SAP FICO Interview Questions and Answers in 2024" width="360" height="202" />SAP FICO Interview Questions and Answers in 2024" width="360" height="202" />
Enterprises and established organizations such as IBM, Accenture, HCL, and Hewlett-Packard(HP) have been implementing SAP ERP systems. A career in SAP FICO is in demand with an exponential rise in the market. The growth curve is expected to be sharper in the upcoming five years for a fresher with an account or finance background. Currently, there are very few certified SAP FICO Consultants in the market. It's the right time to make your way by cracking the most challenging SAP FICO interview questions with proven subject knowledge.
SAP Financial Accounting (FI) and SAP Controlling (CO) or SAP FICO is an important core functional component in SAP ERP Central Component. It enables an organization to manage its financial data and store a complete version of its financial transaction data. It serves the crucial purpose of helping companies generate and manage financial statements for analysis and reporting, aiding in effective business planning and decision-making.
Basic SAP FICO knowledge regarding its usage, elements, code, operations, and important terms is a must for freshers. Following are some of the most commonly asked SAP FICO interview questions.
SAP is the abbreviation for Systems, Applications & Products in Data Processing. The FI in FICO stands for (Financial Accounting), and CO is for (Controlling). Thus, SAP FICO is a combination of SAP FI and SAP CO. While SAP FI deals with accounting, tax computation, and preparation of financial statements, SAP CO is for inner orders, inventory sheets, cost sheets, cost allocations, and more.
A two-digit numerical for controlling and determining the transaction type documented in the line item is referred to as a posting key. It helps determine the following:
SAP FICO is the software used for storing and computing data. It helps retrieve the result according to the latest marketing scenario. It prevents data loss and is responsible for the reporting and verification of data. Its modules allow companies to manage financial tasks within an international framework of currencies and languages.
The other modules to which 'Financial Accounting' of SAP FICO is integrated are:
The important organizational elements in SAP FI are as follows:
The best way is to create Business Areas. You can also create different company codes for each business line to manage transactions from different business lines within a company.
A fiscal year is a way to hold the financial data in the system. In SAP FICO, there are twelve posting periods and four special periods. You must specify the fiscal year variant for every company code. Also, when creating a controlling area, you will have to specify the fiscal year variant.
Credit control helps guard a business against overstretching its financial assets. Usually, a credit limit is set for the customers using SAP when a payment is made post the product's sale. This method allows you to restrict the customer's amount to clear before starting a fresh purchase.
It is suitable for credit management in application components:
