SAP FICO stands for FI (Financial Accounting) and CO (controlling). In SAP FICO, SAP FI take cares about accounting, preparation of financial statements, tax computations etc., while SAP CO take cares of inter orders, cost sheet, inventory sheet, cost allocations etc. It is the software that stores data, and also computes them and retrieves the result based on the current marketing scenario. SAP FICO prevents data lost and also does the verification and reporting of data.

Explain what is posting key and what does it control?

In order to determine the transaction type which is entered in the line item, a two-digit numerical is used known as ‘Posting Key’

Posting key determines

a) Account Types
b) Types of posting. Debit or Credit
c) Field status of transaction

What is the company code in SAP?

To generate financial statements like Profit and Loss statement, Balance sheets etc. company code is used.

How many Charts of Accounts can company code have?

You can have one Chart of Account for one company code which is assigned.

For a Company Code how many currencies can be configured?

There are three currencies that can be configured for a Company code, one is a local currency and two are the parallel currencies.

What is year dependent fiscal year variant?

In a year dependent fiscal year variant, the number of days in a month is not as per the calendar month. For example, in year 2005, month January end on 29^th, month Feb ends on 26^th etc.

In SAP how input and output taxes are taken care?

For each country tax procedure is defined, and tax codes are defined within this. There is a flexibility to either expense out the Tax amounts or capitalize the same to stocks.

Explain what is validations and substitutions in SAP?

For each functional area in SAP Validation or Substitution is defined eg, Assets, Controlling etc. at the following levels

a) Document Level
b) Line-item Level

What is a field status group?

‘Field status groups’ control the fields which come up when the user does the transactions. In FIGL (Financial General Ledger) master, the field status group is stored.

What is FI-GL (Financial- General Ledger) Accounting does?

To get an overview of external Accounting and accounts, G L (General Ledger) Accounting is used. It does the recording of all business transactions incorporated with all other operational areas in a software system and also ensures that the accounting data is always complete and accurate.

What is the default exchange rate type which is picked up for all SAP transactions?

For all SAP transaction, the default exchange rate is M (Average Rate).

What are the methods by which vendor invoice payments can be made?

a) Manual payment without the use of any output medium like cheques etc.
b) Automatic payments like DME (Data Medium Exchange), cheques, Wire transfer

What is the importance of GR/IR (Good Received/ Invoice Received) clearing account?

GR/IR (Good Received/ Invoice Received) is an interim account. In the legacy system, if the goods are received and the invoice is not received, the provision is made, in SAP at the goods receipt. It passes the accounting entry debiting the Inventory and crediting the GR/IR account. Similarly, when an invoice is received the vendor account is credited, and the GR/IR account is debited, the GR/IR will show as an un-cleared item till the time the invoice is not received.

What is parallel and local currency in SAP?

Each company code can have two additional currencies, in addition to the company code, currency entered to the company code data. The currency entered in the company code creation is called local currency and the other two additional currencies are called parallel currencies. Parallel Currencies can be used in foreign business transactions. In order to do international transaction, parallel currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD CURRENCY.

What is the importance of asset classes? What asset classes are there?

The asset class is the main class to classify assets. Every asset must be assigned to only one asset class. Example of asset class is Furniture & Fixtures, Plant & Machinery, and Computers etc. The asset class also contains G1 account, when any asset is procured, G1 account is debited. Whenever you create and asset master, it becomes mandatory to mention the assets class for which you are creating the required assets. So, whenever any asset transaction occurs, the G1 account attached to the asset class is automatically picked up and the entry is passed. You can also specify the default values for calculating the depreciation values and other master data in each asset class.

How capital WIP (Work in Process) and Assets accounted for in SAP?

‘Capital WIP’ is referred to as Assets under construction in SAP and is represented under specific asset class. Depreciation is not charged under ‘Capital WIP’ usually. The cost incurred on building a capital asset can be booked to an ‘internal order’ and through the settlement procedures, and can be posted onto an ‘Asset Under Construction’.

What are the major components of Chart of Accounts?

The major components of Chart of Accounts are:

a) Chart of account key
b) Name
c) Maintain Language
d) Length GL account number
e) Controlling Integration
f) Consolidation-Group chart of accounts
g) Block indicator

How can you create Credit Control Area in SAP?

By using transaction code OB45 or path you can create Credit Control Area in SAP

SPRO> enterprise structure >maintain structure>definition>financial accounting>maintain credit control area and then enter the following description

a) Update
b) Name of the credit control area in SAP
c) Currency
d) Description
e) Credit Limit
f) Risk Category
g) Fiscal Variant
h) Rep group

What is posting period variants?

In fiscal year posting period is a period for which the transactions figures are updated. The posting period variants in SAP is accountable to control which Accounting period is open for posting and ensures that the closed periods remain balanced.

What is short-end fiscal year?

A short-end fiscal year results when you change from a normal fiscal year to a non-calendar fiscal year, or other way around. This type of change happens when an enterprise becomes part of a new co-corporate group.

What is an account group and where it is used?

To control the data that needs to be entered at the time of the creation of a master record an account group is used. Account group exist for the definition of GL account, Customer Master and Vendor.

What is the purpose of “Document type” in SAP?

The purpose of ” Document type” in SAP is

a) Number range for documents are defined by it
b) Types of accounts that can be posted are controlled by it, e.g. Assets, Vendor, Customer, Normal GL account
c) It is used for the reversal of entries

In SAP, Customer and Vendor code are stored at what level?

The Vendor and Customer codes are stored at the client level. It means that by extending the company code view any company code can use the customer and vendor code.

How are tolerances for invoice verification defined?

Tolerance determines whether the payable places matching or tax hold on the invoice. The following are the instances of tolerance can be defined for Logistic Invoice Verification.

a) Small differences
b) Moving average price variances
c) Quantity variances
d) Price variances

What is a country Chart of Accounts?

Country Chart of Accounts contains G/L (General Ledger) accounts needed to meet the country’s legal requirements.

What is APP in SAP Fico?

APP stands for ‘Automatic Payment Program’; it is a tool provided by SAP to companies to pay its vendors and customers. APP tools help to avoid any mistakes taken place in posting manually. Also, when number of employees is more in the company, payment through APP becomes more feasible.

In SAP FICO what are the terms of payment and where are they stored?

Payment terms are created in the configuration and determine the payment due date for vendor/customer invoice.

They are stored on the customer or vendor master record and are pulled through onto the customer/vendor invoice postings. The due date can be changed on each individual invoice if required.

What are one-time vendors?

In certain companies, especially the one dealing with high cash transactions, it is not practical to create new master records for every vendor trading partner. One time vendors allows a dummy vendor code to be used on invoice entry and also the information which is usually stored in the vendor master.

In Accounts Receivable, what is the difference between the ‘Residual Payment’ and ‘Part Payment’ methods of allocating cash?

‘Residual payment’ and ‘Part payment’ are the two methods for allocating partial methods from customers. For example, an invoice for $100 is generated, customer has paid $70. Now this $70 will be off-set and leaving the remaining balance $30. With residual payment, the invoice is cleared for the full value of $100 and a new invoice is generated for the remaining balances $30.

What is “dunning” in SAP?

‘Dunning’ is the process by which payment chasing letters are issued to customers. SAP can determine which customers should receive the letters and for which overdue items. Different letters can be printed in SAP depending on the overdue payment date, with a simple reminder. With the help of dunning level on the customer master, we can know which letter has been issued to the customer.

What is the purpose of the account type field in the GL (General Ledger) master record?

At the end of the year, profit and loss accounts are cleared down to the retained earnings balance sheets account. The field contains an indicator which is linked to a specific GL (General Ledger) accounts to use in this clear down.

Explain what is recurring entries and why are they used?

Recurring entries can eliminate the need for the manual posting of accounting documents which do not change from month to month. For example, an expense document can be generated which can be scheduled for the last days of each month or whenever an individual wants it. Usually, multiple recurring entries are created at one go and then processed all together as a batch month end using transaction.

What are the statistical internal orders?

Statistical internal orders are dummy cost objects used for reporting and analysis purposes. It must be posted to in conjunction with a real object such as a cost center.

For what purposes internal orders can be used?

You can use internal orders for

a) Overhead Orders: It monitors internal jobs settled to cost centers
b) Investment Orders: It monitors internal jobs settled to fixed assets
c) Accrual Orders: Offsetting posting of accrued costs calculated in CO
d) Orders with Revenue: It display the cost controlling parts of Sales and Distribution, it does not affect the core business of the company

List the key features of the SAP Simple Finance?

The following are some of the available key features of the SAP Simple Finance:
Financial Planning and Analysis
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.
Finance and Accounting
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.
Financial Risk Management
With the benefit of Predictive Analysis, companies can determine the risks present in the processes of the Finance at the initial stage itself and take steps to solve them. It is effortless to determine the best feasible investment rates regarding the market standards.
Compliance and Risk Management
With the strong financial approach, it is effortless to avoid unauthorized access to important data in the enterprise. It is simple to identify abuse as well as fraud. The companies can able to balance the risk involved in entire financial processes.

What is a ‘Value Field’ in the CO-PA module?

Value fields are number or value related fields in profitability analysis such as quantity, sales revenue, discount value etc.

State the main difference between the migration to SAP S/4HANA On-Premise and migration to SAP S/4 Finance?

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.

How is Account Type related to Document type?

We can differentiate the document type with a 2-character code like DG and so on but an account type is designated by a single character code like D and so on. Specifying which debts, a unique file can be posted to. The frequent account sorts include:

A Assets
D Customer (Debtor)
K Vendor (Creditor)
M Materials
S GL

How is the SQL statement executed?

In the database of the HANA, each SQL query statement is executed with the transaction reference. For each new transaction, a new session is allotted.

What is the difference between logistics and transport?

The difference between logistics and transport is:
Logistics: Logistics is referred to as the procedure of managing goods, resources, and information from the source to the consumers in a manner that it fits the requirements of both parties.
Transportation: Transport is the movement of the goods from one point to the other. It is considered as part of logistics.

What are the various components of Sap Hana?

SAP HANA DB
SAP HANA Appliance
SAP HANA Studio
SAP HANA Application cloud

What are field status groups?

Field status groups control the additional account assignments and other fields that can be posted at the line-item level for a G/L account.

What are the various Compression Techniques Available?

There are three kinds of Compression Techniques on hand they are –

Cluster encoding
Run-length encoding
Dictionary encoding

What is deferred tax liability and what is the purpose?

A deferred tax liability is simply contrary to a deferred tax asset. The deferred tax liability occurs when a tax price said on the earnings statement is not paid to the IRS in the course of the same length it is recognized–it’s paid at a future date. When there are differences in depreciation price between ebook reporting (GAAP) and IRS reporting Deferred tax liabilities can end result which leads to variations profits as reflected on a company’s earnings assertion versus what’s suggested to the IRS–and which results in lower taxes payable to the IRS (in the quick run).

What is the Document alternate Rule?

The principal document of SAP doesn’t allow changing the relevant fields as soon as a file is posted; any adjustments can only be completed via Reversal or extra postings. currency, employer code, business area, amount, account number, posting key, etc., are few such fields can by no means be modified once the document is posted. However, SAP approves changing some of the fields in the line objects such as charge method, charge block, residence bank, dunning level, dunning block, etc. These can be modified file by means of file or by using the usage of mass alternate for a range of archives in a single step. The modifications to grasp information are tracked and stored per person for an audit trail.

Why do two agencies merge?

To gain cost savings, obtain new technology, enter new markets, remove a competitor, and because it’s “accretive” to financial metrics. Learn greater about accretion in M&A.

Explain groupings and levels.

Groupings determine how to summarize the data, with quite a number of groups and degrees defined. A Group adds up a variety of financial institution debts and includes a variety of levels. A Level, thus, denotes the sources of data or account transactions. Below the degrees are the line items, which are displayed the usage of a listing display.

What makes a desirable Financial Model?

It’s important to have robust monetary modeling fundamentals. Wherever viable model assumptions (inputs) need to be in one location and incredibly colored (typically financial institution fashions use a blue font for mannequin inputs). Good Excel fashions also make it convenient for users to understand how inputs are translated into outputs. Good Excel models additionally include error tests to ensure the mannequin is working efficaciously (e.g. the balance sheet balances, the money glide calculations are correct, etc.). They contain ample detail, but no longer too much, and they have a dashboard that sincerely shows the key outputs with charts and graphs. For more, take a look at out our complete guide to financial modeling.

What are shortened fiscal year? When are they used?

Shortened Fiscal Year: a financial year, which has less than 12 periods.

When should a company consider issuing debt instead of equity?

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.

Explain what is a capacity requirement planning?

It is a process for determining the quantity of machine and manual labor resources necessary to assemble a production.

Explain Groupings and Levels?

Groupings determine how to summarize the data, with various groups and levels defined. A Group adds up various bank accounts and contains a number of levels. A-Level, thus, denotes the sources of data or account transactions. Below the levels are the line items, which are displayed using a list display.

What is a Document Type?

SAP comes delivered with a number of Document Types, which are used in various postings. The document type helps to classify an accounting transaction within the system and is used to control the entire transaction and determine the account types a particular document type can post to.
For example, the document type AB allows you to post to all the accounts, whereas type DZ allows you to post only the customer payments. Every document type is assigned a number range.
The common document types include:

AA — Asset posting
• KG — Vendor credit memo
• AB —Accounting document
• KN — Net vendors
• AF — Depreciation postings
• KR — Vendor invoice
• DG — Customer credit memo
• KZ — Vendor payment
• DR — Customer invoice
• KG — Vendor credit memo
• DZ — Customer payment
• SA — GL account document
• X1 — Recurring entry doc.
• X2 —Sample document

What is Modeling Studio?

In SAP Simple Finance, a modeling studio performs several tasks.

Some of them are included in the following:

Handle Data Services in order to enter the data from the SAP Business Warehouse
States, which tables are placed in HANA, the initial thing is to receive metadata and then program data replication tasks.
Utilize Data services for modeling
Handle ERP requests connection
Perform modeling

How does S relate to Simple Finance driven by SAP?

The solution of SAP Simple Finance marked the initial step in the customer’s road map of. The solution has verified the assets of instant vision in Finance and simplification like no indexes, no redundancies, and no aggregates. SAP HANA On-Premise edition influences the entire scope of the SAP Accounting driven by SAP HANA comprised in SAP Simple Finance. In addition, the cloud edition of the S/4HANA is also intended to provide a similar scope.

Narrate the useful details of SAP Simple Finance?

With this strategy and having the benefit of a high-performance feature of the HANA, the SAP software company made its finances as well as next range control module by releasing “Simple Finance” (Finco – in short) with the SAP S/4 HANA. By launching this platform, SAP eliminates some of the inconveniences with the traditional FICO module. It also comprises some influential new features.

Accounting, Is It Mandatory to Have A New Asset Accounting?

In Asset Accounting, in case there is no data that refers to both customizing and transactional data that have to be shifted, in such a situation there is no mandatory for doing the migration steps in the Asset Accounting.

If the customer decided to use the Asset Accounting in their new asset accounting later, then they can set up the personalizing in the IMG.

What Is the Basic Difference Between the New S/4hana Product Code Line and The Sap Business Unit Code Line?

The development process of the S/4HANA is to remove entire artifacts, which have been announced as workarounds of performance for traditional row-based RDBMS. Further, these are groups and programmed indexes, which included no value and offered rapid access to data and sums.

When it comes to the downside, these make compilation in the applications as well as difficulty in how to prevent the system to avoid incompatible updates in the groups. In addition, there is a need to develop significant code for the lengthy “Extract Transform Load” (ETL) setups including data preparation as well as exception handling routines initiated by latency.

With S/4HANA, these various kinds of workaround on limitation depends on the technical restriction are no longer needed, as the current details, as well as the time it takes to travel from the store, can be read immediately across entire inserts and updates. Hence, it removes the requirement for any kind of issues of the aggregates and index.

Tell me about financial transformation with SAP Simple Finance?

Transforming financial management with the ultimate sophistication: simplicity. As part of SAP S /4 HANA, a suite of new businesses, the next generation, SAP Finance Simple Powered by SAP HANA solution is designed to provide strategic value with Live Preview in finance – all via a customized user experience simple.

Use a common view of all the information in finance to ensure consistency across the enterprise
Combine prediction, simulation, and analysis to identify the best strategic options for the company
Giving users instant, personalized insight to encourage more timely and relevant financial decisions
Driving massive simplification of the computer with an architecture which suppresses replication and aggregates
Get a choice of deployment – cloud, on-site hybrid – to reduce IT costs. (SAP HANA Online Training)

Can you explain a little more how the secondary cost element is merged with GL? How are the GL accounts segregated for activity types, OH, etc.?

During migration, a G/L account will be created automatically for every secondary cost element and fields such as cost element category transferred from the cost element. The segregation of the secondary cost elements takes place via the cost element category (assessment, settlement, activity allocation, overhead calculation, etc).

Which statement would I use and why?

Cash is king. The cash flow statement gives a true picture of how much cash the company is generating. Ironically, it often gets the least attention. You can probably pick a different answer for this question, but you have to have a good justification (i.e. the balance sheet because assets are the true driver of cash flow etc etc.).

If it were up to you, what would the budgeting process look like?

This is somewhat subjective. In my opinion, a good budget is one that has buy-in from all departments in the company, is realistic yet strives for achievement, has been risk-adjusted to allow for a margin of error, and is tied to the company’s overall strategic plan. In order to achieve this, the budget needs to be an iterative process that includes all departments. It can be zero-based (starting from scratch each time) or building off the previous year, but it depends what type of business you’re running as to which is better. It’s important to have a good budgeting/planning calendar that everyone can follow. This is an important part of how to be a world-class financial analyst.

How do you record PP&E and why is this important?

There are essentially 4 areas to consider when accounting for Property, Plant & Equipment (PP&E) on the balance sheet: initial purchase, depreciation, additions (capital expenditures), and dispositions. In addition to these four, you may also have to consider revaluation. For many businesses, PP&E is the main capital asset that generates revenue, profitability and cash flow.

How does an inventory write-down affect the three statements?

This is a classic finance interview question. On the balance sheet, the asset account of Inventory is reduced by the amount of the write-down, and so is shareholders’ equity. The income statement is hit with an expense in either COGS or a separate line item for the amount of the write-down, reducing net income. On the cash flow statement, the write-down is added back to Cash from Operations (CFO) as it’s a non-cash expense (but must not be double-counted in the changes of non-cash working capital). Read more about an inventory write-down.

Why would two companies merge? What major factors drive mergers and acquisitions?

There are many reasons: to achieve synergies (cost savings), enter new markets, gain new technology, eliminate a competitor, and because it’s “accretive” to financial metrics. Learn more about accretion in M&A.

[Note: Social reasons are important too, but you have to be careful about mentioning them depending on who you’re interviewing with. These include ego, empire-building, and to justify higher executive compensation.]

Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?

Capital expenditures are capitalized because of the timing of their estimated benefits – the lemonade stand will benefit the firm for many years. The employees’ work, on the other hand, benefits the period in which the wages are generated only and should be expensed then. This is what differentiates an asset from an expense.

Walk me through a cash flow statement?

Start with net income, go line by line through major adjustments (depreciation, changes in working capital and deferred taxes) to arrive at cash flows from operating activities.

Mention capital expenditures, asset sales, purchase of intangible assets, and purchase/sale of investment securities to arrive at cash flow from investing activities.
Mention repurchase/issuance of debt and equity and paying out dividends to arrive at cash flow from financing activities.
Adding cash flows from operations, cash flows from investments, and cash flows from financing get you to a total change of cash.
Beginning-of-period cash balance plus the change in cash allows you to arrive at end-of-period cash balance.

How is the income statement linked to the balance sheet?

Net income flows into retained earnings.

What is a deferred tax asset and why might one be created?

Deferred tax asset arises when a company actually pays more in taxes to the IRS than they show as an expense on their income statement in a reporting period.

Differences in revenue recognition, expense recognition (such as warranty expense), and net operating losses (NOLs) can create deferred tax assets.

What is the Document Change Rule?

The functionality Document Change Rules configured in the system maintains the information relating to what fields can be changed? and under what circumstances? As you are already aware, SAPs document principle does not allow changing the relevant fields once a document is posted; any changes can only be achieved through Reversal or additional postings. Fields such as company code, business area, account number, posting key, amount, currency, etc., can never be changed once the document is posted. However, SAP allows changing some of the fields in the line items such as payment method, payment block, house bank, dunning level, dunning block, etc. These can be changed document by document or by using mass change for a number of documents in a single step. The changes to master data are tracked and stored per user for an audit trail.

What is the Transport Request?

Transport Requests (TRS) – is a kind of ‘Container / Collection’ of changes that are made in the development system. It also records the information regarding the type of change, the purpose of transport, request category and the target system. It is also known as Change Requests.

Why do capital expenditures increase an organization’s assets (PP&E), while other expenditures, like paying taxes, employee salaries, utility bills, etc. do not increase an organization’s asset base, but instead show up as expenses on the income statement that reduce equity via retained earnings?

Unlike general expenses that provide benefit over a short period time (i.e., employee’s work, taxes, etc.), capital expenditures provide benefit over a longer period of time. Due to the duration of their estimated benefit–usually, several years–capital expenditures are capitalized on the balance sheet, where shorter-term expenditures are expensed on the income statement. This is the difference between an asset and an expense.

Explain to me what a cash flow statement is and how it works.

You’ll want to start with net income and then proceed line by line through the major adjustments (depreciation, deferred taxes, and working capital changes) required to arrive at cash flow from operations. In your explanation you’ll also want to mention the following:

Capital expenditures, purchase of intangible assets, sale of real assets, and purchase/sale of investment securities to find cash flow generated from investing activies.
Issuance/repurchase of debt, sale of equity, and payment of dividends to find cash flow from financing activities.
Adding the cash flows from operating, investing and financing activities your ability to come up with the total change in cash.
By taking the cash balance at the beginning of the period and adjusting it for the total change in cash you arrive at the cash balance at the end of the period.

Why are increases in accounts receivable a cash reduction on the cash flow statement?

Net income has to be adjusted to reflect an increase in accounts receivable since the company never actually received the funds. As the cash flow statement begins with net income, it shows a cash reduction what accounts received increases.

What is a deferred tax asset and what is its purpose?

A deferred tax asset (as its name suggests) is when a company pays more in taxes to the IRS than they actually owe (as shown as an expense on their income statement). This is an asset because it can be used to offset future tax expense in the future. Deferred tax assets can result from differences in revenue recognition, expense recognition, and net operating losses.

Brief helpful information about SAP Simple Finance?

SAP Financial and Controlling module (one of the center modules of SAP from its R/2 days) is a genuinely develop offering with amazing width and profundity.
SAP Simple Finance gives intense in-memory-reporting that takes out the limit between(B/W) controlling and money related reporting, incorporating arranging capacities and improving liquidity examination. PWC can bolster the execution of SAP Simple Finance to Finance work turn into a genuine business accomplice.
Outline of SAP Simple Finance 2.0
Design of Simple Finance

Do regardless you have the quantity of attributes restriction to 50 in COPA?

A portion of the interfaces in CO-PA still watch that you are not sending more than 50 qualities, so SAP still suggests that you constrain your working worry to 50 attributes. All things considered since each of the qualities turns into a field in the all-inclusive diary when you come to assemble reports you can utilize ascribe perspectives to decide extra fields, for instance, the material.

What is the difference between company and company code?

A company is an organizational unit used in the legal consolidation
module to roll up financial statements of several company codes.
The Company Code is the smallest organizational! unit for which a
completely self-contained set of accounts can be drawn up for purposes of
external reporting.

How Does S/4hana Relate to Simple Finance Driven by Sap Hana?

The solution of SAP Simple Finance marked the initial step in the customer’s road map of SAP S/4HANA. The solution has verified the assets of instant vision in Finance and simplification like no indexes, no redundancies, and no aggregates. SAP HANA On-Premise edition influences the entire scope of the SAP Accounting driven by SAP HANA comprised in SAP Simple Finance. In addition, the cloud edition of the S/4HANA is also intended to provide a similar scope.

Explain what is activity-based costing?

It is a method which helps in the breakdown of the costs into specific activities in order to the maintenance of accuracy in the distribution of costs in product costing.

What are substitutions and validations? What is the precedent?

Validations are used to check settings and return a message if the prerequisite check condition is met.
Substitutions are similar to validations; they actually replace and
fill in field values behind the scenes without the user’s knowledge, unlike validations that create on-screen msgs to the user.

State the ways of Migration from SAP to Simple Finance?

Here are some of the ways that state how the companies can migrate from SAP conventional FICO module to Simple Finance (that is SFINE 2.0).

Those who are on New GL are capable of migrating directly to Simple Finance.
Those who are on typical GL need to migrate to New GL first and then migrate to Simple Finance.
This kind of migration occurs only with SPRO and doesn’t require technical assistance. This migration is different from the central component of Finance that supports with moving data distributed Enterprise Resource Planning landscape and non–SAP Enterprise Resource Planning, utilizing SLT.

What is SAP S/4 HANA?

SAP S/4HANA, short for SAP Business Suite 4 SAP HANA, is SAP’s next-generation business suite. It is a new product fully built on the most advanced in-memory platform today–SAP HANA–and modern design principles with the SAP Fiori user experience (UX). SAP S/4HANA delivers massive simplifications (customer adoption, data model, user experience, decision making, business processes, and models) and innovations (Internet of Things, Big Data, business networks, and mobile-first) to help businesses run simple in a digital and networked economy.

What are the deployment options offered?

SAP currently plans to offer on-premise, cloud (public and managed), and hybrid deployments to give real choice to customers. SAP S/4HANA also gives customers the option to fully leverage the new HANA multi-tenancy functionality as provided by the SAP HANA platform (currently support package 9) for the cloud.

How does SAP S/4HANA relate to SAP Simple Finance powered by SAP HANA?

The SAP Simple Finance solution marked the first step in our SAP S/4 HANA road map for customers. The solution has demonstrated the value of simplification (for example, no indexes, no aggregates, and no redundancies) and instant insight in Finance. SAP S/4HANA, on-premise edition leverages the full scope of SAP Accounting powered by SAP HANA included in SAP Simple Finance. SAP S/4HANA, managed cloud edition is intended to leverage the same scope. SAP S/4HANA, public cloud edition is planned to focus on a selected scope of SAP Simple Finance in alignment with the key requirements in finance.

What is the benefit to the data model for using an in-memory platform?

SAP S/4HANA delivers high-volume transaction processing (OLTP) and high volume real-time analytical processes (OLAP) based on a unified data model without the redundant data layers typically required by traditional RDBMS based systems. This reduces TCO while providing new opportunities to increase business value from existing investments. Examples for redundant data layers are custom-built layers based on database tuning efforts such as secondary indexes, or application built-in performance accelerators such as aggregate tables or multiple general ledger versions for different managerial reporting needs.

The massive simplifications of the data model and the data processing layers enable business and technological innovations on a broad scale across all lines-of-business and industry solutions. The new application architecture simplifies system landscape architectures and accelerates cloud deployments on an economical scale.

Explain the Role of The Transaction Manager?

The Transaction Manager is responsible for coordinating the transactions in databases and maintains a record of running as well as closed transactions. When the transaction committed or rolled back, the Transaction Manager informs the concerned storage engines regarding the event. Hence, they can run required actions.

What Is Modeling Studio?

In SAP Simple Finance, a modeling studio performs several tasks.

Some of them are included in the following:

Handle Data Services in order to enter the data from the SAP Business Warehouse
States, which tables are placed in HANA, the initial thing is to receive metadata and then program data replication tasks.
Utilize Data services for modeling
Handle ERP requests connection
Perform modeling in HANA

How Does S/4hana Relate To Simple Finance Driven By Sap Hana?

What Are the Main Advantages That Attract Customers to Migrate to Sap S/4hana?

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 the 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 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 the batch processing.

Business users can receive a vision of any kind of data from anywhere, including execution, planning, simulation, and prediction.

Let us explore the benefit of Simple Finance in the view of IT value:

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 simple 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 customer by modeling the system.

Enterprise gain opportunity of deployment such as On-Premise, Cloud, and Hybrid to power rapid time-to-value.

What Are the Various Compression Techniques Available?

There are three compression techniques and they are as follows:

Cluster encoding
Run-length encoding
Dictionary encoding

In Sap Simple Finance, Even in Case the Client Never Uses the Asset Accounting, Is It Mandatory to Have A New Asset Accounting?

In Asset Accounting, in case there is no data that refers to the both customizing and transactional data that have to be shifted, in such a situation there is no mandatory for doing the migration steps in the Asset Accounting.

If the customer decided to use the Asset Accounting in their new asset accounting later, then they can set up the personalizing in the IMG.

How Is the Sql Statement Executed?

In the database of the HANA, each SQL query statement is executed with the transaction reference. For each new transaction, a new session is allotted.

What Are the Various Components of Sap Hana?

SAP HANA DB
SAP HANA Appliance
SAP HANA Studio
SAP HANA Application cloud

List the Key Features of The Sap Simple Finance?

The following are some of the available key features of the SAP Simple Finance:

Financial Planning and Analysis:

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.

Finance and Accounting:

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.

Financial Risk Management:

With the benefit of Predictive Analysis, companies can determine the risks present in the processes of the Finance at the initial stage itself and take steps to solve them. It is effortless to determine the best feasible investment rates regarding the market standards.

What are the other modules to which ‘Financial Accounting’ is integrated?

The other modules to which ‘Financial Accounting’ is integrated are

a) Sales and Distribution
b) Material Management
c) Human Resource
d) Production Planning
e) Controlling of financial transaction

In SAP FI what are the organizational elements?

The organizational elements in SAP FI are:

a) Company Code
b) Business Area
c) Chart of Account
d) Functional Area

What are the options in SAP for Fiscal years?

Fiscal year in SAP is the way financial data is stored in the system. In SAP, you have 12 periods and four special periods. These periods are stored in fiscal year variant that is:

a) Calendar Year: From Jan-Dec, April-March
b) Year dependent fiscal year

What is a ‘year shift’ in SAP calendar?

SAP system does not know what is broken fiscal year e.g. April 2012 to March 2013 and only understand the calendar year. If, for any business, the fiscal year is not a calendar year but the combination of the different months of two different calendar year and then one of the calendar year has to classified as a fiscal year for SAP and the month falling in another year has to be adjusted into the fiscal year by shifting the year by using the sign -1 or +1. This shift in the year is known as ‘year shift’.

Example: April 2012 to Dec 2012 is our first calendar year, and Jan 2013 to March 2013 is our second year, now if you are taking April-12 to Dec-12 as your fiscal year, then Jan-13 to March-13 automatically becomes the second year, and you have to adjust this year by using -1 shift, and vice versa if the scenario is reversed, here you will use +1 shift.

What are the application areas that use validation and substitutions?

a) FI- Financial accounting
b) CO-Cost accounting
c) AM-Asset accounting
d) GL-Special purpose ledger
e) CS-Consolidation
f) PS-Project system
g) RE-Real estate
h) PC-Profit center accounting

In SAP what is the use of FSV (Financial Statement Version)?

FSV (Financial Statement Version) is a reporting tool. It can be used to extract final accounts from SAP like Profit and Loss Account and Balance Sheet. The multiple FSV’s can be used for generating the output of various external agencies like Banks and other statutory authorities.

What are the problems when business area is configured?

The problem faced when a business area is configured, is splitting of account balance which is more pertinent in the case of tax accounts.

For document clearing what are the customizing prerequisites?

The customizing pre-requisite for document clearing is to check the items cleared and uncleared, and this is done by open item management. Open item management manages your outstanding account, i.e account payable and account receivable. For instance, an invoice item that has not yet been paid is recorded as open account until it is paid.

Where can you use the internal order?

To track the cost, internal orders are used; they are proposed to be incurred over on a short-term basis.

Is it possible to calculate depreciation to the day?

Yes, it is possible to calculate depreciation, to do that you have to switch on the indicator Dep. to the day in the depreciation key configuration.

In Asset Accounting what is the organizational assignments?

In Asset Accounting, chart of depreciation is rated as the highest node, and this is assigned to the company node. All the depreciation calculations are stored under the chart of depreciation.

What is credit control area in SAP?

To immune your company from the risk of bad debts and multiple outstanding receivables, you can set a credit limit for your customer by using credit control area in SAP. With the help of SAP, you can block the deliveries to your customer based on the credit limit and the accounts receivable balance in their account which is maintained by you.

Explain in simple terms what is field status and what does it control?

Field status group is a group configured in FSV (Field Status Variant) to maintain field status for G/L (General Ledger) accounts. It controls which field should suppress, display, optional and required.

Is business area at company code level?

No. Business area is at client level which means other company codes can also be posted to the same business area.

What are the standard stages of the SAP payment run?

The following steps are the standard stages of the SAP payment run

a) Entering of parameters (Vendor Accounts, Company Codes, Payment Methods)
b) Proposal Scheduling – the system proposes the list of invoices paid
c) Payment booking- the booking of the actual payments in the ledger
d) Printing of payment forms, example cheques

List the key features of the Sap Simple Finance?

The following are some of the available key features of the SAP Simple Finance:
Financial Planning and Analysis:
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.
Finance and Accounting:
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.
Financial Risk Management:
With the benefit of Predictive Analysis, companies can determine the risks present in the processes of the Finance at the initial stage itself and take steps to solve them. It is effortless to determine the best feasible investment rates regarding the market standards.

What is a Document Header?

The Document Header contains information that is valid for the whole document such as:
• Document Date
• Document Type (Control Information)
• Document Number
• Posting Date
• Posting Period
• Company Code

Explain what is wave picking?

Wave picking is a technique of assigning orders into groups and release them together, so as to allow several activities to run parallel and complete the task.

What are posting keys? State the purpose of defining posting keys?

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.

State the Ways of Migration from Sap to Simple Finance?

Here are some of the ways that state how the companies can migrate from SAP conventional FICO module to Simple Finance (that is SFINE 2.0).
Those who are on New GL are capable of migrating directly to Simple Finance.
Those who are on typical GL need to migrate to New GL first and then migrate to Simple Finance.
This kind of migration occurs only with SPRO and doesn’t require technical assistance. This migration is different from the central component of Finance that supports with moving data distributed Enterprise Resource Planning landscape and non–SAP Enterprise Resource Planning, utilizing SLT.

What is Transport Request?

It’s a kind of a collection of changes that are made in the development system. The information pertaining to the type of change, the purpose of transport, request category and the target system are all recorded. It is also known as Change Requests.

What is cycle time?

Cycle time is the time consumed to get an order from order entry to the shipping dock.

Narrate the useful details of Sap Simple Finance?

SAP Financial and Controlling module (which is one among the core modules of SAP) is a mature submission with attractive depth and width. However, there is a tremendous change in the world with technology. Hence, there is a need to change for the new financial regulation. In addition, there is also a requirement for instant financial reports lighting. Since the world of data is rapidly changing, the financial operations are in need to deal with large volume of data that is processed at higher speeds.
With this strategy and having the benefit of a high-performance feature of the HANA, the SAP software company made its finances as well as next range control module by releasing “Simple Finance” (Finco – in short) with the SAP S/4 HANA. By launching this platform, SAP eliminates some of the inconveniences with the traditional FICO module. It also comprises some influential new features.

What is the SAP FI Organizational Structure?

Client
|
Operating Concern
|
Controlling area1 Controlling Area 2
|
Co. Code 1 Co. Code 2
|
Bus area 1 Bus area2 Bus Area3 Bus Area 4

Explain the role of the Transaction Manager?

Explain what is meant by Reverse Logistics?

Reverse Logistics is the collection of all processes that come into play for goods that move in the reverse directions which means transportation of goods customer to the business.

What are the main supply chain challenges companies face today?

The five big challenges that companies face today is,
Ignoring the continued growth of e-commerce as a channel in the industrial sector
No attention to the potential risk like volatile transportation costs
Over expectation that supply chain management technologies will fix everything
Over-reliance on past performance to predict future sales
Increase complexity added to supply chain operations with the implementation of unnecessary technologies
Lack of understanding of the full capacities of suppliers and service

What is working capital?

By definition, working capital is current assets minus current liabilities. The working capital figure shows a financial manager how much of an organization’s cash is tied up in items such as accounts receivables and inventory. It also indicates how much cash is going to be required to pay off short term debt and obligations over the next year.

Is it possible for a company to show positive net income and still go bankrupt?

Absolutely. A company that’s experiencing a deterioration of working capital (i.e. decrease in accounts payable, increase in accounts receivable) can show positive net income but be in financial trouble in the future. It’s also possible to show positive net income while in financial trouble by manipulating financial statements (e.g. revenue recognition, expense recognition, etc.)

Do you still have the number of characteristics limitation to 50 in COPA?

Some of the interfaces in CO-PA still check that you are not sending more than 50 characteristics, so SAP still recommends that you limit your operating concern to 50 characteristics. Nevertheless, since each of the characteristics becomes a field in the universal journal when you come to build reports you can use attribute views to determine additional fields, for example, the material.

FI Organizational structure?

Client
Operating Concern
Controlling area1 Controlling Area 2
Co. Code 1 Co. Code 2
Bus area 1 Bus area2 Bus Area3 Bus Area 4

What is the impact on Net Income?

Net Income increases, the amount depends on depreciation and tax treatment;

What is your opinion making a good financial model?

It’s important to have strong financial modeling fundamentals. Wherever possible model assumptions (inputs) should be in one place and distinctly colored (typically bank models use blue font for model inputs). Good Excel models also make it easy for users to understand how inputs are translated into outputs. Good Excel models also include error checks to ensure the model is working correctly (e.g., the balance sheet balances, the cash flow calculations are correct, etc.). They contain enough detail, but not too much, and they have a dashboard that clearly displays the key outputs with charts and graphs. For more, check out our complete guide to financial modeling.

What does negative working capital mean?

Negative working capital is common in some industries such as grocery retail and the restaurant business. For a grocery store, customers pay upfront, inventory moves relatively quickly but suppliers often given 30 days (or more) credit. This means that the company receives cash from customers before it needs cash to pay suppliers. Negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable. In other industries, negative working capital may signal a company is facing financial trouble.

In this answer to this interview question, it’s important to consider the company’s normal working capital cycle.

If you were CFO of our company, what would keep you up at night?

This is one of the great finance interview questions. Step back and give a high-level overview of the company’s current financial position, or companies in that industry in general. Highlight something on each of the three statements. Income statement: growth, margins, profitability. Balance sheet: liquidity, capital assets, credit metrics, liquidity ratios. Cash flow statement: short-term and long-term cash flow profile, any need to raise money or return capital to shareholders.

Is it possible for a company to show positive cash flows but be in grave trouble?

Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves the lack of revenues going forward in the pipeline.

How is it possible for a company to show positive net income but go bankrupt?

Two examples include deterioration of working capital (i.e. increasing accounts receivable, lowering accounts payable), and financial shenanigans.

What is a Bill of Exchange?

Bills of exchange primarily act as promissory notes in international trade; the seller, or exporter, in the transaction addresses the bill of exchange to the buyer or importer. A third entity, typically a bank, is a party to many bills of exchange to help guarantee payment or receipt of funds.

In simple finance even If the customer never utilizes the asset accounting, Is new Asset Accounting mandatory?

In case in the Asset Accounting then there is no data, which refers to the both transactional as well as the customizing data, which have to be migrated, in such a scenario there is no compulsion for performing the migration step in Asset Accounting.
If you later decide to use Asset Accounting in new asset accounting, then you can set up the customizing in the IMG.

What is goodwill and how is it accounted for?

Goodwill is an intangible asset that is defined as the excess value of the purchase price over the fair market value (book value) of an acquired business. For example, if Walmart is sold for $100 billion with PP&E book value of $50 billion, equity of $30 billion, and debt of $10 billion, then the goodwill paid for Walmart would be $30 billion–the total sales price ($100 billion) minus the book value (Assets-Liabilities) of $70 billion.

The organization acquiring Walmart would show a decrease in cash of $100 billion to finance the acquisition, an increase of $50 billion to PP&E, an increase of debt of $10 billion, and goodwill of $30 billion.

What is a deferred tax liability and what is its purpose?

Deferred tax liability is just the opposite of a deferred tax asset. The deferred tax liability occurs when a tax expense reported on the income statement is not paid to the IRS during the same period it is recognized–it’s paid at a future date. Deferred tax liabilities can result when there are differences in depreciation expense between book reporting (GAAP) and IRS reporting which lead to differences income as reflected on a companies income statement versus what’s reported to the IRS–and which results in lower taxes payable to the IRS (in the short run).

Educate me concerning budgetary change with SAP Simple Finance?

Changing money related administration with a definitive refinement: straightforwardness. As a major aspect of SAP S/

4HANA, a suite of new organizations, the people to come, SAP Finance Simple Powered by SAP HANA arrangement is intended to give key esteem Live Preview in the fund – all by means of a tweaked client encounter straightforward.

Utilize a typical perspective of all the data in back to guarantee consistency over the endeavor

Consolidate expectation, reproduction, and investigation to distinguish the best vital alternatives for the organization

Giving clients moment, customized knowledge to empower all the more auspicious and significant budgetary choices

Driving huge disentanglement of the PC with a design which stifles replication and totals

Get a decision of arrangement – cloud, nearby crossover – to diminish IT costs

The movement to SAP Simple Finance controlled by SAP HANA?

SAP Accounting fueled by HANA contains New General Ledger Accounting, Controlling and New Asset Accounting. On the off chance that you need to actualize and utilize SAP Accounting fueled by SAP HANA, you need to relocate the current client information from the G/L Accounting (FI-GL), Asset Accounting (FI-AA), Controlling and Material Ledger zones. The thorough information table “ACDOCA” contains the greater part of the detail records from FI, FI-AA, and CO. All postings of these applications are composed to the new table after the establishment and movement are finished. 2015-04-02_181732 The above screenshot demonstrates the different bookkeeping applications converge in the new structure of SAP Simple fund controlled by SAP HANA. The accompanying tables were supplanted by SAP HANA sees with similar names:

The detail, sums tables and application list tables of General Ledger Accounting (GLT0, BSIS, BSAS and FAGLFLEXA, FAGLFLEXT, FAGLBSIS, FAGLBSAS)

The aggregates tables and application record tables of Accounts Receivable and Accounts Payable (KNC1, KNC3, LFC1, LFC3, BSID, BSIK, BSAD, BSAK)

The detail and aggregates tables of Controlling (COEP for certain esteem sorts, COSP and COSS)

The material record tables for parallel valuations (MLIT, MLPP, MLPPF, MLCR, MLCD, CKMI1, BSIM)

The Asset Accounting tables (ANEK, ANEP, ANEA, ANLP, ANLC)

How many charts of accounts can be attached to a company code?

One or more Operative Chart of Accounts can be assigned to a company code.

COA must be assigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can bee assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country specific Company code or International Company code) can have a country-specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record.

Eg: If a company’s subsidiaries are located in both US & Mexico. We need to configure 2 Company codes – one for the US and another for Mexico, for eg U100 and M100. The same way we create 2 COA’s one for US & one for Mexico, USCA, and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e., USCA in
Chart of Accounts field and MXCA in Country Chart/Accts field.

Explain the Various Reference Methods?

GRN is nothing but Goods Received Note.
At the time of delivery from the supplier to the person who orders the goods, the person will check the quantity and in terms of quality.
He will ensure the ordered quantities are received without any damage.
The storekeeper will put the GRN only those goods which were received at his counter.
Then the store’s ledger will be debited with GRN with concerned material code and credit when it is given for consumption.

What are the Configurations for Bank Statement Processing?

Before you make use of the Bank Statement Processing functionality in SAP, you need to have the following defined or configured in your system:
• Start Variant
• Search ID
• Processing Type
• Internal Bank Determination

Do SAP S/4 HANA and SAP Business Suite share the same data semantic?

With SAP S/4HANA, SAP has developed a new product that leverages basic data structures and elements of the SAP Business Suite for maximum compatibility, non-disruptive migration and hybrid scenarios.

However, SAP S/4HANA provides new business functionality on top of these data structures natively built on the SAP HANA platform and designed with the SAP Fiori UX principles. SAP Business Suite on-premise customers on the latest enhancement package can easily move to this new product simply by migrating to the SAP HANA database and applying the exchange innovation (new code) to their current SAP Business Suite environment.

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?

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.

What is a “system-driven” implementation?

We want to radically simplify the implementation of SAP S/4HANA so that customers enjoy rapid success and payback. This is particularly relevant in the cloud, of course, where customers expect to deploy a pre-configured system. SAP therefore provides ready-to-run business processes based on best practices that can be activated. During the activation, the system configures itself. The SAP S/4HANA Guided Configuration facilitates customers to personalize the processes delivered by SAP. Within the app “Manage your solution” easy SAP Fiori UI´s can be used to maintain e.g., the organizational structure, approval thresholds or other individual settings.

Narrate the Useful Details of Sap Simple Finance?

State the Ways of Migration from Sap to Simple Finance?

Here are some of the ways that state how the companies can migrate from SAP conventional FICO module to Simple Finance (that is SFINE 2.0).

Those who are on New GL are capable of migrating directly to Simple Finance.

Those who are on typical GL need to migrate to New GL first and then migrate to Simple Finance.

This kind of migration occurs only with SPRO and doesn’t requires technical assistance. This migration is different from the central component of Finance that supports with moving data distributed Enterprise Resource Planning landscape and non–SAP Enterprise Resource Planning, utilizing SLT.

Which Edition of Sap S/4hana Do You Suggest for Our Companies?

The On-Premise Edition of the SAP HANA is designed to suit for 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.

State the Main Difference Between the Migration to Sap S/4hana On-premise and Migration to Sap S/4 Finance?

What Is the Basic Difference Between the New S/4hana Product Code Line and The Sap Business Unit Code Line?

How Can the Partner of Sap Support the Migration of Customer To Sap S/4 Hana?

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 percentage 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.

So, this brings us to the end of the SAP S4 HANA Finance Interview Questions blog. This Tecklearn ‘Top SAP S4 HANA Finance Interview Questions and Answers’ helps you with commonly asked questions if you are looking out for a job in SAP S4 HANA Finance or SAP Domain. If you wish to learn SAP S4 HANA Finance and build a career in SAP domain, then check out our interactive, SAP S4 HANA Finance Training, that comes with 24*7 support to guide you throughout your learning period.

https://www.tecklearn.com/course/sap-s4-hana-simple-finance-training-and-certification/

SAP S4 HANA Simple Finance Training

About the Course

This SAP S4 Simple Finance 1909 and SAP FICO training course, you will learn various aspects of financial planning, accounting management, and enterprise risk. As part of this training, you will also learn SAP Fiori to work with real-time analytics, prediction, and simulation for all financial and operational data through hands-on projects. SAP S4 HANA Central Finance allows you to establish a Central Reporting Platform for FICO with the option of creating a common reporting structure. Additionally, selected financial processes can be executed centrally in this system. To prepare common reporting structures, you can map your different accounting entities (for example, account, profit centre, or cost centre) in your source systems to one common set of master data in the central system. You can then replicate Financial Accounting and Management Accounting postings to your Central Finance system.

Why Should you take SAP S4 HANA Finance Training?

The average salary of an entry-level SAP FICO Consultant in the US is about $83,974 per annum. Based on experience, this salary might rise to $118,000 per annum.
Global demand for this role is growing, and everyone who has obtained the industry-recognized FICO certification can immediately find a great job!
Worldwide Business Intelligence and Analytics Market to grow to $22.8 billion in next 2 years – Gartner.

What you will Learn in this Course?

Overview of SAP HANA

Basic HANA introduction
SAP’s Big thing
SAP Fi, SAP CO, SAP BW, SAP APO
SAP S4 Hana next generation business suite
On Premise edition and Cloud edition
S4 HANA simplifier of enterprise software
Functional scope
Roadmap
SAP Hana History
ECC and ERP Concepts
Profitability
SAP COPA
Different types of tables
MATDOC
Green Field Implementation
Transformation of SAP to different Version of HANA

SAP Hana Implementation and Finance Concepts

Customer Program
Quota Management
FIORI
Rationalization
Profit Center
IOT
ECC
New GL Concept
SAP Vs SAP Fi
WorkCenter and RECIPE
Column Based reading
Company Code
Production Order
Cost of Activity
Cost of Production

General Ledger Accounting and Master Data

Material Document
Kinds of Data
Master data and transaction
Sub ledger
ACDOCA
FIORI App
ECC V/s HANA
Rationalization

Integrated Business Processes

General Table Display
Document number, Company Code, Fiscal Year
Asset Accounting
Cost Center
Cost element
Profitability segment
Sales and Distribution
Type of accounting
Central finance
Credit Control area

Organization Structure

Creation of new company codes
Defining business area
Functional area
IFRS
Profit Center
Product hierarchy
Profit center finalization and profit center dissension
Financial accounting organizational structure
Group Currency

CO (Controlling)

Controlling organisation structure
Current and valuation profile
Controlling area
Operating Concern
Financial accounting global setting
Ledgers
Currency Types
Legal View

Concepts of General Ledger Accounting Continued

Fiscal year
Shortened fiscal year
Purchase to pay
Order to cash
Goods receipts
Invoice

Master Data Management and Migration

Upgrade and migrate
S4 HANA component
Deployment of SAP HANA
SAP HANA Database migration
Replicate to central finance
Fiori
Simplified data model in finance
Avoid redundancy
Data footprint

Management Accounting and CO-PA

Account before simple finance
Finance implication
COPA revenue
COPA cost
Revenue
The new architecture with simple finance
Cost element
Simple IT with SAP simple finance architecture
GL account and cost element details

Material Ledger and Centralized Master Data for GL

Material ledger
Prima Nota in simple finance
Mr21 and Mr22
Multi-dimensional income statement
Merge of account
GL Account
Customer account
System work through
Header table
Transaction code and parameter
TSRC table
FI/CO document
Variant related program
Difference between Tcode and program

Financials for SAP S4 Hana

Tax in SAP
Direct and Indirect Tax
Account
Document Type in SAP Fi
Posting Key
Purchase order
Checking controlling area and company code object

SAP Product Costing

Cost objects
Cost Management & Profitability Analysis
Checking scrapping document
What is scrapping means

Materials Management

Material Vs Asset
Receipts and consumption
Material price analysis
Two types of consumption
Cost center
Material price analysis
Changing cost components splits of a material

Functionalities in New Asset Accounting

SAP Hana Implementation
G/L Account
Cost Object
Revenue collector
Asset accounting
HANA road map
Standard optimized transaction
Service order
Consignment
Fault part return
Accrual Management
What is underlined process
How finance support other modules
Positive post to order and negative post to order
Go-live and post migration activities
KPI with HANA
Monitor business performance
Accrual entry
Pricing procedure
Expense and revenue account

Finance process improvement

Over absorption and under absorption
Types of cycle
SAP treasury and risk management
Functional changes in HANA

Migration to SAP S4HANA Finance and General Ledger Accounting Continued

Project system
Data archiving
Profit center
Reconciliation issue
Migration to S4 Hana
Enablement of SAP S4 Hana
Implementing new G/L
Document Splitting
Parallel accounting

SAP Central Finance on S4 Hana

Replication to central finance
Non ECC system
Central finance mapping
Type of deployment

S4 Hana project phases

Preparation phase
Feasibility check
Check Size
Active business function
Parallel valuation
Depreciation calculation
Consistency check
Customizing
Data migration
Post migration
Testing
Preparation phase
Important SAP notes
Scope – ABAP
Active business function
FI consistency check

Reconciliation Process in SAP Hana

Reconciliation of general ledger and account payable
Reconciliation of the general ledger with materials management
Reconciliation of the ledgers
Ledger Comparison
Consistency check
Migration of general ledger settings
Defining setting for the journal entry ledger

Other Key Topics

Document types for Co
Real time reconciliation
Execute consistency check of general ledger setting
Data migration
Universal journal entry table
Management accounting
Migrate secondary cost elements to the card of accounts
Migration of cost elements to G/L account
Automatic account determination

Material Valuation in SAP Hana

Automatic determination of the account
Material valuation
Migrate default account assignments

Customizing Financials in SAP S/4HANA

Reconcile transnational data
Types of reconcile
Enrichment of data
Migration of line items into new data structure
Universal journal entry structure

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