{"id":8762,"date":"2023-11-07T06:31:00","date_gmt":"2023-11-07T01:01:00","guid":{"rendered":"https:\/\/www.monsterindia.com\/career-advice\/15-most-commonly-asked-sap-fico-interview-questions-8762\/"},"modified":"2023-11-08T15:01:27","modified_gmt":"2023-11-08T09:31:27","slug":"15-most-commonly-asked-sap-fico-interview-questions","status":"publish","type":"post","link":"https:\/\/www.foundit.in\/career-advice\/15-most-commonly-asked-sap-fico-interview-questions\/","title":{"rendered":"15 SAP FICO Interview Questions and Answers"},"content":{"rendered":"\n<p>Getting ready for a SAP FICO interview is not just about being an expert. It means you need to know the most common questions they might ask.<\/p>\n\n\n\n<p>In this article, we will explore the world of SAP FICO interview questions and give you helpful answers to make your interview journey easier.<\/p>\n\n\n\n<p>Whether you are experienced or just starting out, our guide is here to give you the information you need to shine and get that important SAP FICO job.<\/p>\n\n\n\n<script type=\"application\/ld+json\">\n \n  }, \n  }, \n  }, \n  }, \n  }, \n  }]\n}\n<\/script>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>SAP FICO Interview Questions and Answers<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. What is the main use of SAP FICO?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">We use <strong><a href=\"https:\/\/www.foundit.in\/search\/sap-fico-jobs\" target=\"_blank\" rel=\"noopener\" title=\"SAP FICO \">SAP FICO <\/a><\/strong>modules within a company to manage financial tasks within an international framework of languages and currencies. <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">SAP FI (Financial Accounting) deals mainly with fixed assets, accrual, cash journal, tax accounting, general ledger, and other such financial tasks. <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">SAP CO (Controlling) on the other hand deals with buying orders, stock sheet, cost sheet, cost assignment and other tasks in this category. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. In SAP FI what are the components in a hierarchy?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">You find four hierarchical components in SAP FI: <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">a. Company Code <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">b. Business Area <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">c. Functional Area <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">d. Chart of Account <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. What is the significance of financial statements within a business?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">You use financial statements to manage the financial assets of your company. By creating and handling such financial records, you also create data that you can use in developing further plans and investments for your company. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. What is the use of company code?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">You use the company code before generating the profit and loss statements of your company. While not all employees do not have access to the same code, you can configure up to 3 different currencies. One of these remains local, while the other two are considered a parallel. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. What is the best way to manage transactions originating from different lines of businesses within a company?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">You can create Business Areas in order to differentiate among the different lines of businesses in the company. Another way can be to create different company codes for each business line. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>6. What do you use Chart of Accounts for?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">You use FI COA in order to meet the daily needs of your company as well as the legal requirements of the country. <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">The COA has two types: <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\"><strong>a. Operating COA:<\/strong> this record is assigned to the company code and contains all the general ledger accounts. <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\"><strong>b. Country COA:<\/strong> this is the list of general ledger accounts required in order to meet the legal requirements of the country. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>7. What is the function of credit control?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">You use credit control in order to safeguard your business from overstretching its financial assets. Generally, you can set a credit limit for the customers using SAP, when the payment is made after the sale of the product. In this way, you can restrict the amount that the customer needs to clear in his\/her account before further purchases can be made. <\/span><\/p>\n\n\n\n<p><strong>Also Read<\/strong> :<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/internship-interview-questions-and-answers\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Internship interview questions and answers<\/a><\/strong><\/td><td><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/18-cobol-interview-questions-and-answers\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Cobol interview questions and answers<\/a><\/strong><\/td><\/tr><tr><td><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/top-hdfc-bank-interview-questions-that-you-may-be-asked-in-your-interview\/\" target=\"_blank\" rel=\"noopener\" title=\"\">HDFC Bank interview questions<\/a><\/strong><\/td><td><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/data-structures-and-algorithms-interview-questions\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Data structures and algorithms interview questions<\/a><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>8. How many fiscal year variants can you use at a time?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">The fiscal year variants that you create contain the number of posting periods in that fiscal year as well as the number of special periods. Up to 16 posting periods can be defined. <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">Each company code needs a specific fiscal year variant. Thus, while creating a controlling area, you should also specify that code\u2019s fiscal year variant.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>9. What is the field status variant and field status group?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">Your field status variants are contained within field status groups. On the other hand, the field status groups are maintained within the General Ledger account. You use it to define the fields while you post to the general ledger. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>10. What are some of the modules to which FI is integrated?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">FI is also integrated into the following modules: <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">a. Production Planning <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">b. <strong><a href=\"https:\/\/www.foundit.in\/search\/human-resource-jobs\" target=\"_blank\" rel=\"noopener\" title=\"Human Resource \">Human Resource <\/a><\/strong><\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">c. Material Management <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">d. Sales and Distribution <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>11. How do you manage input and output taxes?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">The country of origin of your company will have tax procedures defined, having tax codes within them. You can make the choice to either expend the tax amount or you can choose to capitalize the tax amount into stocks. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>12. How can you make vendor payments?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">You can use two methods to make the vendor payments: <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\"><strong>a. Manual Payment<\/strong>: This is done without the use of a medium such as cheques. <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\"><strong>b. Automatic Payment<\/strong>: This is through DME (Data Medium Exchange) such as wire transfer or cheques. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>13. How do you define \u2018Year Shift\u2019?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">Within a company, the calendar year does not always match the financial year. For example, you may need to remove or add certain months. You can do this using SAP and the procedure is called \u2018Year Shift&#8217;. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>14. What are the major applications of SAP FICO?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">SAP FICO has many real-time applications. <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">a. Handling financial tasks vital to the company <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">b. Asset and cost accounting <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">c. Consolidation <\/span><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">d. Real estate <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>15. What do you understand by WIP?<\/strong><\/h3>\n\n\n\n<p><br><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">WIP stands for Work in Progress. You sue this to label an asset that is currently under development, and that can be customized by the user if needed.<\/span><\/p>\n\n\n\n<p><span style=\"font-size: 12pt;font-family: verdana, geneva, sans-serif\">This list of 15 important SAP FICO interview questions and answers should help you get a head start on preparing for the job interview.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>&nbsp;People Also Interested in :<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/bpo-interview-questions-and-answers-for-freshers\/\" target=\"_blank\" rel=\"noopener\" title=\"\">BPO interview questions and answers<\/a><\/strong><\/td><td><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/accounts-payable-interview-questions-and-answers\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Accounts Payable interview questions and answers<\/a><\/strong><\/td><\/tr><tr><td><br><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/pwc-interview-questions-what-to-expect\/\" target=\"_blank\" rel=\"noopener\" title=\"\">PWC interview questions<\/a><\/strong><\/td><td><strong><a href=\"https:\/\/www.monsterindia.com\/career-advice\/electrical-engineering-interview-questions-and-answers\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Electrical Engineering interview questions and answers<\/a><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Getting ready for a SAP FICO interview is not just about being an expert. It means you need to know the most common questions they might ask. In this article, we will explore the world of SAP FICO interview questions and give you helpful answers to make your interview journey easier. Whether you are experienced [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[147],"tags":[],"class_list":{"0":"post-8762","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-interview-questions"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/posts\/8762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/comments?post=8762"}],"version-history":[{"count":11,"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/posts\/8762\/revisions"}],"predecessor-version":[{"id":22302,"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/posts\/8762\/revisions\/22302"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/media\/8763"}],"wp:attachment":[{"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/media?parent=8762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/categories?post=8762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.foundit.in\/career-advice\/wp-json\/wp\/v2\/tags?post=8762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}