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SAP FICO Interview Questions and Answers

SAP FICO Interview Questions and Answers

August 21st, 2019

SAP FICO Interview Questions and Answers

In case you’re searching for SAP FICO Interview Questions and Answers for Experienced or Freshers, you are at the correct place. Additionally Our SAP FICO Online Training will educate international standards and audit standards to maintain the business operations of the companies. SAP ERP has many modules and SAP FICO integrates with other modules like SAP SCM, SAP MM, SAP SD, and SAP PP. Business operations need smooth management of data and implement control over data. SAP FICO Online Course has a broad coverage of topics like General Ledger, Bank Accounting, Account receivable, account payable, funds management, asset accounting, special ledger accounts, and travel management. Nokia, Walmart, Ford, Microsoft, Philips, Samsung, and Hyundai are some of the big companies known for the usage of the SAP enterprise product. SAP Technical consultants and financial consultants are the popular roles for which formal SAP FICO Online Certification Training is essential. To head the financial operations with the highest pay performance is the key factor. Find below the SAP FICO Interview question and answer to be versatile in handling the multiple projects and different types of industries using SAP FICO.

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Best SAP FICO Interview Questions and Answers

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Q1) What do you know about the SAP FICO?

Answer: The term FICO stands for Financial Accounting and Controlling. It is a crucial tool that helps in preparing the financial statements, tax statements, and accounting of an organization. It also serves a primary software to manage the data and generate the results on the basis of the current marketing trends. In short, it is a significant tool who wants to manage their day-to-day transactions.

Q2) Name down any four submodules in the SAP FI?


  • Fixed assets
  • Management
  • General Ledger
  • Banks.

Q3) What General Ledger defines in finance accounting?

Answer: General ledgers are basically the records of the financial transactions that took place in an organization. It is the primary records that are necessary to track and manage all other accounting details.

Q4) Describe the organizational elements in the SAP FI?

Answer: The primary organizational elements in the SAP FI are:

  • Business area
  • Functional area
  • Company code
  • Chart of account.

Q5) What does role position key play in the SAP FICO?

Answer: The position key is used to determine the type of transaction that took place in an organization and has entered in the line item. Fico professionals often use it to determine the type of entry, debit or credit, and field status.

Q6) Describe the company code in SAP?

Answer: The company is significant when it comes to generating profit and loss statement, balance sheet, etc. As an important aspect of the SAP FICO, company code is used to prepare each financial sheet.

Q7) Explain how many charts of accounts can be used under company code?

Answer: Professionals who are using company code to generate financial statement can have only one chart of accounts.

Q8) How many different currencies can be configured under one company code?

Answer: Those who are leveraging company code in the first place can configure three currencies in which one will be local while others can be parallel currencies. However, it is not necessary that users can only 3 currencies, it mainly depends upon the organization.

Q9) What do you understand by dependant fiscal year in SAP?

Answer: When it comes to the business calendar, it is not really necessary to have 30 days working. Depending on the nature of the business, the organization can end the month 2 to 3 days earlier. For instance; if the company wants it can end the month of august on 29th day. The same thing can be implemented in the SAP through dependant fiscal year.

Q10) Describe the “year shift” in the Fico calendar?

Answer: Unlike other accounting software, the Fico doesn’t have the previous broker year and it only revolves around the calendar year. However, it is compulsory that for all the organizations that calendar year is the financial year. Professionals can always add or remove months according to their needs through the process of Year shift.

Q11) How taxes are manged under the SAP FICO?

Answer: One of the most common issue people faces while calculating the tax is slabs are never the same in every country. As every nation has its own taxes that are applicable, it can be difficult to calculate and pay accordingly. the SAP FICO has various tax procedures defined and divided according to different nations. Plus, users can also make changes in them according to their needs. Hence; calculating taxes in the SAP FICO is not an issue.

Q12) What is the role of financial statement version (FSV) in the SAP?

Answer: In the SAP FICO, FSV works as a reporting tool that is used to extract account related files from the SAP such as profit and loss sheet, balance sheet and more. various FSV can be used to extract different accounting records for external agencies.

Q13) Name down any two methods to make vendor invoice payment?

Answer: Methods that are used to make the vendor invoice payment are: –

  • Manual payment where the users go with an output medium like cheque, drafts, etc.
  • Automate payment where the amount is directly transferred via wire transfer.

Q14) What is the most common problem faced by users during the configuration of the business area?

Answer: The key problem faced by the users during the configuration is dividing the account balance which is relevant during the case of tax accounts.

Q15) What is the significance of the good receive and invoice receive during in account clearance?

Answer: Good receive and invoice receive are the intern accounts in the SAP FICO. In the general legacy system when the goods are received by the firm but the invoice is not received then the provision will be made in the SAP at goods receipts. When the firm receives the invoice the vendor’s account gets credited at the same time GR/IR account gets debited. During the entire process, the GR/IR account will show the status of un-cleared until the invoice is received.

Q16) What is internal order and where you can use it?

Answer: The internal orders are useful when it comes to tracking down the cost: they are just subject to the short-term changes.

Q17) Is it possible to calculate the depreciation to the day?

Answer: Yes, the SAP FICO allows users to calculate the depreciation to the day. In order to do it, the user has to switch his account to indicator Dep. to the day he wants to calculate the depreciation.

Q18) what are the key components of charts of accounts?

Answer: The core components in the charts of accounts include:

  • Name
  • Language
  • Chart of the account key
  • Controlling integration
  • Block indicator
  • Group charts of accounts

Q19) What do you understand by control area in SAP?

Answer: To make sure your company doesn’t go through a major loss due to the bad debts and outstanding receivables, SAP FICO allows you to set the credit control area. With this feature, you can stop making the product deliveries on credit based on the credit limit you have set. This will eventually protect you from the big loss in the long-term.

Q20) Describe what is field status and what does it control?

Answer: Field status group is the group that is configured in FSV to control the field status for the general ledger account. It controls which status should display, suppress and optional.

Q21) Describe the short-end fiscal year?

Answer: The short-fiscal year is the result of the process when the user changes from the fiscal year to non-fiscal year or do the other way around. Such big changes take place when an organization becomes a part of the co-corporative group.

Q22) What is the role of “document type” in SAP FICO?

Answer: The primary role of document type is to define the number range of documents, types of accounts that are controlled by it and reversal of entries.

Q23) In SAP, customer and vendor codes are stored at which level?

Answer: When it comes to storing customer and vendor codes in the SAP, they are carefully stored at the client level. Moreover, it also means that extending the company code any organization can leverage the customer and vendor code.

Q24) Explain the tolerance for the invoice verification?

Answer: Tolerance defines whether the accounts or tax hold are on the invoice or not. Here are some of the common examples of tolerance that can be further defined in logistic invoice verification: –

  • Small differences
  • Quality variance
  • Price variance

Q25) What are the country charts of accounts?

Answer: Country charts of accounts contain the general ledger accounts that are necessary to meet the legal requirements of a country.

Q26) Describe the concepts of one-time vendors in SAP FICO?

Answer: For companies that deal with the high cash transaction, it is not practical to create the transaction code for each trading vendor. Therefore, the one-time vendor provides the one- time code for a vendor that can be used to make transactions and store the information.

Q27) Define the dunning in SAP?

Answer: Dunning refers to the process through which the payment chasing letters are issued to the customers. SAP is responsible to determine which letter will be issued to which customer for which overdue.

Q28) What information do users need to provide while creating the credit area?

Answer: The user who is creating the credit area in SAP needs to provide the description, controller name, currency, and risk category. Once done, they need to fill the fiscal variant to complete the credit area creation which will limit down their credit.

Q29) What is posting period variants?

Answer: Posting period variants refers to the time frame in which the transaction figures should be updated. It usually depends upon the control accounting period.

Q30) What is field status?

Answer: The field status refers to a method that is used to maintain the general ledger accounts in the SAP. It generally controls the fields which provide information to other primary accounts.

Q31) Describe the parallel currency in SAP?

Answer: Organizations that trade on the international levels are allowed to add more currency options with their local currency. They are free to use any two currencies that are parallel to their local currency. It is often known as group currency in SAP.

Q32) What do you understand by the term SAP FICO?

Answer: The meaning of SAP FICO is FI (financial accounting) and CO (controlling). The financial accounting, as the name suggests, looks at the preparation of financial statements, tax computing, and basic accounts. The control aspect looks at cost allocation, inventory, etc. Overall this software stores prevents loss of and handles the verification of data.

Q33) Name 4 other departments or modules where financial accounting is used/required?

Answer: The four other departments which utilize financial accounting are… Human Resources, Sales and Distribution, Production Planning and Material Management.

Q34) Name some of the organizational elements in SAP FI

Answer: Some of the organizational elements in SAP FI are as follows…Company Code, Business Area, Functional Area and Chart of Accounts

 Q35) What you understand by “posting key”?

Answer: “Posting key” is the two-digit numerical which is used in order to understand which type of transaction is being inserted in the line item.

Q36) What does the posting key control?

Answer: The posting key control the following aspects…Types of Accounts, Posting types (debit or credit) and the Field Status of Transaction.

Q37) In SAP, what is the Company Code used for?

Answer: The Company Code is used for generating profit and loss statements, balance sheets, etc. in SAP.

Q38) One Company Code can have how many Chart of Accounts?

Answer: One Company Code can have only one official Chart of Accounts which is predetermined.

Q39) How many currencies can be configured for a Company Code?

Answer: In totality the are three currencies which can be configured for a Company Code. Out of these, one would be a local currency and the remaining two would be parallel ones.

Q40) How are the fiscal year options determined in SAP?

Answer: There are two options for determining the fiscal year in SAP… the first one is the regular Calendar year from January-December, April-March. The second option is the year dependent fiscal year.

Q41) Mention which are the application areas which use validation and substitutions?

Answer: Some of the application areas that use validation and substitutions are as follows… Profit Centre Accounting, Consolidation, Cost Accounting, Financial Accounting, Asset Accounting, Real Estate.

Q42) In SAP, what do you understand by FSV?

Answer: In SAP, FSV stands for Financial Statement Version.

Q43) What is FSV used for?

Answer: FSV is basically a reporting tool and is used to extract financial data like profit and loss, information from balance sheets, etc.

Q44) What do you understand by a field status group?

Answer: A field status group is what is used to control the fields which auto-populate when transactions are carried out.

Q45) What is the meaning of FIGL?

Answer: FIGL stands for Financial General Ledger.

Q46) What are the modes of carrying out vendor invoice payments?

Answer: Some of the methods by which vendor invoice payments can be carried out are…through cheques, through wire transfer, and through DME (data medium exchange).

Q47) In which cases can the internal order be used?

Answer: Internal orders can be used to track the cost. This is usually preferred when cost is incurred on a short-term basis.

Q48) Can depreciation be calculated to the very day?

Answer: Yes, it can be calculated to the day.

Q49) Mention some of the main components in the Chart of Accounts?

Answer: Some of the main components are…chart of account key, maintain the language, controlling integration, block indicator, consolidation group chart of accounts.

Q50) What do you understand by short-end fiscal year?

Answer: This term is used when one changes from a normal fiscal year to a non-calendar fiscal year or vice versa. This usually happens during the time of certain internal mergers.

Q51) Is the business area at the level of company code?

Answer: No, the business area is at the level of the client.

Q52) Mention some examples of tolerance for Logistics Invoice Verification

Answer: Some of the instances of tolerance, in this case, are…quantity variances, price differences, small differences, moving average price variances.

Q53) What do you understand by APP in SAP FICO?

Answer: APP in SAP FICO means ‘Automatic Payment Program’

Q54) Mention briefly the process flow of how payments are released in SAP

Answer: Here is the sequential process flow of how typically most payments flow in SAP… the first stage is to enter all the parameters. The second stage is to schedule the proposal. The third stage is to book the payment. The last stage is to print the payment forms (cheques, demand draft, etc.).

Q55) Mention some of the purposes where internal orders can be used.

Answer: Some of the purposes where internal orders can be used are…overhead orders, investment orders, accrual orders, orders with revenue.

Q56) What is Chart of Accounts used for?

Answer: The Chart of Accounts is used for the regular needs of the organization and the legal requirements of the country.

Q57) How many varieties does the Chart of Accounts have?

Answer: The Chart of Accounts has three types…Operating COA and Country specific COA and Group COA.

Q58) What is meant by WIP?

Answer: WIP means Work in Progress.

Q59) When is WIP used as a label?

Answer: When an asset is currently being developed, it is usually labeled as WIP.

Q60) What do you understand by SAP FICO Document Type Key?

Answer:  A document type key is a device used to differentiate between various transactions and to categorize the different accounting documents.

Q61) What do you understand by a partial payment in SAP FI?

Answer: When no open items are removed from an account and yet payment is posted there, it is known as a partial payment.