Ques.1> What is SRM? Ans.> SRM stands for Supplier Relationship Management.

It is an extended form of ERP where data gets transferred between SAP R/3 and the SRM screen (vice versa) so that every Vendors coordination will be better and which will fully avoid the paper work and unwanted confusions. It is very effective for the companies which have large number of users who can directly purchase the material using the Shopping Cart in which the materials can be selected from the available Catalogs. Ques.2> Discuss about the benefits that SAP SRM brings to a business Ans.> SAP SRM enables the organization to achieve the following business benefits: Sustainable cost savings- which enables the companies to achieve a closed loop from source-to-pay. Contract compliance provides visibility into enterprise expenditures and enables the procurement organization to effectively demonstrate according to corporate guidelines. Competitive advantage gives the tools to partner with key suppliers, define supplier management approach, and determine the key metrics. Ques.3> What number ranges must be configured in SRM? Ans.> Entries should be created in the EBP system to link the EBP purchase orders, requisition and reservation to the backend R/3 system. The logical system ID should reflect that of the EBP application server and client in which the number ranges are being configured. PO, RQ, RS were used to easily distinguish each number range. Ques.4> Why do we configure number ranges in SRM? Ans.> Number ranges must be established for EBP shopping carts as well as any potential purchasing document so that unique numbers can be generated in the backend R/3 system from EBP. The EBP system needs a number range established that automatically takes the next available number and assigns it to the document which will be created in R/3.configuration must also be established in R/3 to correlate with the ranges in EBP so that conflict never arise when purchasing document. Ques.5> How do we define ITS URL? Ans.>Before the Internet Transaction Server (ITS) can process EBP requests, entries in table must be maintained to initiate a connection to a physical URL, which controls the menu on the left hand side of the screen that shows all of the transactions users have access to. The URL varies depending on which the EBP client the configuration is performed in and it also consists of base address for the integrated ITS instance. To enable EBP purchasing for each client, this configuration needs to be performed once. Ques.6> What purpose does the SRM org structure serve? Ans.> Organizational attributes serve many purposes in EBP system. The primary purpose is to set attributes that define the users` shopping experience. Examples of such attributes are company code, plant and cost centers that the user can order against, etc.

Ques.7> Is there anything in particular that needs to be done to a user or a vendor to make them a valid part of SRM? Ans.> A user or supplier record cannot be assigned to an organizational unit it has a business partner recorded. This means, if Business Partner relationships are not established, users cannot be imported into the organizational structure from the User_Gen Transaction. Then the following error occurs: Business partner of organizational unit does not exist. Ques.8> Why do we create the internal number range for local bid invitation? Ans.> An internal number range must be defined to build numerically local bid invitation for RFQ`s and Auction in the Bidding Engine and Live Auction application. These bids does not have a link to any R/3 purchasing document, they are completely local to the ERP system. Ques.9> If we are replicating from the backend and something is stuck in the queue of R/3 then what can we do then? Ans.> We use transaction SMQ1 in this case. The first thing that should be checked when downloading customizing objects is a possible stuck queue. The R/3 system uses the outbound queue (SMQ1) which is less likely to get stuck initially. Ques.10> What is the difference between a business partner and a partner function? Ans.> Generally in SRM business, partner means the entire stake Holders. Example: suppliers, customers, vendors, employee, etc. The function of partner is to make the vendors as reference, and then there will be invoicing party, supplying party, etc. Business partner means those who supply the raw material to the customer i.e. buyer. Ques.11> Give a brief idea what supply management deals with. Ans.>Supply management deals with the oversight and management of materials and services inputs, management of the suppliers, which provides vital inputs. The performance of supply management departments and professionals is measured in terms of amount of money saved for the organization. However, managing risk is one of the aspects of supply management; especially the risk of non-availability of quality goods and services important for an organization's survival and growth. Ques.12> What is the function of supply management in an organization? Ans.> The supply management function of an organization is responsible for various aspects such as managing supplier performance, implementing technologies, processes, policies, and procedures to support the purchasing process. Also provide supplier relationship management process for providing the structure for how relationships with suppliers will be developed and maintained.

Ques.13>What are the key business process in SAP SRM? Ans.> The key business process in SAP SRM includes: Procure to pay- we can integrate catalog based requisition and gain the benefits of eprocurement. Catalog management- manages catalog data as master data that is deeply integrated. Centralize sourcing- gain visibility into the demand for goods and services. Centralized contract management- consolidates contract information. Supplier collaboration- links supplier to our purchasing processes through the supplier portal. Ques.14> What is a Purchasing Organization? Ans.> A Purchasing Organization is the organizational unit within a business responsible for the procurement of goods and services for plants belonging to a particular region. It also negotiates terms and conditions of contracts and purchases from vendors and also assumes legal responsibility for those purchases for the Plants that PO is responsible for. Those Plants are dependant on its assignment. CRM Questions #1. What is CRM? Ans:- Full form of CRM is Customer relation management. It is actually a methodology which is used to acquire more knowledge about the customers need and behaviors to develop a strong relationship with them. CRM is a process that will bring useful information about the customers, marketing effectiveness, sales, market trends and responsiveness. And business getting help from CRM uses technology and human resource to gather insight information about the customers behavior and their value. #2. What are CDOCOL and CDO? Ans:- CDOCOL is a client side data object which stands for clarify CRM data object collection. CDOCOL is the collection of CDO and is used to display the data on the search result. CDO generally stands for Collateralized Debt Obligation and are not specialized in one form of debt but are sometimes bonds or non mortgage loans. CDO is an investment-grade security which is backed by assets. #3. What are the advantages of CRM? Ans:- A business which is using CRM can simplify marketing and sales process. Provides better customer service through efficient use of call centers which not only increases the customer revenue but also discover new customers. Last but not the least, it help sales staff close deals faster and cross sell/up sell products much more effectively.

#4. What is hosted CRM? Ans:- Hosted CRM is simply an arrangement where a company outsource all or some of its customer relation management functions to an application service provider which is also known as ASP. The hosted CRM allows companies to focus more on resources on its main business area and thereby can surplus the return on investment by reducing the costs whereas in-house CRM is much more expensive and allows more customization. #5. What is Data Mining? Ans:- Data mining is also called KDD(Knowledge Discovery in Databases). Data mining is actually a method which follows a specific mathematical algorithm to search and extract data from a database. Data mining follows automatic searching technique using a set of tools such as rule mining, classification, clustering etc. Market basket analysis is one of the major applications of data mining which is used in the retail sale to explore the preferred items of the customers. #6. State the difference between CRM and R/3 Ans:- CRM is a part of SAP Business suite Protocol which mainly emphasis on maintaining the relationship with the customer. Whereas SAP R/3 is a 3 tier client/server application in which there are client presentation layer, all business application layer and database which contain all the information about the system. #7. What do you mean by ECRM? Ans:- ECRM stands for Electronic customer relationship management system. ECRM implements strategies and policies to help companies build an online relationship with its customers and clients. For executing organizations CRM practices online customized ECRM is used. This solution is very easy to maintain and very much user friendly. #8. How is CRM integrated with SAP R/3? Ans:- The integration between R/3 and CRM is done via RFC interface which defines the RFC destinations in the system landscape. #9. How data is migrated from legacy to ibase? Ans:- Data migration from CRM to flat file can be easily done by using Legacy Systems Migration Workbench(LSMW) which is actually a migration workbench. This is simply a tool to do mapping between SAP CRM data format and legacy. The mapping has to be defined based on data requirements. #10. State the difference between BDT and EEWB? Ans:- BDT or Business data toolset is used to add/delete/disable fields in the Business Process transactions only. It does not create any new objects. BDT acts as a separate unit in CRM. Whereas EEWB can extend several transactions in CRM which even include BP. It even creates several z-objects to extend the business objects like a BADi implementation, middleware objects which is used for coding custom logics.

#11. How can right CRM be implemented? Ans:- To make the right decision must be certain CRM strategies should followed. The very basic and mandatory thing which should be always kept in mind is pinpointing CRM goals. Secondly, focus on the need of CRM types which also plays a vital role in making the right decision. Lastly CRM requirements should be known. If these things are followed properly then CRM strategies will really workout. #12. What is business process management (BPM)? Ans:- BPM stand for business process management and it is also called as Business process reengineering(BPR). It is mainly a practice which is used to improve the effectiveness and efficiency of any organization. BMP can be used effectively by adopting a process-oriented approach which makes no distinction between manual work or computer work rather than focusing mainly on data management. #13. What are the advantages of BPM? Ans:- The primary idea of BPM is to bring information, people and processes together for managing any business effectively. BPM involves real-time integration of the processes of any organization with its suppliers, customers and business partners rather that just managing business processes within the enterprise. BPM looks at automation horizontally instead of looking at it vertically which means it integrates business involved entities with more flexibility and can be customized to meet the business requirements. #14. What is Business Intelligence? Ans:- Business Intelligence OR BI is mainly used to portrait a discipline which captures various aspects of a company and its rivals. It has processes and software which helps in collecting, storing and providing access to intelligent information about any company and ultimately facilitate the decision making process of the company which gives the company a competitive advantage. It generally serves as a unified presentation layer for those business data which appears in one or more data sources like transaction or ERP systems. #15. Briefly describe the applications of BI? Ans:- BI has many applications and this applications include a series of activities which are decision support, online analytical processing, query and reporting, Data warehousing, Dash boarding, Knowledge Management , MIS, Data Mining, (OLAP), statistical analysis, Multidimensional analysis, forecasting. FICO Functional Consultant #1. How to do dunning for vendor? What are the purposes of dunning for vendors? Dunning is the process of sending a letter to a customer notifying about the outstanding. Defined letter forms are issued to the customer for this purpose. Dunning letters are also sent to vendors who took an advanced payment but due to some reason they failed to meet the settled delivery date. In short dunning is a proper process of notifying some business related entity about their out standing debts either in material, product, equity or services.

#2. What is Account Modification Key? Account modification key are general modification key that can be found in tcode OBYCGBB- AUF, AUI, VBX and VBR. These keys defecate with events such as production received with or without production received OR goods issued for sales or consumption purposes. These keys are linked through movement types which can be observed in the tcode OMJJ link under the account grouping. #3. What is APC? Acquisition and Production costs APC means any asset which one may wish to acquire or purchase externally. Invoice and other related expenditures associated with it like octroi, customs, freight which is added to arrive at the total cost or expenditure are included in them. Consider an example of a car. Additional expenditures like road and sales tax gets added for the acquisition of the car which becomes the APC. Production cost resembles the cost associated with asset that is created internally within the organization. Generally these are created by AUC. For example addition of new AC machine in office. #4. What is meant by Framework? Is the framework related only to AUTOMATION or it is applicable to MANUAL testing too? Framework is a defined process which acts like a generic work or a set of rules that should be followed in order to perform a specific task in such an optimized way that the product must be useful for future execution of the test scripts in the most effective and efficient manner. Tough this can only be possible in Automation. Manual testing can also provides a better view of the state that is to be followed in order to execute that test case. #5. What is a special GL transaction?

In SAP systems bill of exchange are being handled as special G/L transactions. They are maintained independently in respect to other transactions in subsidiary ledger and are posted to the general account of a special G/L account. This provides an overview of bills exchange receivable and payable at any stage. Transfer postings are usually not necessary to display these on the balance sheet.

#6. Briefly discuss about asset master. An asset manager manages asset and belongings of an organization effectively. It can be created by an existing asset of the same company code or another company. When it is created for the first time it can be done from scratch. SAP allows multiple asset to be created in one go assuming that all such asset belong to the same type.

#7. What are the segments of GL master record? GL master records control the processing of the posted data and the accounting transaction posting to G/L accounts. In the system master data are created prior to the postings to a G/L account. It is classified into two areas that prepare company codes based on charts that use the same GL accounts. They are:1. Chart of accounts 2. Company code area #8. What is the difference between business area and profit center? Business Area helps to prepare Balance sheet of profit or loss incurred for individual product segment, geographical segment etc. In countries like India it is also referred as external reporting. Profit centre is restricted to perform its activities regarding the profit only i.e. revenue minus expenses. This is also known as internal reporting. #9. What is internal and external number ranges? Discuss how they differ in their use? In Internal Number Ranges the system automatically specifies the Doc. number in serial ordering in order to allot the next available progress number provided that the number should be numerical. In External Number Ranges the end user manually supplies the Doc. number without the automatic intervention of the system. User may also choose the number in a random manner which can also be alphabetical in nature. #10. What is the integration point in FI-MM in obyc. Which GL a/c has to be created ? The goods receipt initiates the FI-MM integration which in turn generates the account entry that is inventory a/c dr to gr/ir account. During the time of invoice verification GR/IR a/c Dr Vendor a/c will be generated for which relevant GL accounts must be assigned in obyc by linking valuation grouping code, valuation class and the general modifications based on the accounting entries. #11. In movement type(MM), what is value & quantity string? It updates values and quantities in GL with valuation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type? The system itself cannot know which GL has to be updated. So a specific direction has to be given to the system to do so. It is correct that the system updates the value and quantity in the material master. During a PO creation the system will take a movement type as its base along with MT it will identify the MI then identifying the consumption value string and then finally post the entry (dr/cr) to the GL depending upon the event key figure and transaction that are used to find out the credit/debit entry of a GL.

#12. What is open line item management? What is meant by clearing open line items? Open Item management is further balancing/reconciliation of functions. Open item management lets us display the amount, open and cleared items regarding a specific account. The account is first cleared and then settled up with another account this is known as clearing open lines. For example, GR/IR clearing account and Salary clearing account.

What are the frequently asked questions on SAP FICO Interview Questions? 1. What is chart of account? What is the relevance of defining chart of account? A. It is the top level financial structure, contains the GL Accounts we define the all the accounts and one chart of accounts assign to company code and one chart of accounts will assign to many company codes . It is list of Gl accounts and it contains account no , account name, language, length, cost element, blocking information that controls the how an account functions and how a gl account created in company code . COA Key. 2. What is account group? What does it control? A. IT determines the which fields you need to configure on the GL master record. It is necessary to have at least 2, one for B/S and another one for P&L accounts. It controls the number ranges of GL. The Status fields of the master record of GL Belong to company code area. 3. What is posting key? What is its role? A. It controls the line item of GL entry debit and credit. 4. What is business area? A. Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Financial statements can be created for business areas for internal purposes. They are primarily used to facilitate external segment reporting across company codes covering the main operation of a company (product line, Branches). The Business area may be the branch of the company or product lines it deals with 5. while defining chart of account, there is field " manual creaation of cost element" and "automatic creation of cost element". what is it? A. Generally when ever we are creating cost elements we can create some of exependitures manually some automatically so we can create manually cost elements in defining chart of accounts. 6. After creating a customer/vendor, how can we check that under which account group we have configured this customer/vendor? A. We can check through customer group and vendor group it was created by ours when we are creating vendor and customer groups.

7. How the system will know that april is your first posting period? A. Yes the system will find out april was first posting period. While configuring fiscal year we giving april to 1 may to 2, june to 3, like this system will identify april was the first posting period. 8. Define the term "fiscal year" , "posting period varient" & " field status varient". A. FSGV controls the additional account assignments and other fields that can be posted at the line item level for GL a/c. FSGV can be control at three level i.e., 1) In OBC4 (ch of a/cs) - which controls the screen for a particular GL a/c group, 2) Posting Keys - which controls the screen for a particular posting key transaction is taken, & 3) Accounting Groups - which controls the screen for a particular account group i.e., customer group or vendor group. A. Posting period variant which controls posting periods, both normal and special periods are open for each company code. The posting period is independent of fiscal year variant. A. Fiscal year is controls the which type year we are following like calendar year, year dependent year,.