Most Asked SAP FICO Interview Questions and Answers (2025 Update)

SAP FICO (Financial Accounting and Controlling) is a crucial module in SAP ERP, widely used for financial reporting and management. It enables organizations to track financial transactions and generate accurate reports. For professionals aspiring to work as SAP FICO consultants or finance professionals, preparing for interviews is essential. This article provides a structured set of frequently asked interview questions along with expert answers.

Understanding SAP FICO

SAP FICO consists of two key components:

• Financial Accounting (FI): Handles external financial reporting, including balance sheets and profit & loss statements.
• Controlling (CO): Focuses on internal cost tracking and management.

SAP FICO is widely used across industries to manage financial transactions, compliance, and decision-making.

Commonly Asked SAP FICO Interview Questions and Answers

Basic SAP FICO knowledge regarding its usage, elements, code, operations, and important terms is a must for freshers. Following are some of the most commonly asked SAP FICO interview questions.

1. What are the most common applications of SAP FICO?

In order to store and compute data, the software that is utilized is known as SAP FICO. Additionally, it assists in retrieving the result in accordance with the most recent marketing scenario. Additionally, it is accountable for the reporting and verification of data, as well as the prevention of data loss. Its modules make it possible for businesses to manage their financial tasks within the context of an international framework that includes languages and currencies.

The term “posting key” refers to a numerical quantity consisting of two digits that is used to control and determine the type of transaction that is documented in the line item. It is helpful in determining the following:

• Types of accounts
• Which type of posting is it: credit or debit?
• The status of a transaction’s field data

3. Can you explain what you mean when you say the term SAP FICO?

Systems, Applications, and Products in Data Processing is what SAP stands for when this acronym is abbreviated. The letters FI and CO in the acronym FICO stand for “Financial Accounting” and “Controlling,” respectively. As a result, SAP FICO is a combination of SAP FI and SAP CO. SAP FI is concerned with accounting, the computation of taxes, and the preparation of financial statements, whereas SAP CO is used for inner orders, inventory sheets, cost sheets, cost allocations, and other related tasks.

4. When it comes to managing transactions from various business lines within an organization, what is the most effective method?

Establishing Business Areas is the most effective method. To manage transactions originating from various business lines within a company, it is also possible to generate customized company codes for each individual business line.

5. Provide a list of the most significant organizational components found in SAP FI.

Following is a list of the important organizational components that are included in SAP FI:

• Area of Functionality
• Domain of Business
• Code of Conduct.
• Accounts Payable Chart

6.Does the ‘Financial Accounting’ module of SAP FICO integrate with any other modules? If so, what are those modules?

The following are the other modules that are integrated with the ‘Financial Accounting’ solution of SAP FICO:

• Distribution and Sales of Goods
• Planification of Production
• Administration of Materials
• Human Resources (HR)
• Maintaining command over monetary transactions

7. What are the different options that SAP FICO provides for fiscal years?

One method for storing the financial information in the system is to use a fiscal year. The SAP FICO system has a total of twelve posting periods in addition to four special periods. Please ensure that the fiscal year variant is specified for each and every company code. Additionally, for the purpose of creating a controlling area, you will be required to specify the fiscal year variant.

8. In SAP FICO, what responsibilities does the company code have to fulfill?

Financial statements such as profit and loss statements, balance sheets, and other similar documents are generated by the company code, which is responsible for their generation.

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It is appropriate for use in application components pertaining to credit management:

• Account Receivable (AR)
• Sales and Distribution

9. The function of credit control is to what extent?

A company can protect itself from overextending its financial resources by implementing credit control measures. When a payment is made after a product has been sold, SAP is typically used to establish a credit limit for the customers who are using the system. Through the use of this method, you are able to limit the amount of money that the customer can clear before beginning a new purchase.

10. How many Chart of Accounts can a company code have?

One and only one Chart of Accounts can be created for each company code that has been assigned.

11. When it comes to a Company Code, how many different currencies can you configure?

• One local currency
• Two parallel currencies

12. If you are using SAP FICO, what is the function of the Chart of Accounts?

The Chart of Accounts is utilized to fulfill the day-to-day requirements of the company as well as the legal requirements of the country. The following is a list of its two types:

A record that contains all of the general ledger accounts that are assigned to the company code is referred to as an operating chart of accounts (COA).
The Country Chart of Accounts (COA) is a list of general ledger accounts that are required to be maintained in order to fulfill the legal requirements of the country.

13. Regarding the field status group and the field status variant, what are your thoughts and understandings?

The variants of the field status are contained within the field status groups. There are field status groups associated with the General Ledger account. By utilizing these status groups, you will have the ability to define the fields that will be posted to the general ledger.

14. In the SAP calendar, what is the active year shift?

The only year that the SAP system can comprehend is the calendar year. The fact that the fiscal year was flawed is not acknowledged. Imagine for a moment that a company’s fiscal year is not a calendar year but rather a combination of the months that are found in two different calendar years. The next step is to designate one of the calendar years as a fiscal year, and the months that fall in another year should be shifted into the fiscal year by shifting the year using the sign -1 or +1. This will ensure that the months are included in the fiscal year. An annual shift is the name given to this shift.

15. In the SAP FICO system, what exactly are validations and substitutions?

The validations that are performed in the FI and CO modules help to ensure that the data integrity is maintained when actual transactions are entered online or in batches. The values that are passed through integration or submitted to the FI / CO modules can be derived or corrected with the assistance of the substitutions that are contained within the FI / CO / EC modules.

16. How does SAP FICO handle it when it comes to taxes on output and input?

In the tax procedures section of SAP FICO, there are tax codes for each and every country. You have the option of either deducting the tax amounts from your expenses or capitalizing them to your stocks.

17. Provide a list of the different kinds of modules that FI is integrated into.

The following categories of modules are available:

• Planification of Production
• Administration of Materials
• Human Resources (HR)
• Distribution and Sales of Goods

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18. In what kinds of applications do validation and substitutions find their place?

The following SAP application areas make use of validation and substitution in their operations:

• FI- Financial Accounting
• CO- Cost accounting
• GL- Special purpose ledger
• AM- Asset accounting
• PS- Project system
• PC- Profit center accounting
• CS- Consolidation
• RE- Real estate

19. Describe a fiscal year variant that is dependent on the year.

A year-dependent fiscal year variant is one in which the number of days in a month does not correspond to the number of days in the calendar month. For example, when the month of January comes to an end on the 30th and February begins on the 27th.

20. That is, what are the steps involved in posting on G/L?

The results of the payroll run are to be added to the general ledger accounts once the processes have been completed. In order to post on GL, the following steps are required:

• Grouping relevant information from the payroll results.
• Creating summarized documents.
• Performing the necessary postings to appropriate cost centers and G/L accounts.

21. When it comes to making payments to vendors, what are the various methods available?

The two methods are:

• Manual Payment: Done without a medium such as cheques.
• Automatic Payment: Done through DME (Data Medium Exchange) like wire transfer or cheque.

22. When it comes to SAP FICO, what is the significance of financial statements within an operational business?

Managing the company’s financial assets is made easier with the help of a financial statement. When you create and manage financial statements and records, you can generate data that you can use in the future to make decisions regarding investments for the company or to perform additional planning.

23. Could you please tell me what level SAP stores the codes for customers and vendors?

The client level is where the codes for both the customer and the vendor are stored. The vendor and customer codes can be utilized by a company code through the process of extending the company code view.

24. In SAP FICO, what is the purpose of the FSV, which stands for the Financial Statement Version?

The FSV is a tool for reporting. Specifically, it assists in the extraction of final accounts from SAP, such as profit and loss accounts and balance sheets. Your ability to generate the output of a variety of external agencies, such as banks and other statutory authorities, can be accomplished by utilizing multiple FSVs.

25. State the common G/L reports in SAP FI.

The most common G/L reports in SAP FI are as follows:

• G/L Chart of Accounts List
• G/L Account List
• G/L Account Balances
• G/L Account Totals and Balances

26. Regarding SAP FICO, what is the function of the “Document type” field?

As follows is a list of the primary functions that “Document type” serves:

• It helps define the documents’ number range.
• It enables controlling the types of accounts posted, like Vendor, Assets, Customer, Normal GL account, and more.
• It is used for entry reversals.

27. In SAP FICO, what exactly does it mean to have a company and a company code?

An organizational unit is referred to as a company. Specifically, it is utilized in the legal consolidation module for the purpose of combining the financial statements of various company codes. On the other hand, the company code is the smallest organizational unit that currently exists. For the purpose of providing external reporting for the company code, you are able to create a set of accounts that are completely self-contained.

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28. When it comes to SAP FICO, what exactly are accounting period variants and posting period variants?

Managing the accounting periods that are open for validation and all closed periods that need to be deleted is made easier with the help of accounting period variants. For the purposes of making reservations, they are appropriate for use during the beginning and ending stretches of the fiscal year. There are a few different types of posting periods: a posting period in a fiscal year is a period for which the figures reflecting transactions are updated. Which accounting period is available for posting is determined by the posting period variants, which are responsible for controlling this. In this way, balanced closed periods are ensured.

29. Explain the connection that exists between the controlling area and the company code in SAP FICO.

SAP allows for the possibility of a controlling area containing one or more company codes. The operative Chart of Accounts that represents the controlling area is the same one that is used by these company codes. A controlling area may be assigned a single company code, but it may also contain multiple company code assignments. A controlling area may contain multiple company code assignments.

30. What are the advantages of utilizing business areas within an organization?

When there are other company codes that require the same areas, business areas can be utilized within an organization. Controlling is where they are utilized more frequently than accounting for finances. Here are some of the advantages that come with utilizing business areas:

• It is easy to configure. You will have to attach it to the company code, and the other details will get attached by themselves.
• Using Business areas in controlling, it gets easier to create Balance sheets, Profit and loss statements, and more.

31. In the process of configuring the business area, what kinds of problems could arise?

When it comes to the configuration of a business area, the most significant challenge that arises is the division of the account balance. On the other hand, it is more relevant for taxable accounts.

32. Why are Account Receivables used in the first place?

Components of Accounts Receivable give you the ability to record and manage all of the accounting data pertaining to your customers. The general ledger is the place where each and every posting in accounts receivable is directly recorded.

33. FI-GL Accounting: What Does It Mean? Why does it get used?

The abbreviation for “Financial-General Ledger” is “FI-GL,” which stands by itself. Gaining an understanding of external accounting and accounts is facilitated by this. In a software system, it stores all of the business transactions that are included with all of the other operational areas. This ensures that the accounting data is always accurate and complete.

34. What does SAP FICO mean when it refers to parallel and the local currency?

This refers to the currency that was entered during the process of creating the company code.

Parallel Currencies are the other two additional currencies that can be used in international transactions or business dealings that take place in other countries. Both GROUP CURRENCY and HARD CURRENCY are examples of currencies that operate along parallel lines.

35. For the purpose of document clearing, what are the prerequisites for customization?

In order to fulfill the prerequisites for customization, it is necessary to check both cleared and uncleared items through open item management. Accounts payable and accounts receivable are both easier to manage with the assistance of the open item management process. That is, the accounts that are left unpaid. An example of this would be an unpaid invoice item, which is considered an open account until it is paid.

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36. In SAP FICO, what are the vendors that are only used once?

The creation of new master records for each and every vendor trading partner becomes highly impractical for businesses that deal with a significant amount of cash transactions. In order to solve the issue, one-time vendors are utilized because they permit the utilization of a fictitious vendor code during the process of invoice entry, whereas the information is typically stored in the vendor master.

37. Which SAP FICO orders are considered to be internal orders? Where can you put them to use?

Plans, collections, and settlements of the costs associated with internal jobs and tasks are all accomplished through the use of internal orders. They are also useful for keeping track of the costs. Over a relatively short period of time, they are incurred.

38. Which type of exchange rate is selected as the default for all transactions that are processed by SAP?

When it comes to all SAP transactions, the default exchange rate type is M, which stands for Average Rate.

39. In the Account Receivable section of SAP FI, what are the various accounting groups that can be created when using the software?

Account Receivable allows for the creation of some accounting groups, including the following:

• X001- Domestic Customers
• X002- Export Customers
• X003- One-Time Customers

40. For a given day, is it possible to compute the amount of depreciation? How are you able to accomplish that?

Affirmative, it is feasible. In the event that an asset is capitalized (posted to) and possesses a corresponding depreciation key, the depreciation to the day function will become active for that asset. That being said, even if you alter the depreciation key, you will not be able to disable this function for the asset.

41. The GR/IR clearing account in SAP FICO is of great importance; what is its significance?

The phrase “Good Received/Invoice Received” is more commonly abbreviated as “GR/IR.” A clearing account for GR/IR is an example of an interim account. In the event that the goods are received in the legacy system, but the invoice is not, the provision makes the provision. The entry in the accounting system is processed, and the Inventory account is debited while the GR/IR account is credited.

In a similar manner, when an invoice is received, the account of the vendor is credited, and the account of the GR/IR is debited accordingly. At this point, the GR/IR is a questionable item because the invoice has not yet been received.

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42. In SAP Financial Invoices, what kinds of ‘blocks’ can be applied to a vendor account?

The following blocks are available for use on an account belonging to a vendor:

The posting block pertains to all company codes as well as specific company codes. A purchasing block is applied to all or specific purchasing organizations. Additionally, it is only utilized if the purchasing application component has been purchased and installed.

43. Account payable is a term that is used for what? It is connected to G/L in what way?

When it comes to managing and recording the accounting data for all of the vendors, accounts payable is the tool that is utilized. The following is how it fits in with G/L:

• All invoices are managed as per vendor requests.
• Payables are managed as per the payment program. Payments can be via cheques or electronic transfers.
• All the postings in Account payable are simultaneously updated in General Ledger.

44. When it comes to asset accounting, what exactly is the chart of depreciation?

When it comes to the company node, the chart of depreciation is the highest node that is assigned. The depreciation calculations are all stored in this location.

45. When using SAP FI, what does it mean to block a customer?

The act of preventing new posts from being made to an account is known as blocking. Prior to marking a customer master record for deletion, it is necessary to first block a customer account to prevent deletion.

As an illustration, you might choose to block a customer who serves as an alternative recipient for dunning. As a result, nobody can accidentally send a message to that customer. It is possible to configure the following blocks for a customer within the Sales and Distribution (SD) application component:

• Posting block
• Delivery block
• Order block
• Invoicing block

Final Thoughts

Preparing for SAP FICO interviews requires a solid understanding of financial processes and SAP functionalities. By mastering these commonly asked questions, candidates can increase their confidence and improve their chances of securing a role in SAP financial consulting.

Would you like to take your SAP FICO expertise to the next level? Consider enrolling in a structured SAP FICO Training Course to gain hands-on experience and certification.