50 WIPRO SAP FICO Consultant Interview Questions

SAP Financial Accounting (FI) and SAP Controlling (CO) or SAP FICO is an important core functional component in SAP ERP Central Component. It allows an organization to manage its financial data and store a complete version of financial transaction data. It serves the vital purpose of helping companies generate and manage financial statements for analysis and reporting, which aids in effective business planning and decision making.

Enterprises and established organizations such as Wipro, IBM, Accenture, HCL and Hewlett-Packard(HP) are implementing SAP ERP systems. A career in SAP FICO is in demand with the market growing exponentially. The growth curve is expected to be steeper in the coming five years for freshers with an account or finance background. Currently, there are very few certified SAP FICO consultants in the market. It is the right time to make your way by cracking the toughest SAP FICO interview questions with proven subject knowledge.

WIPRO SAP FICO Consultant Interview Questions

Basic knowledge of SAP FICO regarding its usage, elements, code, operations and important concepts is a must for refresher. Below are some of the most frequently asked SAP FICO interview questions.

1. What do you understand by the term SAP FICO?

SAP stands for Systems, Applications & Products in Data Processing. FI in FICO stands for (Financial Accounting) and CO stands for (Controlling). So SAP FICO is a combination of SAP FI and SAP CO. While SAP FI deals with accounting, tax calculation and preparation of financial statements, SAP CO is for internal orders, inventory sheets, cost sheets, cost allocations and more.

2. What is the posting key? What purpose does it serve?

A two-digit number to check and determine the type of transaction documented in the line item is called the accounting key. It helps determine the following:

• Account types
• Posting types: debit or credit
• Transaction field status

3. What is the main usage of SAP FICO?

SAP FICO is the software used for storing and computing data. It helps retrieve the result according to the latest marketing scenario. It prevents data loss and is responsible for the reporting and verification of data. Its modules allow companies to manage financial tasks within an international framework of currencies and languages.

4. What are the other modules into which ‘Financial Accounting’ of SAP FICO is integrated?

The other modules to which ‘Financial Accounting’ of SAP FICO is integrated are:

• Sales and Distribution
• Production Planning
• Material Management
• Human Resource
• Controlling financial transaction

5. State the most important organizational elements in SAP FI.

The important organizational elements in SAP FI are as follows:

• Functional Area
• Business Area
• Company Code
• Chart of Account

6. What is the best way to manage transactions from different business lines within a company?

The best way is to create Business Areas. You can also create different company codes for each business line to manage transactions from different business lines within a company.

7. What are the options for fiscal years in SAP FICO?

A fiscal year is a way to hold the financial data in the system. In SAP FICO, there are twelve posting periods and four special periods. You must specify the fiscal year variant for every company code. Also, when creating a controlling area, you will have to specify the fiscal year variant.

8. What is the role of credit control?

Credit control helps protect a business from overstretching its financial assets. Typically, a credit limit is set for SAP customers when payment is made after the product is sold. This method allows you to limit the customer’s amount to be redeemed before starting a new purchase.

It is suitable for credit management in application components:

• Account Receivable (AR)
• Sales and Distribution

9.What is the function of the company code in SAP FICO?

Company code is responsible for generating financial statements such as profit and loss statements, balance sheets, and more.

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

There can only be one chart of accounts for an assigned company code.

11. How many currencies can you configure for a Company Code?

You can configure three currencies for the company code, including

• One local currency
• Two parallel currencies

12. What is the role of the Chart of Accounts in SAP FICO?

The chart of accounts is used to meet the day-to-day needs of the company and the legal requirements of the country. Its two types are as follows:

• Operating Chart of Accounts (COA): A record with all general ledger accounts assigned to a company code.
• Country Chart of Accounts (COA): A list of general ledger accounts needed to meet a country’s legal requirements.

13. What do you understand about the field status group and field status variant?

Field status groups contain field status variants. A general ledger account has field status groups. These status groups allow you to define fields when posting to the general ledger.

14. What is the year shift in the SAP calendar?

The SAP system only understands the calendar year. It does not recognize an interrupted fiscal year. Assume that for a company, the fiscal year is not a calendar year, but a combination of different months of two different calendar years. Then one of the calendar years should be classified as a fiscal year and the months that fall in another year should be adjusted to the fiscal year by shifting the year using the -1 or +1 sign. This shift is called the annual shift.

15. State the types of modules into which FI is integrated.

The different types of modules are:

• Production Planning
• Material Management
• Human Resource
• Sales and Distribution

16. How are output and input taxes managed in SAP FICO?

SAP FICO has tax codes within tax procedures for each country. You get the option to calculate tax amounts or capitalize them into shares.

17. What are validations and substitutions in SAP FICO?

Validations in FI and CO modules help ensure data integrity when entering actual transactions online or in batch. Substitutions in FI / CO / EC modules help to derive or correct values ​​that are passed by integration or passed to FI / CO modules.

18. Which application areas use validation and substitutions?

Validation and substitution are used by the following application areas in SAP:

• 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. What is a year-dependent fiscal year variant?

If the number of days in a month does not correspond to a calendar month, it is a year-dependent variant of the fiscal year. For example, when January ends on February 30 and February 27.

20. What steps are involved in G/L posting?

After the payroll is completed, the results are credited to the general ledger accounts. GL posting involves the following steps:

• Grouping relevant information from salary results.
• Creation of summary documents.
• Making the necessary postings to the appropriate cost centers and general ledger accounts.

21. What are the different methods for making vendor payments?

The two methods are:

• Manual payment: Made without a medium like cheques.
• Automatic Payment: Made via DME (Data Medium Exchange) such as bank transfer or check.

22. What is the use of FSV (Financial Statement Version) in SAP FICO?

FSV is a reporting tool. It helps extract final accounts from SAP such as balance sheets and profit and loss accounts. Using multiple FSVs, you can generate outputs from various external agencies such as banks and other statutory bodies.

23. At what level the Customer and Vendor codes are stored in SAP?

Customer and vendor codes are stored at the client level. The company code can use the vendor and customer code by extending the company code view.

24. What is the significance of financial statements within a business in SAP FICO?

A financial statement helps manage a company’s financial assets. Creating and maintaining financial statements and records allows you to create data that you can later use to further plan or make investment decisions for the company.

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

The most common general ledger statements in SAP FI are as follows:

• General Ledger Chart of Accounts List
• List of general ledger accounts
• General ledger account balances
• General ledger account totals and balance

26. What is the purpose of “Document type” in SAP FICO?

The main purposes of “Document Type” are as follows:

• It helps define the numeric range of documents.
• It allows you to check the types of posted accounts such as vendor, asset, customer, normal general ledger account and more.
• Used for input reversals.

The company is an organizational component. It is used in the Legal Consolidation module to compile financial statements of various company codes. On the contrary, the smallest organizational unit is the company code. You can set up a completely separate set of accounts for external reporting purposes according to the company code.

28. What are accounting period variants and posting period variants in SAP FICO?

• Accounting Period Variants: Help manage accounting periods open for validation and all closed periods for deletion. They are suitable for the opening and closing periods of the financial year for booking purposes.
• Accounting Period Variants: The accounting period in a fiscal year is the period for which transaction data is updated. Accounting period variants are responsible for checking which accounting period is open for posting. Ensures balanced closed times.

29. What is the use of Account Receivables?

Accounts Receivable components allow you to record and manage accounting data for all customers. All postings in receivables are recorded directly in the general ledger.

30. What are the perks of using Business areas in a company?

In a company, business areas can be used when other company codes need the same areas. They are used more in controlling than in financial accounting. The benefits of using business areas are as follows:

• It is easy to configure. You will need to connect it to the company code and the other data will connect itself.
• Using business areas in controlling makes it easier to create balance sheets, profit and loss statements, and more.

31. What problems might occur when we configure the business area?

Account balance distribution is the main problem we face when configuring a trading area. It is more suitable for taxable accounts.

32. Explain the relationship between company code and the controlling area in SAP FICO.

A control area in SAP can contain one or more company codes. These company codes use the same operative chart of accounts as the controlling area. One company code can be assigned to a controlling area, while a controlling area can contain multiple company code assignments.

33. What is FI-GL Accounting? Why is it used?

FI-GL stands for Financial General Ledger. It helps to get an overview of external accounting and accounts. It stores all business transactions involved in all other operational areas in the software system, ensuring that accounting data is always accurate and complete.

34. What is parallel and the local currency in SAP FICO?

Local Currency: The currency entered when creating the company code.

Parallel Currencies: Two additional currencies that can be used in foreign trade transactions or international transactions. GROUP CURRENCY and HARD CURRENCY are two examples of parallel currencies.

35. What are the customizing prerequisites for document clearing?

Customization prerequisites include checking deleted and undeleted items through open item management. The open item management process helps manage payables and receivables. That is, unpaid bills. For example, an unpaid invoice item is considered an open account until paid.

36. What are the one-time vendors in SAP FICO?

For companies dealing with high cash transactions, it is impractical to create new master records for each supplier business partner. So one-time vendors solve the problem because they allow a dummy vendor code to be used when entering an invoice, while the information is usually stored on the vendor’s main server.

37. What is the significance of the GR/IR clearing account in SAP FICO?

GR/IR stands for Good Received/Invoice Received. The GR/IR clearing account is a temporary account. A reservation is made if the goods are received in the original system, but the invoice is not. It goes through the Accounting record debiting Inventory and crediting the GR/IR account.

Similarly, when an invoice is received, an amount is credited to the supplier’s account and an amount is debited from the GR/IR account. Thus, GR/IR is an unaccounted for item until the invoice is received.

38. What is the default exchange rate type picked up for all SAP transactions?

The default exchange rate type is M or Average rate for all SAP transactions.

39. What are the different accounting groups that can be created in Account Receivable in SAP FI?

The following accounting groups can be created in Accounts Receivable:

• X001- Domestic customers
• X002- Export customers
• X003- One time customers

40. Is it possible to calculate depreciation to the day? How can you do that?

Yes, it is possible. The depreciation to date feature is activated for an asset as soon as it has a corresponding depreciation key and is activated (posted). As a result, you cannot turn off this feature for an asset even if you change the depreciation key.

41. What are the internal orders in SAP FICO? Where can you use them?

Internal orders are used to plan, collect and bill costs for internal tasks and orders. They can also be used to track costs. They arise in the short term.

42. What is the use of Account payable? How is it related to G/L?

Accounts are used to manage and record accounting data for all suppliers. It refers to G/L as follows:

• All invoices are managed according to supplier requirements.
• Liabilities are managed according to the payment program. Payments can be made by check or electronic transfer.
• In the general ledger, all postings to the accounts payable account are updated at the same time.

43. What ‘blocks’ can be applied to a vendor account in SAP FI?

The following blocking can be applied to the supplier account:

• Billing block for all company codes and some company codes.
• Purchasing block for all or some purchasing organizations. Only used if you have purchased/installed the shopping app component.

44. What is blocking a customer in SAP FI?

Blocking occurs when no more posts are sent to the account. Before marking a customer master record for deletion, you must block the customer account.

For example, you would block a customer you use as an alternate dunning recipient. So no one can accidentally post to this customer. In the Sales and Distribution (SD) application component, the following blocks can be set for the customer:

• Broadcast block
• Delivery block
• Order block
• Billing block

45.  What is the chart of depreciation in Asset Accounting?

The depreciation table is the topmost node assigned to the company node. Stores all depreciation calculations.

46. How can you manage the relationship between two currencies in SAP FI?

With exchange rates, you can define and manage the relationship between two currencies or convert an amount into another currency. Exchange rates are defined for the following purposes:

• Accounting and billing
• Exchange rate differences
• Valuation in foreign currency

47. What is the field status group used to control?

A field status group is configured in FSV to maintain field status for general ledger accounts.

48. How would you create a Credit Control Area in SAP FI?

You can use transaction code OB45 or a path to create a credit control area. The steps to create a credit control area are as follows:

SPRO > business structure > maintain structure > definitions > financial accounting > maintain credit control area

You will also need to enter the following description:

• Update
• Name of the credit-control area in SAP
• Currency
• Description
• Credit Limit
• Risk Category
• Fiscal Variant
• Rep Group

49. What are some most important tables in SAP FICO?

Tables in SAP FICO help store data on the screen. Some important SAP FICO tables are as follows:

SAP Tables Enterprise Structure

• T001: SAP Company-Code
• TCURC: SAP Currency-codes
• T005: Countries in SAP
• TCURT: Currency name in SAP
• TCURR: Exch-rate in SAP
• T009: Fiscal year variants in SAP
• T077S: G/L Account-group
• T880: Global-company-data in SAP
• T004: SAP Chart of accounts (COA)
• T014: Credit-control-area SAP
• T012: House banks in SAP
• T010O: SAP Posting-period-variant (PPV)
• T001B: Permitted posting periods in SAP
• T010P: Posting period variant names in SAP
• T003: Document types in SAP

SAP FI G/L Tables

• BNKA: Bank master record SAP
• SKA1: Chart of accounts segment GL master data
• BNKA: Bank master record in SAP
• SKB1: Company code segment G/l master data
• BKPF: SAP Accounting documents header
• BKPF: Accounting documents header in SAP

Accounts Receivable Table

• KNBK: Bank details
• KNVH: Customer hierarchy
• KNVK: Contact persons
• KNVI: Customer master tax indicator
• KNA1: Customer master-General data
• KNB1: Customer master-Company code data
• KNVV: Customer master-Sales data
• KNVS: Shipment data for customer
• KNVP: Customer partners

SAP FI Accounts payable tables

• LFA1: Vendor master-General data
• LFBK: Bank details
• LFM1: Purchasing organization data
• LFM2: Purchasing data
• LFB5: Vendor dunning data
• LFB1: Vendor master-Company code data

Assets Accounting Tables

• ANEK: Document header asset posting
• ANKB: Asset classes: Depreciation area
• ANKA: Asset classes: General data
• ANKT: Asset classes: Description
• ANEP: Asset line items
• ANLU: Asset master record user fields
• ANLZ: Time-dependent asset allocation

SAP CO Tables

• CSKS: Cost center master data
• CRCO: Assignment of work center to cost center
• CSKT: Cost center texts
• COSP: Cost totals for external postings
• COBK: Document header
• COEP: Line items (by period)
• COST: Price totals

Profit center Accounting tables

• CEPC: Profit center master data table
• GLPCA: Actual line items – Profit center
• GLPCP: Plan line items – Profit center
• GLPCO: Object table for the account – Profit center
• GLPCC: Transaction attributes – Profit center
• CEPCT: Texts for profit center master data

50. What is the use of an account group?

An account group defines a general ledger and general vendor and customer account. Used to check the data that must be entered when creating a master record.

Conclusion

We have discussed some TCS SAP FICO interview frequently asked questions and answers to help you in the interview. All these basic Wipro SAP FICO interview questions are meant for experienced professionals and intermediate level beginners.

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