A trained SAP Fico professional is in great demand and has lot of opportunities. To seize those opportunities excelling in interview is of great importance. Here we present a list of questions that are likely to ask to an SAP FICO professional during his interviews. Don’t forget to go through the below questions and answers before you go to an interview.
1. What are the benefits of SAP FICO over another financial accounting and controlling approaches?
Ans: Here are the benefits of SAP over another approaches
a.) SAP offers great flexibility than other parallel approaches. Other approaches are not as flexible as SAP FICO
b) In SAP FICO multiple currencies are supported.
c) Additional options are available in SAP FICO for accounting controlling and integration.
2. In SAP, what is the YEAR DEPENDENT FISCAL YEAR?
It is not necessary in the business world that all months have 30 days working. They can vary according to project and organisations. For example sometimes for an enterprise, the month January may end with date 28th. This can be set in SAP using the option or functionality YEAR DEPENDENT FISCAL YEAR.
3. In SAP FICO, What is WIP?
WIP is short for work in progress. It is to denote the status of an asset which is in development mode in FICO. Users can customise them if required.
4. IN FICO, what is internal order option?
Sometimes we may need to track the overall cost of a project or an item.
For this internal order option is used.
5. What do you mean by parallel local currency in SAP FICO?
For organisations that do international trade or transactions, they may need to handle data in more than one currency. To handle this, SAP FICO allows the organisations to add two more currencies other than the local currency. SAP allows to add any two currencies in the world as the parallel local currencies as they can handle and support all currencies.
The local currency is also sometimes called “neighborhood”. The additional two currencies can be tagged as ‘Group currency’ and ‘Hard Currency’ for identifying.
6. What are the financial components that SAP FICO deals with?
The financial components that are handed by SAP FICO are:
general ledger, tax accounting, fixed asset, accounts receivable and payable, Inventory, Financial statements, Fast close functions, Parallel valuations, Cash journal, Accrual, Master data governance.
Explain cost center in FI?
An attribute given to a component or unit of an organisation that adds to cost and also that influences indirectly the profit is called a cost unit. Customer service and marketing units can attributed as cost centers.
what is profit center in FI?
Profit center is an attribute that can be assigned to a component or unit or division of an organisation to help analyse the profit at the internal level. It helps us to evaluate the profit at product line level or at a business unit level. Simply It helps in decentralization of costing process.
What is dunning?
The dunning system in SAP FI is for the identification of missed, pending or outstanding payments. It can signal the collection agencies and remind them to collect those outstanding payments. Dunning system in SAP allows to send a dunning letter immediately to customers as a reminder.
How to create company in SAP FICO?