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Fico Interview Q 4
Fico Interview Q 4
Answer:
The following are some of the available key features of SAP Simple Finance:
With SAP Simple Finance, companies can forecast, budget and plan as an ongoing
approach. With the advantage of Predictive Analysis, companies can forecast the
influence of business decisions on their organization financial reports.
With the benefits of advanced Accounting and Finance features, companies can satisfy
the legal terms. Further, they can finish the reports of Finance on time. (E learning
Portal)
With the benefit of Predictive Analysis, companies can determine the risks present in
the processes of Finance at the initial stage itself and take steps to solve them. It is
effortless to determine the best feasible investment rates regarding market standards.
4. What are document types and what are they used for?
Answer: Document type is the identifier of different account transactions like SA for
G/L, AA for Asset Accounting, etc.The doc. Types control things
like the type of account that can be posted to, the number range assigned to it, and
required doc header fields.
6. What Are The Main Advantages That Attract Customers To Migrate To Sap
S/4hana?
Answer: The main vision and approach of the SAP are to support customers survive
simply in the digital world. In order to deliver this mission, SAP S/4HANA redefining how
enterprise software makes value. S/4HANA is mainly designed to power instant value
across the business and industry lines with the superior sophistication – Simplicity.
Let us explore the advantages of Simple Finance from the point of business value.
SAP S/4HANA makes the unique chance to redefine business models and power new
profits in addition to revenues. With Simple Finance, companies can easily link to
devices, people as well as business networks to present additional value to their clients
on any channels. Hence, offers the following benefits:
Big Data and the Internet of Things (IOT)becomes accessible to any kind of business.
Companies can simplify their approach, power them in a real-world environment and
alter them as per their requirement in order to gain new proficiencies. That is, there is
no further requirement for batch processing.
Business users can receive a vision of any kind of data from anywhere, including
execution, planning, simulation, and prediction.
The unique chances created by the SAP S/4HANA simplify the landscape. In addition,
support condenses Total Cost of Ownership (TCO) with SAP S/4HANA.
Companies can now lessen their data footprint as well as a task with huge data sets in
the seamless system (for instance, CRM, ERP, SCM, SRM, PLM co-deployed) in order
to save costs of hardware, the cost of operation as well time.
It also made innovation very simple with the open platform (that is none other than SAP
HANA Cloud Edition) in order to power advanced applications like recommending,
predicting and simulating while protecting standing investments.
Business users can influence simply as well as role-based experience depending on
current design principles that increase training efforts when raising productivity. The
simple configuration of the SAP S/4HANA also supports the customer by modeling the
system.
* Using Debit Memo you can get the money for defective 3 units.
12. Which Edition Of Sap S/4hana Do You Suggest For Our Companies?
Answer: The On-Premise Edition of the SAP HANA is designed to suit the
organizations across companies, which require a broad and deep level of functionality
integrated with a highly flexible range of personalization. The cloud edition of the SAP
S/4HANA is designed to suit for the companies, which require a standardized cloud
submission primarily handling the basic business scenarios of a company or certain
business set-up of business lines in industries which are integrated with a rapid
innovation cycle. In addition, this edition provides the chance for clients to deploy real-
world hybrid setup, combine On-Premise and Cloud solutions for extraordinary IT
flexibility as well as stimulated business innovation.
13. What are adjustment postings and its use? Give t.codes and paths if
possible?
Answer: fb50,f-02, and others could be used for adjustments. These adjustments are to
correct any financial representation that has already been booked into the accounts.
14. What are posting keys? State the purpose of defining posting keys?
Answer: Posting keys determine whether a line item entry is a debit or a credit as well
as the possible field status for the transaction. Posting keys are SAP delivered. If u want
changes like making additional fields optional on payment type posting keys then the
best possible action is to copy the posting key that needs to be modified and then
modify it.
15. Is it possible for a company to have positive cash flow but be in serious
financial trouble?
Answer: Yes, it is. A company that is selling off inventory but delaying payables will
show positive cash flow for a while–even though they’re in trouble. Another example
would be where a company has strong revenues for the period but future forecasts
show that revenues will decline. This would happen when a company hasn’t focused on
making sure there were new prospects/sales in the pipeline.
17. Explain the impact of the purchase on the income statement, balance sheet,
and statement of cash flows?
Answer: At the time of the purchase, there is a cash outflow (cash flow statement) and
PP& E goes up (balance sheet). Over the life of the asset, it is depreciated. This shows
up a reduction in net income (income statement) and PP& E (balance sheet) decreases
by the amount depreciated. At the same time, retained earnings (balance sheet) also
goes down. However, the depreciation is added back in the cash from operations
section (cash flow statement) as it is a non-cash expense the reduced net income.
have created the Company Code and all other configuration related to the
code. Also in MM, I have created a purchase order, created vendor,
material, etc. I couldn’t activate the PO due to the following error
messages in red:
24. What are shortened fiscal year? When are they used?
Answer: Shortened Fiscal Year: a financial year, which has less than 12 periods.
25. In inventory management what do you mean by allocation?
Answer: assigned to company code we can assign company code to chart of account.
27. Basically, if we can expand the profit center structure by using the new field
can I do Kp26 cost center activity type with functional area planning as well?
Answer: You can’t do this using transaction KP26 since this hasn’t been enabled to
derive the functional area. IF you want to fill all the dimensions during planning, then
investigate Integrated Business Planning for Finance.
28. In simple finance, can I have a new field based on business need which can
link with logistics? For example, a team field which will drive from sales Oder
which will flow to GL posting?
Answer: You can add a field to the universal journal easily but you will have to create
derivation logic of some kind to fill it and as with any derivation the more complex you
make the logic to fill it, the more you’ll impact performance during posting.
30. State the main difference between the migration to SAP S/4HANA On-Premise
and migration to SAP S/4 Finance?
Answer: There is no notable difference between the migration to SAP S/4 HANA On-
Premise and migration to SAP S/4 Finance from the perspective of Finance. On the
other hand, because of the logistics influences, it is suggested to consider several
things with SAP S/4 HANA.
31. How can the partner of SAP support the migration of customer to SAP S/4
HANA?
Answer: SAP comprises a well-known partner ecosystem (which covers systems
integrator and value-added retailers). This ecosystem is ready to service and resell SAP
Simple Finance for the available as well as new customers to develop future inventions.
Partners handled surprisingly more than 50 percent of the Business Suite of SAP that is
powered by HANA. SAP and Partners will help customers on their digital journey with
migration, system shifting in the cloud as well as deployment suites for fast time to
value. Entire organization regardless of the sizes will experience advantage from the
ultimate quality service and reseller abilities that partners offer.
SAP HANA DB
SAP HANA Appliance
SAP HANA Studio
SAP HANA Application cloud
34. When should a company consider issuing debt instead of equity?
Answer: A company should always optimize its capital structure. If it has taxable
income it can benefit from the tax shield of issuing debt. If the firm
has immediately steady cash flows and is able to make their interest payments it may
make sense to issue debt if it lowers the WACC.
Costs
Delays
Tracking and communications
Warehouse Safety
39. Which is cheaper, debt or equity?
Answer: Debt is cheaper because: it is paid before equity and has collateral backing it.
Debt ranks ahead of equity on liquidation of the business. Learn more about the cost of
debt and cost of capital.
There are pros and cons to financing with debt vs equity that business needs to
consider… it is not automatically better to use debt finance simply because it’s cheaper.
A good answer to the question may highlight the tradeoffs if there is any followup
required.
A company has learned that due to a new accounting rule, it can start capitalizing R&D
costs instead of expensing them.
This question has four parts to it:
Cluster encoding
Run-length encoding
Dictionary encoding
In Sap Simple Finance, Even In Case The Client Never Uses The Asset
41. Do we need to have the HANA Live installed for these reports?
Answer: Your classic reports (Report Writer, Drill-Down, ABAP List Viewer) will run as
before using compatibility views to select the relevant data from the universal journal.
For the modern reports such as the multi-dimensional trial balance, line item browser or
income statement are using a combination of HANA views and operational data
providers or virtual info providers to feed the queries.
44. In Column, the table view is SAP BW SID concept moving to ERP?
Answer:
SAP BW SIDs are for the master data.
Here’s a nice tutorial about row vs column store
45. Is costing based COPA document different from the new Universal document?
Answer: Yes the costing-based CO-PA document will be as before a combination of
CE1XXXX for the transactions and CE4XXXX for the characteristics. In the universal
journal, you will have fields for each characteristic in CE4XXXX and a link to CE4XXXX
via the PAOBJNR for reasons of backward compatibility.
46. In simple finance, can I have a new field based on business need which can
link with logistics? For example, a team field which will drive from sales Oder
which will flow to GL posting?
Answer: You can add a field to the universal journal easily but you will have to create a
derivation logic of some kind to fill it and as with any derivation the more complex you
make the logic to fill it, the more you’ll impact performance during posting.
48. I buy a piece of equipment, walk me through the impact on the 3 financial
statements?
Answer: Initially, there is no impact (income statement); cash goes down, while PP&E
goes up (balance sheet), and the purchase of PP&E is a cash outflow (cash flow
statement)
Over the life of the asset: depreciation reduces net income (income statement); PP&E
goes down by depreciation, while retained earnings go down (balance sheet); and
depreciation is added back (because it is a non-cash expense that reduced net income)
in the cash from operations section (cash flow statement)
4. What are the different types of documents and what do they do?
Document type is an identifier for various account transactions, such as SA for General
Ledger, AA for Asset Accounting, and so on.
The doc. Types determine the type of account that can be posted to, as well as the
number range assigned to it and the needed doc header fields.
Tolerance stores are the answer. Default amounts are used when posting. Tolerance
groups are allocated to User IDs, ensuring that only permitted individuals can publish.
The Posting duration variant determines which normal and special posting periods are
available for each organization code. For each enterprise code in the organization, it is
possible to have a unique posting duration variant. The length of the posting is
unaffected by the fiscal year.
7. What are the options for moving from SAP to S4HANA Finance?
Here are some of the ways that businesses might move away from SAP’s standard
FICO module and toward S4HANA Finance. Those that are New GL are eligible to
move straight to Simple Finance. Those who are now using the old GL wish to switch to
the new GL first, then to Simple Finance. This type of migration is only possible with
SPRO and does not necessitate professional support. There is a distinction between
SAP migration and non SAP migration when it comes to the central factor of Finance
that aids with moving data in the Enterprise Resource Planning picture.
If there is no data in Asset Accounting that refers to both customizing and transactional
facts that need to be transferred, there is no requirement to perform the migration
stages in Asset Accounting.
If the customer later decides to use Asset Accounting in their new asset accounting,
they can personalize it in the IMG.
10. What is the relationship between Account Type and Document Type?
A Assets
D Customer (Debtor)
K Vendor (Creditor)
M Materials
S GL
Technically, you’ll be able to swap out all of the fields of a GL account in the Chart of
Accounts tab, save for the account number. However, if you convert the B/S to P&L in
the GL account type, you can be confident that the application will be stable to go
forward by recording the adjustments, which will aid the system in correcting account
balance appropriateness.
Cluster encoding
Run-length encoding
Dictionary encoding
13. How can an employer display high-quality net earnings and still go bankrupt?
Working capital deterioration (i.e. rising accounts receivable, reducing bills payable) and
monetary shenanigans are two examples.
Deferred tax liability is the polar opposite of deferred tax assets. When a tax price stated
on the earnings statement is not paid to the IRS within the same time period as it is
recognized–it is paid at a later date–it is referred to as a deferred tax liability.
When the depreciation price between e-book reporting (GAAP) and IRS reporting
differs, Deferred tax liabilities can lead to differences in profits between what’s reported
on a company’s earnings statement and what’s suggested to the IRS–resulting in fewer
taxes owed to the IRS (in the quick run).
SAP Financial and Controlling (one of SAP’s core modules since R/2 days) is a virtually
advanced presentation with high-quality width and depth. SAP Simple Finance provides
extreme in-memory-reporting that eliminates the barrier between (B/W) controlling and
cash-related reporting, boosting liquidity evaluation and incorporating arranging
capabilities