Sap FICO Interview Question
Q: What is SAP Finance?
A: SAP Finance, also known as SAP FI, is a core module within the SAP ERP system that focuses on managing financial transactions, accounting processes, and generating financial reports. It helps organizations streamline their financial operations and ensure regulatory compliance.
Q: What is the role of a Chart of Accounts in SAP Finance?
A: In SAP Finance, a Chart of Accounts serves as a framework that defines the structure and organization of an organization’s financial accounts. It provides a systematic classification of accounts for recording and reporting financial transactions.
Q: What are the key organizational elements in SAP Finance?
A: SAP Finance incorporates several organizational elements, including the company code, chart of accounts, business area, and controlling area. These elements play a vital role in managing financial processes and ensuring accurate reporting.
Q: How do you define a company code in SAP Finance?
A: Within SAP Finance, a company code represents an independent and legally accountable entity. It enables the creation of financial statements specific to that entity. Attributes such as currency, country, and chart of accounts define the company code in SAP.
Q: What is the purpose of a fiscal year variant in SAP Finance?
A: The fiscal year variant in SAP Finance determines the start and end dates of a fiscal year for an organization. It helps establish the relevant posting periods for financial transactions and the generation of financial statements.
Q: Explain the concept of a G/L account in SAP Finance.
A: In SAP Finance, a G/L account serves as a master record for capturing financial transactions. It represents a specific category of financial information, such as assets, liabilities, revenue, or expenses. G/L accounts are essential for maintaining accurate financial records and generating financial statements.
Q: How do you perform a year-end closing in SAP Finance?
A: Year-end closing in SAP Finance involves several activities, including balance carry-forward, adjustments, and the preparation of financial statements. These steps ensure the completion of financial processes for a specific fiscal year and prepare the system for the next year’s transactions.
Q: How does SAP Finance handle foreign currency transactions?
A: SAP Finance provides robust functionalities to manage foreign currency transactions. These include maintaining exchange rates, processing invoices and payments in different currencies, and performing currency revaluations to ensure accurate financial reporting.
Q: What is the significance of a Financial Statement Version (FSV) in SAP Finance?
A: A Financial Statement Version defines the G/L accounts and their balances to be included in specific financial statements, such as the balance sheet or profit and loss statement. It allows organizations to customize their financial reporting according to their specific requirements.
Q: How can intercompany reconciliations be performed in SAP Finance?
A: In SAP Finance, intercompany reconciliations involve verifying and reconciling transactions between related company codes. SAP provides functionalities such as intercompany posting and automatic intercompany reconciliation to ensure consistency and accuracy in financial reporting.
Q: Explain the concept of asset accounting in SAP Finance.
A: Asset accounting in SAP Finance deals with managing an organization’s fixed assets throughout their lifecycle. It includes activities such as asset master data maintenance, depreciation calculations, asset acquisitions, retirements, and disposals.
Q: What is the purpose of the Accounts Payable (AP) module in SAP Finance?
A: The Accounts Payable module in SAP Finance is responsible for managing vendor invoices and payments. It includes functionalities for invoice processing, vendor master data management, payment runs, and reconciliation of vendor accounts.