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SAP FINANCIALS & CONTROLLING FAQ’SPrepared By: Ms.Pramila Nagaraj             First Class MBA Finance Graduate (2009-10)  ...
SAP Finance FAQs - SAP Financial System1. What are the two major areas within the SAP environment? Describe each.(1) Confi...
7. What are the phases (4) in the SAP Procedure Model?• Organization and Conceptual design• Detailed design and set-up• Pr...
15. What is the correction and transport system? Who operates this system?    The Correction and Transport System provides...
5. FI-AR is closely integrated with which other module(s) within SAP? Which cycle doesthis support?The Accounts Receivable...
SAP Finance FAQs1. Define the major organizational hierarchy elements within the Financial Accountingmodule and explain th...
6. What is a credit control area? Describe its relationship to company codes?A credit control area (CCA) is used to set an...
SAP Finance FAQ’s1. When setting up company code global parameters, what are the general data the   configurer will need t...
7. Now assume your client indicates they are on a July-June fiscal year. How and where is   this configured?   To define a...
SAP FI FAQs - Special Topics of Financials1.   Answer True or False to the following:     True/False. Multiple currencies ...
SAP FI FAQs – Automatic Account Assignment1. The level at which valuation should take place should be determined early in ...
SAP FI FAQs – Procurement Cycle and Documents1.   Name the five major activities (in the order they occur) in the Procurem...
The Payment Program is set to maximize cash discounts when paying open vendoritems. It creates a list of proposed vendor i...
Account Assignment category is used to manually create Order documents. Itdetermines which account assignment data is requ...
SAP FI FAQs – Sales Cycle and Documents1.   What are the five steps in the Sales Cycle and what Modules do they originate ...
7.    When a Sales Order is processed, the system automatically executes what functions?The system automatically executes:...
SAP Cash Management FAQs – Overview1. What is Cash Management?Cash management is a sub-module of Treasury that may be util...
SAP Cash Management FAQs – Check Deposit Overview1.   True/False? The SAP principle for the bank statement processing and ...
SAP Cash Management FAQs – Manual Bank Statement1. Does the bank statement processing functionality affect only the CM sub...
SAP Asset Accounting FAQs – Organizational Structure1.   What is the Asset Accounting sub-module?The Asset Accounting sub-...
SAP Asset Accounting FAQs – Old Assets Data Master1. Base on quantity, what are the three methods of old asset data transf...
6. Which activities should be done before the production start-up? Give a briefdescription of each of them.    Check cons...
SAP Asset Accounting FAQ’s – Information Systems1. True or False? – The Asset Accounting Information System is a hierarchi...
SAP Asset Accounting – Valuation and Periodic Processing1.    What is periodic processing, and what is it used for in Asse...
5.   What is a depreciation key and internal calculation key?Depreciation key is used for calculating depreciation amounts...
10. What does the system use to calculate the replacement values, and what are thetwo ways of calculating the current repl...
The smoothing method distributes depreciation evenly to the periods from the currentdepreciation period to the end of the ...
SAP Asset Accounting FAQs – Asset Transactions1.   Define a transaction type.During the life of an asset there are a numbe...
5. Most asset transfers are described as either inter-company or intra-company. Whatis the difference?Inter-company transf...
SAP Asset Accounting FAQs – Master Data1.   Describe the function of depreciation areas.Depreciation area 01, which can be...
If the company code is in production status: the system creates only asset classes thatwere not yet created. Exiting class...
9. Define work lists.Work lists are used for mass retirements, mass changes and work on incomplete assets.There are three ...
SAP FI FAQs – Taxes1.   Briefly explain the difference between a value-added tax and sales and use tax.Value-added taxes a...
SAP FI FAQs – Financial Statements1.   Discuss the concept of hierarchy levels with regard to the balance sheet in SAP.The...
SAP FI FAQs – Closing1.    Discuss the monthly closing process in SAP.The only technical requirements of period-end closin...
6. How is an exchange rate difference accounted for when posting and clearing aninvoice in foreign currency?The exchange r...
SAP FI FAQs – Currencies1.   How can a document obtain exchange rate information?•    From the Exchange rate table•    Fro...
7.   What are the prerequisites for posting a document using foreign currencies.– Local currency must be defined in the Co...
SAP FI FAQs – Outgoing Payment Processing1.   Discuss the steps involved with configuring and running the payment program....
5.   Where does the payment program get bank information?A)   Vendor /customer master recordB)   Open itemC)   PP configur...
SAP FI FAQs – Invoice Verification1.   Invoice verification provides a link between which modules?Invoice verification pro...
SAP FI FAQs – Dunning1.   What is dunning?The process of notifying customers/vendors that they have overdue items. There a...
7.   What is a grace period?A grace period is the period during which an overdue item will not be dunned. An item,whose da...
SAP FI FAQs – Incoming Payment Processing1.     Explain the purpose of the payment advice functionality.Payment advice not...
The customer executes his payment program, which generates payment advice notes.These payment advice notes are sent to the...
SAP FI FAQs – Credit Management1.   For what is credit management used?Credit management is used to set and control custom...
SAP FI FAQs – Line Item Configuration1. The client does not like SAP’s standard document line layouts. Explain how youwoul...
SAP FI FAQs – Display Accounts and Documents1.   What is the purpose of the assignment field?The assignment field is used ...
SAP FI FAQs – Document / Account Maintenance1.   Under what circumstances can a document be changed?Most fields in a docum...
SAP FI FAQs – Preliminary Documents1. What is a preliminary posting?In SAP, a preliminary posting allows you to enter and ...
SAP FI FAQs – Reference Documents    1.   List the different types of reference documents   Sample documents,   Account ...
5.    What are the steps to creating an account assignment model?A)    Configure the line layout for the account assignmen...
Equivalence numbers allow you to distribute journal entry amounts over more than oneG/L account using ratios. Used mostly ...
SAP FI FAQs – Document Entry1.   When entering data, what steps does the system follow?User defined substitutions are inse...
SAP FI FAQs – Document Configuration    1.   What is the document principle?    The document principle requires that one F...
applicable). Line items may also be controlled by a Screen Variant, which worksindependently of the field status variant.7...
13.   How are validations and substitutions configured?For each validation and/or substitution, you must define the applic...
SAP FI FAQs – Bank Master Record1.   What is a house bank? What information does it contain?A house bank refers to the ban...
SAP FI FAQs – Customer Master Records    1. What are the three segments of a customer master record? Give an example of da...
5. Your client indicates they use a graded scale of discounts as an incentive for    customers to pay invoices early. Can ...
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
SAP Financials and Controlling FAQ's
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SAP Financials and Controlling FAQ's

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SAP Financials and Controlling FAQ's

  1. 1. SAP FINANCIALS & CONTROLLING FAQ’SPrepared By: Ms.Pramila Nagaraj First Class MBA Finance Graduate (2009-10) Global Academy of Technology, Bangalore (VTU- Belgaum) Trained up in SAP FICO @ SAPTAC Bangalore (FRESHER) © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  2. 2. SAP Finance FAQs - SAP Financial System1. What are the two major areas within the SAP environment? Describe each.(1) Configuration – Maintenance of settings in the system to support customizedbusiness requirements of the client.(2) Application – On going processes required to record and report business activity.2. What are the two methods available for accessing the configuration functions in FI?Describe each.• Implementation Guide (IMG) – leads you through the steps required for configurationin an implementation.• Transaction codes – takes you directly to the first screen of a transaction without theuse of the IMG or menu paths.3. What are the four configuration areas of the IMG? Describe each.• General Settings – non-application dependent specifications• Enterprise Structure – definition of organizational units and their relationships• Cross-applications component• Functional Areas (e.g., Financial Accounting, Sales and Distribution)4. Give examples of activities performed on the configuration side in SAP? On theapplication side in SAP?Configuration:• Create Organizational structures• Define foreign currencies• Define financial statements• Outline Credit Management functionalityApplication:• Post Accounting transactions• Post Customer Invoice• Post Vendor Invoice• Create Master records• Process financial statements• Display accounting documents5. What are three major components of Customizing?• Implementation Guide• Basic Functions• Procedure Model6. What is the SAP Procedure Model?Provides planning basics for an implementation project and describes the differentphases of the SAP implementation for all applications (SAP’s implementationmethodology).© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  3. 3. 7. What are the phases (4) in the SAP Procedure Model?• Organization and Conceptual design• Detailed design and set-up• Preparations for going live• Productive Operation8. What does the menu path: System>Status do?It gives the transaction code and other identifying information for the current (active)transaction.9. What is the highest level of information in SAP? Where is this configured?General Settings, which is configured in the IMG10. What are the tables that are configured under global settings?Calendar, Units of Measure, Country Table, and Currency & Exchange Rate Table11. Who is usually responsible for establishing the organizational structure on animplementation?FI/CO Team12. What are some examples of units set up under organizational structure?• Company Code• Business Area• Credit Control Area• Functional Area13. What is meant by “cross-application” components in the IMG?Cross-application components encompass all areas of configuration that are not specificto one application. They are used across the functional modules. Examples include:• Document Management• Documentation Tools• ALE• EDI14. What are the three versions of the IMG? Describe each.• Reference IMG: Complete Version• Enterprise IMG: Subset of the Reference IMG that includes all modules to beimplemented for a specific organization.• Project IMG: Subset of the Enterprise IMG based on the individual projects or areaswithin an implementation© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  4. 4. 15. What is the correction and transport system? Who operates this system? The Correction and Transport System provides a method to move configuration and program code from system to system or Client to Client. It would be used to move customized data from a development system to a test system, and then to a production system. The Correction and Transport System is usually operated by the System Administrator. SAP Finance FAQs – SAP FI Introduction 1. What is the SAP Financial Accounting (FI) module? The SAP Financial Accounting (FI) Module provides integrated, on-line, real-time functionality for processing, recording and maintaining the financial accounting transactions of the business for external reporting purposes. 2. List and describe sub-modules of FI? Accounts Receivable (A/R) – sub-module where customer transactions are recorded and administered within FI. Accounts Payables (A/P) – sub-module where vendor transactions are recorded and administered within FI. General Ledger (G/L) – sub module where financial accounting data for a legal entity is recorded. Special Ledger (S/L) – provides summary information from multiple applications at a level of detail that the user defines that provides summary information from multiple applications at user defined levels. Asset Accounting (AA)- encompasses the entire lifetime of the assets from purchase order or the initial acquisition through retirement. To a large extent the system automatically calculates the values for depreciation, interest, insurance. Legal Consolidations: (FI-LC) is the sub-module with the central task of combining the financial operating results of the companies within a group to provide overall results for the group. Funds Management: (FI-FM) is the sub-module that supports financial checking and control using budgeting techniques. Travel Management (FI-TM): processes business trip and expense data. It may be integrated with HR (Personnel Data and Payroll). 3. Describe the SAP concept of “Integration.” Integration is the process by which data entered in one module is used by or updates another module on a real-time basis. 4. The General Ledger receives simultaneous postings from which other sub modules within FI? The Accounts Receivable (FI-AR), Accounts Payable (FI-AP), and Asset Accounting (FI-AA) modules. © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  5. 5. 5. FI-AR is closely integrated with which other module(s) within SAP? Which cycle doesthis support?The Accounts Receivable (FI-AR) module is closely integrated with the Sales &Distribution and Material Management modules. FI-AR supports the Sales cycle6. FI-AP is closely integrated with which other module(s) within SAP? Which cycle doesthis support?The FI-AP module is a closely integrated with the Materials Management (MM) module.The Accounts Payable module supports the Procurement Cycle.7. List (3) features of the FI-GL module.• Multiple currency capability• Flexible real-time reporting• Real-time transaction entry8. Cash Management is a sub-module of which module?Treasury module9. Can depreciation be processed from Asset Accounting sub-module directly to the FIand CO Modules?Yes© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  6. 6. SAP Finance FAQs1. Define the major organizational hierarchy elements within the Financial Accountingmodule and explain the relationship between each of them.The hierarchy, from the highest organizational unit to the lowest, is the Client, Chart ofAccounts (COA), Company Code and the optional Business Areas (BA). Two otheroptional areas include the Dunning Area and the Credit Control Area (CCA). CreditControl Areas come above the Company Code, and Dunning Areas come below theCompany Code. There is only one Client and its values are the same across all CompanyCodes that are attached to it. Every Company Code is a legal independent entity.Business Areas can be shared among Company Codes (many-to-many relationship) andthey are used for internal reporting purposes. Each Company Code is assigned a COA.The COA may be the same for multiple Company Codes, but each Company Code mayonly use one COA.2. What is the highest hierarchy level in SAP? Define this term and explain how it is usedin the SAP system.The Client is the highest level in the SAP organizational structure. Anything specified fora Client applies to all Company Codes that are attached to that Client. Clients have aone-to-many relationship with Company Codes. Clients are generally not reported onwith balance sheet and P&L’s, the company codes are the legal entities and serve for thispurpose. However, clients can be reported on as part of consolidation or extended G/L.3. Explain the relationship between company code, business areas and financialstatements.A Company Code represents an independent legal entity that is required by law to issuefinancial statements (Balance Sheet and P&L Statement). Business Areas are definedindependently of Company Codes and can be shared across Company Codes. InternalBalance Sheets and P&L Statements can be generated by Business Area though they arenot required.4. Discuss three benefits of the SAP organizational structure.• It gives flexibility to reflect complex organizational structures• It helps to consider future changes in the organizational structure• It is clearly defined into logistical (sales, purchasing) and financial views (costaccounting, financial accounting).5. Can you report on business areas across companies? If so, explain how this isaccomplished conceptually in the system.Yes, because BA’s are defined independent of company codes. They can be added to thedetail of a line item in a document, thus enabling the system to keep track of businessarea information for reporting and controlling purposes.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  7. 7. 6. What is a credit control area? Describe its relationship to company codes?A credit control area (CCA) is used to set and control credit limits for customers. Theyinclude one or more company codes. There can only be one CCA per company code.Customers in several company codes can exist under several CCA’s. As part of creditmanagement, an individual customer’s credit limit is set based on an individual creditcontrol area or across several credit control areas.7. The chairman of the P&W Holding Co. wants to link each of his four company codesto three dunning areas and two credit control areas. Can this be done? Why or why not?Technically, an individual company code can only be assigned to one credit control area;however, a list of allowable credit control areas may be created. A company code canhave multiple dunning areas.8. Where does the chart of accounts fall in the FI organizational structure? Under Client and above company code.9. How many chart of accounts can be assigned to one company code? Only one10. How many company codes can be assigned to one chart of accounts? Many11. What is dunning?The process of automatically notifying and requesting payment from customers withpast due invoices.12. How many dunning areas can a company code have?Many13. How many company codes can a dunning area have?Many© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  8. 8. SAP Finance FAQ’s1. When setting up company code global parameters, what are the general data the configurer will need to define? What are the global data the configurer will need to define? General Datao Company Codeo Company Nameo Cityo Currencyo Country Keyo Language Global Datao Chart of Accountso Credit Control areao Fiscal year varianto Field status varianto Posting Period Variant2. Explain the copy function in SAP when creating a new company code. The copy function can be used to partially copy a company code by allowing the configure to select specific data desired.3. Explain what is meant by the “deletability” check performed by SAP before a company code is deleted? SAP performs a “deletability” check before processing the activity, “Delete Company Code.” If the company code meets the delete conditions (e.g., there is no linked/dependent data from other areas), the process may proceed.4. What happens when the company code does not meet delete conditions? The user will be informed that there is dependent data in the system that must be deleted before the company code can be deleted.5. During an interview, you learn that your client uses 12 normal posting periods during the year, and 4 special periods for year-end adjustments. Where is this configured in SAP? The number of normal posting periods and the number of special periods for year-end adjustments are defined in the Fiscal Year Variant in SAP.6. In a follow up meeting, your client decides they would like to use 12 normal periods and 5 special periods instead. What would you (as a consultant) recommend? Why? SAP does not allow the sum of the normal posting periods and the special periods to exceed 16. When there are more than 16 periods required, the Special Purpose Ledger with up to 366 posting periods may be used. © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  9. 9. 7. Now assume your client indicates they are on a July-June fiscal year. How and where is this configured? To define a fiscal year (which differs from a calendar year) in SAP, you must specify the last day of each individual posting period and indicate that the fiscal year differs from the calendar year. On the other hand, when the fiscal year does represent the calendar year, each calendar month corresponds to a posting period.8. Your client indicates they would not like the “cost center” field to appear when a user enters a general ledger posting to an asset account. They would, however, like the cost center to be required when a user makes a GL posting to an expense account. Where is this configured? The field status group defines what fields will be suppressed (do not appear), required (must enter value during document creation), or optional for a specific type of account. A collection of field status groups makes up a field status variant. The field status variant is tied to a company code in the “company code global parameters” in the IMG. Note: Suppressing a field will not cause it to be invisible in an Enjoy posting. The screen variant is necessary to actually hide a field from view.9. After month-end close, your client would like the ability to close (restrict document entry) the prior period and open the next period for postings. Where is this done in the SAP? Can this be controlled based on individual account types (e.g. G/L Accounts, Customer Accounts, Vendor Accounts)? A posting period variant controls the status (open or closed) of posting periods for document creation and maintenance. It can also control the posting status by account types and ranges of accounts within account types. Posting Period Variants make it possible to maintain the status of Posting Periods independent of the Company Code (one Posting Period Variant can be assigned to multiple company codes). The Posting Period Variant is assigned to a company code in the “Company Code Global Parameters” in the IMG.10. What is an account type? An account type specifies the accounting area to which an account belongs11. What are the account types used in the FI module? S = General Ledger D = Customers K = Vendors A = Assets12. How would you specify a posting period to be valid for all account types? Account type “+” is used to specify for all account types. © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  10. 10. SAP FI FAQs - Special Topics of Financials1. Answer True or False to the following: True/False. Multiple currencies may be used within a single cash journal. True/False. A company code may have may cash journals. True/False. The cash journal balance may be negative.2. List the types of tasks you can perform using Schedule Manager.• Worklists (via workflow)• Background jobs• Online (real-time) jobs• Transactions• Text reminders3. Answer True/False to the following:True/False. In order to use Travel Management, the HR module must be implemented.False, SAP provides a mini-master record that can be used by FI when HR is notimplemented.True/False. You must enter a Travel Request and Travel Plan before you can submit anExpense Report.False, Travel Requests and Travel Plans are optional functions in Travel Management.They provide additional travel information that is not necessary for reimbursements.True/False. The vendor payment program is used to reimburse employees.True, the payment program processes expense reimbursements using the vendor masterrecords that are created for each employee.4. List the components of the mini-master record.• Personnel actions• Organizational assignment (of the employee)• Personal information• Addresses• Bank Details• Travel privileges• Travel preferences© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  11. 11. SAP FI FAQs – Automatic Account Assignment1. The level at which valuation should take place should be determined early in theproject. Once the level is set, it cannot be changed.True or False2. Which is not an example of Valuation Class?(a) Finished Products(b) High priced labor(c) Raw Materials(d) Semi-Finished Products3. The _________ results in the creation of an invoice sent to the customer. Billing Document4. List three prerequisites for configuring automatic assignments• Maintain the Chart of Accounts• Assign Plants to a Company Code.• Maintain the necessary Material Types.5. _________ is the level at which material valuations are carried out. It corresponds toeither a single plant or all plants within a company code. Valuation Area6. The valuation class allows the user to group together materials with similarproperties so they can be managed under the same stock account.True or False7. The billing document results in the creation of an invoice sent to the customer. Thisis a major integration point between the Production Planning Module and the FinancialAccounting Module?True or FalseFalse. The billing document results in the creation of an invoice sent to the customer.However, this is a major integration point between the Sales and Distribution and theFinancial Accounting Module.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  12. 12. SAP FI FAQs – Procurement Cycle and Documents1. Name the five major activities (in the order they occur) in the Procurement Cycle.• Purchase Requisition (MM)• Purchase Order (MM)• Goods Receipt (MM)• Invoice Verification (MM)• Vendor Payment (FI)2. What is a Purchase Requisition?A Purchase Requisition is a document that identifies an organization’s demand for aproduct or service from an outside vendor. It is an internal document (i.e., it is not visibleto the vendor or any other outside organization).3. What are the two ways a Purchase Requisition can be created?• Automatically as a result of a Materials Requirements Planning (MRP) run.• Manually by a user.4. What is a Purchase Order?A Purchase Order is a legal contract between a buyer and a vendor. It lists the materialsor services to be purchased on specified terms and conditions (quantity, price / pricingconditions, delivery date).5. Name the four steps necessary for creation of a Purchase Order.• Source Determination• Vendor Selection• Purchase Order Processing• Purchase Order Follow-Up6. What are the different types of goods movements?Goods receipts, goods issues, and transfer postings.7. What is Invoice Verification?Invoice verification is the process of matching Vendor Invoices to the Purchase Orderand Goods Receipt documents. For matched vendor invoices, a payable is automaticallycreated in the FI General Ledger.8. How is the Payment Program used to make Vendor Payments?© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  13. 13. The Payment Program is set to maximize cash discounts when paying open vendoritems. It creates a list of proposed vendor items to be paid and suggests paymentmethods for each proposed payment. The user has the ability to make any changesbefore payments are made.Note: The payment program selection strategy (e.g., maximization of cash discounts) isconfigurable.9. Name the three different types of Materials Management documents.• Order documents• Goods receipt documents• Invoice Receipt documents10. From which modules can the above documents be viewed?• Order documents can be viewed only in Materials Management.• Goods and Invoice Receipt documents can be viewed from both MaterialsManagement and Financial Accounting modules.11. What is a Request for Quotation (RFQ)?A RFQ is a request of quotes from vendors for a particular good or service. An RFQ canbe created with reference to a Purchase Requisition or be created directly.12. How is a Purchase Order created in SAP?A Purchase Order (PO) can be created directly or with reference to a RFQ, a Contract, aPurchase Requisition, or another Purchase Order.13. What is an Outline Agreement?An Outline Agreement documents a long-term arrangement with a vendor to providematerials or services at an agreed price. It is valid for a period of time or until a pre-defined total quantity or total value is reached.14. What are the different types of Outline Agreements?Contracts and Scheduling Agreements15. For what is an Account Assignment Category used?© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  14. 14. Account Assignment category is used to manually create Order documents. Itdetermines which account assignment data is required for an item in order to allocatecosts.16. What is the purpose of a Goods Receipt document?A Goods Receipt document is created when goods are received at a plant/warehouse.At this time, an accounting document is created to make a General Ledger entry, and amaterials document is created to record changes in physical inventory.17. What is the purpose of an Invoice Receipt document?When invoices are received from a Vendor, an Invoice Receipt document is created in thesystem. This document can be linked to a Purchase Order, a Goods Receipt, a DeliveryNote, or a Vendor. In addition to the materials document, an accounting document iscreated, which updates the relevant Vendor Account (sub-ledger) and General LedgerAccounts.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  15. 15. SAP FI FAQs – Sales Cycle and Documents1. What are the five steps in the Sales Cycle and what Modules do they originate from?  Sales Order : SD Module  Deliver Note : SD Module  Goods Issue : MM Module  Billing Document : SD Module  Receive Payment: FI Module2. Of the five steps listed above, which ones generate accounting documents and whatare they?  Goods Issue: Debit COGS and Credit Inventory  Billing Document: Debit Accounts Receivable and Credit Sales/Revenue  Payment Receipt: Debit Cash and Credit Accounts Receivable3. What are all the activities in the Sales Cycle?Inquiries, Quotations, Sales Order Processing, Credit Management, Delivery Processing,Goods Issue Processing, Billing Document Processing, Incoming Payment Processing,Automated General Ledger Update4. What is an Inquiry in the Sales Cycle?An Inquiry is a document created in the Sales & Distribution module that represents aquery from a customer or prospective customer.5. What is a Quotation?A Quotation is a document created in the Sales & Distribution module that recordsinformation about materials possibly desired by a customer or prospective customer.The material number, price and alternative items is usually included on a quotation.6. What is a Sales Order?A Sales Order is a contractual agreement between a Sales Organization and a customerconcerning goods to be delivered or services rendered.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  16. 16. 7. When a Sales Order is processed, the system automatically executes what functions?The system automatically executes:  Credit Checking  Pricing  Material Availability Checking  Transfer requirements to Materials Requirements Planning (MRP)  Shipping Point and Route Determination8. What is a Delivery Note?The Delivery Note is a document created in the Sales & Distribution module that initiatesthe shipping activities associated with delivering materials to a customer9. What financial transaction occurs when the Delivery Note is processed?A Delivery Note does not create a financial transaction in the General Ledger.10. What is the purpose of a Goods Issue?A Goods Issue is a document posted in the Materials Management module that is usedas the source document for recording changes in stock levels associated with deliveringmaterials to customers and for recording the financial impact of such transactions in theGeneral Ledger.11. What is a Billing Document?A Billing Document is a document posted in the Sales & Distribution module, whichsupports the creation of Customer Invoices, Credit or Debit Memos, and the recording ofthe financial impact of these transactions in the General Ledger.12. What accounting transaction occurs when a Billing Document is posted?As a result of a Billing Document, integration to the Financial Accounting module occurswith the automatic creation of an Accounting Document containing the followingaccounting entries:  Debit to the Customer Account and the appropriate General Ledger Reconciliation Account assigned to it.  Credit to the appropriate General Ledger Revenue Account.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  17. 17. SAP Cash Management FAQs – Overview1. What is Cash Management?Cash management is a sub-module of Treasury that may be utilized as a planning toolfor cash control and for reliable, up-to-date liquidity analysis of the company.2. Name and describe at least two functions of Cash Management.Bank statements, manual planning, cash position, liquidity forecast• Cash concentration = allows companies to maximize their cash pooling strategy withvarious cash accounts• Cash budget management = identifies impending illiquidity or possible budgetovershoots and controls payment flows taking account of profitability and liquiditySee others below or in the following chapters.3. Describe the differences between Cash Position and Liquidity Forecast.Cash position – reproduces the activity in bank accounts, forecasts daily liquidity or cashposition in 0-5 days time frame. It receives data on bank accounts and clearing accounts.The example of data flowing there is• Payments from a bank statement and payments from a payment program (FI)• Loans, transfers and deposits from TM• Manually planned items from CMLiquidity forecast – reproduces the activity in sub-ledger accounts, projecting cashinflows and outflows in 1-24 weeks time frame. It receives data from AR, AP, FI, MM, SD,TM.The example of data flowing there is• Invoices from FI or MM and SD (including parked documents),• Securities related receivables and payables from TM,• Down payment requests from FI,• Manually planned items from CM, etc.4. Define planning levels.Planning levels explain the origin of the data in Cash management, reflect typicalfinancial transactions (e.g., F0-posting to a bank account in FI, AP-payment advices) andthus enable users to better estimate its reliability5. True/False? To be able to use Cash Position and Liquidity Forecast the “CM active”indicator must be selected in the company code global parameters definition.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  18. 18. SAP Cash Management FAQs – Check Deposit Overview1. True/False? The SAP principle for the bank statement processing and the check deposit processing is the same.2. True/False? The check deposit processing cycle is completed with the bankstatement processing.When the bank statement is processed after depositing a check with a bank (cashing it),the incoming check account is cleared and the bank account is debited.3. What accounts in FI are check deposits mapped to?Check deposits are mapped to bank accounts and bank clearing accounts (subaccounts)– similarly to the bank statements.4. Is it possible to enter more checks at the same time?Yes, however, all of them must require the same posting processing since in the headerof the check a transaction name is assigned applying to all the checks contained in aparticular deposit run.5. What is the purpose of account assignment (screen) variants? Can a start variant besubstituted during the check entry?They allow users to enter different clearing or additional information for each checkthrough different fields ready for input in various variants. The start variant can bechanged any time during the check entry.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  19. 19. SAP Cash Management FAQs – Manual Bank Statement1. Does the bank statement processing functionality affect only the CM sub module?The bank statement processing is a special CM functionality which, however, sendsinformation into FI. It is not dependent on any other CM functionality or the CM submodule activation.2. What are the two main parts of a manual bank statement in SAP?• A bank statement header• Line items3. How does a user determine the way in which a particular line item will be posted?By assigning each line item a transaction name.4. True or False ? The batch input session for bank posting stands for G/L posting andis always created if the bank statement is posted without errors.5. True or False? When a batch-input session is incomplete or wrong the bankstatement needs to be entered again.False. Remove the errors or complete data when processing the session in foreground.6. What does account assignment variant (screen variant) influence? Can it becustomized?It determines what fields are going to be ready for entry when inputting bank statementline items. It can be customized.7. What are the alternative names for internal transactions and what side of the systemare they maintained at (application or configuration)?Internal transactions = posting rules = internal activities are customized on theconfiguration side. Indirectly, they are assigned to line items through transaction namesand determining the posting details for them (accounts, posting keys, etc.).8. What is the function of a value date in the bank statement processing ?The value date is the date when the bank transaction involving a line item takes place. Itis assigned to every line item when the bank statement is entered by a user.9. How is masking used in manual bank statement customizing?Masking allows us to substitute for a real account number when defining posting rules.The actual account number is derived from a bank account number (account ID) enteredand the partial or full masking.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  20. 20. SAP Asset Accounting FAQs – Organizational Structure1. What is the Asset Accounting sub-module?The Asset Accounting sub-module manages a company’s fixed assets. Within theFinancial Accounting system, FI-AA serves as a sub-ledger to the General Ledger,providing detailed information on asset-related transactions.2. Define the chart of depreciation.The chart of depreciation contains the defined depreciation areas. It also contains therules for the evaluation of assets that are valid in a given country or economic area. Thechart of depreciation is a catalog of country-specific depreciation areas structured tomeet the various business needs.Each company code is allocated to one chart of depreciation. Several company codescan work with the same chart of depreciation.3. What is the difference between the chart of accounts and chart of depreciation?The chart of accounts can be global, country specific and industry specifics based on theneeds of the business. The chart of depreciation is only country specific. The charts areindependent of each other.4. How is Asset Accounting integrated with Cost Accounting (CO)?Postings to depreciation can be made through a cost object such as a cost center orinternal order. Also, an asset can be assigned to a cost center, internal order, activitytype, or a maintenance order.5. What is an asset class?This is the main criterion for classifying assets by business and legal requirements. Theasset class, created at the client level, consists of a master data and depreciation areasection. Each asset master record must be allocated to one asset class.6. Define depreciation area.A depreciation area shows the valuation of assets for a particular purpose (for example,for individual financial statements, balance sheets for tax purposes, and cost accountingvalues).© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  21. 21. SAP Asset Accounting FAQs – Old Assets Data Master1. Base on quantity, what are the three methods of old asset data transfer? In whatstatus does the company code have to be so that the transfer is possible?1) small quantity - Create old asset manually (dialog transaction)2) large quantity - Batch-input procedure (RAALTD01)3) very large quantity – Direct data import (RAALTD11)The company code must be set up to the status for old assets data takeover when noposting is possible.2. True or False? With the old assets data transfer through any of the three methods,appropriate G/L accounts in Financial Accounting are updated.False. Balance reconciliation with the relevant G/L accounts must take place separately.G/L personnel can input these via FI or AA personnel can input them via the transferbalance screen in AA With up-to-date accounts in the already productive FI there is noneed to update them.3. What are the two possibilities for the transfer date.• At the end of the last closed fiscal year• In the fiscal year following the last closed fiscal year4. What data is transferred at the year-end transfer and the sub-annual transfer?Year-end transfer and transfer during fiscal year:• Master data• Cumulative values as of the end of the last closed fiscal yearSub-annual transfer (if the transfer date after the closed fiscal year)• Master data• Cumulative values as of the end of the last closed fiscal year• Depreciation and asset transactions posted in the current year (transfer parameters)5. Explain the two methods of transferring the depreciation posted in the current year.• Transferring the depreciation posted in the current fiscal year up to the point oftransfer- it is necessary to specify the last posted depreciation period In the legacysystem for each depreciation area for every asset company code.• Posting the total depreciation for the current fiscal year up until the transfer dateafter the old data transfer –it is done in AA by performing a posting run for unplanneddepreciation.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  22. 22. 6. Which activities should be done before the production start-up? Give a briefdescription of each of them.  Check consistency – major components configured, i.e. chart of depreciation, company codes, depreciation areas, asset classes, asset G/L accounts, AA customizing  Reset company code – test application data can be deleted (asset master records and transactions of AA) but only of the company code has a test status. Customizing settings are not deleted.  Reset posted depreciation – this function is performed when errors occurred during testing the depreciation posting run and it is necessary to return to the original status (includes depreciation data of an old assets data transfer). Manual adjustments in the relevant G/L expense and depreciation accounts need to be performed. The reset is possible only for a company code in a test status.  Set/reset reconciliation accounts – The G/L accounts relevant for AA are defined as reconciliation accounts by a report changing their master records. After the transfer date these accounts can no longer be directly posted to.  Transfer balances – Balances to the G/L accounts, which have been defined as reconciliation accounts, are transferred. (old data at fiscal year end)  Activate company code – This function terminates the production start–up.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  23. 23. SAP Asset Accounting FAQ’s – Information Systems1. True or False? – The Asset Accounting Information System is a hierarchical structurecontaining standard reports creating a report tree that cannot be changed.False. The standard reports provided by SAP can be copied and modified. Branches canbe added or removed from a report tree.2. What is the asset value display used for?Asset value display offers extensive possibilities for planned as well as already postedasset values. For example, it is possible to compare results from different depreciationareas, simulate asset values over time, view posted transactions, and execute reports.3. Describe simulation in the context of AA and simulation versions.Simulation in the AA context is an experimental change to parameters affecting thevaluation of assets. It can apply to a single asset, the entire asset portfolio, or a testdepreciation area.Simulation versions allow you to simulate a change in depreciation method (depreciationkey and useful life) for asset value/depreciation reports and this way to forecast assetdepreciation.4. Describe the asset history sheet.The asset history sheet is the most important and most comprehensive year-end reportor intermediate report. It displays the various stages of a fixed asset’s history – from theopening balance through the closing balance – including any acquisitions, retirements oraccumulated depreciation. SAP supplies country-specific versions of the sheet. It isoften a required appendix to the balance sheet.5. What is a sort version, and what is the maximum number of sort levels in a sortversion?The sort version defines the formation of groups and totals in an asset report. All fieldsof the asset master record can be used as group and/or sort criteria for defining of a sortversion. It consists of a maximum of 5 sort levels determined via fields.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  24. 24. SAP Asset Accounting – Valuation and Periodic Processing1. What is periodic processing, and what is it used for in Asset Accounting?Periodic processing comprises the tasks that must be performed at periodic intervals.Since only the values from one depreciation area can be automatically posted online inFinancial Accounting, the changes to asset values (transactions) from other areas withautomatic postings have to be posted periodically to the appropriate reconciliationaccounts.2. What is the role of a depreciation area in handling different types of valuation? Whydo we need to handle different types of valuation?By using various depreciation areas that differ from each other in• kinds of depreciation (ordinary, special, unplanned depreciation)• depreciation terms (depreciation method, useful life)• base values for depreciation calculation (APC, replacement value)It is possible to perform different valuation and meet the calculation needs for specificpurposes (e.g., balance sheet, cost accounting or taxes).3. The system supports three direct types of depreciation. What are they? Definethem.• Ordinary depreciation is the planned reduction in asset value due to normal wear andtear. Therefore, the calculation of depreciation should be based on the normal expecteduseful life.• Special depreciation represents depreciation that is solely based on tax regulations.In general, this form of depreciation allows depreciation by percentage within a taxconcession period without taking into account the actual wear and tear of the asset.• Unplanned depreciation is concerned with unusual circumstances, such as damage tothe asset that leads to a permanent reduction in its value.4. True or False? Depreciation is calculated by solely using the depreciation keys,which are defined at the chart of depreciation level and available in all company codes.False. The depreciation keys are defined at the chart of depreciation level. Therefore,they are available in all company codes. SAP supplies depreciation keys for every chartof depreciation. The system calculates depreciation using depreciation keys and internalcalculation keys.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  25. 25. 5. What is a depreciation key and internal calculation key?Depreciation key is used for calculating depreciation amounts. It controls automaticcalculation of planned depreciation, interest and maximum percentage for manualdepreciation.Internal calculation key makes up a part of the depreciation key and it defines a method,base value and rate of percentage for depreciation, changeover rules (for decliningdepreciation), treatment of depreciation after useful life and period control fortransactions.6. Define derived depreciation area.A derived depreciation area is calculated from two or more real areas using a calculationformula. You can use derived depreciation areas, for example, to calculate specialreserves as the difference between tax and book depreciation. The book value rule in aderived depreciation area is checked each time a posting is made or depreciation ischanged in the corresponding real area.7. True or False? Generally, the system determines the depreciation start date fromthe asset value date of the first acquisition posting.True.8. True or False? If the definition of the depreciation key or depreciation terms ischanged depreciation values are recalculated automatically. Only if the depreciationterms change values are recalculatedFalse.9. When imputed interest is calculated, how does the system post this expense to theCO (CostAccounting) module?For cost accounting, you might have to calculate imputed interest on the capital tied upin assets. The system posts interest simultaneously during the periodic depreciationposting run. It posts to the accounts that are entered in the relevant accountdetermination for each depreciation area. Furthermore, an additional accountassignment can be made to the cost center or the internal order entered in each assetmaster record (same for depreciation).© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  26. 26. 10. What does the system use to calculate the replacement values, and what are thetwo ways of calculating the current replacement value?Index series entered in the asset or in the asset class.The two ways of calculating the current replacement value are historical (current year:acquisition year) and normal (current year: previous year).11. True or False? The depreciation posting program automatically updates the assetvalues and G/L accounts. The program generates a batch-input session for the update ofthe G/L accounts.False.12. True or False? Replacement value of an asset can be determined by using an indexseries.True. The “indexed replacement values” component makes it possible to calculatereplacement values for assets, and to use replacement values as the basis for calculatingdepreciation. You determine the replacement value using index series. You enter theindex series in the asset or in the asset class.13. True or False? When the depreciation posting program (RABUCH00) is run, thesystem posts individual documents for the different depreciation types.False. The depreciation posting program RABUCH00 updates the assets values andgenerates a batch-input session for the update of the general ledger. The postingsession also posts the different depreciation types, interest and revaluation, in additionto the writing-off and allocation of special reserves. The system does not createindividual documents, only summarized posting documents (per business area peraccount determination).14. For automatic depreciation postings, should the document type be assigned anexternal or internal number range?For each company code a document type must be defined for posting depreciation. Thedepreciation program should only use a document type that is limited to being used forbatch input. In this way, unintentional use of the document type can be prevented. It isalso essential that the document type is assigned a number range with an externalnumber assignment. The depreciation program can then assign the document numbersitself. If the numbers are assigned in this way, the depreciation posting program cankeep a check on posting to Financial Accounting. If errors occur, this numbering alsomakes it possible to make corrections.15. Explain the difference between the methods for distributing forecasteddepreciation to the posting periods.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  27. 27. The smoothing method distributes depreciation evenly to the periods from the currentdepreciation period to the end of the fiscal year (regardless of the value date of thetransaction). With the catch-up method, the depreciation on the transaction (from thestart of capitalization up to the current period) is posted as a lump sum. Thedepreciation posting program, posts this amount in the posting period, in which thevalue date of the transaction lies.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  28. 28. SAP Asset Accounting FAQs – Asset Transactions1. Define a transaction type.During the life of an asset there are a number of changes that affect the value of theasset. The FI-AA System recognizes a wide range of business transactions. Transactiontypes make it possible to handle all of the necessary postings appropriately.2. It is possible that an asset acquisition is posted in two steps or in two differentdepartments? How do the two entries clear?When the asset acquisition is posted in two steps or two different departments, younormally post to a clearing account. Use a general ledger account with open itemmanagement to guarantee that this account can be cleared. Either the FI departmentincludes this clearing account in their periodic run of SAPF123 (Automatic clearingprogram) or the clearing account has to be cleared in an additional step (Menu path:Posting > Acquisition > External acquisition > Clearing offsetting entry).3. What is the difference between non-valued and valued? Explain their implicationson Asset Accounting.For non-valued, the goods receipt takes place before the invoice receipt and the valuesare not yet posted to Asset Accounting. The line items are created and the values areupdated instead at the time of the invoice receipt. However, the system uses the date ofthe goods receipt as the capitalization date. At time of invoice receipt the asset iscapitalized, line items are created, and the value fields are updated.For valued, the goods receipt takes place before the invoice receipt and the values areposted directly to Asset Accounting. The asset is capitalized, line items are created, andthe value fields in the asset are updated. When the invoice is received later, there maybe differences between the invoice amount and the amount posted at the time of goodsreceipt. In this case, the corresponding adjustment postings are made to the asset.4. There are certain pieces of information automatically set in the asset master recordat time of acquisition. What are they?The following information is automatically set in the asset master record at the time ofthe first acquisition posting:• Date of capitalization• Posting date of original acquisition• Acquisition period• Depreciation start date per depreciation area.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  29. 29. 5. Most asset transfers are described as either inter-company or intra-company. Whatis the difference?Inter-company transfer indicates a transfer between company codes. This transfercreates a new record at the target company and posts the values according to theposting method selected.Intra-company transfer indicates a transfer within one company. Reasons for such atransfer include:• The asset has changed location. As a result, you have to change organizationalallocations (i.e., asset class, business area) in the master record that cannot otherwise bechanged.• The asset needs to split. Therefore, a portion of the original asset will be transferredto a new asset.• The asset under construction needs to transfer its costs to a real (depreciable) asset.6. Define transfer variant.The transfer variant specifies:• The method according to which the transferred asset is valued in the receivingcompany code• The transaction types (retirement/acquisition) that are used for the transferYour specification of the transfer variant can be dependent on the following:• The type of relationship between the company codes involved (legallydependent/independent)• The cross-system depreciation area7. For assets that the company produces itself, why are there two phases relevant toAsset Accounting? What are they?The two phases relevant to Asset Accounting for assets produced in house are the underconstruction phase and the useful life phase. The assets have to be shown in twodifferent balance sheet items during these two phases. Therefore, they have to bemanaged using a different object or asset master record for the under-constructionphase and for the completed asset. The transfer from under-construction phase tocompleted asset is referred to as “capitalization of the asset under construction”.8. True or False? Using the Asset Accounting module, it is no longer necessary orpossible to manually plan depreciation.False. In addition to the automatic calculation of depreciation using depreciation keys,you can also plan manual depreciation for individual assets in the FI-AA system.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  30. 30. SAP Asset Accounting FAQs – Master Data1. Describe the function of depreciation areas.Depreciation area 01, which can be set up as the book depreciation, can make automaticpostings to the general ledger. Other depreciation areas may get their values fromdepreciation area 01 but calculate and post different depreciation values to the generalledger. Other depreciation areas can be set up to show: country specific valuation (i.e.,tax depreciation); values/depreciations that differ from depreciation area 01 (i.e., cost-accounting reasons); consolidated versions in local/group currency, book depreciation ingroup currency; and the difference between book, 01, and country-specific taxdepreciation (‘derived depreciation area’).2. What information (sections) are included in the asset class?An asset class consists of three main sections:• A header, containing control parameters for master data maintenance and accountdetermination,• A master data section with default values for administrative data in the asset masterrecord,• A valuation section with control parameters for valuation and depreciation terms.3. Describe the function of an asset class.The most important function of an asset class is to establish the connection between theasset master records and the relevant accounts in the general ledger. The accountdetermination in the asset class determines the posting top the general ledger accounts.Several asset classes can use the same account determination assuming the asset classesuse the same chart of accounts and post to the same general ledger accounts.4. If the company code is in implementation status and assets exist in an asset classwith no transactions, you can delete and add new asset classes.[True] or FalseWhen the company code is in implementation status:• No assets have been created in an existing asset class; this class is deleted andgenerated again• There are assets in an existing asset class (but no transactions)- Delete all asset classes and their assets and generate them again or- Only add new asset classes.• Transactions exist for the assets: you can only add new asset classes© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  31. 31. If the company code is in production status: the system creates only asset classes thatwere not yet created. Exiting classes remain unchanged.5. Define maintenance level. What are the possible maintenance levels?Maintenance level defines the level (asset class, main asset number, sub-number) atwhich a field in an asset master record is to be maintained. Maintenance level definitionis part of the screen layout rule.If, for example, you define the maintenance level ‘main asset number’ for a field, then thefield will be filled with a default value from the asset class. However you will be able tochange the field when maintaining master data at the asset main number level.The three maintenance levels are:• Asset class• Asset main number• Asset sub-number6. What significance is depreciation key ‘0000’?Depreciation key ‘0000’ is a SAP delivered key that ensures depreciation and interest isnot calculated and posted. This key can be used for the assets under construction,however, special tax depreciation and investment support are possible even on assetsunder construction.7. What are the options for creating and asset master record?The two options for creating an asset master record are:• Use the asset class, to which the asset will belong, to provide default values. Theasset class then supplies the most important control parameters in the asset masterrecord.• Use an existing asset as a reference for creating the new asset master record (possiblythe reference asset has default values that are more suitable than those in the assetclass).8. Why might assets be divided up using sub-numbers?A complex fixed asset can be represented in the system using several master records,that is, sub-numbers. Assets may be divided using sub-numbers if:• Managing the values for subsequent acquisitions in following years (i.e., buildings)separately• Managing the values for individual parts of assets separately,• Dividing the asset according to various technical aspects.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  32. 32. 9. Define work lists.Work lists are used for mass retirements, mass changes and work on incomplete assets.There are three steps in using work lists:• Select the objects (assets) to be changed• Assign the task to be performed on the objects• Release the work list and process the Workflow© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  33. 33. SAP FI FAQs – Taxes1. Briefly explain the difference between a value-added tax and sales and use tax.Value-added taxes are assessed on the additional value that is added to a product as itmoves through the production chain from raw material to producer and finally to theconsumer. Sales and use taxes are based on the final sales value of the product.2. For what are jurisdiction codes used?Jurisdiction codes are used in multi-level taxes to identify each taxing authority. Whenusing jurisdiction codes, each level must be defined. For example, if there is a state,county and city sales tax then the following three codes would be created:• State: 2500000000• County: 2510200000• City: 25102809303. Briefly describe the following:a) Calculation Table – Contains all of the logic for calculating taxes including the accesssequence, condition type, and tax procedure.b) Tax Procedure – A country-specific template containing all of the processing logicand algorithms that support the tax amount computations. It contains the steps,condition types, reference steps, and account keysc) Tax Code – Assigned to a tax procedure and is entered in the G/L master record andaccessed when the G/L account is used in a document.4. What settings are necessary for automatic tax account assignment?The account key must be configured with posting keys, rules, and tax accounts. Therules determine if the tax code or account key will be used for account determination.5. How can taxes be calculated?Taxes may be calculated automatically by the system or entered manually by the user. Inthe case of manual entry, the system will verify that the amount entered is correct.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  34. 34. SAP FI FAQs – Financial Statements1. Discuss the concept of hierarchy levels with regard to the balance sheet in SAP.There are ten levels possible in the financial statement hierarchy. For each level, an itemname and total is assigned to a group of accounts. Higher levels provide moresummarization than lower levels, level one being the highest and therefore, leastdetailed.2. Describe how G/L accounts are assigned to the financial statement hierarchy.G/L accounts are attached to the lowest level of the financial statement hierarchy.3. Discuss planning in FI.Planning in FI utilizes the financial statement version to determine the layout of theplanning screens. Changes to the Financial Statement version are immediately reflectedin the planning screens (upon re-entry). Values entered in the planning screen areallocated between the periods using a Distribution Key. The figures are entered basedon the following:• Fiscal Year• Version -• Business area -• Currency -4. True or False. An account may be assigned to more than one node? Why?True. In some cases, an account may be listed in one group when it has a credit balanceand another when it has a debit balance. For example, a cash account is an asset whenthere is a debit balance and a liability when there is a credit (overdraft) balance. Thisfeature is also available for account groups via the debit/credit shift.5. Explain the difference between Cost of Sales Accounting and Period Accounting.Cost of Sales Accounting attempts to match revenues with their associated expenses;whereas, Period Accounting is primarily concerned with the activity occurring over agiven time period.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  35. 35. SAP FI FAQs – Closing1. Discuss the monthly closing process in SAP.The only technical requirements of period-end closing are to close the current postingperiod and to open the new one. Month-end reports can be run after the posting periodhas been closed. There are additional business processes (e.g., valuing foreign currencyopen items and G/L accounts, analyzing open items and accounts that will be closed out,etc.) that should also be completed for proper control, even though they are notrequired for closing.2. Discuss the annual closing process in SAP.1. Execute the month-end closing process for the last period.2. Run the balance sheet adjustment programs and make any manual adjusting entries.3. Generate year-end reports.4. Carry G/L, customer, and vendor accounts forward.5. Open the new posting period.3. Explain the purpose of running the GR/IR clearing account program.The GR/IR (Goods received/invoice received) clearing account program reclassifies theentries in the GR/IR account as either assets or liabilities for reporting purposes. At theend of a period the company can be in a situation where goods have been received butan invoice has not, or vice versa. Therefore, there may be a debit or credit balance in theGR/IR account.4. Explain the basic process of valuing accounts for closing before running a balancesheet.Before running a balance sheet, you need to value both open items and G/L accountsthat use foreign currencies. Open items need to be valued for vendor and customeraccounts, reconciliation accounts, clearing accounts, and expense and revenue accounts.This process is completed to accurately record the value of your assets and liabilities inthe reporting (local) currency.5. What is the exchange rate difference key used for?The exchange rate difference key is defined in the account master records of G/Laccounts managed in foreign currency. It is the key that defines which gain/loss accountis updated when the G/L account is re-valued.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  36. 36. 6. How is an exchange rate difference accounted for when posting and clearing aninvoice in foreign currency?The exchange rate difference between the invoice and payment is accounted for in again/loss account defined by the exchange rate difference key. It is postedautomatically.7. Explain how accounts managed in a foreign currency are valued.Each account managed in foreign currency is defined with an exchange rate differencekey. This key identifies a valuation gain/loss account that is updated when the account isvalued using program RFSBEWOO. The valuation process itself takes the differencebetween the original exchange rate used in the transactions and the current exchangerate and posts the difference to a gain or loss account.8. What is the difference between valuation of open items and valuation upon receiptof payment.When valuing open items, the system will post any differences to an unrealized gain/lossaccount. When payment is actually received, the difference becomes a realizedgain/loss.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  37. 37. SAP FI FAQs – Currencies1. How can a document obtain exchange rate information?• From the Exchange rate table• From a manual entry in the document exchange rate field2. What are exchange rate types used for? List and describe five exchange rate types.Exchange rate types are used for foreign currency revaluations and postings.– B (Bank Selling Rate)– G (Bank Buying Rate)– M (Average Rate) – The default rate type for posting documents.– EURO – Used for exchange rates between EU member nation currencies (e.g.,DEM:FRF)– EURX – Used for exchange rates between an EU member nation currency and a non-member nation currency (e.g. DEM:USD)3. List the currency types used in FI.The available currency types are transaction, group, hard, index, global, and companycode (local). Please note that this list is not exhaustive as other modules may also havetheir own currency types (e.g., controlling area currency).4. How many currency types can be used at one time for each company code?Up to four currencies can be used for each company code. They are transaction, local,and up to two optional parallel currencies.5. Explain the base currency functionA base currency is set up to eliminate the need for entering every possible exchange ratecombination into the exchange rate table. A base currency is established on theexchange rate type table for a specific exchange rate. The base currency and base rateare then used to translate from Currency A to the base currency and then from the basecurrency to Currency B.6. Explain why a translation ratio is useful.A translation enables SAP to process extremely large or small exchange rates that wouldexceed the maximum allowable number of digits (i.e., 9999.99999 or 0.00001).© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  38. 38. 7. What are the prerequisites for posting a document using foreign currencies.– Local currency must be defined in the Company Code Global Parameters– The foreign currency must be defined in the Currency Code Table– A translation ratio must beset between the foreign and local currencies– An exchange rate must be defined between the foreign currency and the localcurrency in the Exchange Rate Table.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  39. 39. SAP FI FAQs – Outgoing Payment Processing1. Discuss the steps involved with configuring and running the payment program.A) Payment Program Configuration- Set up paying and sending company codes- Payment methods per country- Payment method per company code- Bank Selection (rank banks, available amounts, G/L account assignment)B) Check Lot Configuration- Per house bank and accountC) Running the Payment Program (application side)- Maintain parameters (company codes, payment method, next run date, vendors,Additional Log)- Schedule Proposal- Display/Edit Proposal- Create Variant for Print Program- Schedule Payments (clears vendors’ accounts)- Schedule Print (cuts checks)2. The payment program is controlled at three parameter levels. What are they?• Company Code• Payment Method• Bank3. Describe the bank optimization options for efficient payments within the paymentprogram.Optimization by bank group – Money transfer is made from the house bank to the bankof the customer/vendor as fast as possible. To use this feature, assign all banks (in themaster record) to a bank group (which you define).Optimization by postal code – Selection of the house bank according to the location ofthe customer/vendor.4. What are the dates relevant for the payment program (PP) open item selection?A) Document date of an open item (falling into the range specified in the PPparameters)B) Baseline date (important for calculating due date and discounts)C) Next posting date specified in the PP parameters© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  40. 40. 5. Where does the payment program get bank information?A) Vendor /customer master recordB) Open itemC) PP configuration ( payment method, house bank)6. The PP configuration can be set up so that PP clears special G/L items (downpayment requests) and other G/L open items.True/FalseThe PP configuration can be set up so that PP clears special G/L items (down paymentrequests) but it cannot clear other G/L open items (only customer and vendor openitems).7. Briefly explain the purpose of intermediary banks.When two banks are not able to communicate directly, an intermediary bank may beused to facilitate the flow of funds. If necessary, up to three intermediary banks may beused to complete this process.8. Briefly explain the concept of alternate payment currencies.An alternate payment currency is a currency that is specified in the header of a payableor receivable. When specified, the open item will be paid in the alternate currency notthe document currency. It is typically used when consolidating payments into a singlecurrency or when the document currency is difficult or too expensive to obtain.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  41. 41. SAP FI FAQs – Invoice Verification1. Invoice verification provides a link between which modules?Invoice verification provides a link between Materials Management and the FinancialAccounting, Controlling and Asset Accounting modules.2. What are the two ways to enter taxes on invoices?(a) Manually enter it in the Tax field(b) Leave the Tax Amount field blank and turn on the Calculate Tax indicator to havethe system calculate the tax based on the Tax Code.3. When a Vendor invoice is posted in the system, what 5 things happen?• An Invoice Receipt document is created• The Material Master record is updated when appropriate.• The Purchase Order History is updated when appropriate.• Entries are posted to the appropriate General Ledger Accounts• The Vendor account (Sub-ledger) is updated.4. When the Vendor Invoice is posted which accounts are effected?A debit is posted to the GR/IR Clearing Account and a credit is posted to the VendorAccount. At the same time, a credit is posted to the appropriate General LedgerReconciliation Account (i.e., A/P account) assigned to the Vendor.5. What are the four types of variances in Invoice Verification?• Quantity Variance• Price Variance• Order Price Quantity Variance• Schedule Variance6. What are subsequent debit/credit memos?Subsequent debit/credit memos are used to process additional invoices or creditmemo(s) received from a vendor after the (Purchase Order) transaction has been settled(paid).© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  42. 42. SAP FI FAQs – Dunning1. What is dunning?The process of notifying customers/vendors that they have overdue items. There arevarying levels that can be used by the client depending upon the business relationshipwith their customer.2. What determines how often a customer can be dunned? Where is this configured?Once an account has been dunned at a certain level, it must meet the criteria at the nextlevel before it can be dunned again. These settings are configured in the dunning areaand linked in the customer master.3. What is a dunning area?The dunning area is an optional unit in the organizational structure used to groupcustomers/vendors for dunning and it can be based for certain policies or organizationalunits such as divisions.4. To what is the dunning procedure assigned?A dunning procedure can be assigned to a dunning area or to customer/vendor masterrecords.5. What are the 4 basic parameters of a dunning procedure? Discuss them.1) Dunning level – Up to 9 dunning levels may be defined. A customer/vendor can onlybe dunned in a certain level if he has already been dunned in the previous level.2) Minimum amount – A user defined overdue threshold amount of the total accountbalance that must be exceeded to reach a dunning level.3) Dunning charges – These charges are used to cover postage and handling of thedunning letter. Dunning charges are not reflected in the G/L. You can define dunningcharges for each dunning level.4) Dunning text – A form written in SAPScript. It can be shared by more than onedunning level.6. A customer has three items in arrears. Which open item determines the nextdunning letter sent?Assuming Dunning by Level is not selected, the item at the highest dunning leveldetermines which dunning letter will be sent.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  43. 43. 7. What is a grace period?A grace period is the period during which an overdue item will not be dunned. An item,whose days in arrears are smaller or identical to the grace period, is treated as not duefor the current notice.8. What are minimum days in arrears?Minimum days in arrears is the number of days overdue after which a dunning notice willbe sent.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  44. 44. SAP FI FAQs – Incoming Payment Processing1. Explain the purpose of the payment advice functionality.Payment advice notes are early notices containing detailed information about incomingpayments.Payment advice notes can be used for automatically finding and allocating open itemsfor clearing. Instead of enterig selection criteria and processing the open items, all youhave to do with this method is specify the payment advice number.2. List the payment advice types delivered by the system.• Lockbox advice• Advice from an account statement• Advice created during manual clearing• Manually entered advice• Bank advice• EDI advice3. Can other payment advice types be created? If yes, how?Yes, other payment advice types can be created through configuration.4. For what is a reason code used?The reason code determines how the payment difference is handled:If the difference is going to be charged to a different G/L account-or-If a new item will be generatedAlso, the reason code determines which correspondence type is sent to the customer tonotify them of the discrepancy.5. Explain the flow between customer and vendor involving payment advice.The customer receives goods and sends payment.The vendor sends goods and receives payment.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  45. 45. The customer executes his payment program, which generates payment advice notes.These payment advice notes are sent to the vendor, who processes them, clears theopen items, generates clearing documents.6. Explain the lockbox processing flow.The bank collects all of the checks and creates a Lockbox File following the BAI (BankAdministration Institute) standard format. This file is imported into the system and apayment advice is created for each check in the imported file. These payment advicenotes are stored in a Payment Advice Database from where they are processed andposted. The postings clear open items and generate cleared documents.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  46. 46. SAP FI FAQs – Credit Management1. For what is credit management used?Credit management is used to set and control customer credit limits.2. Is credit management an integration point? If yes, with which module.Yes, with the SD and FI modules.3. What is a credit control area?A credit control area is the organizational unit used to set and control credit limits forcustomers4. Describe the organizational structure related to credit management. Units andrelationships.• A client can have many credit control areas.• A credit control area can have many company codes.• A company code may be assigned to exactly one credit control area, but a list ofallowable credit control areas may be configured.• A company code can have many customers and customers can be related to manycompany codes.Therefore, a credit control area can have many customers and customers can be relatedto several credit control areas5. Describe the two ways that you can set credit limits in the system.A) You can set a credit limit per credit control area, which is then the credit limit forany customer within the credit control area, unless otherwise assigned.B) You can set unique credit limits per customer6. When maintaining the credit limits of a specific customer, what are the two levelsthat you can set credit limits?A) Globally – The maximum limit of a customer around the world, across credit controlareas.B) For a credit control area – The limit for the customer in one particular credit controlarea.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  47. 47. SAP FI FAQs – Line Item Configuration1. The client does not like SAP’s standard document line layouts. Explain how youwould assist the client in developing better line layouts.In Complex Postings, customized line layouts can be developed for fast entry screens. InEnjoy Postings, Screen Variants may be used to modify the line items and documentheaders.2. What are automatic line items and how are they used?Automatic line items are additional lines added to documents by SAP to balance thetransaction being entered. These additional lines are based on configuration of“additional account assignments”3. What are some examples of automatic line items?Examples include exchange rage differences, balance carried forward, down payments,cash discounts, and tax postings.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  48. 48. SAP FI FAQs – Display Accounts and Documents1. What is the purpose of the assignment field?The assignment field is used to sort line items when they are first displayed. It ispopulated based on the definition of an accounts sort key. This field does not have tobe displayed in a line layout. The lines are displayed in the order of numbers, capitalletters, lower-case letters.2. What is a sort key?The sort key determines what appears in the assignment field. It is made up of at leastone field on a document. It may consist of combination of complete and partial fields upto a maximum of 18 characters3. Can you manually enter data into the assignment field? What affect does this haveon the sort key?Yes, you can manually enter data into the assignment field, which will overwrite the entrymade by the sort key.4. Your client would like to create special views for displaying account line items. Howcan this be done?Display Variants can be configured to customize the information displayed in theaccount line item screen. Changes to the variants may be made directly in the line itemscreen.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  49. 49. SAP FI FAQs – Document / Account Maintenance1. Under what circumstances can a document be changed?Most fields in a document can be changed up until it is posted. After that, only fieldsthat do not have a financial impact can be changed (e.g., text fields). In the documentheader, only the reference document and text can be changed.2. For what are document update rules used?With document update rules, you determine which document fields are allowed to bechanged and under what circumstances. They are stored in the “document changerules” table. Note that some fields may not be changed regardless of the specificationsin this table.3. What specific document fields cannot be changed?Fields mandated by GAAP (Generally Accepted Accounting Principles) cannot bechanged (e.g., account number, amount, posting key).4. Explain how document reversing works.Document reversal automatically reverses entries and creates a new document withreference to the original posting. Therefore, document reversal offers a better audit trailthan manually adjusting entries to correct errors.You can reverse a document only if:* The document has no cleared line items* The document contains only D, K or S items (customer, vendor or G/L account lineitems)* The document was posted with the FI system (not SD or MM)* All specific values (such as cost center) are still valid5. Explain the difference between a Traditional Reversal and a True Reversal.A Traditional Reversal results in a debit entry being offset by a credit entry. Whenviewing the account balance, you will see entries in both the debit and credit columns. ATrue Reversal posts a negative amount to the entry in question. When viewing theaccount balance, the entry appears to be removed from the system. Both reversals offera complete audit trail, and the reversal documents are identical except for an indicatornoting the type of reversal.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  50. 50. SAP FI FAQs – Preliminary Documents1. What is a preliminary posting?In SAP, a preliminary posting allows you to enter and store incomplete documentswithout carrying out extensive entry checks.2. What is a parked document?A parked document is a type of preliminary posting. Parking documents do not updateany data in the system, such as transactional figures (except for cash management).However, you can evaluate parked documents since preliminary postings are linked tothe reporting functions in financial accounting.Parked documents can be completed, checked, and then posted at a later date, even bya different entry clerk.3. What types of data can you park?You can park data for customer, vendor, general ledger and asset accounts.4. What are the differences between parked documents and held documents?Parked Documents• Assigned a document number• Can be viewed by any other user• Can be viewed through line item display• Documents linked to accounts even though amounts do not update balancesHeld Documents• Temporary document number controlled by the user ID• Can only be viewed by the creator• Cannot view through line item display• Can only be viewed during document entry through “Open Held Doc”5. Describe the approval process for parked documents.An important use of parked documents is to allow for an approval process before adocument can be posted. When a clerk parks a document for his manager’s approval,the clerk must manually notify his manager of the parked document. SAP workflow maybe used to automate the approval process of preliminary postings.6. Explain how parked documents are numbered when posted.When a parked document is posted, the number is simply transferred over as the newlyposted document number.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  51. 51. SAP FI FAQs – Reference Documents 1. List the different types of reference documents Sample documents, Account assignment model (Complex Postings) Account assignment template (Enjoy Postings) Recurring document or Recurring Entry. 2. What are the main characteristics of each? Sample documento Cannot add new line itemso Not all fields are changeableo Can only use one at a time Account assignment model =o If the currency is defined then the model can only be used for postings in that specific currencyo Can use more than one when posting documentso Most fields are changeable after it has been createdo May only be used with complex postings Account assignment templateo The only reference document that can be used in the Enjoy Posting screen.o Created directly in the Enjoy Posting screeno The posting does not need to be complete.o Primarily used to post transactions to General Ledger Accounts rather than sub-ledger accounts since it does not save customer or vendor numbers.o The only mandatory field is the Name that is provided by the user. Recurring entryo Static documento Fields cannot be changedo Posting occurs after periodic posting program is run and batch input session is executed. 3. What are the advantages of reference documents? They simplify data entry and help reduce errors. 4. Explain the difference between the Hold Data and Set Data functions. Hold Data -> data defaults into fields and is editable Set Data -> data defaults into fields and is not editable © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  52. 52. 5. What are the steps to creating an account assignment model?A) Configure the line layout for the account assignment model and name this variantB) Activate the screen variantC) Create the account assignment model by pre-assigning values into the fields.6. In what applications can an account assignment model be used?General Ledger, Accounts Payable and Accounts Receivable.7. Explain the differences between a sample document and an account assignmentmodel.Sample documents will not allow for additional line items to be added nor do they havethe ability to change all of the pre-assigned fields. The account assignment modelsupports both features. The account assignment model allows amounts to bedistributed between multiple accounts based on ratios. Sample documents allowdistribution of amounts by dollar amounts only – no percentage or ratio calculation isperformed by the system.8. What information is required on the header of an account assignment model?The only required information is the name of the account assignment model itself.Optional information includes currency, chart of accounts, sample text, authorization,and equivalence number option.9. Explain the purpose of the currency key on the account assignment model header.Currency is not a required field, unless you want to enter predefined amounts. Keep inmind that the account assignment model must have the same currency as the documentto be posted.10. List three ways to call up an account assignment model in your document.Click on the “Account Assignment Model” push-buttonMenu Path: Go To/Account Assignment ModelEnter “00” as the posting key and the “Name of the Model” in the account field.11. Can account assignment models contain multiple company code information?Yes. As a result, inter-company transactions can be initiated with account assignmentmodels.12. Explain the use of the equivalence number.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  53. 53. Equivalence numbers allow you to distribute journal entry amounts over more than oneG/L account using ratios. Used mostly with Acct. Assignment Models13. What is a recurring entry?Recurring entries are business transaction entries that occur on a regular basis such asmonthly rental expenses or insurance payments.14. How are recurring entries configured and processed in SAP?A) Setup of recurring entry reference document (document header, line items, validityperiod, run times)B) Run recurring posting program periodically (create batch input session for all therecurring entries during a period)C) Process the batch input session (system will create the journal entries).15. What data can never be changed in recurring entries?Posting keysAccountsLine item amounts16. Can Screen Variants be used with Account Assignment Templates? Why or whynot?Yes, Screen Variants may be used; however, care must be taken to ensure that the fieldsused by the Account Assignment Template are included in any Screen Variants that willbe used.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  54. 54. SAP FI FAQs – Document Entry1. When entering data, what steps does the system follow?User defined substitutions are inserted in the appropriate line item, derived charactersare brought into the document, master data availability and compatibility are checked(via Coding Block), user defined validations are carried out.2. What functionality is available to the user to view a document as it will be posted?Simulate3 What determines which fields are present and whether or not information must beentered in them when entering the line items of a document?Link Rules, which compare the field status of the posting key, field status group of theG/L account, and the field status group of the reconciliation account of the customer orvendor master record.In Enjoy Postings, Screen Variants determine the status of fields in addition to andindependently of the field status groups.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  55. 55. SAP FI FAQs – Document Configuration 1. What is the document principle? The document principle requires that one FI document is created for every business transaction. Each document receives a unique number. It is a 1:1 relationship. 2. Discuss the various sections of a SAP document and give an example of the data stored in each section. Document header – posting date, document number, document type, currency, document date, document header text. Line items – Minimum of two line items and at most 999, consisting of posting key, account number, amount, and other account assignments. 3. What is a document type? Discuss its various uses in the system. A document type is a 2-character alphanumeric key that is used to identify documents. It distinguishes between business transactions (e.g., SA – G/L postings, DR – customer invoice), controls the account types posted to (D – customer, K – Vendor, S – G/L account, A – Assets, M – Materials), assigns document numbers and is used as a sort criteria. 4. Discuss all aspects of the posting key. Explain what it is, how it is used in the system, and any special properties that can be defined for it. The posting key: Defines the type of account (e.g., Customer, Vendor, G/L account, Material, Asset) Determines whether the entry is a debit or credit Indicates special properties (e.g. Reversal Posting Key, Special G/L transaction, etc.) Data entry screen for the line item via the field status group 5. Explain the relationship between posting keys and accounts. Each posting key is linked to a specific account type and determines if the entry to that account will be a debit or credit entry. 6. Explain the various ways one can control the data that appears on the line item screen when entering a document in the system. The data that appears on a line item screen is controlled by using the field status in the posting key, the field status group defined in the G/L account master, and the field status group of the reconciliation account of a customer or vendor master record (if © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  56. 56. applicable). Line items may also be controlled by a Screen Variant, which worksindependently of the field status variant.7. Define the term field status and list the various places it is used throughout thesystem.Field status determines what the user will see on certain screens; the status of a field issuppressed, mandatory, optional, or display (for master records only). Field status isused in account groups for controlling the fields used when defining master records. Itis also used in field status groups specified in G/L master records and in posting keys todefine the field layout of the document-posting screen.8. What are the two main components that make up a document?The document header and the document line items.9. Explain how documents get numbered in the system.Documents are numbered based on the number range defined in the document type.Number ranges are defined as internal or external and linked to a number range code ina table. Document numbers must be unique.10. TRUE OR FALSE(True) You can only post a document if the debits equal the credits, except for noteditems.(False) It is not possible to drill-down on a document to see the line items.(True) It is possible to restrict user access to a document type by authorizations.(True) Document number ranges are defined by company code and are established forall documents in the system.(True) Document numbers per company code uniquely identify documents in thesystem.(False) The number ranges can only be assigned internally by the system.11. Define what a validation is.A Boolean logic statement (true/false statements) that directs the system to check thecombination of specified criteria for validity before posting of the document is possible.12. Define what a substitution is.A Boolean logic statement (if/then statements) that directs the system to replace valuesof assigned field according to user-defined specifications.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  57. 57. 13. How are validations and substitutions configured?For each validation and/or substitution, you must define the application area and call-uppoint for the validation/substitution (e.g., FI document header, line item) duringdocument entry.14. What is a user exit and how is it used?A user exit is a break in the ABAP program that serves to check data. It is used forcomplicated validations, substitutions, and rules.15. What is the trace function?It allows a person to trace a validation or substitution to determine why it is notdelivering the expected message when the validation or substitution is not met.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  58. 58. SAP FI FAQs – Bank Master Record1. What is a house bank? What information does it contain?A house bank refers to the bank a company uses for receivables and/or payments. It isany bank with which your company code does business. Each house bank contains acompany’s bank accounts. It also contains a bank key that defines address and controldata for the bank. The house bank establishes a link between the various G/L cashaccounts and the actual bank accounts.2. How does data enter the bank directory?Automatically, if master data exists for the Bank Directory on tape or disk. ). Data canalso be manually entered when creating a customer or vendor master record, a one-timeaccount, or by directly creating an account.3. What is the relationship between a bank account and a G/L account master record?A G/L account master record must be created for each bank account. The house bankand account ID must be entered in the GL account master record to ensure theaccounting transactions involving the bank account will be reflected in the generalledger.4. Where are bank master records created in SAP?Unlike customer, and vendor master records, the bank master records may bemaintained on the configuration side in SAP. They are also created on the applicationside in the Banking and Treasury sections.5. What does the Bank Directory contain?The Bank Directory contains complete details about each house bank.6. Describe the purpose of the Bank Key.The Bank Key is a unique country-specific code. The system uses a combination of theCountry Code/Bank Key to identify the house bank.7. Describe the Account ID.Each of the bank accounts created within a house bank must be assigned a unique freelydefinable five-character Account ID. The Account ID is used for the payment programspecifications and in the account master records to make a reference to the bankaccount.© 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  59. 59. SAP FI FAQs – Customer Master Records 1. What are the three segments of a customer master record? Give an example of data that is stored at each level. General data – account name, address Company code level – payment terms Sales data – shipping information, billing information 2. What are the two levels of a customer master record from a financial perspective? Client level: Data at this level pertains to all company codes in which the customer master record is opened. Company Code level: Company specific data is entered at this level and can vary for each company code. 3. Your client indicates that they have problems with duplicate customer master records being created in their current system. How can this problem be alleviated in SAP? A check for duplicates can be configured to prevent the creation of more than one master record for the same customer. This check is configured on address match code fields and occurs when creating new accounts or when changing the address on an existing account. 4. Indicate the segment (General or Company Code data)where each of the following appear on the customer master record: Address General Phone Number General Reconciliation Account Company Code Sort Key Company Code Payment Methods Company Code Fax Number General Language General Vendor General Group Key General Payment Terms Company Code Tolerance Group Company Code © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE
  60. 60. 5. Your client indicates they use a graded scale of discounts as an incentive for customers to pay invoices early. Can this be accomplished using SAP? Where is this configured? Yes. Payment terms are established in SAP to represent the due date for payment of invoices. The terms include a graded scale of discounts used as an incentive to pay the invoice early. 6. Explain the concept of a baseline date. For each payment term, the system can default a date for the baseline date. The baseline date is the date from which the payment terms begin to calculate. This default can be overwritten. 7. Your client indicates they would like to restrict the maximum amount a specific employee can post per line item. They would also like to restrict how much of an over/under payment that an employee can accept. Can this be accomplished in SAP? How? Yes. Tolerances are defined in SAP per company code. Employees are assigned to an Employee Tolerance Group. The maximum amount an employee can post per document per line item, and the amount of payment differences allowed for an employee are specified in the Employee Tolerance Group. 8. Which department usually maintains Sales Area data in the system? Sales and Distribution Department 9. What is included in Sales Area data in SAP? Sales Order Pricing Shipping Delivery and Payment Terms Accounting 10. Your client indicates they would like “Country” to be a required field, and “P.O. Box” to be an optional field when creating customer master records. Where is this configured? The Account Group for a customer master record determines the field status group for a particular type of account. The field status group defines the fields that appear on data screens along with their data entry status. © 2010-2012 ALL RIGHTS RESERVED SAPTAC BANGALORE

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