SAP FI/CO – Interview and Certification Questions – Part 4

Clearing

1. Select the correct statement(s)

a) All open item accounts are cleared automatically by running the automatic account clearing program
b) The open item indicator in the customer/ vendor master record must be activated in order to clear customer/ vendor open items
c) The open item indicator along with the line item display indicator is usually activated in the balance sheet clearing and profit and loss accounts
d) Accounts that are not automatically cleared can be cleared manually using the account clear function
e) A clearing document contains the line items to be cleared

2. Which of the following statements are true or false

a) All payment documents are clearing documents
b) Standard system maintenance includes clearing open items on a regular basis, either manually or automatically
c) Standard open items, special G/L transactions and noted items can be selected for clearing
d) If documents were cleared in error, the clearing must first be reset and the document must be reversed before attempting to clear again
e) Documents that are cleared have reference to the clearing document number in the document line items

Tolerances and payment differences

3. Select the correct statement(s)

a) Tolerance groups can be defined for customers, vendors and employees
b) The tolerance groups contain settings for permitted payment differences
c) Alternative accounts can be specified for the posting of payment differences
d) The values specified for the tolerances can be entered in a currency of your choice
e) All users that were not assigned to a tolerance group are by default assigned to the blank tolerance group

4. Which of the following statements are true or false

a) Tolerance groups can be assigned to general ledger accounts
b) Permitted payment differences are either defined as an amount or a percentage, not both
c) A reason code must be specified in the tolerance group for charging off payment differences
Financial Statements

5. Select the correct statements

a) Financial statements are defined according to financial statement versions
b) Financial statements can have a maximum of 10 hierarchy levels and are company code specific
c) Accounts can be assigned to different nodes in the hierarchy of the financial statements
d) Amounts are reflected in various groups within the financial statements according to the debit/ credit indicator and the specification of the general ledger accounts
e) Companies are restricted to 3 financial statement versions according to the 3 different charts of accounts

Payments

6. Which of the following statements are true or false

a) Payments from customers are usually processed using the automatic payment program
b) Customizing the automatic payment program includes defining payment methods by country as well as by company code
c) Partial payments clear the open items and cause residual items to be posted back to the account
d) Line items that are created when charging off the difference back to a vendor’s account, have reference to the original document that is being short paid
e) A document which is selected in the payment run, can be reallocated to a different payment method and house bank

7. Select the correct statement(s)

a) All vendor line items can be paid, as long as there is a reference to the house bank in the vendor master record
b) Every general ledger account that is linked to a house bank, must be maintained in the currency of the bank account
c) Specific programs linked with specific variants are used to create various types of payment media
d) Cheques (checks) that are not used are automatically voided by the system
e) All vendors must be assigned to a payment procedure in the master record in order to generate payments from the automatic payment program

Dunning

8. Which of the following statements are true or false

a) A dunning procedure must be assigned to the customer master record in order to dun the customer for late payments
b) Customers are only dunned according to the settings in the dunning procedure, which include the frequency, whether or not line items are printed with every letter that is issued, and how many grace days the system will accept before issuing a dunning letter
c) Dunning charges are levied on the customer’s account, and are reflected as a separate line item on the dunning letter
d) Interest can also be levied on the customer’s account according to the interest indicator in the customer master record
e) The master record of the customer is updated with the dunning level according to the highest dunned document in the customer account
f) Customers can be blocked from dunning by entering a dunning block key in the customer master record

Financial Closing

9. Select the correct statement(s)

a) An unrealized foreign currency valuation is created every time a foreign currency payment is made or received
b) Balance sheet accounts should be valuated according to the line items in the account
c) Assets are depreciated according to the depreciation key and useful life specified in the asset master record
d) The asset register is updated independently of the general ledger accounts for accumulated and expense depreciation
e) Balance confirmations are customized in the IMG, and cannot be linked to SAPScript forms

10. Which of the following statements are true or false

a) All reports must be executed using set variants, or user defined variants
b) The GR/IR account is a clearing account that must be maintained regularly by clearing open items
c) The balance carried forward program carries the balances of the accounts forward into the new posting period
d) The reconciliation ledger allows you to automatically reconcile the financial accounting and controlling modules
e) Assets under construction are settled periodically to fixed assets
f) Accrual documents are automatically reversed on the first day of the following period


SAP FI/CO – Interview and Certification Questions – Part 3

Clearing

1. Select the correct statement(s)

a) All open item accounts are cleared automatically by running the automatic account clearing program
b) The open item indicator in the customer/ vendor master record must be activated in order to clear customer/ vendor open items
c) The open item indicator along with the line item display indicator is usually activated in the balance sheet clearing and profit and loss accounts
d) Accounts that are not automatically cleared can be cleared manually using the account clear function
e) A clearing document contains the line items to be cleared

2. Which of the following statements are true or false

a) All payment documents are clearing documents
b) Standard system maintenance includes clearing open items on a regular basis, either manually or automatically
c) Standard open items, special G/L transactions and noted items can be selected for clearing
d) If documents were cleared in error, the clearing must first be reset and the document must be reversed before attempting to clear again
e) Documents that are cleared have reference to the clearing document number in the document line items

Tolerances and payment differences

3. Select the correct statement(s)

a) Tolerance groups can be defined for customers, vendors and employees
b) The tolerance groups contain settings for permitted payment differences
c) Alternative accounts can be specified for the posting of payment differences
d) The values specified for the tolerances can be entered in a currency of your choice
e) All users that were not assigned to a tolerance group are by default assigned to the blank tolerance group

4. Which of the following statements are true or false

a) Tolerance groups can be assigned to general ledger accounts
b) Permitted payment differences are either defined as an amount or a percentage, not both
c) A reason code must be specified in the tolerance group for charging off payment differences
Financial Statements

5. Select the correct statements

a) Financial statements are defined according to financial statement versions
b) Financial statements can have a maximum of 10 hierarchy levels and are company code specific
c) Accounts can be assigned to different nodes in the hierarchy of the financial statements
d) Amounts are reflected in various groups within the financial statements according to the debit/ credit indicator and the specification of the general ledger accounts
e) Companies are restricted to 3 financial statement versions according to the 3 different charts of accounts

Payments

6. Which of the following statements are true or false

a) Payments from customers are usually processed using the automatic payment program
b) Customizing the automatic payment program includes defining payment methods by country as well as by company code
c) Partial payments clear the open items and cause residual items to be posted back to the account
d) Line items that are created when charging off the difference back to a vendor’s account, have reference to the original document that is being short paid
e) A document which is selected in the payment run, can be reallocated to a different payment method and house bank

7. Select the correct statement(s)

a) All vendor line items can be paid, as long as there is a reference to the house bank in the vendor master record
b) Every general ledger account that is linked to a house bank, must be maintained in the currency of the bank account
c) Specific programs linked with specific variants are used to create various types of payment media
d) Cheques (checks) that are not used are automatically voided by the system
e) All vendors must be assigned to a payment procedure in the master record in order to generate payments from the automatic payment program

Dunning

8. Which of the following statements are true or false

a) A dunning procedure must be assigned to the customer master record in order to dun the customer for late payments
b) Customers are only dunned according to the settings in the dunning procedure, which include the frequency, whether or not line items are printed with every letter that is issued, and how many grace days the system will accept before issuing a dunning letter
c) Dunning charges are levied on the customer’s account, and are reflected as a separate line item on the dunning letter
d) Interest can also be levied on the customer’s account according to the interest indicator in the customer master record
e) The master record of the customer is updated with the dunning level according to the highest dunned document in the customer account
f) Customers can be blocked from dunning by entering a dunning block key in the customer master record

Financial Closing

9. Select the correct statement(s)

a) An unrealized foreign currency valuation is created every time a foreign currency payment is made or received
b) Balance sheet accounts should be valuated according to the line items in the account
c) Assets are depreciated according to the depreciation key and useful life specified in the asset master record
d) The asset register is updated independently of the general ledger accounts for accumulated and expense depreciation
e) Balance confirmations are customized in the IMG, and cannot be linked to SAPScript forms

10. Which of the following statements are true or false

a) All reports must be executed using set variants, or user defined variants
b) The GR/IR account is a clearing account that must be maintained regularly by clearing open items
c) The balance carried forward program carries the balances of the accounts forward into the new posting period
d) The reconciliation ledger allows you to automatically reconcile the financial accounting and controlling modules
e) Assets under construction are settled periodically to fixed assets
f) Accrual documents are automatically reversed on the first day of the following period


SAP FI/CO Interview and Certification – Part 2

Navigation

1. Select the correct statement(s)

a) When logging on to the R/3 system for the first time, you are required to change your password
b) Your customized personal settings are only available on a particular PC
c) The system menu is standard on all SAP screens
d) The SAP library is one of the help options, it also displays comprehensive help on the current application
e) F1 provides a list of field values or an option to search for the information in the case of an extensive list

2. Which of the following statements are True or False

a) You can only have one R/3 session open at a time
b) A client number is not required to log on to the SAP system
c) The help menu is only available when performing a particular task
d) The command field provides general information on the SAP system and transaction or task you’re working on
e) The status bar provides general information on the SAP system and transaction or task you’re working on
f) You can only create a favorites list containing transactions

Organizational Structures

3. Select the correct statement(s)

a) The Client is the highest legal entity in the SAP system architecture
b) One or many business areas can be assigned to a company code
c) Clients share master records and transaction tables
d) Multiple company codes can be assigned to a single controlling area
e) Company codes using different operational chart of accounts can be assigned to the same controlling area

4. Which of the following statements are True or False

a) A controlling area must be assigned to a company code for the purpose of transferring data to cost accounting for further processing
b) Cross company code controlling can be performed when one company code is assigned to multiple controlling areas
c) Business areas must be defined in the SAP organization structure
d) Data for profitability analysis is extracted from the operating concern
e) Company codes assigned to the same controlling area must have the same operational chart of accounts and the same fiscal year variant

General Settings

5. Select the correct statement(s)

a) A Fiscal year must be defined the same as a calendar year
b) A non calendar fiscal year can have any amount of posting periods
c) If the fiscal year is the same as the calendar year, year shifts must be specified for each posting period
d) The periods for a year dependant fiscal year are the same every year
e) The periods for a year independent fiscal year are the same every year
f) A shortened fiscal year must be defined as year dependant

6. Which of the following statements are True or False

a) Tax codes are defined per company code
b) Exchange rate types can be identified as US dollars, British Pounds etc.
c) An exchange rate spread is the difference between the bank buying rate and the bank average rate or the bank average rate and the bank selling rate
d) The minimum entry to open and close posting periods is the “+” indicator
e) You can only define 4 special periods for any fiscal year

Financial Accounting – G/L Master Data

7. Select the correct statement(s)

a) The chart of account segment (client segment) and company code segment form the complete G/L master record
b) The company code segment does not need to be activated for all the accounts in the chart of accounts
c) The currency of the account must be specified at the chart of accounts level
d) A field status group determines which fields are suppressed, displayed, required or optional
e) The field status group is assigned at the company code level

8. Which of the following statements are True or False

a) The ratio between operational chart of accounts and group chart of accounts is 1 to 1
b) The ratio between operational chart of accounts and country specific chart of accounts is 1 to 1
c) If the account currency is different to the company code currency, you can post amounts to the account in any currency
d) If the account currency is the same as the company code currency you can post amounts to the account in any currency
e) The group account determines the number range of the G/L account
f) The same number range can be assigned to all account groups

Financial Accounting – AP and AR Master Data

9. Select the correct statement(s)

a) The client segment, company code segment and purchasing organization segment form the complete customer master record
b) A vendor/ customer master record can be created for multiple company codes
c) The vendor account number is the link between AP and the G/L
d) More than one recon account can be specified per customer in the customer master record
e) An authorization group must be customized and assigned to every master record

10. Which of the following statements are True or False

a) The payment term must be assigned at the client segment, but can be changed at the company code segment
b) All customers within the same account group must have the same payment terms
c) The vendor’s banking details can be specified at the client segment for the purpose of EFT payments
d) Number ranges for customer and vendor accounts are determined per account group
e) 2 controls of the field status exist namely the account group and the transaction (ie. Create, change or display)

Document Control

11. Select the correct statement(s)

a) The document type controls the field status of the document
b) The posting date determines the posting period in the document
c) The posting key only determines the account of the posting, and whether the value is going to be a debit or a credit
d) Document numbers are always automatically assigned once the document is posted
e) Document types determine which account types can be posted to

12. Which of the following statements are True or False

a) Posting periods are opened and closed automatically
b) No more than 2 posting periods can be open at the same time
c) Posting keys are defined at the client level
d) The posting key used to debit a vendor account is 11
e) The posting key used to credit a customer account is 21


Fiscal Year

1) Fiscal year types.

Year Specific/Year dependent Fiscal year.

Year independent Fiscal year

1) Calendar Year.

2) Non Calendar year.

2) Fiscal Year Variant only defines the number of periods and their start and finish dates.

3) SAP determines the posting period from the posting date.

4) Posting periods can be defined up to 12 and Special periods up to 4.

5) Posting periods can be up to 999 and Special periods can be up to 99 – Posting periods more than 16 (Including special periods) can only be used for special purpose ledger applications.

6) A shortened fiscal year is a fiscal year having less than twelve months. The definition of a shortened fiscal year is always year-dependent, since it represents a year-related exception.

7) For year specific fiscal year – Posting periods for each fiscal year needs to be defined in configuration with reference to calendar years.

IMG: Financial A/c-ing -> Financial A/c-ing Global setting -> Fiscal Year -> Maintain Fiscal year variant.

Integration points of the FI module?

SAP is marketed as a fully integrated system, therefore knowing some of the integration points enables the Users to better understand the Modules.

· Organization units are not only defined in FI(Financial Accounting) but also in other SAP Modules. The SD( Sales & Distribution) Module requires the set-up of Sales Organizations, Distribution Channels and Divisions ; Purchasing requires purchasing organizations, plants, and storage locations; and CO (Controlling) requires a Controlling area to be defined.

· To transfer data between FI(Financial Accounting) and CO (controlling) as well as other modules, a Company Code must be assigned to each of the Modules.

· Business Areas must be entered when generating business transactions if you would like visibility of those transactions impacting a certain BA(Business Area). You can also update your Master Records to include BA(Business Area) for example Cost Center.

· Document postings are automatically posted in the year and periods that you created in the Fiscal Year variant set-ups based on the month, start and end dates to which postings are allowed within a given period as defined.

· There are several integration points in SAP, the above lists a few .

SAP FI Module – Configuration (Contd)

More FI configuration considerations:

Business Area, COA, GL, Fiscal year and Currencies

Business Area is optional and is equivalent to a specific area of responsibility within your company or business segment. BA (Business Area) also allows for internal and external reporting.

Another configuration requirement for set-up in SAP are the Basic settings consisting of the following:

Chart of Accounts(COA)
Fiscal Year Variants.
Currencies

The COA(Chart of Accounts) lists all General Ledger accounts that are used by the organization. It is assigned in configuration to each company code and allows for daily General Ledger postings.

The General Ledger accounts are made up of such data as account number, company code, a description of the account , classification of whether the account is a P & L Statement Account or a Balance Sheet Account.

Control data of the GL Account is where currency is specified, Tax category (posting without tax allowed) , marking the account as a reconciliation account ( e.g. Customer, Asset, Vendors, Accounts Receivable) or not.
Marking the G/L Account as a “reconciliation” account allows for postings to an Asset Account ( for example) as well as automatic update to the G/L Account.

Configuration prevents direct postings to reconciliation accounts thereby assisting in maintaining integrity of the data.
This allows reconciliation between the sub-ledger and general ledger to always be guaranteed.

Within the General Ledger control data , you can also designate whether line item display is possible in the account. The system then stores an entry per line in an index table which links back to the account. (Display of line item details are then available for reporting purposes ,etc.)
Open Item Indicators can be set on the G/L Account allowing for better management of open items. Examples include: Bank Clearing Accounts, GR/IR Clearing Accounts, Payroll, etc.

Fiscal Year configuration is a must and can be defined to meet your company’s reporting periods whether Fiscal (any period combination that is not calendar) or Calendar( Jan-Dec).

Posting Periods are defined and assigned to the Fiscal Year.
Within the periods you specify start dates and finished dates.
SAP allows for 12 posting periods along with specially defined periods that can be used for year-end financial closing.
Currencies are another basic configuration setting requirement which defines your company’s legal means of payment by country.

It is recommended that all Currency set-ups in SAP follow the ISO Standards.
The ISO Standards ensure Global conformity across businesses worldwide utilizing SAP.

FI Module – Configuration

Primary configuration considerations:

Client, company and company code

Once a business has decided to use the SAP FI(Financial Accounting) Module, there are several Configurations prerequisite steps that must be completed.Determining the organizational structure is one of the first steps in setting up the business functions in SAP as well as your reporting requirements.

The Organizational structure is created by defining the organizational units consisting of the following:

Client
Company
Company Code
Business Area

A Client is the highest unit within an SAP system and contains Master records and Tables. Data entered at this level are valid for all company code data and organizational structures allowing for data consistency. User access and authorizations are assigned to each client created. Users must specify which client they are working in at the point of logon to the SAP system.

A Company is the unit to which your financial statements are created and can have one to many company codes assigned to it. A company is equivalent to your legal business organization. Consolidated financial statements are based on the company’s financial statements. Companies are defined in configuration and assigned to company codes. Each company code must use the same COA( Chart of Accounts) and Fiscal Year. Also note that local currency for the company can be different.

Company Codes are the smallest unit within your organizational structure and is used for internal and external reporting purposes. Company Codes are not optional within SAP and are required to be defined. Financial transactions are viewed at the company code level. Company Codes can be created for any business organization whether national or international. It is recommended that once a Company Code has been defined in Configuration with all the required settings then other company codes later created should be copied from the existing company code. You can then make changes as needed. This reduces repetitive input of information that does not change from company code to company code as well as eliminate the possibility of missed data input.

When defining company codes, the following key areas must be updated:

Company Code Key- identifies the company code and consists of four alpha-numeric characters. Master data and business transactions are created by this key.
Company Code Name– identifies the name of the business organization within your organizational structure.
Address– identifies the street address, city, state, zip code for the company code created. This information is also used on correspondence and reports.
Country– identifies the country to which your business is based. Country codes within SAP are based on ISO Standards.
Country currency– identifies the local currency for the company code that you have defined.
Language– identifies the language to be used for you company code and is also used for text in your documents. SAP unlike other applications, offers over thirty languages including EN( English) , ES (Spanish), FR (French), DE (German), EL (Greek), IT(Italian), AR( Arabic), ZH (Chinese) , SV (Swedish) , and JA (Japanese) to name a few.

SAP FI Module – Introduction

Introduction

The SAP FI Module has the capability of meeting all the accounting and financial needs of an organization. It is within this module that Financial Managers as well as other Managers within your business can review the financial position of the company in real time as compared to legacy systems which often times require overnight updates before financial statements can be generated and run for management review.

The real-time functionality of the SAP modules allows for better decision making and strategic planning. The FI (Financial Accounting) Module integrates with other SAP Modules such as MM (Materials Management), PP (Production Planning), SD(Sales and Distribution), PM (Plant Maintenance),and PS (Project Systems).

The FI Module also integrates with HR(Human Resources) which includes PM(Personnel Management), Time Management, Travel Management, Payroll.Document transactions occurring within the specific modules generate account postings via account determination tables.

The FI (Financial Accounting) Module components.

The FI Module comprises several sub-modules as follows:

Accounts Receivables
Accounts Payable
Asset Accounting
Bank Accounting
Consolidation
Funds Management
General Ledger
Special Purpose Ledger
Travel Management

Accounts Receivables records all account postings generated as a result of Customer sales activity.

These postings are automatically updated in the General Ledger . It is within the Accounts

Receivables Module that you can monitor aging of the receivables and generate customer analysis. The Accounts Receivable Module also integrates with the General ledger, Sales and Distribution, and Cash Management Modules.

Accounts Payable records account postings generated as a result of Vendor purchasing activity. Automatic postings are generated in the General Ledger as well. Payment programs within SAP enables the payment of payable documents by check, EDI, or transfers.

Asset Accounting is utilized for managing your company’s Fixed Assets. SAP allows you to categorize assets and to set values for depreciation calculations in each asset class.

Bank Accounting allows for management of bank transactions in the system including cash management.

Consolidation enables the combining of financial statements for multiple entities within an organization. These statements provide an overview of the financial position of the company as a whole.

Funds Management allows management to set budgets for revenues and expenses within your company as well as track these to the area of responsibility.

General Ledger is fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded. These postings are displayed in real-time providing up-to-date visibility of the financial accounts.

Special Purpose Ledger is used to define ledgers for reporting purposes. Data can be gathered from internal and external applications.

Travel Management provides management of all travel activities including booking trips and handling of expenses associated with trave

SAP FI/CO Interview and Certification Questions – Part 1

Caution: more than one answer may be correct.
Please mark ALL correct answers.

Question:
Which of the following statements are correct?
A More than one chart of accounts can be created for each client
B The chart of accounts contains all the G/L accounts, vendor accounts and customer accounts
C More than one company code can be allocated to the same chart of accounts
D The chart of accounts controls all the customising settings in the R/3 system
E All accounts within a chart of accounts must have the same tax code

Question:
What status reports does Cash Management and forecasting include?
A. Cash management position
B. Liquidity forecast
C. Credit limit report
D. G/L account balances
E. Bill holdings

Question:
Which of the following are clearing procedures in accounts receivable?
A. Incoming payment
B. Down payment request
C. Credit memo
D. Transfer posting

Question:
When creating an Overhead Cost Order, the first order information which must be entered is:
A. Order status
B. Order type
C. Settlement type
D. Curreny
E. Classification code

Question:
When creating an Overhead Cost Order, the settlement rule must be entered in the control data. Which settlement receivers are available for internal orders?
A. Cost center
B. Orders
C. General ledger accounts
D. Asset
E. Vendor

Question:
In Controlling, a distinction is made between master data, planning, actual data and the information system.
Which of the following master data belongs to Controlling?
A. G/L account
B. Work center
C. Cost center
D. Activity type
E. Supplier

Question:
Withing Overhead Cost Controlling activities are calculated. A Sender/Receiver relationship exists. However, not all Sender/Receiver combinations are allowed.
Which of the following combinations make business sense?
A. Sender. Cost Center, Order, Project
Receiver. Cost Center, Order, Project
B. Sender. Order
Receiver. Cost Center, Project
C Sender. Cost Center
Receiver. Cost Center, Order, Project, Cost Object

Question:
Period closing activities are also performed in Controlling. This is dependent on certain prerequisites. Which of the following are MINIMUM criteria before it makes sense to carry out period closing?
A. The posting period has been closed.
B. Materials have been withdrawn.
C. Personnel costs have been incurred.
D. Overhead has been incurred.
E. An order was closed.

Chart of Accounts Set-up and Configuration

Before configuring any part of the FI Enterprise Structure, it is vital to have already drawn out and agreed upon what the Company’s structure will look like. Settling on a chart of accounts with the users in the client sites is one of the first big thing challenge to overcome in a project.
Before beginning design sessions on the chart, it is essential that both the consultant and the client personnel responsible for design decisions have a clear understanding of the differences between Financial Accounting (FI) and Controlling (CO) in SAP. The main purpose of FI is for external legal reporting purposes to outside authorities (SEC, Bureau of Internal Revenue, etc.). Whereas, the main reporting purpose of CO is for internal management reporting. This is often a very difficult nuance for usres to grasp and understand.
With SAP, you don’t need thousands of accounts or any logic other than grouping logic (e.g. all Cash accounts are in the 100000 to 199999 range) built into the G/L account number. The easiest way to configure a chart of accounts is to copy an existing chart of accounts:

IMG > Financial Accounting (New) > General Ledger Accounting (New) > Master Data > G/L Accounts > G/L Account Creations and Processing > Alternative Methods > Copy G/L Accounts > Copy Chart of Accounts.

Transaction Code: OBY7

Alternatively, you can create your chart of accounts from scratch. First, you need to create your chart of accounts name and properties with the path below:

IMG > Financial Accounting (New) > General Ledger Accounting (New) > Master Data > G/L Accounts > Preparations > Edit Chart of Accounts List.

Transaction Code: OB13
Then create your G/L accounts manually:

Menu Path: Accounting > Financial Accounting > General Ledger > Master Records > G/L Accounts > Individual Processing > In Chart of Accounts.

Transaction Code: FSP0.