SAP INTERVIEW QUESTIONS

1. What are the components of enterprise structure?

A. Organisation structure is one of the first steps in setting up the business function in SAP. The
organizational structure is created by defining the organizational units consisting of the following:-
• Client
• Company
• Company Code
• Business Areas
2. What are the disadvantages of Business areas?
• While doing Automatic posting for example Input or Output Tax it will not update in the
business area. Not only tax whatever automatic posting will not update in the business area
• In Assets- Depreciation also difficult to update in the Business area
• Equity capital & share capital – are difficult to update in the business area
3. What is US GAAP?
Generally accepted accounting principles (GAAP) are the accounting rules used to prepare financial
statements for publicly traded companies and many private companies in the United States.
Generally accepted accounting principles for local and state governments operate under a different
set of assumptions, principles and constraints as determined by the Governmental Accounting
standard Board.
4. What is meant by the Cost Object and what is all the use?
The Cost Object is what we use to control the cost elements. Any real cost carrier that can be used
to settle the cost is a cost object.
5. In App—> Bank Determination—> Ranking : 1st Rank= HDFC , 2nd Rank= ICICI. For 15 days I
have to pick up money from ICICI. Tell me How to do it?
A. Generally checks will be issued from house banks ( from 1st rank onwards ), if you select no
optimisation radio button in the “setup payment methods per company code for payment
transaction” configuration step. As you are saying that money is picked from ICICI, the reason is
bank selection in the above step (Optimise by bank group or optimise by postal code in the above
configuration step). Bank selection will give prior to this selection and next to the ranking order.
6. What is the importance of a secondary cost element in controlling, if it is needed give reasons
A. Secondary cost element creates for internal purpose of Controlling area. This is for service
provided from one cost centre to another cost center.
An example.
We have Canteen Cost Center. The canteen provides service to Production, Packing, Utility, Admn
etc. You allocated the Canteen cost to other cost centres through a secondary cost element.
It is used for Controlling cost allocation purposes.
7. What is the integration between CO-PP?
A. The point of integration between CO-PP is Work Center. The transaction code for the same is
CR01. The point of integration is the confirmation of the production Order in the production
module. To create a production module – CR01.
8. What did you configure in the accounts receivable module?
A. Accounts Receivable. Generally is a Customer Account. We configure AR in three types:-
i) General Data Segment- Details of Customers
ii) Company Code Segment- Details of customers
iii) Sales Area Segment
9. How dunning procedure will be updated in the Customer Master?
A. After you create the dunning procedure with FBMP, you have to assign it to the customer
master record with XD02 before going for the dunning run, go to the correspondence tab in the
customer master and can assign the dunning procedure.
10. What is the process of cancellation of an issued check?
A. If we want to void the check only then we use FCH9 or if we want to cancel the entire payment
transaction then we use FCH8.
11. How reversal of the document is done?
A. When we post an entry we may post a wrong entry, SAP can’t delete any document or entry
which is posted therefore to correct or cancel the entry we reverse the entry which is called a
reversal entry.
12. What is a depreciation key?
A. Depreciation keys contain the calculation methods for Depreciation calculation and parameters
that control
• Ordinary Depreciation
• Special depreciation
• Scrap Value (Cutoff Value)
• Calculation of Interest
 We can enter a separate depreciation key for each, Depreciation area in the master record.
13. What is the production support procedure? How does login production support? What is the
transaction code?
A. The customer or the end user logs a call through any tool or by mail tools (RADIX), Remedy
Service Desk (SD4) Preigreen Lotus Notes etc.
Whenever a customer logs a call he /she has to mention to which workgroup.
• Once the calls came to the workgroup the support Consultant or the Team needs to send an
IR (Initial Response) to the user depending upon the priority of the calls (Top, High, Med,
Low etc).
• Then the error is fixed, debugging by the support consultant or the team. Then after testing
properly by generating TR (Transport Request through the basis admin).
• Then it informed the end user/customer about the changes which have been moved to the
production server by the CTS process.
If we will summarise, if any configuration or customisation is required to solve the issue, then the
consultant has to work on the DEV client, then the end user will test it in the QA client and after
approval, the BASIS consultant has to transport it to the Production client.
14. What is the difference between House Bank and Bank Account?
A. House Bank is a group of banks means the company is maintaining 10 bank accounts these 10
accounts will be maintained by 1 house bank. Each bank GL can be assigned to house bank and the
account id is to refer for payment program House Bank Master in SAP is created to capture the
Branch details of your bank like branch address, swift code etc
Whereas a Bank Account ID represents the account number in your bank branch. So there can be
many account ids under one house bank ( as in one bank you can have a local currency account and
a foreign currency account or a savings account and current account.
15. What is the importance of the Baseline Date?
A. The Baseline Date is used to calculate the due date by taking into account the payment terms.
The Baseline date helps to pick the relevant invoices for payment. During APP when the invoices are
pulled into a run, the system checks the next payment date before picking invoices to be paid.
16. What is the difference between the posting period and the fiscal year variant?
A. Fiscal Year Variant determines the financial year, a company follows for financial reporting
whereas the posting period variant is used for which period onwards transactions will be started.
17. Why development client is called the golden client of SAP?
The development client is known as the Golden Client because it has all the correct configuration
settings which have been tested and are error-free. The Golden client is taken as a reference while
performing some other configuration settings. You should not change any settings in the golden
client.
18. What is Asset Accounting?
Asset Accounting is used for the Accounting of Fixed Assets in an organisation. The significance of
Asset accounting lies in the following:-
• It follows the subsidiary Ledger Concept
• It allows the categorisation of Assets as – a) Self Built. b) Purchased. c) Depreciation posting
is automated.
• Depreciation posting is automated
• Has incorporated features that help in better reporting of Fixed Assets
Procedure
1. The most essential procedure in Asset Accounting is mapping the Subsidiary Asset Account
Number to the corresponding General Ledger Account and thereby enabling automatic
updating at any point in time
2. Planned Depreciation runs must be run to make Depreciation postings.
19. If you have not solved any ticket in time, what will happen?
A. Service level agreement (SLA) is applicable to tickets. Every ticket will have an SLA attached to it,
it could vary from Critical, High, Medium or Low priority. For example, if it is a critical ticket the time
to update/solve the ticket is only 2 hrs, if you do not solve it within that time the ticket will cross the
SLA and the indicator colour will change from green to red and the issue will be escalated later on
you may be asked to raise an incident for same (reason for the delay in processing).
20. What is a Solution Manager?
A. Solution manager is something like share point. It will contain all the project plans and blueprint
it is like a guide for the project which says which things are done and which have to be done. You
can upload and download functional specifications from it.
21. What is a transport request?
A. Transport request is nothing but to transport the objects from one system to another system by
using the transport organizer.
SE09 – is the workbench organiser used to customise the objects for the development class.
In SAP there are three servers:-
i). Development server
ii) Quality/testing server
iii) Production server
Transport is the vehicle by which your configuration settings are moved from one client to another
client or environment to environment. In the development server, we configure the settings these
settings are transferred to the quality/testing server through transport request.
22. How to upload opening balances for implementing a new company. The opening balances of
Assets, Loans and Cash Balances and how create these possible in SAP?
A. First we have to create clearing accounts like GL clearing accounts, vendors clearing accounts,
customer clearing accounts and asset clearing accounts. These accounts are only for data
uploading. Post GL balances in F-02, the customer in F-22 and F-43 for the vendor, we have debit
balances of customer and credit customer clearing account, for the vendor we have debit vendor
clearing account and credit balance for the vendor. For Asset balances first, we have to remove the
reconciliation in FS00 for the asset account and accumulated depreciation account, and we have to
post in F-02.
23. What is the derivation rule in PCA how do we define it and where do we define it?
A. Derivation rule used for updating profit centres because of derivation rule profit centre will be
updated. We define derivation rules like-
• For the GL expense account, we will assign the profit centre to the cost center.
• For the revenue account, it will update through account assignment.
• For balance sheet items it will update by posting through the business area.
24. Tell me the Basic Steps for FI configuration.
1. Define Company (OX15)
2. Define Company Code (OX02)
3. Define Business Area. (OX03)
4. Assign company code to the company (OX16)
5. Define fiscal year variant (OB29)
6. Assign fiscal year variant to company code (OB37)
7. Define posting period variant (OBBO)
8. Define opening & closing posting period variant ( OB52)
9. Assign company code to post-period variant (OBBP)
10. Define chart of account (OB13)
11. Assign company code to chart of account (OB62)
12. Define account group. (OBD4)
13. Define retained earnings (OB53)
14. Define document type (OBA7)
15. Create no range for customer group (XDN1)
16. Define posting keys (OB41)
 17. Define Field status variant (OBC4)
18. Assign field status variant to company code (OBC5)
19. Define Tax procedure (OBQ3)
20. Assign tax procedure to company code (OBBG)
21. Define tolerance group for G/L accounts (OBA0)
22. Define tolerance group for employees (OBA4)
23. Define global parameters (OBY6)
25. What is the Activity Type?
A. Activity Type is internal activity allocation from one cost centre to another cost center. For
example, the Telephone is part of the administration cost centre but the phone use all cost center,
so we make the activity type “PHONE”. So we allocated cost centre amounts thru activity. Activity
types are nothing but services provided by cost centres through work centers. It is one of the
tracing factors for the cost center’s efficiency. Those are created & planning in cost centres and
assigned in the work centre in PP.
26. What is a GR/IR account? What is the use of it?
GR/IR account is offsetting entry.
Example- Concerning Goods Rec Note
• Material a/c Dr
o GR/IR clearing account
After verifying, once the vendor invoice will be posted in logistics the accounting entry in FI
• GR/IR clearing account Dr
o Vendor account Cr
So it is offsetting the entry
It always cleared no balance at last. The offsetting entry for clearing the GR/IR clearing account is
posted to the stock account (provided that there is sufficient stock coverage for the quantity
difference).If there is a delivery surplus on the GR/IR clearing account the material was debited
with too high value when the receipt of the goods was posted. When the GR/IR clearing account is
cleared the material is credited accordingly.If there is an invoice surplus on the GR/IR clearing
account, the material was debited with too low a value when the receipt of the goods was posted.
When the GR/IR clearing account is cleared the material is debited accordingly. If there is
insufficient stock coverage for this quantity only the portion corresponding to the available stock is
posted to the stock account. The rest is assigned to a price difference account. For a material
subject to standard price control, the offsetting entry to clear the GR/IR clearing account is made to
a price difference account. There are no value changes in the material master record. Normally
there will be a time lag between the recording of goods received and the Invoice received. To track
the differences at any point in time, GR/IR Account will be helpful.
27. What is Baseline Date? Why is that used?
Ans. The baseline date is the date from which terms of payment apply. By default, the baseline date
will display in invoice posting. We can control the base configuration steps ( T Code- OBB8)
The baseline date may be:-
• Document date
• Posting Date
• No default ( for this option, the user should explicitly define the baseline date in invoicing)
• Entry date
28. How do you reverse cleared document?
A. We need to reverse the cleared Document No in FBRA, Then we can reverse the main doc no in
fb08
29. What is reversal posting?
A. Reversal posting means we try to rectify the entry we passed earlier. The error may be because
of
i) Wrongly Debiting/ Crediting a Party
ii) Excess Payment to a party, so we do a reversal to rectify the entry
ii) Wrong Assignments 2 wrong party
30. What is open line item management? What do you mean by clearing open line items?
A. Open Line item: That means BT is pending for clearing AP/AR etc.
Example
• You enter the Invoice in Vendor A/C
• The vendor payment due date is Next month
• The invoice shows it is an open line item
• It is still an open line item until you not clear the amount against the vendor invoice it shows
the open line item. Because you have to clear the invoice
31. Entries for FI-MM and FI-SD integration in different scenarios.
PO Creation
• No accounting entry.
GR Creation
 • Inventory Account Dr (Transaction Key BSX in OBYC)
o To GR/IR account ( Transaction Key. WRX in OBYC)
When GR is posted
• GR/IR Account Dr
o Vendor Account Cr
Payment Made to Vendor
• Vendor A/c Dr
o To Bank Clearing
The Pre-Requisite
There is a close integration between FI & MM, document flows from MM to FI in the following
areas
1. Movement Types – Used to enable the system to find the predefined posting rules
determining how the accounts of the financial accounting system are to be posted & to
update the stock fields in the material master data ( Goods Receipt, Goods Issue etc )
2. Valuation Class – Assignment of material to a group of GL accounts used to determine the
GL accounts that are updated as a result of goods movement
3. Transaction Key – Used to control the storage or filing of documents & assignment of
documents. It was used to differentiate between various transactions such as goods
movement in inventory.
4. Material Type– Each material should assign material type in the material master record used
to update whether changes made in quantity are updated in the material master record and
changes in value are also updated in the stock account.
FI-SD Integration – The integration is done T Code- VKOA
Sales Order Created
• No accounting entry
PGI did Goods Issue)
• Cost of Goods Sold Dr ( Configured in OBYC GBB Transaction Key )
• To Inventory Account
Billing document released to Accounting
• Customer Account Dr
o To Sales Revenue Account (ERL- T key Pricing procedure)
Note– The GL account is assigned to this ERL in VKOA
1. What do you understand by the term SAP FICO?
SAP is the abbreviation for Systems, Applications & Products in Data Processing. The FI in FICO
stands for (Financial Accounting), and CO is for (Controlling). Thus, SAP FICO is a combination of SAP
FI and SAP CO. While SAP FI deals with accounting, tax computation, and preparation of financial
statements, SAP CO is for inner orders, inventory sheets, cost sheets, cost allocations, and more.
2. What is the posting key? What purpose does it serve?
A two-digit numerical for controlling and determining the transaction type documented in the line
item is referred to as a posting key. It helps determine the following:
• Account types
• Types of posting: debit or credit
• Field status of a transaction
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 guard a business against overstretching its financial assets. Usually, a credit
limit is set for the customers using SAP when a payment is made post the product's sale. This
method allows you to restrict the customer's amount to clear before starting a fresh purchase.
It is suitable for credit management in application components:
• Account Receivable (AR)
• Sales and Distribution

Enterprises and established organizations such as IBM, Accenture, HCL, and Hewlett-Packard(HP)
have been implementing SAP ERP systems. A career in SAP FICO is in demand with an exponential
rise in the market. The growth curve is expected to be sharper in the upcoming five years for a
fresher with an account or finance background. Currently, there are very few certified SAP FICO
Consultants in the market. It's the right time to make your way by cracking the most challenging SAP
FICO interview questions with proven subject knowledge.
About SAP FICO
SAP Financial Accounting (FI) and SAP Controlling (CO) or SAP FICO is an important core functional
component in SAP ERP Central Component. It enables an organization to manage its financial data
and store a complete version of its financial transaction data. It serves the crucial purpose of
helping companies generate and manage financial statements for analysis and reporting, aiding in
effective business planning and decision-making.
Commonly Asked SAP FICO Interview Questions for Freshers and Experienced
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 do you understand by the term SAP FICO?
SAP is the abbreviation for Systems, Applications & Products in Data Processing. The FI in FICO
stands for (Financial Accounting), and CO is for (Controlling). Thus, SAP FICO is a combination of SAP
FI and SAP CO. While SAP FI deals with accounting, tax computation, and preparation of financial
statements, SAP CO is for inner orders, inventory sheets, cost sheets, cost allocations, and more.
2. What is the posting key? What purpose does it serve?
A two-digit numerical for controlling and determining the transaction type documented in the line
item is referred to as a posting key. It helps determine the following:
 • Account types
• Types of posting: debit or credit
• Field status of a transaction
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 guard a business against overstretching its financial assets. Usually, a credit
limit is set for the customers using SAP when a payment is made post the product's sale. This
method allows you to restrict the customer's amount to clear before starting a fresh 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?
The company code is responsible for generating financial statements like Profit and Loss
Statements, Balance sheets, and others.
10. How many Chart of Accounts can a company code have?
There can be only 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 a 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 company's daily needs and the country's legal
requirements. Its two types are as follows:
• Operating Chart of Accounts (COA): A record with all the general ledger accounts assigned to
the company code.
• Country Chart of Accounts (COA): The list of general ledger accounts needed to meet the
country's legal requirements.
13. What do you understand about the field status group and field status variant?
The field status groups contain the field status variants. The General Ledger account has field status
groups. These status groups allow you to define the 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 fails to acknowledge a broken fiscal year.
Suppose for a business a fiscal year is not a calendar year but a combination of the different months
of two different calendar years. Then, one of the calendar years needs to be classified as a fiscal
year, and the months that fall in another year should be adjusted into the fiscal year by shifting the
year by using the sign -1 or +1. This shift is termed a year 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 every country. You get the facility to expense out
the tax amounts or capitalize them to stocks.
17. What are validations and substitutions in SAP FICO?
Validations in the FI and CO modules help ensure data integrity when entering actual transactions
online or in a batch. The substitutions in the FI / CO / EC modules help derive or correct values that
are passed via integration or submitted to the 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?
When the number of days in a month does not correspond to the calendar month, it is a year-
dependent fiscal year variant. For instance, when January ends on the 30th and February on the
27th.
20. What steps are involved in G/L posting?
On completion of the payroll run, the results are to be added to the G/L accounts. GL posting
involves the following steps:
• Grouping relevant information from the payroll results.
• Creating summarized documents.
• Performing the necessary postings to appropriate cost centers and G/L accounts.
21. What are the different methods for making vendor payments?
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. What is the use of FSV (Financial Statement Version) in SAP FICO?
FSV is a reporting tool. It helps extract final accounts from SAP like Balance Sheets and Profit and
Loss Accounts. Using multiple FSVs, you can generate the output of various external agencies like
banks and other statutory authorities.
23. At what level the Customer and Vendor codes are stored in SAP?
The Customer and Vendor codes are stored at the client level. A 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 the company's financial assets. Creating and managing financial
statements and records allows you to create data that you can use later to plan further or decide on
investments for the company.
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. What is the purpose of "Document type" in SAP FICO?
The main purposes of "Document type" are as follows:
• 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. What is meant by company and company code in SAP FICO?

A company is an organizational unit. It is used in the legal consolidation module for rolling up
financial statements of different company codes. Contrastingly, the company code is the smallest
organizational unit. You can draw up a completely self-contained set of accounts for external
reporting purposes of company code.
28. What are accounting period variants and posting period variants in SAP FICO?
 • Accounting period variants: They help manage the accounting periods open for validation
and all closed periods to be deleted. They are suitable for opening and closing periods of the
financial year for reservation purposes.
• Posting period variants: A posting period in a fiscal year is a period for which the
transactions figures are updated. The posting period variants are accountable for controlling
which Accounting period is open for posting. It ensures balanced closed periods.
29. What is the use of Account Receivables?
Accounts Receivable components allow you to record and manage all customers' accounting data.
All postings in Accounts Receivable are directly recorded in 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 Finance Accounting. The benefits of using business areas are as
follows:
• 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. What problems might occur when we configure the business area?
The splitting of the account balance is the main problem faced when a business area is configured.
It is more pertinent for taxable accounts.
32. Explain the relationship between company code and the controlling area in SAP FICO.
A controlling area in SAP can contain one or more company codes. These company codes use the
same operative Chart of Accounts as the controlling area. A single 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?
The FI-GL is the abbreviation for Financial-General Ledger. It helps get an overview of external
Accounting and accounts. It holds all business transactions included with all other operational areas
in a software system, ensuring that the accounting data is always accurate and complete.
34. What is parallel and the local currency in SAP FICO?
Local Currency: The currency entered in the company code creation.
Parallel Currencies: The other two additional currencies that can be used in foreign business
transactions or international transactions. GROUP CURRENCY and HARD CURRENCY are two
examples of parallel currencies.
35. What are the customizing prerequisites for document clearing?
The customizing prerequisites include checking the cleared and uncleared items via open item
management. The open item management process helps manage the account payable and
accounts receivable. I.e., the outstanding accounts. For instance, an unpaid invoice item is taken as
an open account until paid.
36. What are the one-time vendors in SAP FICO?
For companies dealing with high cash transactions, it gets impractical to create new master records
for every vendor trading partner. So, one-time vendors solve the problem as they allow a dummy
vendor code to be used on invoice entry while the information is usually stored in the vendor
master.
37. What is the significance of the GR/IR clearing account in SAP FICO?
GR/IR is the abbreviation for Good Received/ Invoice Received. A GR/IR clearing account is an
interim account. The provision is made if the goods are received in the legacy system, but the
invoice isn't. It goes through the Accounting entry debiting the Inventory and crediting the GR/IR
account.
Similarly, when an invoice is received, the vendor account gets credited, and the GR/IR account is
debited. Thus, the GR/IR is an uncleared item till the invoice isn't 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 Account 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 the day function gets active for an asset as soon as it has a
corresponding depreciation key and is capitalized (posted to). Consequently, you can't switch off
this function for the asset, even when you change the depreciation key.
41. What are the internal orders in SAP FICO? Where can you use them?
Internal orders are used for planning, collecting, and settling the costs of internal tasks and jobs.
They can also be used to track the cost. They are incurred over a short-term basis.
42. What is the use of Account payable? How is it related to G/L?
Accounts payable is used for managing and recording the accounting data for all the vendors. It
relates to G/L as follows:
• 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.
43. What 'blocks' can be applied to a vendor account in SAP FI?
The following blocks can be applied to a vendor account:
• Posting block for all company codes and certain company codes.
• Purchasing block for all or certain purchasing organizations. It is only used when you have
purchased/installed the purchasing application component.
44. What is blocking a customer in SAP FI?
Blocking is when postings are no longer made to an account. You have to block a customer account
before marking a customer master record for deletion.
For instance, you would block a customer that you use as an alternative dunning recipient. Thus,
nobody can mistakenly post to that customer. The following blocks can be set for a customer in the
Sales and Distribution (SD) application component:
• Posting block
• Delivery block
• Order block
• Invoicing block
45. What is the chart of depreciation in Asset Accounting?
The chart of depreciation is the highest node assigned to the company node. It stores all the
depreciation calculations.

46. How can you manage the relationship between two currencies in SAP FI?
Using exchange rates, you can define and manage the relationship between two currencies or
translate an amount into another currency. Exchange rates are defined for the following purposes:
• Posting and Clearing
• Exchange Rate Differences
• Foreign Currency Valuation
47. What is the field status group used to control?
The 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 the transaction code OB45 or path to create a Credit Control Area. The steps to create a
credit control area are as follows:
SPRO > enterprise structure > maintain structure > definition > financial accounting > maintain
credit control area
Next, you will have 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 the data on a screen. Some important tables of SAP FICO are as
follows:
Enterprise structure SAP Tables
• 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?
Account group defines GL account and Vendor and Customer Master. It is used to control the data
that has to be entered while creating a master record.
51. How would you define the tolerances for invoice verification?
Tolerance in SAP specifies whether the payable places match or tax hold on the invoice. Following
instances of tolerance can be defined for logistics invoice verification:
• Small differences
• Quantity variances
• Moving average price variances
• Price variances
52. What is meant by the short-end fiscal year?
A short-end fiscal year is when you change from a normal fiscal year to a non-calendar fiscal year or
vice versa. It usually happens when an enterprise becomes part of a new co-corporate group.
53. What is APP in SAP FICO?
APP is the abbreviation for Automatic Payment Program. It is a tool provided to companies for
paying their customers and vendors. It facilitates avoiding mistakes while posting manually.
Payments via APP are more feasible when there are more employees in the company.
54. What are cost and profit centers in Controlling?
Cost Center: A component in an organization added to the cost and indirectly added to the
organization's profit, such as marketing and customer service. A business unit of a company can
either be classified as a profit center or a cost center, or an investment center.
Profit Center: For managing internal control. Dividing a company into profit centers enables
delegating responsibility to decentralized units. It also allows you to treat the units as separate
companies within a company.
55. Is the business area at the company code level?
No, the business area is not at the company code level. Rather is at the client level, which means
that other company codes can be posted to the same business area.
These SAP FICO interview questions will definitely help you in cracking the job interview. Have we
missed any questions? Let us know in the comments and we will answer it for you.