Interview Questions

1. Tell me about FI Organizational structure?
Ans: Client
Operating Concern
Controlling area1 Controlling Area 2
Co. Code 1 Co. Code 2
Bus area 1 Bus area2 Bus Area3 Bus Area 4
2. Explain about the Landscape?
Ans: Landscape is like a server system or like a layout of the servers or some may even call it the
architecture of the server’s viz. SAP is divided into three different landscapes Development,
Quality and Production.
DEVELOPMENT QUALITY PRODUCTION
3. What Is The Difference Between Company And Company Code?

Ans: A company is the organizational unit used in the legal consolidation module to roll up
financial statements of several company codes. The Company Code is the smallest
organizational unit for which a complete self-contained set of accounts can be drawn up for
purposes of external reporting.
4. What is R3 Architecture of your client?
Ans: R/3 stands for real-time three tier architecture. This is the kind of architecture SAP R/3
system has.
R/3 means three layers are installed in Different system/server and they are connected with
each other.
5. How many Normal and Special periods will be there in fiscal year, why do u use special
periods?
Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for
posting tax and audit adjustments to a closed fiscal year.
6. What is Business Area?

Ans: Business areas in separate areas of operations within an organization as per the client
requirement like Bangalore, Hyderabad, Kolkata etc
7. What Do You Mean By Year Dependent In Fiscal Year Variants?
Ans: Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st
Dec (where posting periods and the calendar months are equal).
Year Independent: the financial year is different from calendar year Starting from 1st April to
31st March (where the posting period months are not equal to calendar year months).
8. What is Account Groups?

Ans: It is the list of GL Accounts will be segregated in to Accounts groups like… Liabilities,
Assets, Income / Revenues & Expenses
The Account Group controls the fields in the general ledger master record and Number ranges
for general ledger master record.
9. What Are Shortened Fiscal Year? When Are They Used?

Ans: Shortened Fiscal Year: a financial year, which has less than 12 periods.
10. Where do you open and close periods?
Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr.
Code. OB52.
11. What is document type, and what does it control?.
Ans: Document type is nothing vouchers containing line items. Several business transactions
can be identified within a particular document type.
It controls the document number ranges.
It controls the Header part of document
IT controls the line item level of the document
12. What is posting key and what does it control?
Ans: These are special classification keys. Two character numerical key it controls the entry of
line items.
Posting key determines Account type; Debit/credit posting, Field status of transaction.
13. What is Retained Earnings?
Ans: It means it is used to carry forward the balance from one fiscal year to next fiscal year.
14. What is field status group, what does it control?
Ans: FSG is mandatory field in GL Creation. You use this field to define which fields are displayed
when you post business transactions to a G/L account.
A field may have one of the following statuses.
- Suppressed
- Display
- Optional
- Required
15. What is chart of account and how many charts of accounts can be assigned to a company?
Ans: Chart of account is a list of all G/L accounts used by one or several company codes.
You have to assign a chart of accounts to each company code. 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
16. What is account group and what does it control?
Ans: Account group determines which fields you can configure on the G/L master record. It is
necessary to have at least two one for B/S and another one for P&L a/c.
It controls the Number ranges of GL A/C.
17. What is open line item management?
Ans: Open item management is further reconciliation function. OIM allows you to display the
open and cleared items and amounts in an account. OIM should be used if an offsetting entry is
made for every line item posted in the account. The a/c is reconciled and cleared against
another account. Ex. Salary clearing account and GR/IR Clearing account.
18. What is residual payment and part payment?
Ans: Residual payment it clears original invoice with incoming amount and create new line item
for remaining outstanding amount.
Partial payment it leaves the original invoice amount and creates new
line item for incoming amount.
19. What is internal and external number ranges?

Ans: Internal Number Ranges: Doc. No will be provided by the system automatically in serial
order allotting the next available progressive number. The number must be in numerical.
External Number ranges: Doc. No will be given manually by the end user. System will not lock
no automatically in this case. User can pick the number randomly. Number may be an alpha
numeric.
20. Explain The Most Common G/l Reports In Fi ?
Ans: There are various G/L reports that can be generated in SAP FI. Most common are:
1. G/L Chart of Accounts List.

2. G/L Account Balances.
3. G/L Account List.
4. G/L Account Totals and Balances.
21. What is "dunning" in SAP?
Ans: 'Dunning' is the process by which payment chasing letters are issued to customers. SAP can
determine which customers should receive the letters and for which overdue items. Different
letters can be printed in SAP depending on the overdue payment date, with a simple reminder.
With the help of dunning level on the customer master, we can know which letter has been
issued to the customer.
22. For a Company Code how many currencies can be configured?
Ans: There are three currencies that can be configured for a Company code, one is a local
currency and two are the parallel currencies.
23. What is parallel and local currency in SAP?
Ans: Each company code can have two additional currencies, in addition to the company code,
currency entered to the company code data. The currency entered in the company code
creation is called local currency and the other two additional currencies are called parallel
currencies. Parallel Currencies can be used in foreign business transactions. In order to do
international transaction, parallel currency can be used. The two parallel currencies would be
GROUP CURRENCY and HARD CURRENCY.
24. What do you mean by Foreign Currency Revaluation…???

It is the month end activity which is carried out to know the actual payable or receivable in local
currency.
We came to know the actual difference which is taking place due to fluctuation of the foreign
exchange rate. This difference either can be positive/negative.
25. What is the main purpose of parking a document? Why would you use this?
Ans: Parking documents is used to temporarily park or store a document until it is approved by
an authorized person. The following two cases demonstrate how a parked document is usually
used.
26. What is a baseline date? Where is it used? Can it be changed?
Ans: A baseline date is used to determine the due date of a line item, and is used for dunning
programs, interest calculation, and automatic payment programs. You can configure the
baseline date with T-code OBB8. The baseline date can be one of the following dates:
 Transaction date
 Posting date
 Document date
 Entry date
27 How does FI-MM integration take place? Please explain in detail?
Ans: FI-MM integration is how the G/L account will be updated when you are carrying an
inventory-related transaction. For convenience, you may divide the process into three areas: (1)
Organization structure dependent, (2) material master dependent, and (3) transaction
dependent. Account determination will be carried out depending upon these three factors.
28. How Do You Manage Outgoing Partial Payment For Vendor In Fi?
Ans: In SAP FI, you can also post outgoing partial payments for vendor. Partial payment from
vendor will be open as open item and no clearing document will be generated.
29. What Is the Use Of Fi-asset Accounting Component?
Ans: The FI-Asset Accounting (FI-AA) component is used for managing the fixed assets in FI
system. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger,
providing detailed information on transactions involving fixed assets.
Integration with other components − As a result of the integration in the SAP System, Asset
Accounting (FI-AA) transfers data directly to and from other SAP components.
30. Is Business Area At Company Code Level?
Ans: No. Business area is at client level. Which means other company codes can also post to
the same business area.
31. What Are The Common Activities Performed In Month End Closing In Sap Fi?
Ans: In SAP FI, month end closing involves activities in posting a closing period. You can carry
out the following activities as part of month-end closing −
Open and close posting periods.
You close one or more posting periods in the past for posting, and
permit posting to be made to one or more current or future posting
periods.
32. At What Level Are The Customer And Vendor Code Stored In Sap?
Ans: The customer and vendor code are at the client level. That means any company code can
use the customer and vendor code by extending the company code view.
33. What are the steps for creating Vendor ?
1. Account Group of Vendor

2. Create Number ranges for Vendor account.
3. Assign number ranges for vendor account group.
4. Document types for vendor accounts
5. Create G/L master record for sundry creditor
6. Create vendor master record.
34. How are vendor invoice payment made?
Ans: Manual payments without the use of any output medium like cheques etc
Automatic payment programme through cheques, Wire transfers, DME etc
35. How do you configure the Automatic payment program?
Ans:
1. All company codes
2. Paying company codes
3. Payment method in country
4. Payment method in country code
5. Bank Determination
6. House Banks
36. What Are The Common Document Types In Fi?
Ans: Common Document types Key are −
i. AA - Asset Posting.
ii. AN - Net Asset Posting.
iii. DR - Customer Invoice.
iv. DZ - Customer Payment.
v. KA - Vendor Document.
vi. KG - Vendor Credit Memo.

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Interview Questions

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1. Tell me about FI Organizational structure?

Controlling area1 Controlling Area 2

Co. Code 1 Co. Code 2

Bus area 1 Bus area2 Bus Area3 Bus Area 4

2. Explain about the Landscape?

3. What Is The Difference Between Company And Company Code?

4. What is R3 Architecture of your client?

6. What is Business Area?

7. What Do You Mean By Year Dependent In Fiscal Year Variants?

8. What is Account Groups?

9. What Are Shortened Fiscal Year? When Are They Used?

10. Where do you open and close periods?

11. What is document type, and what does it control?.

It controls the document number ranges.

It controls the Header part of document

IT controls the line item level of the document

12. What is posting key and what does it control?

13. What is Retained Earnings?

A field may have one of the following statuses.

16. What is account group and what does it control?

It controls the Number ranges of GL A/C.

17. What is open line item management?

18. What is residual payment and part payment?

line item for incoming amount.

19. What is internal and external number ranges?

20. Explain The Most Common G/l Reports In Fi ?

1. G/L Chart of Accounts List.

21. What is "dunning" in SAP?

22. For a Company Code how many currencies can be configured?

23. What is parallel and local currency in SAP?

24. What do you mean by Foreign Currency Revaluation…???

1. Account Group of Vendor

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