INTERVIEW QUESTIONS

1. Tell me about yourself?

Ans.: Well, sure
Shall I start with my Education background or Work experience?
I did my Bachelor of Commerce (computer Applications) from Kakatiya
University, Warangal
Coming to my Work Exp.:

I have 6+ exp. In SAP FICO 3.4 years.

I am currently working with XXXXXX as an FICO consultant from March 2012
to till date

RESPONSIBILITIES:

Worked on various configurations related to GL, AP, AR, Asset accounting and
basic configurations related to controlling module.

Configured company code global parameters, OBY6. Posting period variants,

field status variant, fiscal year variant, document splitting and new G.L
configurations.
Worked on automatic payment program configuration, withholding tax and basic
tax codes configurations related country.

Creation of vendor, customer account groups and worked on integration

between MM-FI,
SD-FI.
Configured basic settings of controlling like controlling area configuration, cost
cent,
cost center groups, cost elements and cost element groups.
Worked on basic configurations related to Asset accounting
Post implementation support in FI-GL,AR, AP and AA
Maintaining test scenarios.
Interacting with end users and giving support.
Creation of configuration settings as per client new requirements.

Interacting with the Users on day to day basis for timely closing of the issues.

Interacting with end users (if required) for more information through Net
Meeting /
Phones / Mails for requirements gathering.

2. How many types of currency provided by SAP?

There are 5 types of currency in SAP R/3 system.
1. Group Currency: You define Group Currency when you define Client (SCC4)
2. Global Company Currency: You define Global Company Currency when you define Company
that is assigned to your company code.

 3. Hard Currency: YOU define Hard Currency when YOU define the Country that your Company
code assigned to. A hard currency is used in countries with high inflation.
4. Index-Based Currency: You define IB Currency when you define Country that your company
code assigned to. An index-based currency is stipulated for external reporting (for example, tax
returns), in some countries with high inflation.
5. Company code Currency: You define the company code Currency when you define Company
Code.
Now with these 5 types of Currency, you can maintain a Parallel Currency in your system under
the SPRO Multiple Currency. SAP gives you to maintain 3 Parallel Currencies, it means when
you post a transaction using Trans Currency, system will convert to the others currency that you
set in this setting.
By DEFAULT 1st LC SAP will take the company code Currency as your 1st LC.
2nd LC: you can choose 1 of 5 from the Currency. Type. Ex: Hard Currency
3rd LC: you can choose 1 of 5 from the Currency Type. Ex: Group Currency
Cases:
Your company in Singapore, so your company code Currency is Sing$.
Your company wants to have Double Book Keeping, delivered FS in Sing$ and also in HK$, so
you maintain HK$ in Hard Currency.
Your company have a Consolidation with the HQ in US, so you maintain US$ in Group Currency.
Then after you define your all the Currency types, you fill this / setting this in the 2nd and 3rd LC
on your Parallel Currency.
SAP only give 3 Currency to maintain in Parallel Currency, let say your company need to
generate FS in 10 different Currency for Go Public in many different country, then you have to
maintain all the other Currency in the Special Purpose Ledger, to capture your requirement.

Please note that when you use 2nd and 3rd LC as your Parallel Currency, its means you will have
3 set Books of FS, so at THE END of the MONTH you have to revaluate all your Currency Type:
10 LC, 20 HC and 30 GC. Because its looks like you have 3 different FS in multiple currencies

3. What is chart of accounts? How many types are there? OB13

Definition:

This is a list of all G/L accounts used by one or several company codes.OB13


For each G/L account, the chart of accounts contains the account number,
account name, and the information that controls how an account functions and how
a G/L account is created in a company code.

Use:

You have to assign a chart of accounts to each company code (OB62). This
chart of accounts is the operating chart of accounts and is used for the daily
postings in this company code.

You have the following options when using multiple company codes:

You can use the same chart of accounts for all company codes

If the company codes all have the same requirements for the chart of
accounts set up, assign all of the individual company codes to the same chart of
accounts. This could be the case if all company codes are in the same country.

In addition to the operating chart of accounts, you can use two additional
charts of accounts

If the individual company codes need different charts of accounts, you can
assign up to two charts of accounts in addition to the operating chart of accounts.
This could be the case if company codes lie in multiple countries.

The use of different charts of accounts has no effect on the balance sheet and
Profit and loss statement. When creating the balance sheet or the profit and loss
statement, you can choose whether to balance the company codes which use
different charts of accounts together or separately.
Structure:

Charts of accounts can have three different functions in the system:

Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for
posting in your company code during daily activities. Financial Accounting and
Controlling both use this chart of accounts.

You have to assign an operating chart of accounts to a company code.

Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the
entire corporate group. This allows the company to provide reports for the entire
corporate group.

The assigning of a corporate group chart of accounts to a company code is

optional.
Country-specific chart of accounts

The country-specific chart of accounts contains the G/L accounts needed to

meet the country's legal requirements. This allows you to provide statements for
the country's legal requirements.

The assigning of a country-specific chart of accounts to a company code is

optional.

4 What is Sort key? OB16

Sort Key: It is used to sort of documents post into G/L

A/cs. These sort keys are controls the documents and it is
easily identified the documents with these sort keys like as
below.
There are 37 various types of sort keys in Sap fico - most
commonly used Sort key are;1) 001 - Posting Date
2) 002 - Document No by fiscal year.
3) 003 - Document Date.
4) 012 - Vendor Number.
5) 031 - Customer Number.
6) 027 - Value Date.
7) 018 - Asset No.
8) 033 Cost center
9) 014 purchase order No. enter in GR/IR clearing a/c

What is Field status group? & F.S. Variant?

Field Status Variant contains different field status groups. (OBC4)
Field status groups controls the field status of line items
whether to be displayed, Optional, suppressed, required.
We can control in 3 places: --a) Field status variant (OBC4):---it controls line items
during document posting.
b)Account groups(OBD4,OBD3,OBD2):-- It controls fields
during master record Posting [G.L master(OBD4),Vendor Master
(OBD3), Customer Master(OBD2)]
c)Posting keys(OB41):---it controls line items during
document posting.
Note: -- both posting keys and field status variant
controls the line items during document posting based on
Suppressed, Required and Optional priority.

6 What is Reconciliation a/c? Where we are assigning it?

Use:
You use this field to indicate G/L accounts as being reconciliation accounts.
For each
Sub-ledger account, you must keep at least one reconciliation account in
the general ledger. When you post to an account in the sub-ledger, the
system automatically posts to the corresponding reconciliation account.
The "Receivables from goods and services" account is an example of a
reconciliation account for customers. Enter Customer in the Reconciliation

account for account type field. Enter a Vendor in this field for a vendor
reconciliation account.
Using the reconciliation account procedure, it is possible to create a balance
sheet and a profit and loss statement at any time, since the amounts posted
to sub-ledger accounts are also posted automatically in the general ledger.

During regular reconciliation, you check whether the balance of the

reconciliation account matches the balance of the corresponding sub-ledger
account.
You define reconciliation accounts by specifying in the G/L account master
record the account type (such as fixed assets, vendor or customer) for which
the account is to be used. In this way, the account can only be assigned to
accounts in the corresponding sub-ledger. You set the assignment of the subledger account to a reconciliation account in the master record of the subledger account. You cannot post to reconciliation accounts manually.
You have created a reconciliation account "Receivables" for accounts
receivable. You must specify the account number of the reconciliation
account in the master records of the customer accounts. The system checks
whether the named reconciliation account is permitted for the account type
"customer".
More information on the reconciliation account can be found in the FI
Accounts Receivable and Payable Accounting documentation in the sections
on customer master records and vendor master records.
Reconciliation operations are described in FI Closing and Reporting.

7 What is Document splitting?

Purpose:
Document splitting allows you to display documents using a differentiated
representation. In the representation, line items are split according to

selected dimensions. In this way, you can draw up complete financial

statements for the selected dimensions at any time.
Using the document splitting procedure, you can also create a segmented
display of a (partial) balance sheet according to a set of legal requirements
(for example, IAS) or according to areas of responsibility.
In addition, you can allocate at the time of posting additional costs (such as
realized or valuated exchange rate differences) to the CO account
assignment objects to which the costs relate. Assets can also be
subsequently capitalized at the time of posting.
Implementation consideration:
You need to make settings in Customizing and other preparations for
document splitting.
Integration:
Document splitting has an effect on subsequent processes , such as closing
operations, and on processes in Controlling (CO).
Features:
You can use the document splitting procedure to split up line items for
selected dimensions (such as receivable lines by profit center) or to affect a
zero balance setting in the document for selected dimensions (such as
segment). This generates additional clearing lines in the document.
Document Splitting Process
For document splitting to be possible, the system classifies the individual line
items as well as the documents. This takes place using your settings in
Customizing . Depending on how a document is classified, the splitting rule
selected for a document specifies how the document is split and for which
line items.
SAP delivers a set of standard splitting rules. You can also define your own
rules.
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What are features of New G.L a/c?

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12

What is special G.L. a/c?

What is difference EE4.7 & ECC6.0?
In ECC6.0 which EHP you are using?
What is Withholding tax and Extended W. Tax?
Ans:

13 What is Open item management? Where we should not select this check box?
Ans: 1.we should select Open Item management check box
Outstanding Expenses GL a/c, VAT payable and VAT receivable, Check
deposit and clear,
GR/IR clearance a/c.

14 Where we enter /select currency type in G.L a/c?

15 How many members are there in your project?
16 What is GR/IR clearance a/c importance ?
Definition:
An account which is posted to in the following cases:
Goods received which have not yet been invoiced
Invoices for goods which have not yet been received
When you receive the goods (or invoice), the system makes an offsetting
posting to the GR/IR clearing account. The respective items are not cleared.
Use:
Before creating the financial statements, you need to analyze the GR/IR
clearing account so that the transactions posted to it are properly displayed.
The program used for this analysis determines an item balance for each
reconciliation account and each assignment number. If the account has a credit
balance, goods have been received but not invoiced; if the account has a debit
balance, goods have been invoiced but not yet received. The program places
any necessary adjustment postings in a batch input session. These postings
are made separately per company code, GR/IR clearing account, reconciliation
account, and business area. They are then reversed on the day you specify in
the program run.
Example
You have received goods from one of your vendors. The vendor has invoiced
only part of the delivery.

()
In this example, you would make the following postings:

1. You post $2000 of goods received to the inventory account. The system
automatically posts the transaction to the GR/IR clearing account.
2. You have been invoiced $1000 for part of the delivery. You post this amount
to the vendor account and to the GR/IR clearing account.
In this example, the program would create the following postings:
1. On the balance sheet key date, transfer postings are required to identify the
portion of goods delivered but not yet invoiced. To adjust the GR/IR clearing
account, the program used in analyzing the GR/IR clearing account posts
$1000 to the relevant adjustment account. The offsetting entry is posted to the
account used for presenting goods delivered but not invoiced (target account).
2. These postings are reversed after the financial statements have been
created.

17 What you are challenged in your project implementation?

18 Entries on W. Tax?
Ans:
Consultant fee a/cDr, xxx
To w.tax(TDS)
To Cash/Bank a/c
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20
21
22
23
24

xxx
xxx

Tax on Sales and Purchase?

Interest calculation and Cash Discount?
In Rollout project can we copy COA or create it?
What is LSMW explain steps?
Explain Asset accounting basic rules?
Where you assigning MM to FI (OBYC) and SD to FI (VKOA)?

25 What is Tolerance Group?

Ans: Tolerance Groups are acceptable, Permissible difference, and
authorization given to the user of the Organization to post a document easily,
to post open item customer and vendor line item and to allow cash discount
26 Cost Element creation and Cost center accounts creation?
27 What is Segment creation, Profit center and Cost center a/c?
28 APP configuration and how many ways are there pay to Vendor?
What is use of Reallocation?
Ans: There are 04 ways. Bills of Exchange, Check, Online transfer and
Bill/check/transfer
Use of Reallocation for Change the house Bank a/c.
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What is next payment run date?

What is EBS (Electronic Bank Statement)?
Dunning procedure?
Validation (GGBO & OB28)?

33 Substitution (GGB1 &OBBH)?

34 Tables and Field names?
35 Term of payment?(OBB8)
36 ASAP Methodology?
37 GAPS & Tickets?
38 Test script and Manual book preparation?
39 Movement type?
40 What is valuation class?
41 Transaction /process key?
Ans: BSX for Inventory posting
WRX for GR/IR clearance a/c
PRD for price diff.
GBB for material consumption of offsetting
42 Explain P 2 P cycle? With accounting entries?
43 Explain O 2 C cycle? With accounting entries
44 What are entries in MM?
45 What are the entries in SD?
46 What is Chart of depreciation in Asset Accounting? At what level you are
created?
Definition:
Charts of depreciation are used in order to manage various legal
requirements for the depreciation and valuation of assets. These charts of
depreciation are usually country-specific and are defined independently of
the other organizational units. A chart of depreciation, for example, can be
used for all the company codes in a given country.

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How to cash discount run in APP?

Can we run partial payment in APP? If S how.?
What is catch-up method and smoothing method in AA?
Material valuation at what level you will do, that is company code level OR
Plant level? If Plant level why?
We have Raw material procuring from different ways, Semi- finished Good and
Finished, which pricing procedure we have to follow, thats Standard OR Moving
price?
We want to run payment method in APP for Domestic and Foreign Transaction
at time in one payment method is it possible? If S, how? Explain it?
In Depreciation run, what is Planned, Unplanned, Repeat and Restart? When it
will run? Explain each one with one example?
iDoc and DME use and difference between iDoc and DME?
Please prepare Accounting Entries.?