SAP FICO Interview Questions and Answers

Enterprise Structure

What is a Company Code and what are the basic organizational

assignments to a company code?

Company Code is a legal entity for which financial statements like Profit

and Loss and Balance Sheets are generated. Plants are assigned to the

company code, Purchasing organization is assigned to the company code,

and Sales organization is assigned to the company code.

What is the relation between a Controlling Area and a Company

code?

A Controlling area can have the following 2 type of relationship with a

Company code

a. Single Company code relation

b. Cross Company code relation

This means that one single controlling area can be assigned to several

different company codes. Controlling can have a one is to one

relationship or a one is to many relationship with different company

codes.

Controlling Area is the umbrella under which all controlling activities of

Cost Center Accounting, Product Costing, Profit Center and Profitability

Analysis are stored.

In a similar way Company Codes is the umbrella for Finance activities.

How many Chart of Accounts can a Company code have?

A single Company code can have only one Chart of Account assigned to

it. The Chart of Accounts is nothing but the list of General Ledger

Accounts.

What are the options in SAP when it comes to Fiscal years?

Fiscal year is nothing but the way financial data is stored in the system.

SAP provides you with the combination of 12 normal periods and also

four special periods. These periods are stored in what is called the fiscal

year variant.

There are two types of Fiscal Year Variant

· Calendar Year – e.g. Jan-Dec

· Year Dependent Fiscal Year .

What is a year dependent fiscal year variant ?

In a year dependent fiscal year variant the number of days in a month

are not as per the calendar month. Let us take an example:- For the year

2005 the period January ends on 29th, Feb ends on 27th, March ends on

29. For the year 2006 January ends on 30th, Feb ends on 26th, March

ends on 30th. This is applicable to many countries especially USA. Ever

year this fiscal year variant needs to be configured in such a case

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How does posting happen in MM (Materials Management) during

special periods?

There is no posting which happens from MM in special periods. Special

periods are only applicable for the FI module. They are required for

making any additional posting such as closing entries, provisions. which

happen during quarter end or year end.

How many currencies can be configured for a company code?

A company code can have 3 currencies in total. They are local currency

ie company code currency) and 2 parallel currencies. This gives the

company the flexibility to report in the different currencies.

Do you require to configure additional ledger for parallel currencies?

Where only 2 currencies are configured (Company code currency and a

parallel currency) there is no need for an additional ledger. In case the

third parallel currency is also configured and if it is different than the

second currency type, you would then need to configure additional

ledger.

If there are two company codes with different chart of accounts how

can you consolidate their activities?

In this case you either need to write an ABAP program or you need to

implement the Special Consolidation Module of SAP. If both the company

codes use the same chart of accounts then standard SAP reports give

you the consolidated figure.