Prepare for your interview with these top 20 SAP FICO interview questions. For more IT Profiles, Sample Resumes, Practice exams, Interview Questions, Live Training and more…visit ITLearnMore – Most Trusted Website for all Learning Needs by Students, Graduates and Working Professionals. Best IT Online Training Institute. Access video courses anytime, anywhere. High quality, Low Prices, Free Courses, Career Guidance, Tutorials & More in ITLearnMore.com. For more information visit http://www.ITLearnMore.com.

1. SAP FICO Interview Questions and
Answers
Learning IT Courses Has
Never Been This Easy
www.ITLearnMore.com

2. 1. Define Financial Statement Version?
FSV(Financial Statement Version) is a reporting tool and
can be used to depict the manner in which the final
accounts like Profit and Loss Account and Balance Sheet
needs to be extracted from SAP. It is freely definable and
multiple FSV's can be defined for generating the output for
various external agencies like Banks and other statutory
authorities.
2. How are input and output taxes taken care of
in SAP?
A tax procedure is defined for each country and tax codes
are defined within this. There is flexibility to either expense
out the Tax amounts or Capitalize the same to Stocks.

3. 3. What is the role of a "Document type" in SAP?
A Document type is specified at the Header level during
transaction entry and serves the following purposes:
 It defines the Number range for documents.
 It controls the type of accounts that can be posted to e.g
Assets, Vendor, Customer, Normal GL account.
 Document type to be used for reversal of entries.
 Whether it can be used only for Batch input sessions.
4. What is the clearing basis for check deposit?
In the variant for check deposit we set up the fields
document number ( which is the invoice number), amount
and short description of the customer. The document
number and the invoice amount acts as the clearing basis.

4. 5. What are the Customizing prerequisites for
document clearing?
Account must be managed on the open item management.
This tick is there in the General Ledger Master Record
called Open Item Management. It helps you to manage your
accounts in terms of cleared and un cleared items. A typical
example would be GR/IR Account in SAP(Goods
Received/Invoice Received Account)
6. Explain the importance of the GR/IR clearing
account.
GR/IR is an interim account. In 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 .Subsequently when an invoice is recd this GR/IR
account is debited and the Vendor account is credited.

5. 7. What the steps are configuring check deposit?
 The following are the steps for configuring check deposit: Step1: Create account symbols for the main bank and





incoming check account.
Step2: Assign accounts to account symbols.
Step3: Create keys for posting rules.
Step4: Define posting rules.
Step5: Create business transaction and assign posting rule.
Step6: Define variant for check deposit.

6. 8. How do you configure manual bank
statement?
 The following are the steps for configuring manual bank






statement:Step1: Create account symbols for the main bank and the
sub accounts.
Step2: Assign accounts to account symbols.
Step3: Create keys for posting rules.
Step4: Define posting rules.
Step5: Create business transaction and assign posting rule.
Step6: Define variant for Manual Bank statement.

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

8. 10. Explain the importance of asset classes.
What asset classes are there?
The asset class is the main criterion for classifying assets.
Every asset must be assigned to only one asset class.
Examples of asset class are Plant& Machinery, Furniture
&Fixtures, and Computers etc. The asset class also contains
the Gl account which is 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 mention 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 is automatically picked up and the entry
passed. You can also specify certain control parameters and
default values for depreciation calculation and other
master data in each asset class.

9. 11. What are the depreciation keys?
The specifications and parameters that the system requires
to calculate depreciation amounts are entered in
Calculation methods. Calculation methods replace the
internal calculation key of the depreciation key.
Depreciation keys are defaulted in Asset Master from the
asset class. Refer to the configuration for more details of
how depreciation is calculated.
12. What is a Account group and where is it used?
An Account group controls the data that needs to be
entered at the time of creation of a master record. Account
groups exist for the definition of a GL account, Vendor and
Customer master. It basically controls the fields which pop
up during master data creation in SAP.

10. 13. What is the organizational assignment in the
controlling module?
Every company has a unique company code assigned. The
controlling module allows you to create a controlling area
which contains all activities related to cost center
accounting, product costing and profitability analysis.
14. What is a field status group?
Field status groups control the fields which come up when
the user does the transactions. There are three options for
field selection.
They are:
 Display only
 Suppressed
 Mandatory

11. 15. What are the functionalities available in the
financial statement version?
In the financial statement version the most important
functionality available is the debit credit shift. This is more
important in case of Bank overdraft accounts which can have
a debit balance or a credit balance. Thus in case of a debit
balance you would require the overdraft account to be shown
on the Asset side. In case of credit balance you would require
the account to be shown on the Liability side.
16. What are the various organizational
assignments to a company code?
Company Code is a legal entity for which financial statements
like Profit and Loss and Balance Sheets are generated. Plants
are assigned to the company code, Purchasing organization is
assigned to the company code, and Sales organization is
assigned to the company code.

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

13. 18. Describe the relationship between cost
center accounting and profit center.
Cost centers allow companies to capture all costs related to
daily businesses operations, generally excluding
unavoidable monthly expenses like rent or utilities.
Administrative, entertainment, food and other expenses
fall under this heading. Profit centers capture data related
to both cost and revenue, showing how much each dollar of
profit costs to generate.
19. What is dunning?
Dunning is actually the process by which you “bill” or
“invoice” a customer for past due items.

14. 20. How to create Tax Calculation Procedure?
Tax calculation procedures based on the countries
depended. One country is using deferent of tax procedures.
We are creating new country also and at what type
calculation procedures present is running on the country
and it is assigned which country used.
(OR)
Tax calculation procedures based on the country wise using
and which country is used at what percent and it is used on
the country. We are creating new country also at what
percent it is used and it is assigned to using of this country.

15. 21. Explain Legacy System Migration
Workbench?
LSMW is widely used by EDI programmers. EDI Programmers
connect the SAP system to Non SAP system. During this Data
migration is a necessity. When data migrates from source to
destination the destination code is different from the source
code. So what LSMW does is* Converts the data in to batch files*
Then converts the batch files in to source code batch files* And
then migrates data. Standard Interfaces like BAPI or Idoc are
used in this process.
The LSMW comprises the following main steps:
 * Read data (legacy data in spreadsheet tables and/or sequential
files).
 * Convert data (from the source into the target format).
 * Import data (to the database used by the R/3 application.

16. 22. What is meant by GR/IR regrouping program?
The balance in a GR/IR account is basically because of 2
main types of transactions: Goods delivered but invoice not received – Here the Goods
receipt is made but no invoice has yet been received from
the vendor. In such a scenario GR/IR account will have a
credit balance.
 Invoiced received but goods not delivered – Here the Invoice
is received from the vendor and accounted for, but goods
have not been received. In such a scenario GR/IR account
will have a debit balance. The GR/IR account would contain
the net value of the above two types of transactions. The
GR/IR regrouping program analyses the above transactions
and regroups them to the correct adjustment account.

17. 23. What is the difference between profit center
accounting and Profitability analysis?
Profit center accounting is basically done for internal
controlling purposes. It lets you determine the profit and
loss using the cost of sale approach or period accounting
approach. Here you can find the profit from an “area of
responsibility or person” point of view, this is account
based costing. Whereas in Profitability analysis, market
segments based on product, customer, order or any
combination of these are studied to find outs the profit. PA
provides information to the marketing, sales and planning
department so that they can make decisions
24. What are Different types of ERP?
SAP, BAAN, JD Edwards, Oracle
Financials, Siebel, PeopleSoft. Among all the ERP’s most of
the companies implemented or trying to implement SAP
because of number of advantages of other ERP packages.

18. 25. Define Meta data, Master data and
Transaction data?
 Meta Data: Data that describes the structure of data or
Meta Objects is called Metadata. In other words data about
data is known as Meta Data.
 Master Data: Master data is data that remains unchanged
over a long period of time. It contains information that is
always needed in the same way. Characteristics can bear
master data in BW. With master data you are dealing with
attributes, texts or hierarchies.
 Transaction data: Data relating to the day-to-day
transactions is the Transaction data.

19. Contact Us:
For more details, please log on to www.ITLearnMore.com
You can also Find us on :

20. Thank you !