Financial Accounting (FI)
General
75. Explain ‘Financial Accounting (FI)’ in SAP.
The ‘FI (Financial Accounting)’ module of SAP is the back-bone, which records, collects, and
processes financial transactions or information on a real-time basis to provide the necessary inputs
for e...
SAP FI/CO: Questions and Answers
by V. Narayanan
Infinity Science Press LLC.. (c) 2008. Copying Prohibited.
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, i
Table of Contents
Financial Accounting (FI).................................................................................................................1
General..................................................................................................................................1
75. Explain ‘Financial Accounting (FI)’ in SAP.................................................................1
76. What are the ‘Submodules’ within FI?........................................................................1
77. Name the Submodules Within FI, from Which FI-GL Gets Simultaneous
Postings......................................................................................................................2
78. Name Three Distinct Characteristics of FI-GL...........................................................2
75. Explain ‘Financial Accounting (FI)’ in SAP.......................................................................2
76. What are the ‘Submodules’ within FI?.............................................................................2
77. Name the Submodules Within FI, from Which FI-GL Gets Simultaneous Postings.........3
78. Name Three Distinct Characteristics of FI-GL.................................................................3
Global and Enterprise Settings..............................................................................................4
79. What do You mean by ‘Organizational Units’ in SAP?...............................................4
80. What are the Important ‘Organizational Units’ in FI?.................................................4
81. What is a ‘Company’?................................................................................................5
82. What is a ‘Company Code,’ and how is this different from a ‘Company’?..................5
83. What are the Important ‘Global Settings’ for a Company Code?...............................7
84. Can You Assign more than One ‘Company Code’ to a ‘Company’?..........................7
85. What is a ‘Business Area’?........................................................................................7
86. Can You Attach a ‘Business Area’ to a Transaction?................................................8
87. How do You Post Cross-company Code Business Area postings?...........................9
88. What is the ‘Credit Control Area’ in SAP?..................................................................9
89. What is a ‘Chart of Accounts’?...................................................................................9
90. What are all the Major Components of a ‘Chart of Accounts’?..................................9
91. What is an ‘Operating Chart of Accounts’?..............................................................10
92. How does ‘Group Chart of Accounts’ Differ from ‘Operating Chart of Accounts’?...10
93. What is a ‘Country Chart of Accounts’? Why do You need This?............................10
94. Can one ‘Chart of Accounts’ be Assigned to Several Company Codes?.................10
95. What is a ‘Fiscal Year’ and ‘Fiscal Year Variant’?....................................................10
96. How do You Assign a ‘Fiscal Year Variant’ to a Company Code?...........................11
97. What is a ‘Posting Period’?......................................................................................12
98. How does the System Identify a ‘Posting Period’?...................................................12
99. What Happens when You Post to Year 2006 when You are in 2007?.....................12
100. What do You Mean by ‘Opening/Closing’ Posting Periods?..................................12
101. What is a ‘Posting Period Variant’?........................................................................13
102. Can You Selectively ‘Open’ and ‘Close’ accounts?...............................................13
103. Why is it not Possible to Post to a Customer A/C in a Previously Closed
‘Period’?....................................................................................................................13
104. Can You Open a ‘Posting Period’ only for a Particular User?................................13
105. What is a ‘Special Period’? When do You Use it?.................................................13
106. What is the Maximum Number of ‘Posting Periods’ in SAP?.................................14
107. What is a ‘Special Purpose Ledger’?.....................................................................14
108. What Variations are Possible when Defining a ‘Fiscal Year’?................................14
109. What is known as ‘Year Shift/Displacement’ in a Fiscal Year?..............................14
110. Can You have ‘non-Calendar’ Months as ‘Periods’ in a ‘non-Calendar’ Fiscal
Year?.........................................................................................................................15
111. What is a ‘Year-dependent’ Fiscal Year?...............................................................16
112. What Precautions should you Take while Defining a ‘Shortened Fiscal Year’?.....16
113. Tell me more about a ‘Shortened Fiscal Year.’......................................................16
114. How do You Open a new ‘Fiscal Year’ in the System?..........................................16
115. How do you ‘Carry-Forward’ Account Balances?...................................................16
116. Can You Explain how ‘Carry-Forward’ Happens in SAP?......................................16
117. Is there a Prerequisite for ‘Carry-Forward’ Activity?...............................................16
118. How many ‘Retained Earnings’ A/C can be Defined?............................................16
119. Can You have Multiple ‘Retained Earnings’ A/C?..................................................17
120. How do You Maintain ‘Currency’ in SAP?..............................................................17
121. What is a ‘Local Currency’?...................................................................................17
122. What is a ‘Parallel Currency’?................................................................................17
123. What is a ‘Group Currency’?..................................................................................17
124. What is the ‘Global Company Code Currency’?.....................................................17
125. What is an ‘Account Currency’?.............................................................................17
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Table of Contents
Financial Accounting (FI)
126. What are all the Prerequisites for Posting in a ‘Foreign Currency’?.......................18
127. How are ‘Exchange Rates’ Maintained in SAP?....................................................18
128. What is an ‘Exchange Rate Type’? List some of them...........................................18
129. What is known as the ‘Translation Factor’?...........................................................18
130. Is there an Easy Way to Maintain Exchange Rates in SAP?.................................18
131. What is known as an ‘Exchange Rate Spread’?....................................................19
132. Explain the use of ‘Direct’ or ‘Indirect Quotations.’.................................................19
133. Explain how ‘Taxes’ are Handled in SAP...............................................................19
134. How is Tax Calculated in SAP?.............................................................................20
135. Explain the Configurations Required for Taxes in SAP..........................................23
136. What is a (Tax) ‘Jurisdiction Code’?.......................................................................24
137. Tell me about the ‘Tax Reports’ in SAP.................................................................24
138. How is ‘Master Data’ different from ‘Transaction Data’?........................................25
139. Can You Post an A/C Document if the ‘Credit’ is not Equal to the ‘Debit’?............25
General Ledger Accounting.................................................................................................26
140. What is a ‘Document’ in SAP?...............................................................................26
141. What is a ‘Document Header’?..............................................................................26
142. What is a ‘Document Type’?..................................................................................27
143. How is ‘Account Type’ Connected to ‘Document Type’?.......................................27
144. What do You mean by ‘Net’ Postings’?..................................................................28
145. Explain the Various ‘Reference Methods.’.............................................................28
146. What is the ‘Document Change Rule’?..................................................................29
147. Differentiate between ‘Account Assignment Model,’ ‘Recurring Entries,’ and
‘Sample Document,’..................................................................................................29
148. What is a ‘Line Item’?.............................................................................................30
149. What is a ‘Posting Key’?........................................................................................31
150. Differentiate between the ‘Parking’ and the ‘Holding’ of Documents.....................31
151. What is an ‘Automatic Posting’?.............................................................................32
152. What is ‘Clearing’?.................................................................................................32
153. Explain ‘Reversal of Documents’ in SAP...............................................................32
154. Explain ‘True Reversal,’ How is it different from regular ‘Reversal’?.....................33
155. What is ‘Fast Entry’?..............................................................................................33
156. How do You Create ‘GL Account Master Data’?....................................................33
157. What is ‘Collective Processing’ of GL Accounts?...................................................34
158. What is ‘Individual Processing’ of GL Accounts?...................................................34
159. Is it Possible to Change an Existing B/S GL A/C to the P&L Type?......................35
160. Why doesn’t the System allow You to Change the ‘Tax Category’ in a GL A/C
Master?.....................................................................................................................36
161. What is an ‘Account Group’?..................................................................................36
162. Describe ‘Number Range Interval.’........................................................................37
163. What is a ‘Screen Layout’?....................................................................................39
164. What is a ‘Field Status Group’?..............................................................................40
165. What do You mean by ‘Balances in Local Currency’ Only?...................................41
166. What is ‘Line Item Display’?...................................................................................41
167. What is ‘Archiving’? How does it differ from ‘Deletion’?.........................................41
168. Tell me the Two uses of ‘Blocking’ an Account.....................................................42
169. How do You Configure the GL A/C for the ‘House Bank’?.....................................42
170. What is an ‘Intermediate Bank’?............................................................................42
171. Explain ‘Intercompany Postings.’...........................................................................42
172. How can You Manually ‘Clear’ ‘Open Items’? When?............................................43
173. How do You Perform ‘Period Closing’ in SAP?......................................................43
174. What is ‘Pre-closing’?.............................................................................................44
175. Explain ‘Financial Closing.’....................................................................................44
176. What is a ‘Financial Statement Version’?...............................................................45
177. What Items are Required in a ‘Financial Statement Version’?...............................46
178. How do You Ensure ‘Correct’ Balances in the ‘Financial Statement Version’?......47
179. How do You Perform ‘Annual Closing’ in SAP?.....................................................47
180. Explain ‘Managerial Closing.’.................................................................................47
181. What is the ‘New FI-GL’ in FI in ECC?...................................................................48
Accounts Receivable...........................................................................................................49
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Financial Accounting (FI)
182. Explain ‘Customer/Vendor Master Records.’.........................................................49
183. Who is an ‘Alternate Payee’?.................................................................................54
184. What is the ‘Trading Partner’ concept?..................................................................55
185. Explain ‘Tolerance’ in Transaction Processing......................................................55
186. What is ‘Dual Control’ in Master Records?............................................................57
187. What is a ‘Bank Director’ in SAP?..........................................................................58
188. What is a ‘House Bank’?........................................................................................58
189. Explain a ‘Sales Cycle’ in SAP...............................................................................59
190. Explain ‘Automatic Account Assignment’ in SD....................................................61
191. Explain ‘Revenue Account Determination’ in SD...................................................62
192. Outline ‘Credit Management’ in SAP......................................................................63
193. What is a ‘Credit Check?........................................................................................65
194. Differentiate ‘Static Credit Check’ from ‘Dynamic Check.’.....................................65
195. List the Reports in ‘Credit Management.’...............................................................66
196. How does ‘Partial Payment’ differ from ‘Residual Payment’?................................66
197. What is ‘Payment Advice’?.....................................................................................67
198. Describe ‘Lockbox’ Processing..............................................................................67
199. How can ‘Reason Codes’ Help with Incoming Payment Processing?...................67
200. What is ‘Dunning’ in SAP?.....................................................................................67
201. What is a ‘Dunning Procedure’?.............................................................................68
202. What is the ‘Dunning Area’?...................................................................................70
203. Describe the ‘Dunning’ Process.............................................................................70
204. Can you ‘dun’ customers across ‘Clients’ in a Single ‘Dunning Run’?...................72
205. What differentiates one ‘Dunning Level’ from Another?.........................................72
206. How many ‘Dunning Levels’ can be Defined?........................................................73
Accounts Payables..............................................................................................................73
207. Explain the ‘Account Payables’ Submodule...........................................................73
208. What Documents Result from ‘Procurement Processes’?.....................................73
209. Describe a ‘Purchase Cycle.’.................................................................................73
210. What is a ‘Purchase Requisition’ (PR)?.................................................................74
211. What is a ‘Request for Quotation’ (RFQ)?.............................................................74
212. What is an ‘Outline Agreement’?............................................................................74
213. What is a ‘Contract’?..............................................................................................74
214. What is a ‘Release Order’?....................................................................................75
215. What is a ‘Scheduling Agreement’?.......................................................................75
216. What is a ‘Quotation?.............................................................................................75
217. What is a ‘Purchase Order’ (PO)?..........................................................................75
218. What is a ‘PO History’?..........................................................................................75
219. Will the FI Document be Created with the Purchase Order (PO)?.........................75
220. Explain FI-MM Integration......................................................................................75
221. What Happens, in SAP, when You Post a ‘Goods Receipt’?.................................77
222. Explain ‘Invoice Verification’ (IV) in SAP................................................................78
223. How do You Deal with ‘Tax’ when You Post an Invoice?.......................................78
224. What ‘Variances’ do You come Across in Invoice Verification?.............................79
225. Outline ‘Vendor Payments’ in the SAP System......................................................79
226. Explain ‘Automatic Payment Program.’..................................................................79
227. Explain ‘Automatic Payment Program’ Configuration............................................80
228. How do You Execute an ‘Automatic Payment Program’?......................................84
229. Can You Pay a Vendor in a Currency Other than the Invoice Currency?..............86
230. What is a ‘Payment Block’?....................................................................................86
231. How do You Release ‘Blocked Invoices for Payments’?........................................86
232. What is the ‘Account Assignment Category’?........................................................86
233. What is a ‘Credit Memo’?.......................................................................................87
234. What are ‘Special GL Transactions’?.....................................................................87
235. Differentiate ‘Free Offsetting Entry’ from a ‘Statistical Posting.’.............................88
236. What is a ‘Noted Item’............................................................................................88
Asset Accounting.................................................................................................................89
237. Explain ‘Asset Accounting’ (FI-AA)........................................................................89
238. What is a ‘Lean Implementation’ in FI-AA?............................................................90
239. What are the kinds of ‘Assets’ in SAP?..................................................................91
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