by Pritha Radhakrishnan, on Jun 6, 2023 5:15:02 PM
1. What is SAP FICO ECC?
Ans: SAP FICO ECC is the Financial Accounting and Controlling module within the SAP ERP system, providing comprehensive financial management functionalities.
2. What are the components of SAP FICO ECC?
Ans: The components of SAP FICO ECC are Financial Accounting (FI) and Controlling (CO).
3. What is the purpose of the General Ledger in SAP FICO ECC?
Ans: The General Ledger in SAP FICO ECC is used to record all financial transactions and generate financial statements.
4. What is the difference between Accounts Payable and Accounts Receivable in SAP FICO ECC?
Ans: Accounts Payable manages outgoing payments to vendors, while Accounts Receivable handles incoming payments from customers.
5. How does SAP FICO ECC integrate with other modules?
Ans: SAP FICO ECC integrates with modules like Sales and Distribution (SD), Materials Management (MM), and Production Planning (PP) to ensure smooth data flow.
6. What is the significance of controlling in SAP FICO ECC?
Ans: Controlling allows businesses to analyze costs, profitability, and make informed decisions based on financial data.
7. How can you manage asset accounting in SAP FICO ECC?
Ans: Asset accounting in SAP FICO ECC involves recording and managing fixed assets, including acquisition, depreciation, and retirement.
8. How do you handle foreign currency transactions in SAP FICO ECC?
Ans: SAP FICO ECC provides functionality to handle foreign currency transactions through currency conversions and valuation methods.
9. How can you perform financial statement analysis in SAP FICO ECC?
Ans: SAP FICO ECC offers various financial reporting tools, including balance sheets, income statements, and cash flow statements, to perform financial analysis.
10. What are the steps involved in the month-end closing process in SAP FICO ECC?
Ans: The month-end closing process involves activities such as reconciling accounts, posting accruals, and generating financial statements.
11. How can you configure tax settings in SAP FICO ECC?
Ans: Tax settings in SAP FICO ECC include defining tax codes, tax jurisdictions, and tax calculation procedures to ensure accurate tax calculations.
12. What is the purpose of cost center accounting in SAP FICO ECC?
Ans: Cost center accounting helps track and control costs incurred by different departments or business units within an organization.
13. How can you perform cost allocation in SAP FICO ECC?
Ans: Cost allocation in SAP FICO ECC involves distributing indirect costs to cost objects based on predefined allocation rules.
14. What are the different types of depreciation methods in SAP FICO ECC?
Ans: SAP FICO ECC supports various depreciation methods, including straight-line, declining balance, and units-of-production, to calculate asset depreciation.
15. How do you handle financial postings for intercompany transactions in SAP FICO ECC?
Ans: Intercompany transactions can be managed in SAP FICO ECC through intercompany billing, cross-company code postings, and reconciliation.
16. How can you perform credit management in SAP FICO ECC?
Ans: Credit management in SAP FICO ECC involves setting credit limits, monitoring customer creditworthiness, and managing credit exposures.
17. What is the significance of the SAP FICO ECC New General Ledger?
Ans: The New General Ledger in SAP FICO ECC provides enhanced functionality, including real-time integration, parallel accounting, and improved reporting capabilities.
18. How can you integrate asset accounting with general ledger accounting in SAP FICO ECC?
Ans: Asset accounting integration with general ledger accounting in SAP FICO ECC ensures accurate recording and reporting of asset-related transactions.
19. What is the purpose of a chart of accounts in SAP FICO ECC?
Ans: A chart of accounts in SAP FICO ECC defines the structure and organization of general ledger accounts used for recording financial transactions.
20. How do you handle cost element accounting in SAP FICO ECC?
Ans: Cost element accounting in SAP FICO ECC involves classifying and managing all costs and revenues based on cost elements.
21. What is the difference between internal orders and cost centers in SAP FICO ECC?
Ans: Cost centers represent departments or business units, while internal orders are used for specific projects or one-time activities.
22. How can you configure profit centers in SAP FICO ECC?
Ans: Profit centers are configured in SAP FICO ECC to analyze profit and loss for individual business segments within an organization.
23. How does SAP FICO ECC support financial planning and budgeting?
Ans: SAP FICO ECC offers functionalities for financial planning, budgeting, and forecasting to support effective financial management.
24. What are the key steps involved in accounts payable and accounts receivable processes in SAP FICO ECC?
Ans: Accounts payable process includes invoice verification, payment processing, and vendor management, while accounts receivable involves invoice creation, customer payment processing, and dunning.
25. How can you ensure compliance with regulatory requirements in SAP FICO ECC?
Ans: SAP FICO ECC provides features for statutory reporting, tax compliance, and audit trail, ensuring organizations adhere to regulatory requirements
