SAP FICO is an impressive core functional module that offers advanced solutions in financial accounting. Businesses using it gain a better overview of external accounting and accounts; all business transactions relating to operational areas are combined into one software system ensuring complete and accurate accounting data is held. In this article, we will discuss about SAP FICO Interview Questions.
What is SAP FICO?
SAP FICO software assists businesses in managing financial accounting and controls to increase profitability, as well as streamlining processes for greater efficiency and accuracy. Used across industries worldwide including retail, automotive, banking and pharmaceutical sectors – SAP FICO can also be found being utilized in technical interviews for employment within these fields. It’s therefore imperative that prospective job candidates understand how SAP FICO works before being interviewed if seeking work within any of these fields. Here are answers to commonly asked questions about SAP FICO that should help.
One of the primary uses for SAP FICO is automating tasks that would normally be completed manually, such as reconciling accounts or recording expenses, creating reports or invoices and automating them for you. This helps companies reduce human error in manual systems.
SAP FICO excels at tracking cash flow and inventory, which enables companies to more accurately budget for cashflow needs and make smarter business decisions. Furthermore, its automation of manual processes reduces operating costs by cutting paper usage significantly.
What Is a Posting Key? A posting key is a two-digit numerical that defines the transaction type entered in each line item. It allows us to control and organize our data to ensure accurate account and tax details are entered – this is especially useful when handling foreign currency transactions.
What are my payment options in SAP? SAP offers three payment methods for making vendor payments: manual, automatic and Data Medium Exchange (DME) payments. Manual payments require no cheque to make, while automatic ones use wire transfers or similar payment systems while DME payments typically involve third parties such as banks.
What are the Steps Involved in G/L Posting in SAP?
In order to post to a general ledger in SAP, first enter all pertinent data such as document date, GL code, document number and amount. After doing this you can press F5 button post your entry directly. Furthermore if necessary you may change account numbers or document dates.
What is the posting key?
Posting keys are an integral component of SAP FICO that help determine which accounts will be affected by any transaction. They help ensure transactions are recorded in their proper accounts, helping reduce errors and enhance financial statements with more accuracy. They can even be tailored specifically for specific business processes.
The SAP FICO module contains various functions designed to facilitate financial accounting, reporting and controlling processes within an organization. These functions include accounts payable, internal orders, cost center accounting and customer/vendor master data management. Furthermore, there is a comprehensive chart of accounts in this module listing all G/L accounts utilized by your business, with special accounts for intercompany transactions, reversals entries or cash transactions.
Beyond its standard functions, SAP FICO also features several advanced functions to facilitate more complex document types like transfers or customer down payments. You can use them to enter business transactions that require specific sequences of screens or additional checks; one such function allows users to create documents containing both G/L entries and field status groups; this allows you to record documents with multiple entries while only updating its number once.
Use SAP Easy Access screen to create different document types. Document types serve as the foundation of every business transaction, including transaction number and document date; furthermore they determine whether an already created document can be edited; they’re stored both in company code view of FIGL master records as well as SAP Easy Access screen.
Furthermore, you can create business areas and company codes within SAP FICO course system to manage internal controls and assign responsibility across departments within a company. Company codes serve to distinguish individual companies within an entity such as an umbrella corporation; for instance, three profit centers might exist within one corporation.
What is the primary use of SAP FICO?
SAP FICO is one of the key modules in SAP ERP components that helps organizations produce and analyze financial statements for analysis and reporting, aiding business planning and decision-making. It contains two submodules – SAP FI for financial accounting/tax computation while SAP CO deals with inner orders/inventory sheets/cost allocations etc. Its primary purpose is providing an overall view of all the financial transactions taking place across an organization’s functional areas.
SAP FI module primarily handles accounting and tax computation processes, as well as many others such as managing cash assets and non-cash assets, filing tax returns, and performing various financial duties associated with running an organization. Therefore it serves as an essential resource for any organization.
G/L accounts in SAP provide companies with an accurate actual-reporting accounting system that allows them to track all relevant details about their operations and maintain accurate records for external accounts. Managers can use it as a great way to get an overview of company finances at any given moment.
SAP FI utilizes account groups to manage the data that needs to be posted to General Ledger accounts, with each one consisting of rules defining which fields need to be published to the GL. These account groups make managing large numbers of GL accounts much simpler while decreasing manual effort required.
SAP FI provides businesses with a credit control function to set a maximum limit on customer credit limits, which helps avoid overstretching their financial resources and avoiding bad debts or outstanding receivables. Furthermore, businesses can monitor credit-worthiness of customers – particularly useful when conducting business across countries and regions with different tax procedures – so as to ensure clients do not overstretch their limits and cause potential issues later.
What is the difference between SAP FI and SAP CO?
SAP Financial Accounting and Controlling (FI) module is an integral component of ERP software. It enables businesses to efficiently manage all accounting and financial data within a single system while keeping an extensive record of transactions for optimal planning and decision-making processes.
SAP FI is part of the ERP Central Component, which includes Material Management, Sales and Distribution, Production Planning and Financial Transactions modules. SAP FI and CO were initially distinct modules; however, since then they have become fully integrated.
SAP FI’s key features are internal orders and field status groups. Internal orders allow companies to manage costs associated with various internal jobs and tasks by billing cost centres, then reporting directly to their finance department – helping reduce operational expenses while also helping avoid false profit estimates.
SAP FI is distinguished by its capability of tracking asset depreciation to the day, making this function active once an asset with its respective depreciation key is capitalized (posted to). Unfortunately, once this process begins it cannot be turned off; once started it cannot be switched off for that asset.
SAP FI offers its users the ability to easily take care of input and output taxes using country-specific tax procedures and codes. Users have the choice between expensing their tax amounts or capitalizing them into stocks.
SAP FI offers several other important features, including its posting key and chart of accounts. A posting key identifies the type of transaction being entered into SAP; while its chart of accounts serves as the foundation for all transaction processing and reporting in the system.
SAP FI provides the Field Status Group as a method of overseeing General Ledger accounts, acting as an accountability process to control which Accounting periods are open for posting while keeping balance within closed periods.