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SAP FICO Interview Questions and Answers

By Admin
Last update: 07 Jun 2020, 15 Questions

If you want to become an SAP FICO consultant and make your career in this field, we can help you by providing you with a list of the most frequently asked SAP FICO interview questions. Reading this will help you a lot in getting your concepts crystal clear and gaining confidence, thereby helping you land the job position you are aiming for.

SAP is a widely used ERP tool that has a top-rated product known as SAP FICO. It is made up of two modules, SAP FI (Financial Accounting) and SAP CO (Controlling). Nowadays, FI and CO are so carefully used together that SAP FICO has become a common choice for organizations for efficient financial management and reporting among business functions.

Most Frequently Asked SAP FICO Interview Questions

1. How does SAP FICO work?

The SAP FICO is divided into two modules, namely, SAP FI and SAP CO. The FI and CO are further divided into sub-modules which look after the Financial and Controlling aspects of any company. All the sub-modules within each module are integrated in real-time. Any changes happening at any sub-module will affect the other sub-modules and the SAP FICO as a whole. The main focus of the FICO is financial reporting for both internal and external instances of any company by recording all the financial transitions produced by an entity and maintaining the records.

2. What are the Modules in SAP FICO?

SAP FICO consists of two critical sections, FI and CO, where each of them contains modules and further sub-modules.
SAP FI Modules

  • FM: Funds Management
  • MM : Materials Management
  • PP: Product Planning
  • PM: Product Maintenance
  • PS: Product Systems
  • SD: Sales & Distribution
  • QM: Quality Management

SAP CO Modules

  • Cost Elements
  • Cost Centers
  • Profit Centers
  • Internal Orders
  • Profitability Analysis
  • Product Costing
3. What is asset accounting in sap fico?

In SAP FICO, the Asset Accounting or FI-AA sub-module is used for the overall management and supervision of fixed assets within the SAP System of any organization. In SAP's Financial Accounting, Asset Accounting serves as a subsidiary ledger for General Ledger by providing detailed information on every transaction involving fixed assets of the company.

4. Why is SAP FICO required for companies?

The SAP FICO is required by ay company for the followings:

  • They are enabling control and financial accounting for business functions smoothly.
  • We are making the platforms quicker, reliable while producing important information and achieving different external reporting priorities vital to the company.
  • They are making competent and instant alterations to business changes within the departments.
  • They are providing easy monitoring of data and information relevant to cost and benefit centers globally through a single platform.
  • We are helping in seamless administration choices with real-time processing of financial reports.
5. What is the importance of posting keys in SAP?

In SAP FICO, posting keys are assigned at the client level and then assigned int the company code while entering particular line items into the SAP System. Here are essential factors for posting keys in SAP FICO:

  • Debit or Credit Posting for defining the type of transaction involved in the business.
  • Managing Field Status
  • They are determining the Type of Account to be entered.
  • They are defining whether line items are connected to a payment transaction.
6. What is the difference between the profit center and business area in SAP FICO?
Business Area Profit Center
It is defined as the business unit of any company. Profit centers are subsets of a Business Area.
Assessment and Distribution are not possible in this. Assessment and Distribution are possible in Profit Centers.
They are primarily used for making strategic decisions on a management level. They are primarily used for ensuring responsible accounting within the SAP.
7. How do you create a fiscal year variant in SAP?

Here are the following steps for creating a Fiscal Year Variant in SAP FICO:

  • Step 1: Start by entering the SAP Transaction code SPRO in the command field and press Enter.
  • Step 2: Now, on the next screen, please select the SAP Reference IMG button.
  • Step 3: It shall navigate you towards the following path:

           Financial Accounting -> Financial Accounting Global Settings->Fiscal Years ->

           Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year )

  • Step 4: Now select on the "New Entries" section from the Application toolbar.
  • Step 5: Now that you have entered all the required data, press on the save icon on the Application Toolbar
  • Step 6: Enter the customizing request number. Now, you have created a new Fiscal year Variant.
  • Step 7: You should now maintain the periods for the Fiscal year in ascending order.
  • Step 8: Finally, just press the "Save" button in SAP Standard Toolbar
8. What is the difference between validation and substitution in SAP?
Validation Substitution
Here you can quickly check the field contents of the validating documents and prevent the posting of any material via an error message. Here you can easily overwrite any field documents of the accounting document which have been posted if there any changes/updates to it.
In this, the validation function is used for checking the entered values and value intervals. Here the values are checked using prerequisites defined by the user.
   
9. What is the use of the business area in SAP?

Here are the uses of Business Areas in SAP FICO:

  • They are used for external segment reporting (above company codes), based on vital areas of business operations of a company.
  • Properly defined business areas help in managing the transaction figures of the G/L accounts separately to be used in the internal evaluation purposes. This can, therefore, help in creating internal financial records.
10. How many types of currency are there in SAP?

Currencies in SAP FICO are a method for expressing any transaction in monetary values for a company. There are basically two currency types used in SAP FICO:

  • Company Code Currency
  • Group and Hard Currency