1.

What do you mean by SAP FICO and what does FICO stand for in
SAP?
SAP FICO stands for FI (Financial Accounting) and CO (Controlling). SAP
FICO is considered as the most important module of SAP ERP. Also, both,
FI and CO modules store the financial transaction data

2. Mention the various submodules in SAP Finance.

The sub-modules in SAP Finance are:

 Accounts receivables
 Accounts payables
 Asset accounting
 General ledger Accounting
 Bank accounting

3. How is SAP useful in finance?

SAP is used to help companies generate and manage financial statements
for analysis and reporting. Also, it helps with effective business planning
and decision-making.

4. What is a business area in SAP FICO and what are its benefits?
The business area is a separate area of operations of organizational units
of financial accounting that can be used as internal and external reporting.

5. What is a chart of accounts (COA)?

A Chart Of Accounts or COA is a structure which contains the General
Ledger accounts used by one or more company codes.

6. What are posting keys in SAP FICO?

Posting Key in SAP is a two-digit numeric key determined to control the
entry of document line items in an FI Transaction. Posting Key in SAP
further specifies whether the item is debit or credit entry, account type that
can be posted and the screen arrangement of line items.

7. What are the different types of COA in SAP finance?

1.
1. Operating COA
 2. Country Specific COA
3. Group COA

8. What is general ledger in financial accounting?

A General Ledger in financial accounting is used to record all business
transactions in a software system.

9. What is Fiscal Year Variant (FYV)?

In SAP, Fiscal Year Variant (FYV) is an alternative which controls
parameters for a financial year, such as managing financial accounting
year and posting period modifications to open and close posting periods.

10. What is Posting Period Variants (PPV)?

In SAP, Posting Period Variant or PPV is used to manage accounting
periods that are open for posting and all closed period that are balanced. It
is used during the opening and closing period in the fiscal year for posting
purpose.

11. What is the year independent and dependent FYV?

A. Independent FYV: A type of fiscal year that uses the same number of
the period for each financial year. And the posting year always starts and
ends on the same day of the year is called Independent FYV. It can be
further classified as:

 Calendar year (January to December)

 Non- Calendar (if it is not from January to December)

B. Dependent FYV: Dependent FYV or Specific FYV is a type of fiscal

year whos period varies from one fiscal year to another fiscal year that
means that the start and end date of the FYV is different from the dates of
another fiscal year. Shortened Fiscal Year is a variant of Dependent FYV.

12. What are field status variants?

Field Status Variant is used to determine the fields that are used for input
like a cost center, profit center, plant, etc., which can either be entry or
hidden fields. It is basically a tool used to assign the same set of properties
to more than one object.

13. What are the field status groups?

Field status groups are assigned to the General Ledger account. You can
define a field as optional, mandatory or suppressed through the field status
groups.

14. What is SAP FICO Document Type Key?

Document Type Key is used to differentiate between different business
transactions and to classify the accounting documents. It is used to
determine the number range for documents and account types such as
material, asset, etc for posting

15. What is the controlling area?

A Controlling Area is the basic organizational unit in Management
Accounting. It is a closed entity which used for cost accounting. You can
allocate costs only within a controlling area. These allocations cannot affect
objects in other controlling areas.

16. What do you mean by posting block in SAP FI?

If you carry out interim or final billing for a case in live mode, the system
creates a document for every invoice in Sales and Distribution (SD). This
document is posted on to FI, providing you made the appropriate settings in
Customizing for IS-H.

17. How is blocking and unblocking of a customer made possible in

SAP FI?
Follow the following steps to block/unblock a customer:

1. Go to Accounting
2. Finance Accounting
3. Accounts Receivable
4. Master Records
5. Maintain Centrally
6. Block/ Unblock

18. What are incoming and outgoing payments?

Incoming and outgoing payments are posted in Accounts Receivable
Accounting or Accounts Payable Accounting for advance payments, down
payment requests, invoices, corrections and final invoices. All the
payments are accounted in the down payment chain transactions and this
displayed in the posting data.

19. What is partial payment in SAP FI?

A partial payment is posted to an account without any open items being
removed. This partial payment is assigned to an open item. When you post
the partial payment, the system marks the document number of the original
open item in the line item for the partial payment. The original open item
and the partial payment remain open.

20. In SAP FI what are the organizational elements?

The organizational elements in SAP FI are:

 Company Code
 Business Area
 Chart of Account
 Functional Area