SAP FICO Interview Questions and Answers
Q1) While handling the SAP FICO for the first time, why it is necessary for the users to pay attention to the exchange rate?
The default exchange rate in the FICO is Average Rate. It is not always necessary that everyone needs to use the FICO in the same manner. Therefore, it needs to be changed as per the requirement.
Q2) Why the financial statements are important for any business?
Well, it simply enables them to keep an eye on the purposes for which a specific amount was send including all its information. The users can simply keep a digital record of all the funds received or transferred to any other account. This enable them to prepare documents for the future on which some important plans and decision making strategies are based on. Financial statements also enable business to get reducation in taxes in a few cases. In addition to this, the users can access the record of all the financial transactions anytime the same is required.
Q3) Can you name a few modules with which it is possible for the users to integrate the financial accounting?
There are several useful modules where it is possible for the users to consider this approach under an integrated manner. These include Material Management, Sales & Distribution, Production Planning, financial transaction management, as well as Human resource.
Q4) What is Year Dependent Fiscal Year in SAP?
In businesses, it’s not necessary that all months have 30 days working. Depending on the type of projects which vary largely, the organizations have to end a month a day earlier or two. For example the Month May can have 29 days. The same can be done with an option in the SAP which is known as Year Dependent Fiscal Year.
Q5) What exactly do you know about the SAP FICO?
FICO stands for Financial Accounting and Controlling. It is basically an important tool which is useful in preparing the statements about the finance related to an organization or a business. In addition to this, FICO can also be considered for the purpose of accounting, tax computations, preparing the inventory sheets, financial data storage. The users need not to worry about the security of the data and in addition to this, it simply make sure of managing and utilizing the data in a reliable manner.
Q6) What are the common reasons of errors in the accounting and what impact do they actually have on the organization?
Errors are of lot of types and can be due to a diverse array of reasons. The users can often made mistake. A single wrong entry of only one digit can bring a lot of issues in the organization and can mislead about the profits and losses. Errors can be due to negligence of users, fault in the system, wrongly prepared bills or claims, gross errors, basic accounting errors, errors due not updating the sheets and so on.
Q8) What is company code and when it is used? What is the limit on the currencies which you can configure?
It is basically a code that needs to be entered in the system when it comes to generating the Loss or the profit statements. It is not always necessary that all the employees are given access to the same. It is possible for the users to configure upto 3 currencies and among which one generally remains local and other can be considered as parallel.