There is no posting that happens from SAP MM in special periods. Special
periods are only applicable to the FI module. You need them to make any additional
posting such as closing entries, provisions, which happen during year-end. 

Q6. – How many currencies you can configure for a company code?
Ans. – A company code can have 3 currencies.

1. Local Currency/Company code

2. Group currency which is defined at the client level
3. Hard Currency at country level settings in Net weaver (you can define this if the
inflation rate is high).

Q7. – Do we need to configure additional ledgers for parallel

currencies?
Ans. – In case we configure two currencies (Company Code currency and parallel
currency) we do not need an additional ledger. However, if we configure the third
parallel currency and this is different from the second currency type, then we need to
configure an additional ledger.

SAP FICO Interview Questions on FI GL (General

Ledger)
Q8. – Give an example of GL accounts that system posts
automatically through the system. How you define it in the system?
Ans. – Stock Consumption accounts are instances of GL accounts that the system
posts automatically. In the GL account master record, a checkbox exists wherein you
select the automatic posting option. This is called “Post automatically only”.

Q9. – What is an Account Group and where you use it?

Ans. – An account Group controls the data that you need to enter at the time of the
creation of a master record.

Account Groups exist for the definition of a GL account, Vendor Master Data and

Customer Master. It controls the fields which pop up during SAP Master
Data creation.

Q9. – What is the Field status Group?

Ans. – The field status Group controls the fields which come up when the user does
the transactions. Here, three options are available:

1. You can have the fields only for display

2. You can suppress it
3. Lastly, you can make it mandatory.

Noteworthy, the field status group is stored in the GL master.

Q10. – What is the use of “Document Type” in SAP?

Ans. – A document type in SAP is specified at the Header level during
transaction entry and serves the following purpose:

 Document Type defines number range for documents

 Secondly, it controls the type of accounts that you can post to. For Example – Asset,
vendor, customer, GL posting, etc
 Lastly, you can use a Document Type for the reversal of entries.

Q11. – What is the Financial Statement Version?

Ans. – An FSV (Financial Statement Version) is a reporting tool that you use to
extract depict the Final accounts from SAP. Examples are the Profit and Loss
Account and Balance sheet.
Furthermore, you can freely define it to generate the output for various external
agencies like Banks and other statutory authorities. Even you can define multiple
FSV too.

Q12. – What are Validations and Substitutions?

Ans. – Validations/Substitutions in SAP are defined for each functional area eg.
Assets, Controlling, etc at the following levels:

 Document Level
 Line Item Level

You are required to specifically activate and set them up. Importantly, these are
complex and you should do them only when you need them. Here you generally
require help from the technical team for this work.

Q13. – Is it possible to maintain plant wise different GL codes?

Ans. – You can maintain the valuation grouping code as per plant and you can
configure it in the MM module. Certainly, you should activate the valuation group
code for this.

Additionally, you can maintain Account codes as per the valuation grouping code
after doing this configuration.

SAP FICO Interview Questions -Organizational

Structure
Q14. – Is the Business area lies at the company code level?
Ans. – The Business area lies at the client level. This means the other company
codes can also post to the same business area.

Q15. – What are the different scenarios under which you may define a
Business Area or a Profit Centre?
Ans. – Though, this is very disputable. However, both the Business Area and Profit
Centres are created for internal reporting. Each has its own merits & demerits.

Many companies nowadays go for Profit centers as they feel that SAP would not
support Business area enhancements in future versions.

For the typical month-end procedures, you need to execute both. Many times
reconciliation becomes a big issue. A typical challenge in both of them is, many
times, you do not know the Business Area or Profit Center of the transaction at the
time of posting. Thus, it makes the process complex for you.
SAP S4 HANA Controlling has got many new features in the new S4HANA versions.
With Universal Journal and ACDOCA, Controlling has got much-improved
functionality. Not only this, Controlling has become more integrated and user-friendly
in SAP S4 HANA Finance.

What is there in this article: I.e. Components with Changes:-

 Universal Journal
 Dealing with Reports
 Cost Elements
 CO-PA (Profitability Analysis)
 Predictive Accounting
 Currency Options
 Material Ledger

Here we go in their details.

Universal Journal in SAP S4 HANA Controlling

Universal Journal is the surface for the single source of truth in S/4HANA. However,
it is not a new concept now. Surely it is with us for a long time. But in SAP
Controlling in S4 HANA, has brought even more functionalities and features. So we
will talk about its general benefits in brief.

 It eliminates differences in OLTP and OLAP and also eliminates the ETL process.
 It removes the need for reconciliation between different ledgers (E.g. FI & CO).
 Universal Journal allows enhancement in system performance.
 The tables here are now simplified with the unification of sub-ledgers (E.g. FI, CO,
AA & ML).
 It further allows the elimination of totals concepts.
Dealing with Reports in S/4HANA Vs. ECC
Here I try to explain to you the difference between the process on how reports were
generated in SAP Controlling under ECC Model. And how this process changed with
the new features in the S/4HANA series of Controlling.

Reports in ECC – Old Model

In ECC most of the controlling Reports were based on total tables but now total
tables are not in place anymore. Here the next question arises. How do these reports
now work in SAP S/4 HANA?

Reports in SAP S4 HANA

Compatibility View – There is a non-disruptive compatibility view mechanism. This
mechanism ensures that the reports are redirected to the new system and continue
to work smoothly.

CDS View – Importantly, the old tables like COEP, COSP and COSS are replaced
by views of the same name called CDS views or compatibility views.

These new views tables aggregate the data in the universal journal on the fly
following the old table structure. Although, the old reports continue to work based on
the universal journal or ACDOCA table.

SAP CO Fiori on ACDOCA – Secondly, the CO Fiori Apps also are based on the
ACDOCA as well. In simple words, your reporting source is now ACDOCA/Universal
Journal.

Likewise, the Payables, Receivables, Assets, Controlling and material ledger also,
are now in the same universal journal table (ACDOCA).

However, Universal Journal/ACDOCA is much more than a technical concept.

It is a single place where we can find every information.

I explain this with a good example.

We raise a purchase order for the project. In this case, we consider the materials as
Capital Expenses. Therefore, we can redirect the receipt of the goods to the WBS
element/Order. Subsequently, the WBS element/Order is settled to an Asset Under
Construction (at period end). It is further settled to the Final Asset (End of internal
construction).

After a while, we raise an invoice and then post the payment.

Now let us compare.

In ECC, to keep together the information from purchase order to payment, we need
to probably create a custom report among different tables.
Whereas in S4 HANA with Universal Journal/ACDOCA we can find every record in
one single table. This is the power of Universal Journal.

Real time Integration

In SAP S/4 HANA the secondary cost elements are now G/L accounts and part of
the Chart of Accounts. This is again possible with the concept of Universal Journal.

Likewise, the Universal journal/ACDOCA also represents every internal Controlling

posting. Therefore, you do not need Reconciliation Ledger or Real-time integration
concept anymore.

Now next question arises here that how it will work then?

Now you can write SAP S4 HANA Controlling’s (CO) internal Postings on document
types in Finance (FI). Surely, you have to select one document type example “CO”
for each CO Business Transaction.

Furthermore, you can also Assign the CO version to the leading ledger or every
standard ledger.

Cost Element in SAP S4 HANA Controlling (S/4HANA

Finance)
In the new SAP S4 HANA Finance, both the Primary & Secondary Cost Elements,
are now G/L accounts and are part of the chart of accounts. For example, for doing
the CO internal allocation between two cost centers. If you create an internal posting
in CO, the system will generate one FI document for it with an FI header (BKPF not
BSEG).

Anyway, the total impact of the secondary element is zero because you use them
only to move costs from one cost object to another. Thus, you should not worry
about them in total but only among Controlling objects.

Controlling Profitability Analysis – CO-PA in SAP

FICO
In ECC there were two types of Controlling Profitability Analysis (CO-PA)

 Costing Based (Using Value Fields)

 Account-Based (Integrated with G/L accounting and using G/L accounts)

We use Profitability Analysis opted for costing based because it was much powerful
and very integrated with Product Costing. It is more useful as it allowed the use of
valuations to import in CO-PA sales order statistical conditions.

But if talk about the COPA process flow in SAP FICO, it has a lot of issues being
based on value fields not on G/L accounts. Writing on different tables and sometimes
not completely aligned with the General Ledger Document postings.
An example of this is the Goods issue.

In costing based CO-PA, we can only generate accounting documents but there was
no update in CO-PA. Therefore, we could not easily reconcile it with General Ledger.

CO-PA in SAP S4 HANA Controlling (S/4HANA

Finance)
In SAP S/4 HANA, we have the integrated approach of the Universal Journal. Thus,
here SAP has decided to use the integrated ECC Account-Based CO-PA as a base
to build the new SAP S/4 HANA Margin Analysis.

Although we can still use the Costing based CO-PA in SAP S/4 HANA, Account-
based CO-PA would be the future in S/4 HANA. Earlier, the Account-based COPA
was not easy to adopt for customers. This is because the Costing based CO-PA
offered more functionalities.

But then, with every new release SAP improved the Account-based CO-PA in
Universal Journal with new functionalities. A good example of this is the COGS
splitting, which SAP has included.

Predictive Accounting
Predictive accounting deals with a dedicated part of P/L Sales Orders in real-time.
Before it becomes an actual posting it may help customers to anticipate their month-
end closing and reporting.

We have the option to bring in SAP S/4 HANA Sales orders in a specific ledger
(extension ledger). Similarly, we can obtain automatic reversals of these postings
once the related financial documents are posted (from Outbound Delivery).

The good thing about predictive accounting is that the “predictive postings” are
automatically adjusted with the actual postings.

Material Ledger
Material Ledger in SAP S/4HANA is mandatory. This does not mean that you will be
forced into actual costing. Importantly, the table structures in SAP ECC Material
Ledger are complex. Whereas in S/4 HANA data structure has been simplified.

Sub-ledgers for Inventory valuation

The objective positions the ML as a sub-ledger for inventory valuation.

If an organization records inventory on its balance sheet, then it needs a sub-ledger

for inventory postings. This subsequently provides more granular details about
inventory transactions than G/L postings like AP, AR and Fixed Asset.

Sub-Ledgers of SAP GL
Further, these GL postings are also sub-ledgers of SAP General Ledger.

The inventory “sub-ledger” already exists in SAP ECC in the form of inventory
valuation tables.

Examples of these tables

are EBEW, EBEWH, MBEW, MBEWH, OBEW, OBEWH etc.

SAP enhanced these tables in S4 HANA just as it did with Universal Journal. The
actual costing functionality is still optional and this is what causes the most
confusion. Therefore companies that do not need to report their inventory and cost of
sales at actual cost do not need to activate this functionality.

Currency Options in S/4HANA Finance

S/4 HANA offers a few new currency options too. It offers new ways of evaluating
Material Ledger Data.

Currency Integration with ML in Controlling in SAP S/4 HANA

Currency settings are available in the Universal Journal as integrated with ML.
Multiple currencies or parallel currencies is a functionality that allows companies to
record transactions in more than one currency for every transaction posted to FI.

This parallel currency functionality has been extended to ML for any inventory
transactions, which can be viewed in Material Ledger reports.

Summary
With the launch of S4HANA, many things have changed in SAP upgraded. As you
understood with the information I mentioned above, Controlling too got many
updates in S4 HANA. These changes have made Controlling advanced and work
better. S/4HANA technology has updated all modules for the better. Accordingly,
SAP consultants who do configurations and implementations should be the best
updated with changes. Obviously for their SAP career growth and also for scaling
their portfolio.

Controlling itself is a very important part of SAP Financial and Management

Accounting. Good companies do look for a capable SAP S/4HANA Finance
Consultant who can work efficiently on controlling also.

So, if you are a beginner, then I advise you to learn ECC-based SAP Controlling first
then go for S/4HANA Controlling as the next step.
 Realtime Work Interview Questions
Scenario 1 – SAP Purchase Order
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.

Scenario 2 – SAP FICO General Ledger

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.
Solution
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.

Scenario 3 – Adding a new column in open item

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.
Solution to this SAP FICO Scenario
  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.

Scenario 4 – Add a Trading Partner

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.

Scenario 5 – Line Item Display Issue in GL Accounts

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.

Scenario 6 – Wrong Posting Rule in Bank Statement

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 TCode 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 TCode.

Suggestion
Many such scenarios in SAP FICO comes under the roles and responsibilities of a
FICO consultant. He/she face them in real-time work. Thus, they are expected to
know the solutions to these kinds of issues quickly and efficiently as well. That’s why
these kinds of problems become part of many of the FICO interview questions, so as
to check the knowledge of the candidate.

I suggest you not only learn, but also practice these scenarios in the system to check
the whole process of resolving such problems. This is also required for growing into
the next phase of your SAP career i.e. SAP S/4HANA Finance. For upgrading into
the new technology you should be expert in the current position which needs
knowledge of every aspect of Financial Accounting. Here these kinds of scenarios
help a lot.
Why read these SAP FICO Interview questions?
These SAP FICO interview questions are collected from the true experiences of
past students (alumni) that they had in their interviews. I made this list of questions
in reference to the queries and experiences of my students and the best answer that
I suggest to them.

Hence these questions would give you the best answers for those questions that
usually interviewers ask in SAP FICO interviews.

SAP FICO interview questions is a highly searched term for those who want to get
their desirable SAP FICO job. By seeing these SAP FICO interview questions and
answers, you get a basic idea of what employers look for while hiring their
workforces.

Do reading these SAP FICO interview questions really help?

Honestly speaking, nobody can give a surety that the given questions would actually
be asked in interviews. Since it depends on the interviewer, the company & position
you are applying for (role of SAP FICO End-user or an SAP FICO consultant), and
their core requirements. Thus, based on these, they make a list of the SAP FICO
interview questions to ask you.

So you should not only rely on just reading these questions only for preparing for
your interview. You should also work hard on learning SAP FICO and its core
competencies such as knowledge of business processes, configurations,
implementation processes, key components of SAP FICO, submodules and their
functionalities etc.

In other words, if you have done your homework properly, then only these SAP FICO
interview questions would help you the best.

SAP FICO Interview questions – Covers key competencies

These SAP FICO Interview Questionsare based on key topics of Finance and
Controlling like Organisational structure, Company Codes, Charts of Accounts,
Fiscal Year variant. These topics show practical aspects of the configuration in
FICO. Thus, I can say, these are some of the most frequently asked questions
during FI & CO job interviews.

Let us go ahead as per the different categories!

SAP FICO Interview Questions on Implementation and

Configuration
Q1. – What is the relation between an SAP Controlling Area and
Company Codes?
Ans. – Controlling Area may have two types of relationship with company Code:

1. Single Company Code relation

2. Cross Company Code relation

This means you can assign one single controlling area to several different company
codes. Controlling can have relationships with different company codes, either
as, one: one or, one: many.

Controlling Area is the umbrella under which you can store all controlling activities
of cost center accounting, product costing, profit Centre and Profitability Analysis.

Q2. – How many Charts of Accounts can a company code have?

The chart of Accounts is nothing but the list of General ledger accounts.

Ans. – You can assign two charts of accounts to a single company code.

One is the Operational Chart of Accounts which is mandatory to perform all

operational activities.

Second, we can use (rarely) Country-specific charts of accounts in some

scenarios.

Q3. – What are the options in SAP when it comes to Fiscal Years?
The Fiscal Year is nothing but the way financial data is stored in the system.
We can take a maximum of up to 12 periods and 4 special periods. These periods
are stored in what is called the Fiscal Year Variant.

Answer to Question:

You can take the Fiscal Year Variant either as:

 A Calendar Year (Jan-Dec), or
 A Non-Calendar Year (April-March, June –May, etc).

Since you create a Fiscal Year Variant at the client level, you need to assign it to a
company code.

You can define a fiscal Year with 2 digit code. The table for the Fiscal Year
Variant is T009.

In SAP ERP (ECC) you can assign two different FYV to the company code and
controlling area. For example, you can assign K4 (Jan-Dec) to the Company code
and V3 (April-March) to the controlling Area.

However, in S4 HANA Finance, you need to assign the same Fiscal Year Variant to
both, the company code and the Controlling Area.

Q4. – What is the Year Dependent Fiscal Year Variant?

Ans. – In a Year dependent fiscal year variant, the number of days in a month is not
as per the calendar month.

Lets us take an example– for the year 2010, the period January ends on 29 th, Feb
ends on 27th and March ends on 29.

For the year 2011, January ends on 30th, Feb ends on 26th, March ends on 30th, etc.
This applies to many countries, especially to the USA. Accordingly, we need to
configure the Fiscal Year Variant.

Q5. – How does posting happen in MM during special Periods?

Ans. – There is no posting that happens from SAP MM in special periods. Special
periods are only applicable to the FI module. You need them to make any additional
posting such as closing entries, provisions, which happen during year-end. 

Q6. – How many currencies you can configure for a company code?
Ans. – A company code can have 3 currencies.

1. Local Currency/Company code

2. Group currency which is defined at the client level
3. Hard Currency at country level settings in Net weaver (you can define this if the
inflation rate is high).

Q7. – Do we need to configure additional ledgers for parallel

currencies?
Ans. – In case we configure two currencies (Company Code currency and parallel
currency) we do not need an additional ledger. However, if we configure the third
parallel currency and this is different from the second currency type, then we need to
configure an additional ledger.

SAP FICO Interview Questions on FI GL (General

Ledger)
Q8. – Give an example of GL accounts that system posts
automatically through the system. How you define it in the system?
Ans. – Stock Consumption accounts are instances of GL accounts that the system
posts automatically. In the GL account master record, a checkbox exists wherein you
select the automatic posting option. This is called “Post automatically only”.

Q9. – What is an Account Group and where you use it?

Ans. – An account Group controls the data that you need to enter at the time of the
creation of a master record.

Account Groups exist for the definition of a GL account, Vendor Master Data and

Customer Master. It controls the fields which pop up during SAP Master
Data creation.

Q9. – What is the Field status Group?

Ans. – The field status Group controls the fields which come up when the user does
the transactions. Here, three options are available:

1. You can have the fields only for display

2. You can suppress it
3. Lastly, you can make it mandatory.

Noteworthy, the field status group is stored in the GL master.

Q10. – What is the use of “Document Type” in SAP?

Ans. – A document type in SAP is specified at the Header level during
transaction entry and serves the following purpose:

 Document Type defines number range for documents

 Secondly, it controls the type of accounts that you can post to. For Example – Asset,
vendor, customer, GL posting, etc
 Lastly, you can use a Document Type for the reversal of entries.

Q11. – What is the Financial Statement Version?

Ans. – An FSV (Financial Statement Version) is a reporting tool that you use to
extract depict the Final accounts from SAP. Examples are the Profit and Loss
Account and Balance sheet.
Furthermore, you can freely define it to generate the output for various external
agencies like Banks and other statutory authorities. Even you can define multiple
FSV too.

Q12. – What are Validations and Substitutions?

Ans. – Validations/Substitutions in SAP are defined for each functional area eg.
Assets, Controlling, etc at the following levels:

 Document Level
 Line Item Level

You are required to specifically activate and set them up. Importantly, these are
complex and you should do them only when you need them. Here you generally
require help from the technical team for this work.

Q13. – Is it possible to maintain plant wise different GL codes?

Ans. – You can maintain the valuation grouping code as per plant and you can
configure it in the MM module. Certainly, you should activate the valuation group
code for this.

Additionally, you can maintain Account codes as per the valuation grouping code
after doing this configuration.

SAP FICO Interview Questions -Organizational

Structure
Q14. – Is the Business area lies at the company code level?
Ans. – The Business area lies at the client level. This means the other company
codes can also post to the same business area.

Q15. – What are the different scenarios under which you may define a
Business Area or a Profit Centre?
Ans. – Though, this is very disputable. However, both the Business Area and Profit
Centres are created for internal reporting. Each has its own merits & demerits.

Many companies nowadays go for Profit centers as they feel that SAP would not
support Business area enhancements in future versions.

For the typical month-end procedures, you need to execute both. Many times
reconciliation becomes a big issue. A typical challenge in both of them is, many
times, you do not know the Business Area or Profit Center of the transaction at the
time of posting. Thus, it makes the process complex for you.
SAP FICO Scenarios – For Interviews and On-job
Work
SAP FICO scenarios are very commonly looked for by SAP aspirants. Some may
need them to solve their on-job issues, while some need for preparing well for
interviews. Here are some case studies that help in SAP FICO interviews and real-
time working.

SAP FICO Interview

Preparation

Scenario 1 – SAP Purchase Order

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.
Scenario 2 – SAP FICO General Ledger
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.
Solution
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.

Scenario 3 – Adding a new column in open item

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.
Solution to this SAP FICO Scenario

 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.

Scenario 4 – Add a Trading Partner

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.

Scenario 5 – Line Item Display Issue in GL Accounts

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.

Scenario 6 – Wrong Posting Rule in Bank Statement

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.

Suggestion
Many such scenarios in SAP FICO comes under the roles and responsibilities of a
FICO consultant. He/she face them in real-time work. Thus, they are expected to
know the solutions to these kinds of issues quickly and efficiently as well. That’s why
these kinds of problems become part of many of the FICO interview questions, so as
to check the knowledge of the candidate.

I suggest you not only learn, but also practice these scenarios in the system to check
the whole process of resolving such problems. This is also required for growing into
the next phase of your SAP career i.e. SAP S/4HANA Finance. For upgrading into
the new technology you should be expert in the current position which needs
knowledge of every aspect of Financial Accounting. Here these kinds of scenarios
help a lot.

What are Tables in SAP FICO?

Tables in SAP are a storage space in SAP Database that segments and stores data
module-wise. Say, for example, we enter any data like Configuration Data, Master
data, Transaction data. Here SAP Tables in SAP FICO store them properly and in
order in the SAP Database.
What is the use of Tables in SAP FICO?
There are certain Tables, in SAP that when changed will not affect a similar Table in
other clients. There are known as “Client-Dependent” Tables. All the client-
dependent Tables will have their first field as “Mandt”. Example LFA1.

On the other hand, if a change is made in one Table, it is reflected in a similar Table
across various Clients. Then such a Table will be called “ Client Independent”. In this
case, the first field of the Table will not be “Mandt”.

Internal Tables
There are also other types of Tables known as Internal Tables. These are standard
data type objects which exist only during the “runtime” of an ABAP program. They
are used to perform calculations on subsets of database Tables. Further, they help
us to reorganize the contents of database Tables according to the user’s needs.
Internal Tables fulfil the need for arrays in ABAP.

Types of Table in SAP FICO

There are three types of Internal Tables

a. Standard Tables with “linear” index.  They key is always “non-unique”.

b. Stored Tables with either “unique” or “non-unique”key.
c. Hashed Tables (they do not have linear index) with key defined always as unique.

Now let us see the list of Most Important Tables in SAP FICO i.e. in SAP Financial
Accounting and SAP Controlling.
 SAP FI Tables List – Financial Accounting

Table Name Table Code

GL Account Master- Chart of Account SKA1

AR and AP information System RFRR

Correspondence Request BKORM

Accounting Document Header BKPF

Accounting Document-Line Item BSEG

Accounting Document-Line Item-New GL FAGLFLEXA

Index –Customer Open Item BSID

Index –Customer Cleared Item BSAD

Index-GL Accounts-Open Items BSIS

Index- GL Accounts  Cleared Items BSAS

Index-Vendor Open Items BSIK

Index-Vendor Cleared Items BSAK

Depreciation Area ANKB

Asset Class-Description ANKT

Table Name Table Code

Asset Class-General Data ANKA

Asset Class-Insurance Type ANKV

Asset Down Payment settlement ANEV

Asset Line Items ANEP

Asset Master Record Segment ANLA

Asset Master Record Segment ANLX

Asset Master Record User Fields ANLU

Asset Periodic Values ANLP

Asset Texts ANLT

Asset Type ANAR

Asset Value Fields ANLC

Bank Master Record BNKA

Business Partner -General Data BP000

Cash Management Line Item in Payment Request FDZA

Create GL account with Reference TSAK

Table Name Table Code

Credit Management-FI Data KNKK

Customer/Vendor Linking KLPA

Customer Master General Data KNA1

Customer Master Partner Functions KNVP

Customer Master Sales Data KNVV

Customer Master Sales Request KNVD

Customer Master Data-Company Code KNB1

Customer Master Bank Details KNBK

Customer Master Credit Management-Central Data KNKA

Customer Master Credit Management-Control Area Data KNKK

Customer Master Dunning Data KNB5

Customer Master Special GL Transactions KNC3

Customer Master Transaction Figures KNC1

Customer Payment History KNB4

Depreciation Terms ANLB
Table Name Table Code

Asset Posting-Header ANEK

Document Parking Header VBKP

Recurring Entry-Header BKDF

Document Type Text T003T

Dunning Data MHNK

EBS Line Entry FEBEP

GL Account Description SKAT

GL Account-Chart of Account SKA1

GL Account-Company Code SKB1

APP Run F111

Vendor Validation BSIP

Inter-Company Posting Procedure BVOR

Asset Number ANLH

Dunning Program-Management Record MAHNV

Payment Medium File PAYR

Table Name Table Code

Pre-numbered Check PCEC

Tax Code Names T007S

Vendor Master General Data LFA1

Vendor Master Company Code LFB1

Vendor Master Bank Data LFBK

Vendor Master Purchasing Data LFM2

Vendor Master Purchasing Organization Data LFM1

SAP Financial Accounting handles the financial obligations of the business. It

enables company-wide control and integration of financial information. It is essential
for strategic decision-making. Further, the SAP Finance component within SAP
Financials has several new functions. Its modern enhancements help to meet
today’s financial and management requirements in accounting and reporting.

Below are the key Tables in SAP FI which are most commonly used.

List of SAP Controlling Tables

SAP Controlling is a vital part of SAP FICO which is as important as SAP Financial
Accounting. As you know Financial Accounting deals with the external reporting of
the business. Whereas Controlling helps to report all cost and profitability Analysis to
the internal management. Further, it helps improve management across the financial
spectrum by Planning and analyzing costs to deliver reports that influence decision
making.

Table Name Table Code

Activity Type Master CSLA

Table Name Table Code

Assignment of Work Center to Cost Center CRCO

Control Data for Activity Type COKL

Control Data for Cost Center COKA

Primary Cost Element-Control Data COKP

Secondary Cost Element-Control Data COKS

Statistical Key Figure COKR

Cost Object Document Header COBK

Cost Object Line Item ( By Year) COEJ

Cost Object Line Item ( By period) COEP

Line Items Activity Type COEPL

Line Item for SKF COEJR

CO Versions TKVS

Controlling Area TKA01

Cost Center/Activity Type CSSL

Cost Center/Cost Element CSSK

Table Name Table Code

Cost Center Master Data CSKS

Cost Element-Chart of Account CSKA

Cost Element-Company Code CSKB

Controlling Object-Header BPBK

Settlement-Header AUAK

EC-PCA GLPCA

EC-PCA-Plan Line Items GLPCP

Cost Total-External Posting COSP

Cost Total-Internal Posting COSS

Order Master Data AUFK

PCA Total Table GLPCT

Profit Center Master Data CEPCT

Distribution Settlement Document AUAB

Let us see the Most Important Tables in SAP Controlling.

Why to Learn Them?
The Tables in SAP FICO are used by FICO Consultants and users. They access
them to fetch required data to use or refer for any configuration work or resolving
issues.

Not just this, interviews also ask about some mostly used tables in SAP FICO
interviews to check the core knowledge of contestants.

Learn them and understand them so as to work better and build a good career in
SAP FICO.

SAP FICO TCodes – What they do?

SAP FICO Tcodes helps in the fast execution of programs in the Financial
Accounting application of the SAP system. By using these Tcodes, you can easily
avoid multiple steps of work which would otherwise be done by navigating through
the menu system. Which obviously be a time-consuming process.

To understand this more clearly, let us first know what are Tcodes in SAP.
What are Transaction Codes?
In SAP, Transaction codes are used to access functions or executing ABAP
programs in SAP application for fast processing and executions. Instead of using the
menu, the navigation and execution are combined into a single step. These are
called as TCodes.

It is very helpful while working in the system. This one is the preferred method of
using the SAP application because navigating the menu path is time-consuming and
the user needs to remember where to look in the navigation menu path.

An example – GL Master Creation

Method One – Use System Navigation.

To do this, you need to follow this navigation path:-

SAP Easy Access => Accounting => Financial Accounting => General
Ledger=> Master Record => GL Accounts => Centrally

Method Two – Simply use Transaction Code- FS00

Here is a screenshot for it.

 This means, if you use Tcodes, you shorten your work and save your time. It is
equally important to Byheart the frequently used (key) Tcodes, that would even help
you more as you don’t need to see the codes again and again.

(It is somehow like using short-cut keys on a keyboard instead of using a mouse, to
save your time and effort).

If you are working or practising SAP Financial Accounting, you should definitely
know the important Tcodes in SAP FICO. Here a list of them with their basic use.

Learn SAP FICO Tcodes for Interview Preparation

You should learn the most important or frequently used SAP FICO Tcodes for your
interview preparation as well. As these are commonly asked in interviews to check
your preparedness for real-time work.

If you are an SAP consultant or working towards getting into the SAP sector, you
must learn them. Further, if you can by-heart the key Tcodes in SAP FICO, it would
be an added advantage.

SAP FICO Fields it is Used

Description of the Fields
TCodes For

An implementation guide that adjusts the SAP System to the requirements of a

SPRO Enter IMG
company.

Company Code – The company code is the central organizational unit of external accounting within
OX02
Create, Check, Delete the SAP System.

OX03 Create Business Area Business Areas are used to differentiate transactions that come from different lines
SAP FICO Fields it is Used
Description of the Fields
TCodes For

of business in a company.

Functional area is an account assignment characteristic that sorts operating

OKBD Functional Areas
expenses according to functions. Example Production, Administration.

Create Credit Control The organizational unit represents the area where customer credit is awarded and
OB45
Area monitored. This can be either be a single or for several company codes.

In SAP the fiscal year is assigned as a variant. Posting periods can further be defined
Maintain Fiscal Year
OB29 in each fiscal year variant. SAP allows a maximum of 16 posting periods in each
Variant
fiscal year.

Assign Co. Code to As Fiscal Year Variant created at a client level, it is required to assign to company
OB37
Fiscal Year Variant code.

Creation of Chart of Chart of Account is the list of General Ledger Account Master. Chart of Accounts is
OB13
Account (CoA) defined at the client level and assigned to each company code.

Copy Chart of Account

OBY7
(CoA)

Transport Chart of
OBY9
Account

An account group is segregating or grouping similar accounts into a single group.

OBD4 Define Account Group Each account group in SAP is assigned to a chart of accounts, so we can only use an
account group if the controlling areas use the same chart of accounts.

Copy GL Accounts
OBY2 from the Chart to Co.
Code
SAP FICO Fields it is Used
Description of the Fields
TCodes For

Retained Earnings account defines to be used for posting the expenditure and
Define Retained
OB53 income of the year. It is used to carry forward the balance from the current fiscal
Earnings
year to the next fiscal year.

Maintain Financial
OB58
Statement Versions

Field status variant is used to define the fields which are used for input like a cost
Maintain Field Status centre, profit centre, plant etc which are entry fields and hidden fields. Field status
OBC4
Variant Variant is a tool that is provided by SAP to assign the same set of properties to more
than one object.

SAP Finance posting period variant is used to maintain accounting periods that are
Define Posting Period open for posting and all closed periods are balanced. This is used for the opening
OBBO
Variant and closing period in the fiscal year for posting purposes. As it is created client level
it is required to assign to company code.

Define Document Document Type in SAP is defined to distinguish business transactions. For example,
OB17 Type & Number transactions like customer payment and vendor credit memos are distinguished
Ranges with two different document types in SAP to identify it in future.

The posting key in SAP is a two digits numerical key that determines the type of
OB41 Maintain Posting Keys transaction entered in a line item. Posting keys in SAP controls the entries in a line
item of document entries.

SAP Tolerance Groups define posting authorizations of users in SAP. These postings
Create Tolerance
OBA4 permissions define the amounts that certain groups of accounting users are allowed
Groups
to post.

Document Numbers uniquely identifies every transaction within a fiscal year in a

Create GL Number
FBN1 company code. Number ranges for a document type in SAP are used to define how
Ranges
numbers can be assigned to the transaction.
SAP FICO Fields it is Used
Description of the Fields
TCodes For

Automatic Posting
OBL1
Documentation

Automatic Account
FBKP
Assignment

Configuration transaction OBYC creates the core of SAP integration between the
MM Automatic
OBYC MM, FI and Controlling modules in a traditional SAP. Transaction keys are used to
Account Assignment
determine general ledger accounts used by the system.

Enter Global
OBY6
Parameters

With the transactional app Manage G/L Account Master data, you can display
Creation of GL Master
FS00 create and edit the master data of G/L accounts. You can also easily add new G/L
Records
accounts from scratch or based on existing accounts.

Posting of GL
F-02 This FI transaction code is used to post any JV entry.
Transactions

Display of GL After posting any transaction, the system will generate an accounting document. So,
FB03
Document to view that accounting document we can use this SAP FICO TCode FB03.

Display of GL
FS10N To get the GL total balance.
Accounts

Define Interest
OB46
Calculation Types

OBD3 Define Vendor For creating a vendor master record, we have to specify an account group. Via
Account Group Vendor account group we determine the interval for the account numbers, whether
the number assigned internally by the system or externally by the user. Whether
SAP FICO Fields it is Used
Description of the Fields
TCodes For

one-time account. Which fields are ready for input or must fill when creating and
changing master records.

Creation of Vendor By using this SAP FICO TCode, we can create a vendor Master and update, General
XK01
Master information, accounting information and Purchasing information.

Purchase Invoice How to post one vendor invoice only from an accounting point of view. However, it
F-43
Posting excludes logistic vendor invoice posting.

Display Vendor
FK10N A particular vendor total account balance.
Account

F112 Define House Bank To create one House Bank in SAP ERP.

Maintain Terms of To calculate the discount on Customer/vendor we need to assign payment term on
OBB8
Payment (ToP) master record or document.

For creating a customer master record, we have to specify an account group.

Further, via the customer account group, we determine the interval for the account
Creation of Customer
OBD2 numbers, whether the number assigned internally by the system or externally by
Account Group
the user. Whether one-time account. Which fields are ready for input or must fill
when creating and changing master records.

Customer Tolerance Tolerance Groups contain the details that control the way the system processes the
OBA3
Groups cash discount and payment difference.

Creation of Customer By using this TCode in SAP FICO, we can create a customer Master and update
XD01
Master General information, accounting information and Sales information.

Display Customer
FD10N A particular customer total account balance.
Account
SAP FICO Fields it is Used
Description of the Fields
TCodes For

Incoming Payment
F-28 To process collection from the customer.
Posting

An organizational unit that you use to process the dunning program. For example,
OB61 Define Dunning Area
By Division, sales Organisation etc.

Copy Reference Chart

EC08
of Depreciation (CoD)

Define Depreciation The depreciation area is used to calculate different values in parallel for each fixed
OADB
Area asset for different purposes.

Assign Chart of
OAOB Depreciation to Co.
Code

Asset classes are used to classify the fixed assets in asset accounting according to
OAOA Define Asset Class the asset types. Also, these are defined at the SAP client level and contain key
control parameters.

Assignment of
AO90
Account in Asset Class

Determination of
OAY2 Depreciation Area in
Asset Class

Creation of Asset
AS01
Master

AS11 Creation of Sub Asset

SAP FICO Fields it is Used
Description of the Fields
TCodes For

Asset Purchase
F-90
Posting

AFAB Depreciation Run Calculating depreciation in SAP or depreciation program execution

F-92 Asset Sale Posting

AW01N Asset Sale Posting

List of Important TCodes in SAP FICO

Where you can find the complete list of T codes in
SAP?
The above mentioned are the most frequently used T codes in sap fico. However,
there are approximately 1000 T codes in the whole Financial Accounting. Likewise,
the list of all T codes in SAP is extensive and huge. Thus, to view the T code you
need, you can refer to the SAP guide available in the system.

There are two ways where you can get to the list of T codes in SAP.

1. Easy Access.
2. IMG

How to get TCodes from Easy Access Screen

Follow the path:-

Login in SAP => Easy Access => SAP menu => Accounting =>Financial
Accounting=> (Subsequent Sub-module)

Then open the respective sub-module to see its T codes. The example below is for
Entering G/L Accounting Document which is found in:-

Financial Accounting => General Entry => Document Entry => FB50
How to get TCodes from IMG
Login in SAP => SPRO => SAP Customizing Implementation Guide =>
Financial Accounting => and Further sub-module

In the below example, you can see the Tcode for Field Status Variant (OBC4):-

Financial Accounting => Financial Accounting Global Settings => Ledgers =>
Fields => Define Field Status variant (OBC4)
EndNote
Tcodes are user-friendly tools that help in saving time and effort. Thus, I advise you
also to learn and practice the common Tcodes in SAP FICO so as to get comfortable
with their use and to be efficient on them.
This list of SAP FICO Questions and answers mainly covers topics such as Foreign
Currency Valuation, Documents Clearing, Open Items, GR/IR Clearing, Accounts
Payable, Accounts receivable, Vendor Payment, APP (Automatic Payment
Program), Payment Terms, etc.

SAP FICO is the most popular module of SAP. Subsequently, many aspirants look
for the best interview questions and answers on SAP FICO. You require these
questions for either to crack the SAP FICO interviews or to clear the certification
exam.

Since GR/IR and AR/AP are some of the key parts of the Finance module, I advise
you to gain a good knowledge of these, as these are very important for SAP FICO
interviews and examination purposes.

These key SAP FICO questions with answers would definitely make a good impact
on your knowledge kit. Let us start!

SAP FICO Questions and Answers on GR/IR

Q1. – Which is the default exchange rate type which the system picks
up for all SAP transactions?
Ans. – The default exchange rate type that the system picks up for all SAP
transactions is M (average rate).

Q2. – Is it possible to configure the system to pick up a different

exchange rate type for a particular transaction?
Ans. – Yes, it is possible. In the document type definition of G/L, you need to attach
a different exchange rate type.

Q3. – What are the customising prerequisites for document clearing?

Ans. – You must manage the account on the open item management. A tick is there
in the General Ledger Master Record. It is called open Item Management. It helps
you to manage your accounts in terms of cleared and not-cleared items. A typical
example of this is GR/IR account in SAP (Goods Received /Invoice Received
Account).
Q4. – Explain the importance of GR/IR clearing account ?
Ans. – GR/IR an interim account. This is to say, in the legacy system, if you receive
the goods but does not receive the invoice, there is a provision in SAP.

In the Goods receipt, it passes the accounting entry debiting the inventory and
crediting the GR/IR account. Subsequently, when you receive an invoice, it debits
the GR/IR and credits the vendor account. Therefore, until you do not receive the
invoice, the system shows the GR/IR as unclear items.

Q5. – How many numbers of line items in one single entry you can
have?
Ans. – You can accommodate is 999 line items in one document.

Q6. – In assignment Field in the Document, you get some references.

Where these references come from?
Ans. – When you enter the Sort Key in the Master Data Field in SAP, you get the
references in the assignment field of the document.

Q7. – How do you maintain the Number Range in the Production

environment?
Ans. – You require to create the Number Range in the production client. Additionally,
you can also transport it by way of request. However, I advise creating it in the
production client.

Q8. – In customising, What do you mean by “company code

productive”?
Ans. – Once the company code is live, a check box helps prevent the deletion of
many programmes accidentally. Noteworthy, you need to activate this checkbox just
before go-live.

Why you need to know GR/IR with these SAP FICO Questions and
Answers?
GR/IR is an intermediary clearing account that you use in SAP FI for in-transit goods
and invoices. You require to do a lot of adjustments in the GR/IR account with data
entries and journal entries to manage the account. Thus, you should have technical
and conceptual knowledge to work in this area.

Since in the SAP FICO interviews, employers ask questions on the technical and
conceptual aspects of both. Hence, you must have a stronghold over concepts along
with sound practical know-how.

SAP FICO Questions and Answers on AR/AP

Q9. – At what level is the customer and vendor code stored in SAP?
Ans. – The SAP system stores the customer and vendor code at the client level.
Further, you can use the customer and vendor code by extending the company code
view.

Q10. – How do you create the Vendor invoice payments?

Ans. – We can create the vendor payments in the following manners:

1. Manual Payments without the use of any output medium like cheques etc.
2. Automatic Payment Program through cheques, wire transfers DME, etc.

Q11. – How do you configure Automatic Payment Program?

Ans. – Step-1

 CO code for the Payment transaction

 Define sending and paying company code
 Tolerance days for payable
 Minimum % for cash discount
 Maximum cash discount
 Paying Special GL transactions

Step-2

 Paying company code for the payment transaction

 The minimum amount for outgoing payment
 No exchange rate difference
 Separate payment for each reference
 Bill/Exchange payment
 Form for Payment advice

Step-3

 Check the payment method for the country

 Check whether it accepts Outgoing payment
 Whether it accepts Cheque or Bank transfer or B/E
 Whether it allows personal payment
 Do you require master data
 Document types requirement
 Payment medium programs
 Allows what currencies

Step-4

 Payment method per company code for payment transactions

 Set upper payment method and company code
 The minimum and maximum amount
 Whether payment per due day
 Bank optimisation by bank group or by postal code or no optimisation
 Whether it allows foreign currency
 Check if it allows Customer/Vendor bank abroad
 Attach the payment form check
 Check the requirement of payment advice
Step-5

 Bank Determination for Payment transactions

 Rank the house banks as per the following
 Payment method, currency and give them ranking nos
 Set up house bank sub account (GL Code)
 Available amounts for each bank
 House bank, account id, currency, the available amount
 Value date specification

Q12. – Where do you attach the check payment form?

Ans. – We attach it to the payment method per company code.

Q13. – You can maintain payment terms for customer master at two
places. Accounting view and Sales view. Which payment term the
system set as default while doing transactions?
Ans. – The Payment term in the accounting view of the customer master comes into
the picture if the transaction originates from the FI module. If you post an FI invoice
(FB70) to the customer, then the system set the payment terms from the accounting
view of the customer master as default.

This is to say, the payment term has defaulted from the accounting view of the
customer master.

The payment term in the sales view of customer master comes into the picture if the
transaction originates from the SD module. You create a sales order in the SD
module. The payment terms have defaulted in the sales order from the sales view of
the customer master.

Q14. – You can maintain the Payment Terms for vendor master at two
places. Accounting view and the purchase view. Which is the
payment term which actually gets defaulted in transaction?
Ans. – The payment term in the accounting view of the vendor master comes into the
picture if the transaction originates from the FI module. If you post an FI invoice
(FB60) to the vendor, then the payment terms have defaulted from the accounting
view of the vendor master.

The payment term in the purchasing view of the vendor master comes into the
picture if the transaction originates from the MM module. A purchase order is created
in the SD module. The Payment terms have defaulted in the purchase order from the
purchasing view of the vendor master.

Q15. – Explain the entire process of Invoice verification from GR to

invoice verification in SAP with accounting entries ?
Ans. – We post the Goods receipt in SAP for purchased material referring to a
purchase order. When we post the receipt of the goods in SAP, we pass the
following accounting entry:
Stock account: (Debit)

To        GR/IR account (Credit)

A GR/IR is a provision account that provides for the liability for the purchase. The
rates for the valuation of the material are picked up from Purchased Order.

When we book the invoice in the system through Logistics invoice verification, we

pass the following entry:

GR/IR account (Debit)

To Vendor account (Credit)

Q16. – How do you define the Tolerances for invoice verification?

Ans. – We can define the tolerances for logistic invoice verification with the
following instances:

 Small Difference
 Moving Average price variances
 Quantity Variances

Based on the client requirement, we can “Block” or “Post” the transaction with a

Warning in case the event of the Tolerances exceeds its limit.

To sum up, Tolerances are nothing but the difference between invoice amount and
payment amount or the difference between goods receipt amount and invoices
amount as the client accepts.

Why it is important to read (AR/AP) SAP FICO Questions and

answers?
Accounts Receivable and Accounts Payable are two important cornerstones of
FICO. For vendor management, invoice generation and record maintenance, etc.
you need AP configuration in the SAP system. While for Receivables, down
payments, BOI etc. you need to configure AR.

Consequently, if you are a FICO consultant, you need good knowledge of AR and
AP processes and deep know-how of their configurations.

These FICO questions on AR and AP would help you to enhance your knowledge
and would help you to define your expertise in interviews.
This is a comprehensive list of SAP Product Costing Interview Questions that are
truly based on the technical aspect of the subject. In these questions, I have focused
on the most important segments of Product Costing (like configurations & settings).
These you require during the implementation of Product Costing in the SAP system.

Topics covered with SAP Product Costing Interview

Questions
The list includes questions about:-

 Configuration of cost components

 sales order costing
 WIP calculation
 Material Ledger

Preparing with these SAP product costing interview questions will help you to prove
your practical knowledge of the subject. Also, it strengthens your hold over the
various technical sections of this functional module. So let us learn some important
questions that interviewers ask in SAP Product costing interviews.

1. What do you mean by the Primary cost component split?

Ans. – The primary cost split occurs when you create a cost component structure.
When we switch on this setting, the system picks up the primary cost from the cost
center and assigns it to the various cost components.

2. How does the system pick a primary cost from the cost center into
the cost component structure?
Ans. – This is possible when we do a planned activity price calculation from SAP.
The SAP system assigns the primary cost component structure to plan version-0 in
the SAP Controlling.

3. Is it possible to configure two cost component structures for the

same product in order to have two different views?
Ans. – Yes, it is possible. We can create another cost component structure and
assign it to the main cost component structure. This cost component structure is
called the Auxiliary cost component structure. It provides another view of the
cost component structure.

4. How do you go about configuring the Sales Order Costing?

(One of the important SAP Product Costing Interview questions.
Interviewers usually ask this to check technical knowledge.)
Ans. – Follow this path in the SAP system:-

Sales Order => Requirement Type => Requirement Class => All settings for
controlling.

In the sales order, we have a Requirement Type.

In the configuration, we attach the required class to the required type. Here, we
maintain all the configuration settings for this requirement-class for controlling.

Further, in the requirement-class, we attach the costing variant. Please note, we

attach the condition type EK02 where we want the sales order cost to be updated
and the account assignment category.

Likewise, in the account assignment category, we define whether the sales order

will carry the cost or not. If not, then we keep the consumption posting field blank.

We also define here the Results Analysis version which helps to calculate the

Results Analysis for the sales order if we require.

5. What is the basic difference in the WIP calculation between Product

Cost by Order and Product Cost by Period?
Ans. – Generally in product cost by order, we calculate the WIP at the actual costs.
While in the product cost by period (repetitive Manufacturing), we calculate the WIP
at target costs.

This is the main difference.

6. What are the configuration settings for calculating WIP in SAP?

(Again an important SAP Product Costing interview questions).

Ans. – Steps to configure settings for WIP:

Step 1– Define secondary cost elements of type 31 first.

Step 2 – Next define the Result Analysis version. (This result analysis contains line
IDs which are nothing but break up costs).

Step 3 – Then, we define Assignments. (Here we assign source cost elements to

the line IDs defined above).

Step 4 – Further, we define the secondary cost elements which are assigned to

line IDs.

Step 5 – Lastly, we define the Finance GL accounts which are debited and credited
when a work in Progress is calculated.

7. What precautions you should take while switching on the material

ledger for a plant?
Ans. – Once we activate the material ledger for a plant, we cannot switch it
off. Therefore we should be very careful before activating the material ledger for a
plant.

8. How do you go about configuring material ledger?

Ans. – The process to follow for Material Ledger Configuration:

1. Activate Valuation Areas for Material Ledger

2. Assign Currency Types to Material Ledger Type
3. Then 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. Next, activate Actual Cost Component split
7. Lastly, customize settings in OBYC

9. What problems you may face while activating a material ledger?

Ans. – When we activate a material ledger, we must perform the actual costing run
every month. This is to say, we should do the actual costing run immediately after
the new month rollover.

This is also important because, after the actual costing run, we cannot post any MM
entry to the previous period.

EndNote
Why are these SAP Product Costing Interview Questions important
for you?
Product Costing is an important segment of SAP Controlling. It is as important as
the S/4HANA Finance module. You may find a good amount of study material for
SAP FICO or S/4HANA Finance interview questions, but what matters is the quality
and relevancy of those SAP Product Costing interview questions. So review
analytically before making a good list for yourself.

I hope these questions would help to better prepare for your next dream job where
you wish to have SAP Controlling configuration and maintenance as an important job
role in your KRA.
Profit Center Accounting in SAP is an important topic in SAP Controlling. Thus, many
times it is being asked by interviewers as important questions in SAP FICO
interviews. Let’s learn a few of them with explanations.

Q1. – What is the basic purpose of creating a Profit

Center in SAP Controlling?
Ans. – The basic purpose of creating a Profit Center in SAP is to analyze the
revenues and costs for a particular product line, a plant or a business unit. Though
you can generate balance sheets and profit and loss accounts per profit center still a
profit center should be used as a tool only for internal reporting purposes.

If legally one has to produce the Balance sheets and Profit and Loss Accounts for a
profit center then it is advisable to create it as a company code instead of a profit
center

Q2. – How does the cost and revenue flow to the

profit center?
Ans. – The profit center is stored in the cost center this way the costs flow to the
profit center.

The profit center is also stored in the material master. This way all sales orders
created for the finished product automatically picks up the profit center from the
material master and all the revenues and costs coming from sales order for that
finished product is passed on to this profit center.

You create a profit center document in addition to the Finance document whenever
revenue or consumption takes place. This document contains the details of the profit
center. Once both the costs and revenues flow to the profit center you can write
reports using the Report Painter to get intelligent analysis. You can also use SAP
standard reports statistical key figures are created in the cost center accounting
module. Now the same statistical key figures are required in the profit center
accounting module.

Q3. – Do we require to maintain SKF figure in Profit

Center Accounting in SAP?
Ans. – No, Since the SKF (Statistical Key Figures) are created in the controlling
area, we don’t require it to maintain in PCA. Profit Center is a submodule within the
controlling area. The SKF figure is created for the controlling area and such is
available in the Profit Center accounting module.

Q4. – What are the precautions to be taken while maintaining the

3KEH table for Profit Center Accounting?
Ans. – We should take the following precautions:
 1. You should not maintain the customer and vendor reconciliation accounts in the
3KEH table.
2. Further, you should also not maintain the special GL accounts in this table.
3. As per the process, we transfer the customer and vendor balances to profit center
module through separate month-end programs. Thus, if the reconciliation accounts
will be maintained here, it will result in double posting in the profit center module.

Q5. – Should secondary cost elements be maintained in the 3KEH

TABLE?
Ans. – No, since here we maintain only those accounts for which the value should
flow FI to PCA. Secondary cost elements are already defined in the controlling
module which will reflect posting in PCA also.

Q6. – How can we maintain the default settings for

cost elements per company code?
Ans. – We can maintain the default settings in transaction OKB9. Here we can
specify for a company code, cost element which is the cost center to default or
whether profitability segment is to be automatically derived. Further, we can also
maintain whether the business area is mandatory or the profit center mandatory and
can maintain the default business area and profit centers.

Q7. – What are the other important activities in the

profit center?
Ans. – The assignments of the profit center to the cost center and also the
assignment of a profit center to the material master is what will determine the
success of profit center posting. If these assignments are wrongly done then the
profit center postings will not come in properly.
This article presents the top 14 SAP CO Interview Questions with practical oriented
answers. Controlling is an important part of SAP FICO configuration in any industry.

Not only, it needs in-depth knowledge of the subject, but also the practical know-how
of its core areas. Needless to say, interviewers specifically choose these subjects to
put before interviewees, to check the depth of their knowledge.

SAP CO Interview Questions –Organizational

Assignment | Cost Elements | Cost Objects
Q1. – Explain the Organizational Assignment in the SAP Controlling
module?
Ans. – We assign Company Codes to the Controlling area. And A controlling area to
the operating concern.

Controlling Area is the umbrella under which we store all controlling activities of cost
center Accounting, Product Costing, Profitability Analysis, and Profit Center.

Q2. – What are the Primary Cost Element and Secondary Cost
Element?
Mark: Important SAP CO Interview Question
Ans. – We need to define every Profit and Loss GL account as a cost element in
SAP that we need to control. Just as in FI General Ledger Account exists; in
Controlling we have Cost Element.

We create each FI General Ledger Account as a cost element in SAP which is a

Profit and Loss Account.
Primary Cost Elements are those which we create only in Controlling. This means
they do not affect the Financials of the company. We use them for internal reporting
only.

Further, the postings to these accounts do not affect the Profit or Loss of the
company.

Internal Settlement– We use Cost Elements of this category to settle order cost to
objects in controlling such as cost centers, PA segment, etc.

Order/Result Analysis– We use it to calculate WIP on the order/project.

Overhead– These we use to calculate indirect costs from cost centers to orders.

Assessment– We use assessment to calculate costs during an assessment.

Internal Activity Allocation We allocate costs during internal activity allocation such
as Machine Labour etc.

Q3. – What are the Cost Objects in SAP CO?

Ans. – A cost object means a cost or a revenue collector wherein we collect all the
costs or revenues for a particular cost object. Examples are cost center, production
order, Internal Order, projects, Sales Order.

Thus, whenever we look at any controlling function, the basic thing we need to
assess is the cost element (expense) which we want to control.

Likewise, what is the cost object ( i.e. either the production order, sales order,
internal order) we are using to control this cost element?

Sounds confusing? Read it again. It is very simple.

Controlling is all about knowing the cost element what is the cost object

At the end of the period, we settle all costs or revenues in the cost object to their
respective receivers as like a GL Account, Cost Center, Profitability Analysis or
Asset.

SAP CO Interview Questions – Cost Center

Accounting
Q4. – How do you relate the cost center accounting to the Profit
Center?
Ans. – In the master data of the cost center, there is a provision to enter the profit
center. Here, all costs which flow to the cost center are also captured in the profit
center. This is to say, we create Cost centers to capture costs e.g. admin cost
center, canteen cost center, etc.
Further, we create Profit Centers to capture cost and revenue for a particular
plant, business unit or product line.

Q5. – What is the Cost Element Group?

Ans. – Cost Element group is nothing but a group of cost elements that help one to
track and control cost more effectively. You can make many cost element groups as
you feel necessary by combining various logical cost elements.

Q6. – What is a Cost Center Group?

Ans. – In a similar line, a cost center group is also a group of cost centers that help
one to track and control the cost of a department more effectively. Noteworthy, we
can make as many numbers cost centers as we feel necessary by combining various
logical cost centers.

Certainly, we can use various combinations of the cost center groups with the cost
element group to track. Hence we can control our costs per department or across
departments.

Q7. – What is the difference between Distribution and Assessment?

Ans. – Distribution:- It uses the original cost element for allocating cost to the
sender’s cost center. Thus, on receiving cost center, we can see the original cost
element from the sender cost center. Distribution only allocates the primary cost.

Assessment:- It uses assessment cost element No 43 defined above to allocate

cost. Thus various costs are summarised under the single assessment cost element.
Further, in the receiver cost center the original cost breakup from the sender is not
available. Assessment allocates both primary as well as secondary costs.

Q8. – What are the other activities in the Cost Center?

Ans. – If we have a manufacturing set up entering Activity prices per cost
center/Activity type is an important exercise undertaken in cost center accounting.

Q9. – What is an Activity Type?

Ans. – SAP activity type is the classification of activities that we produce in cost
centers in a controlling area. Examples of Activity Types are Machine Hours, Labour
Charges, Units Produced, Power, etc.

Q10. – What are the important terms in SAP Product Costing?

(Mark Important SAP CO Interview Question)
Ans. – Important Terminologies to remember in SAP Product Costing are:

Result Analysis Key- This key determines how the work in Progress is calculated.

Cost Components– The breakup of the costs which we see in the Product costing
e.g.-Material Cost, Labor Cost, Overhead, etc.
Costing Sheet– We use a costing sheet to calculate the overhead in Controlling.

Costing Variant– For all manufactured products the price control recommended is
the standard price. Hence, to come up with this standard price for the final goods
material we need to cost this material. We can do this using the costing variant.

Q11. – What configuration settings do you maintain in costing

variant?
(Important SAP CO interview question)
Ans. – Since we carry out and save all cost estimates concerning a costing variant,
hence the costing variant contains all the control parameters for costing.

Further, we maintain the configuration parameters for costing type, valuation

variants, date control, and quantity structure control.

Noteworthy, in costing type we specify the field where we update the price in the
material master. Similarly, in the valuation variant, we specify the order in which the
system should go for accessing prices for the material master ( planned price,
standard price, moving average price, etc).

Further, we decide which price we should consider for the activity price. And finally,
how the system should select BOM and routing.

Q12. – How does SAP go about costing a product having multiple Bill
of Material within it?
Ans. – Firstly, SAP first cost the lowest level product. Then it arrives at the cost and it
takes and cost the next highest level and finally arrives at the cost of the final
product.

Q13. – What does the concept of cost roll-up mean in product costing
context?
Ans. – The purpose of the cost roll-up is to include the cost of goods manufactured
of all materials in a multilevel production structure. It lies within the cost of the
material located at the top of the structure.

The costs are rolled up automatically using the costing levels.

 Firstly, the system calculates the costs for the materials with the lowest costing level
and then it assigns them to cost components.
 Lastly, the system costs the materials in the next highest costing level (such as semi-
finished materials).

This is to say, that the costs for the materials cost first are rolled up and then
they become part of the material costs of the next highest level.

Q14. – What is a settlement profile and why you need it?

Ans. – All the costs or revenues which the system collects in the production order or
Sales Order, have to settle to a receiver at the end of the period. This receiver could
be a GL account, cost center, profitability analysis or asset.

Subsequently, to settle the costs of the production order or sales order, we need a
settlement profile.

In a settlement profile, we define a range of control parameters for settlement. We

must define the settlement profile before we can enter a settlement rule for a sender.

noteworthy, the system maintains the settlement profile in the Order Type and
defaults during the creation of order.

Settlement Profile includes:

1. The retention period for settlement documents

2. Valid receivers GL account, sales order, cost objects, order items, business process
3. Document Type is attached here
4. Whether 100% validation,% settlement, equivalence numbers, variances to costing
based CO-PA
5. The system attaches the Allocation structure and PA transfer structure to the
settlement profile E.g. A1.

Dunning meaning in SAP

Reminding a business partner to pay (payment reminder) is called dunning in SAP.
You can configure the dunning program to dun customers and vendors (if there is a
debit balance resulting from a credit memo).
In the dunning procedure, the program selects the overdue open items, determines
the appropriate dunning level for the items and account. Then, it generates a
dunning notice in a dunning run and saves the dunning data. It also includes the last
dunned date, last used dunning level and others.

Further, You can dun all business partners with overdue items automatically or make
selective dunning. You can also generate a single notice combining all the overdue
items of a single business partner across company codes.

Let’s review the process of dunning in the SAP system.

Dunning Procedure in SAP FICO

Since the payment is part of SAP FICO, the dunning procedure becomes important
for having the payment on time. The process of dunning in SAP Finance is very
systematic. It starts from setting parameters, making proposals, checking any issues
or open items, deciding the right time of dunning and finally making modifications if
any. The whole process makes the receivables smooth and structured. let us learn
how it goes step by step.

Maintaining Parameters
Maintaining dunning parameters (such as execution date and dunning run identifier)
that identify a dunning run is the starting point. The other parameters include the
following-

 The dunning date that you need to print in the dunning notice
 Posting cutoff date for selection of documents
 Company codes, etc.
Once you finish inputting the parameter, you can save and display the log to see
any errors. You can also display the dunning list which contains the accounts and
items that you selected for the current run. It also includes the blocked one.

Creating Proposal for Dunning in SAP

The second step is creating the dunning proposal wherein the dunning program
determines which accounts and items to dun.

The system checks the Dun procedure and last Dunned fields in the customer
master. It helps to determine whether the arrear date ( the date of the last dunning
run ) falls in the past to consider it for the current run.

Then further, it checks whether the account is blocked for dunning. It does so, by
searching for an entry in the Dunning Block field in customer master.

If not blocked, then we consider that the system has released these accounts for
dunning in the current run.

Checking Open items

Now, the program proceeds to process the open items of accounts that the system
has released. However, it posts it on or before the date entered in the field
“Documents posted UP TO.

It then checks all such released open items to determine whether any of them are
blocked for dunning. If not, it moves further to ascertain whether an item is overdue
according to the date of issue base date, payment condition is grace period.

Determining appropriate level of Dunning in SAP

Then for all the open items that the system has released for dunning in the previous
step, the program determines the appropriate dunning level. It is based on the
number of days an item has been overdue.
It sets the highest dunning level of an open item of the account. Even if there are
different dunning levels associated with the different open items. This highest
dunning level (which determines the appropriate dunning text that we need to use
and relevant dunning form).

The program now checks each of these eligible accounts to ascertain whether the
customer or vendor has a debit balance, considering the system selected all the
open overdue items in that account.

In case the system selects all open overdue items in that account

 The system ahs picked the accounts for dunning

 the system checks the total amount to be dunned percentage of all open items more
than the minimum amount or percentage defined in the dunning procedure that is
being used.
 It ascertains whether the dunning level selected for the account or an item is higher
than it was in the last dunning run.
 It ascertains whether the dunning level selected for the account or an item is higher
than it was in the last dunning run.

In case the system Doesn’t select all open overdue items in that account

 Then the system didn’t pick that account for dunning

 The system proceeds to determine whether there any new open items to dun
 It then confirms whether the dunning procedure in use allows for repeating the
dunning at the same dunning level as that of previous run.

Dunning Proposal list

 The dunning program creates the dunning proposal list. It contains the accounts
with the open items that the system has selected for the current dunning.

Making changes in the List

You may edit the dunning proposal list to manually raise or lower the dunning level of
an item or account. Though, you can also block or unblock an item or account or
document from being dunned. You can look at the log to confirm the changes you
have made to the dunning proposal.

If you are not satisfied or want to make further changes, you can still edit the
proposal. You may also display the sample printout of the dunning notice on the
screen.

Print the Dunning Form

Now you are ready to print the dunning notices. You can opt to use the same
dunning form, irrespective of dunning levels. O you can use different forms for
different dunning levels with varying dunning text. You may also use a legal dunning
form normally used as final notice.

Once you activate the print run, the program prints the dunning notices in addition to
updating the important details like dunning level and last dunned date etc.
Conclusion
This is how the Dunning in SAP works. Dunning is an important part of Accounts
Receivable. It prompts vendors to make on-time payments of invoices. It also
enables a better client relation.

There is much more in the Dunning procedure. Such as dunning levels, dunning
areas, dunning data etc. All these things complete the dunning in SAP.

A detailed SAP FICO training covers the complete dunning process in practice, thus

helping you to learn this on the system.

What is Depreciation Area in SAP?

A depreciation area in SAP contains the parameters required to evaluate an asset. It
is defined by a two-digit numeric key. You may use more than one depreciation area
to represent different asset valuations for cost accounting or legal reporting. For
example, A chart of depreciation is made up of a list of such depreciation areas.
Depreciation in SAP
Depreciation is the reduction in the book value of an asset due to its usage over time
or due to the legal framework for taxation reporting. We usually calculate the
depreciation considering the economic life of the asset, the expected value of the
asset at the end of its economic life (junk /scrap value).

Method of depreciation calculation

 Straight-line method
 declining balance
 the sum of year digits etc.

In SAP, we have various methods of depreciation calculation, such as Base

methods, Decline balance methods & more. Which method of depreciation
calculation to choose depends on the company’s law, income tax information etc.

Depreciation Catagories
We have two categories of Depreciation in SAP.

 Planned Depreciation
 Unplanned Depreciation

Planned depreciation brings down the value of the asset after every planned period
(say every month), till the asset value is fully depreciated over its life period. By this,
you will know what will be the value of an asset at any point in time in its active life.

On the other hand, Unplanned depreciation is the sudden happening of an event

or occurrence not foreseen (there could be a sudden break out of a fire damaging an
asset and forcing you to depreciate fully as it is no longer useful economically)
resulting in a permanent reduction of the value of the asset.
Types of Depreciation in SAP
In SAP, we have two types of depreciation:

1. Ordinary depreciation – This is nothing but the “planned depreciation”

2. Special depreciation – This is over and above the ordinary depreciation used
normally for taxation purpose

Define Depreciation Areas in SAP

As I mentioned in the starting, a chart of depreciation contains a list of depreciation
areas. You need to define at least one depreciation area, usually denoted by 01
(book depreciation). Also, you can have a maximum of 99 depreciation areas.

Although it is possible to create the depreciation areas at any time, even after Go
Live, I recommend creating them well in advance, in the customization phase itself.

To define new depreciation areas and maintain the values for existing areas, use
the T -Code OADB

Scenarios to define Depreciation area in SAP

You need to know how to set up Depreciation Areas postings to FI from Asset. For
this, you should define how the various depreciation areas need to post to FI-GL.

It can be any of the following scenarios:-

 Post depreciation through “periodic processing”

 Posting both, the APC (Acquisition and Production Cost) and depreciation through
periodic processing
 Post the APC in “real time” but depreciation through periodic processing
 Posting No Values

However, you have to ensure that you configure at least one depreciation area to
post values automatically to the FI-GL. Normally the depreciation area will be 01
(book depreciation) of the depreciation areas.

Depreciation Area Table in SAP

We use the depreciation Area table in SAP to store all the depreciation areas. In
SAP, the Depreciation Area Table is – T093B.
Creating Depreciation Areas
Before implementing Asset Accounting, you should determine the types of valuation
for which you need different depreciation areas. You need to adopt these areas from
the SAP reference chart of depreciation. Conversely, you can copy the existing
depreciation areas, make sure to redefine them.

SAP also gives us the option to delete any depreciation areas from the standard
chart of depreciation, in case we do not need any. Furthermore, we can also open
new depreciation areas when the system is live.

SAP Depreciation is part of SAP Financial Accounting, thus, is important to learn

practically for SAP FICO consultants or if you are (or want to be) a S/4HANA
Finance consultant. Gaining its on-system knowledge will help you understand it in
real terms.

What is Depreciation Calculation in SAP?

Depreciation calculation in SAP is the periodic and permanent decrease in the value
of the fixed asset over its economic life period because of its usage and associated
wear and tear. There are various methods of depreciation calculation in SAP that we
can use. It depends on the business itself as to which method works best for them.
Planned & Unplanned Depreciation Calculation in
SAP
SAP supports two kinds of depreciation – planned and unplanned. You can calculate
planned depreciation (ordinary & special) automatically through depreciation keys. It
contains the value settings and calculation rules for arriving at the depreciation
amount.

However, you can also manually undertake unplanned depreciation, including

reduction of APC transfer of reserves. I have also mentioned more about it a bit later
here.

Planned Depreciation Calculation in SAP

The usual depreciation calculation in SAP that we do, are planned depreciation. The
calculation methods that we use in SAP FICO are all part of planned depreciation.
Additionally, the depreciation calculation methods in SAP all fall under planned
depreciation.

Importantly, the entire framework of planned depreciation calculation is based on the

depreciation keys that you use in the depreciation areas.

SAP Depreciation Keys

A depreciation key contains the necessary control parameters for valuating an
asset in a depreciation area. It contains the calculation methods and control
parameters for controlling ordinary and special depreciation and scrap and cutoff
values.

We categorise Planned depreciation into two types further, i.e Ordinary and special.

Ordinary Depreciation
It represents the planned depreciation to take care of the general wear and tear due
to the usage of an asset during its useful life.

Special Depreciation
You use special depreciation to depreciate an asset from the point of taxation
without considering the actual wear and tear. Determine the depreciation areas for
special depreciation using T Code- OABS and select the Special Depreciation.

Unplanned Depreciation Calculation in SAP

You need to undertake unplanned depreciation in special circumstances such as if a
fire makes an asset unusable. Use a manual dep key to complete depreciation. You
also need to have a suitable transaction type defined to manage unplanned
depreciation in addition to completing the usual activities such as determining the
depreciation areas and assigning the appropriate ledger accounts.

Now let us learn the methods of depreciation calculation in SAP and their
methodology.

Methods of Depreciation Calculation in SAP

A calculation method forms part of a depreciation key and you use it to define the
parameters for depreciation calculation. There are multiple Depreciation methods
available in SAP. Now we will discuss them all in detail below.

Base Method
Valid across a chart of depreciation, you use these to define the type of depreciation
(Ordinary, special tax depreciation) and depreciation method (declining balance
method, sum of the year’s digit method etc).

You may not need to define a new base method because SAP-supplied base
methods are more than sufficient. However, we can define our base method. T
Code- AFAMR.

Declining-balance methods
With these, the annual calculation of depreciation is reduced by a constant
percentage that is calculated from the useful life and multiplication factor and then
multiplied by the assets NBV. Though, in a declining balance method, you can never
make the NBV equal to zero. You can use any of the SAP supplied methods or
define your using T Code – AFAMD.

Maximum Amount Method

Use these to define a maximum depreciation amount that cannot be exceeded
before a certain calendar rate. If the system arrives at a depreciation exceeding this
maximum amount, then it reduces depreciation to the extent required. This helps the
overall depreciation does not exceed the maximum allowed for that time. Use T
Code – AFAMH to define the new maximum amount method.
Multi-Level method
One of the disadvantages to the base methods (stated percentage) is that they use a
total percentage rate to calculate depreciation over the entire life of the asset. You
can define a method by specifying varying periods of validity for a certain percentage
rate so that a different percentage is applied once the particular validity of a period is
over.

For each of these methods, you can define when the validity starts – from
capitalization date, from ordinary depreciation start etc. Use T Code – AFAMS to
create a new multi-level method.

So, around these depreciation calculation methods the whole system functions.
These methods of depreciation calculation in SAP covers all types of assets and
thus are very important.

Depreciation run in SAP

The depreciation run is a periodic processing program in Asset accounting that posts
planned depreciation to all assets. Mostly depreciation run executed periodically
(every month) although we can run depreciation on, a quarterly or yearly basis too.

To execute depreciation run, use T code- AFAB.

On the selection screen, enter the company code, fiscal year and posting period for
which to run the depreciation.

You can choose the Total Log radio button if you want to see only depreciation totals
or choose the Detailed Log radio button to see the deprecation for each asset.

See below after execution:-

Most companies schedule their depreciation run in the background and run on
specific dates based on the month-end schedule, rather than manually executing
Transaction AFAB at the end of each month.

Depreciation in SAP FICO

Assets are mostly dealt with in Financial Accounting. Hence, the depreciation
calculation works also become a part of SAP FICO or S4 HANA Finance. That is
why it is mainly the responsibility of the SAP FICO consultants to work upon the
depreciation calculation and its related task. We can calculate depreciation
periodically and yearly as per company structure and calculation process decided.

Which method of depreciation calculation to choose, depends on the business we

are working for. They will provide this information as to which methods work best for
them. It mainly depends on the company’s law, income tax information etc.
April 8, 2020 5 minute read

PARALLEL LEDGERS VALUATION IN S/4 HANA NEW ASSETS

ACOUNTING
14269,736

Using the parallel ledger, companies can set parallel valuation in different accounting
principles

Typically, a local company that belongs to a group needs to follow both local and group
accounting principles

In Assets accounting, we can set Parallel ledger  accounting using depreciations areas

We need to define depreciation area per involved accounting principles,

In our scenario company FR01 a local branch of an international group, company FR01 needs
to report financial statements in group accounting principles IFRS and in local GAAP
accounting principles.

We defined the Leading ledger ‘0L’ for IFRS and non leading ledger ‘2L’ for LG accounting
principles.

Let’s see the major customizing steps and a process flow to demonstrate the power of the
ledger approach in parallel valuation in assets accounting.

1. Define settings for ledgers

We assigned accounting principles to corresponding ledgers for the company ‘FR01’.

 0L Ledger:
  2L Ledger:

2. Define Depreciations areas

In our example we created the following 2 depreciation areas:

 Depreciation area 1 for IFRS accounting principles (0L Ledger group)

 

 Depreciation area 12 for LG accounting principles (2L Ledger group)

Both areas 1 and 12 posts in real time

Important Note:
In New Asset accounting, the delta depreciation area is no longer needed, the system posts in
real time to both ledgers.
 

3. Assign GL Accounts

In this step we need to assign GL accounts for both depreciations areas, 1 and 12

We used the same accounts for both areas as we are using separate ledgers for both areas

The following screen shots applies for area 1, area 12 have the same accounts assignments

 
4. Define technical clearing account for integrated assets aquisition:

Below the SAP definition of the integrated aquisition postings available in SAP HELP

You can find this definition also when clicking on the glasses in front of the main customizing
neud

“For an integrated asset acquisition posting, the system divides the business transaction into
an operational part and a valuating part:

 For the operational part (vendor invoice), the system posts a document valid for all
accounting principles against the technical clearing account for integrated asset
acquisitions. From a technical perspective, the system generates a ledger-group-
independent document.
 For each valuating part (asset posting with capitalization of the asset), the system
generates a separate document that is valid only for the given accounting principle.
This document is also posted against the technical clearing account for integrated
asset acquisitions. From a technical perspective, the system generates ledger-group-
specific documents for each accounting principle.”
 

5. Specify alternative document type for the valuation part of the posting

The derived document type is for the valuation posting created at the same moment of vendor
invoice when posting Asset aquisition

6. Determine Depreciations Areas in Asset Class

Select Asset class 3000

–> Deactivate all depreaciations areas except 01 and 12 areas

–> Set the usefull life 2 years for depreciation area 01 and 4 years for depreciation area 12

7. Business Scenario for Parallel Ledger Valuation

The company FR01 needs to maintain accounting and reporting for Assets in both group and
local accounting principles,
In this scénario will process the following flow and track accounting posting and reporting in
both acct principles

Create an asset, Post acquisition,  Run depreciation, post retirement

7.1 Create asset

Create asset for Fixture and fitting (class 3000) with straight line depreciation method for
depreciation area 1 and depreciations area 12

 In Class 3000 for Area 1, the useful life is 2 years

 In Class 3000 for Area 12, the useful life is 4 year

Transaction: AS01
 

7.2 Asset Aquisition

Asset acquisition for 2400 Euros

Transaction: F-90

 Operational part (vendor invoice)

  Valuating part (asset posting with capitalization of the asset)

7.3 Asset Depreciation Run

Transaction: AFAB
Posting for the first 5 periods of 2020.

Asset explorer for IFRS (0L)

–> Posted depreciation value 500,00 Euos for ledger “0L” for 5 periods (100,00 Euros
per period).

Depreciation FI document posted to Ledger 0L:

 
Asset explorer for Local GAAP (2L)

–> Posted depreciation value 250,00 Euros for ledger “2L” for 5 periods (50,00 Euros
per period).

Depreciation FI document posted to Ledger 2L:

 
7.4 Asset Retirement

Asset retirement for a sale value of 2000 Euros

Transaction: ABAON

Posting to IFRS acct principles (Ledger 0L)

–> 100 Euros gain for 0L ledger
 

Posting to LG acct principles (Ledger 2L)

–> 150 Euros Loss for ledger 2L
 

–> In IFRS Depreciation area we have a gain of 100 Euros and in the LG depreciation area
we have 150 Euros loss

Using the parallel ledgers 0L and 2L, we are able to run parallel valuation according to
different accounting principles

Q . What is Document Type ?

A :- Document Type Key is used to distinguish between different business
transactions and to classify the accounting documents. It is also used to determine
the number range for documents and account types such as asset, material,
vendor, etc. for posting.
Common Document Type Keys are as follows −

Document Type Document Type Description

AA Asset Posting

AN Net Asset Posting

DR Customer Invoice

DZ Customer Payment
 KA Vendor Document

KG Vendor Credit Memo

How to define Document Type in SAP FI?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Document → Document Header → Define Document
Types → Execute.

It will open a new window. Click New Entries and provide the following details −
 Document Type − Unique 2-digit code.
 Number Range − Number Range Code.
 Reverse Document Type − Reverse Document Type Key Code.
 Number Range Information − Number ranges are maintained for document
types.
 Account Types allowed − Asset, Customer, Material, Vendor, and G/L
Account.
 Control Data − Control data for document type.
Once you enter the above data, click the Save icon. Enter the description of
document and save. It will save the configuration of the document type.
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?

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

Posting key determines

a) Account Types
b) Types of posting. Debit or Credit

c) Field status of transaction

5) What is the company code in SAP?

To generate financial statements like Profit and Loss statement, Balance

sheets etc. company code is used.

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

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 a ‘year shift’ in SAP calendar?

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

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

In a year dependent fiscal year variant, the number of days in a month is

not as per the calendar month. For example, in year 2005, month January
end on 29th, month Feb ends on 26th etc.

11) 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
capitalise the same to stocks.

12) 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

13) What are the application areas that use validation and
substitutions?

a) FI- Financial accounting

b) CO-Cost accounting

c) AM-Asset accounting

d) GL-Special purpose ledger

e) CS-Consolidation

f) PS-Project system

g) RE-Real estate

h) PC-Profit center accounting

14) 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.
15) 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.

16) 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.

17) 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).

18) 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

19) 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.

20) 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.

21) 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.

22) 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.

23) Where can you use the internal order?

To track the cost, internal orders are used; they are proposed to be
incurred over on a short term basis.

24) 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.

25) In Asset Accounting what is the organizational assignments?

In Asset Accounting, chart of depreciation is rated as the highest node, and

this is assigned to the company node. All the depreciation calculations are
stored under the chart of depreciation.

26) What is the importance of asset classes? What asset classes are
there?

The asset class is the main class to classify assets. Every asset must be
assigned to only one asset class. Example of asset class is Furniture &
Fixtures, Plant & Machinery, and Computers etc. The asset class also
contains G1 account, when any asset is procured, G1 account is debited.
Whenever you create and asset master, it becomes mandatory to mention
the assest class for which you are creating the required assets. So,
whenever any asset transaction occurs, the G1 account attached to the
asset class is automatically picked up and the entry is passed. You can
also specify the default values for calculating the depreciation values and
other master data in each asset class.
27) How capital WIP (Work In Process) and Assets accounted for in
SAP?

‘Capital WIP’ is referred to as Assets under construction in SAP and is

represented under specific asset class. Depreciation is not charged under
‘Capital WIP’ usually. The cost incurred on building a capital asset can be
booked to an ‘internal order’ and through the settlement procedures, and
can be posted onto an ‘Asset Under Construction’.

28) 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

29) What is credit control area in SAP?

To immune your company from the risk of bad debts and multiple
outstanding receivable, you can set a credit limit for your customer by using
credit control area in SAP. With the help of SAP, you can block the
deliveries to your customer based on the credit limit and the accounts
receivable balance in their account which is maintained by you.

30) 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) Update

b) Name of the credit control area in SAP

c) Currency

d) Description

e) Credit Limit

f) Risk Category

g) Fiscal Variant

h) Rep group

31) 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.

32) 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.

33) 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.

34) 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.

35) 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

36) 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.

37) 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.

38) 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

39) 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.

40) What is APP in SAP Fico?

APP stands for ‘Automatic Payment Program’; it is a tool provided by SAP

to companies to pay its vendors and customers. APP tools help to avoid
any mistakes taken place in posting manually. Also, when number of
employees is more in the company, payment through APP becomes more
feasible.

41) 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.

42) 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. One time vendors allows a dummy vendor code to
be used on invoice entry and also the information which is usually stored in
the vendor master.

43) 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 invoice paid

c) Payment booking- the booking of the actual payments in the ledger

d) Printing of payment forms ,example cheques

44) In Accounts Receivable, what is the difference between the

‘Residual Payment’ and ‘Part Payment’ methods of allocating cash?

‘Residual payment’ and ‘Part payment’ are the two methods for allocating
partial methods from customers. For example, an invoice for $100 is
generated, customer has paid $70. Now this $70 will be off-set and leaving
the remaining balance $30. With residual payment, the invoice is cleared
for the full value of $100 and a new invoice is generated for the remaining
balances $30.

45) What is “dunning” in SAP?

‘Dunning’ is the process by which payment chasing letters are issued to

customers. SAP can determine which customers should receive the letters
and for which overdue items. Different letters can be printed in SAP
depending on the overdue payment date, with a simple reminder. With the
help of dunning level on the customer master, we can know which letter
has been issued to the customer.

46) 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) accounts to use in this
clear down.

47) 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.

48) What is a ‘Value Field’ in the CO-PA module?

Value fields are number or value related fields in profitability analysis such
as quantity, sales revenue, discount value etc.

49) What are the statistical internal orders?

Statistical internal orders are dummy cost objects used for reporting and
analysis purposes. It must be posted to in conjunction with a real object
such as a cost center.

50) For what purposes internal orders can be used?

You can use internal orders for

a) Overhead Orders: It monitors internal jobs settled to cost centres

b) Investment Orders: It monitors internal jobs settled to fixed assets

c) Accrual Orders: Offsetting posting of accrued costs calculated in CO

d) Orders with Revenue: It display the cost controlling parts of Sales and
Distribution, it does not affect the core business of the company