SAP FICO Interview Questions 1) Differences between company code and company 2) Business area and PCA

3) Retained earnings Account

Retained Earnings Account

Retained Earnings account defines the (P&L Account) to be used for posting the expenditure and incomes of the year. The balance of this account appears as Reserves & Surplus in the Balance Sheet for the year. This process involves carrying forward the balances on your General Ledger accounts from one fiscal year into the next. You can see the balance to be carried forward in the account balance display. The carry-forward is not performed automatically by the system, even if you have already posted data in the new fiscal year. You have to specify when you want to run the programs for this in the SAP system. (Accounting Financial Accounting ->General Ledger -> Periodic Processing-> Closing-> Carrying Forward-> Balance) (Transaction Code F.16) However, when you post items to a prior year, the system automatically carries forward the balance whether the program was run or not. The customer and vendor accounts, and the balance sheet accounts are carried forward onto themselves. The income statement accounts are carried forward into one or more retained earnings accounts. Before you can include P&L accounts in the chart of accounts, you need to specify the retained earnings account to which profits or losses are transferred. There is a special program designed to transfer these amounts to this account. In order for this program to be able to carry forward the profit or loss, you have to enter the number of this retained earnings account in the system. Each P&L account is assigned to a retained earnings account via a key. You have to enter this key in the P&L statement account type field found in the chart of accounts area of each P&L account. You create the retained earnings account and related key in Financial Accounting Customizing under General Ledger Accounting G/L Accounts Master Data G/L Account Creation Preparations Define Retained Earnings Account. SAP offers two options: 01. Using One Retained Earnings Account 02. Using Several Retained Earnings Accounts Using One Retained Earnings Account: Normally, companies use one retained earnings account. For this reason, X can be used as the key. In the chart of accounts you enter X in the P+L statement account type field, and for account determination you enter the retained earnings account under the key X. Using Several Retained Earnings Accounts: By having more than one P+L statement account type in the FI system, you are able to specify several retained earnings accounts. You would use different retained earnings accounts in an international corporate group to meet various requirements for preparing financial statements. Expenses for special taxation provisions are relevant to income in the US but not in Germany. These provisions for taxation are posted to special P&L statement accounts which are needed in the US only. For all other postings you use P&L statement accounts which are used both in Germany and in the US. To report profits or losses of the prior year on your financial statements for Germany, you would assign the P+L statement accounts valid for all countries to one retained earnings account and to report profits or losses in the US, you would assign the P+L statement accounts that are valid only for the US to a separate retained earnings account. In generating the country-specific financial statements, you would use retained earnings account 1 for the German financial statements and both retained earnings account 1 and 2 for the US financial statements in order to report the profits or losses of the prior year. If you do not include any P&L statement accounts for a financial statement version, you must also omit

the corresponding balance sheet accounts. The combined balance of the omitted accounts must equal zero.

4) Account group functionality 5) field status variant 6) fiscal year variant Vs posting period variant 7) withholding taxes 8) tax on sales and purchases 9) use tax 10) Vat 11) jurisdiction code 12) external number range and internal number range 13) FI organizational structure 14) CO organizational structure 15) FI tables 16) CO tables 17) CO-PA tables 18) APP configuration steps 19) APP run steps 20) Importance of base line date 21) importance of next posting date in APP run 22) Dunning configuration 23) Dunning run steps SAP FICO Interview Questions 24) check printing program 25) Void and reprint checks 26) pre numbered checks

27) House banks 28) if vendor is a customer 29) dunning area 30) dunning key 31) dunning block 32) payment block 33)Journal entries in SD integrations 34)Journal entries Billing and PGI 35)Journal entries in FI-MM integrations 36)Journal entries for goods issue, scraping and goods issued to production 37) valuation class 38) validations and substitutions 39) valuation area 40) valuation modification 41) general modification 42)Material master views 43) FS00 all tabs 44) Vendor and customer master creation( all tabs) 45) ASAP methodology SAP FICO Interview Questions 46) All five phases in ASAP methodology 47) testing process 48) documentation 49) functional specs 50) user exits

51) customer exits 52) enhancements 53) tables view 54) work bench request and customizing requests 55) SM35 and SE38 screens 56) DEV, testing and PRD clients 57) Tickets / messages 58) problems faced in implementation and support 59) client, cross client, transport of configuration 60) LSMW 61) BDC 62) Debugging a program 63) Special GL accounts, Special GL Transactions, Alternative GL accounts 64) Down payment Request, Down payments, 65) Noted items 66) Parking a document and holding a document 67)sample document and recurring document SAP FICO Interview Questions 68) BRS 69) Clearing accounts 70) Open item management 71) line item display 72) bank sub accounts 73) payment terms 74) controlling area

75) versions 76) link between FI and CO 77) assessment and distributions 78) allocation structure 79) what is cost center 80) what is a profit center 81) Profit center configuration steps 82) Report painter 83) Report 84) Report groups 85) Report library 86) Statistical and Real postings 87) Standard hierarchy and alternative hierarchy 88) Transferring data to SD to COPA configurations 89) CO-PA configuration all steps 90)Month end closing SAP FICO Interview Questions 91) year end closing 92) Go-Live activities 93) Lock Box concept 94) cross company code transactions 95)settlements in co 96) difference between cost centers and internal orders 97) Reconciliation Accounts 98) Extended With Holding Taxes configuration steps right from creation of WH Tax Types, Codes to Annual Return

99)What is chart of account and how many charts of accounts can be assigned to a company 100) What is residual payment and part payment 101) procurement cycle in MM 102) goods movement 103) What is GR/IR? What journal entries 104) Primary cost elements and secondary cost elements 105) How to configure FI and CO reconciliation account 106) Steps for electronic bank reconciliation statement 107) CO-PA Transfer of Incoming Sales Orders 108) Report Painter, How to reverse +/- signs 109) What is the relationship between Report Groups and the report groups