s as your preparing for SAP FICO interviews and you want to show that you have functional knowledge of the subject matter, together with practical/commercial problem solving skills. This easy-to-follow guide has step-by-step instructions on the most frequent questions you will need to ask with clear explanations and real-world examples. When you devote your time to the right subject matters and use the correct nomenclature, you will come across as a fluent candidate who is ready to hit the ground running.
What is SAP FICO and what are the core concepts of this module?
Hello SD Gurus, SAP FICO integration is the tightest integration between two modules. FI comprises three aspects basic functions, accounts posted in Financial accounting, sap general ledger accounting (referred to as New G/L accounting), and Accounts Receivable and Payable. CO has settlement, products costing, internal orders, profit centers and cost centers in focus. Combined, they give a broad picture of an entity’s financial well-being.
How does FI and CO integration work in SAP?
FI and CO are closely linked. The financial postings in FI are automatically transferred to controlling objects in CO. For example, an invoice posted has an implication on accounts payable within FI, and a potential posting for cost center allocations in CO. Integration provides one version of the truth with financial information consistent across all modules to drive accurate reporting and decision-making.
What are the key master data fields in SAP-FICO?
That is relevant master data in the context of CO-PA. Examples for key elements are: GL accounts, Customer (A/R), Vendor (AP), Asset Master, Cost center, Profit Center and internal order. Only when master data is set up correctly can you make proper postings and have accurate reporting and period ending.
What is the use of general ledger(GL) in SAP?
The general ledger is the book of final entry. It consolidates transactions from sub-ledgers and modules, to provide consolidated financial statements. A well-managed GL means you get to enjoy precise balance sheets, crisp income statements and tightly-auditable trails.
What is document posting in SAP FICO?
Document posting is copying down a financial transaction on the SAP system. Every posting with doc number,posting date and having line items -'debit', 'credit'. It adds a traceable and auditable dimension, which is important with respect to internal controls.
Explain about the asset accounting process in SAP?
Fixed assets are followed from acquisition to retirement in asset accounting. It contains data related to fixed assets, including master data, depreciation posting, asset under construction and retirement of an asset. Reconciliation of asset subledger to general ledger help ensure accurate assets and values.
What are the accounts payable and receivable in SAP FICO?
Accounts payable takes care of money owed to vendors and supplier invoices. Accounts receivable manages the money owed to it and its customers’ invoices. Both sub-ledgers roll into the general ledger, which provides accurate cash flow analysis and financial reporting.
What is taxation in SAP FICO?
Tax processing is the process of calculating and posting taxes. Tax codes set up the tax rate as well which accounts are to be used in posting. Taxes are integrated with AP, AR, and GL in most systems providing compliance for tax reporting.
What is reconciliation accounts and how to explain it?
Reconciliation accounts are assigned to sub-ledgers (for customers or vendors, for example) and display their total amounts for posting in the general ledger. There is integrity between sub-ledgers and the GL.
Primary and Secondary Cost Elements What is the difference?
Main cost items are in connection with costs of employment (e.g. salaries)/material-external). With secondary cost elements we mean internal allocations within CO, i.e. internal product costings and overhead rates.
What is period end closing in sap fico andhow to perform it?
Normal activities are processing FX valuations, Delta's, accruals adjustment postings, depreciation calculations, intercompany reconciliation and period end closure in FI and CO amongst others. Reconciliation is a must between subledgers and GL prior to period-end close.
Can you explain cost center and its use?
A cost center is an area where you can consider costs to be generated. It also offers internal reporting and budgeting. Costs assigned to cost centers facilitate analysis of variances, performance and cost control.
Describe the types of Financial Statements can be produced by SAP FICO.
SAP is capable of creating balance sheets, profit and loss statements, cash flow statements, as well as other management reports. These are based on billing data from FI and CO, and can be tailored for local reporting requirements.
What is a year-end closing checklist?
A check-list for closing year-end makes certain that all the business for the period is engaged and reconciled. It’s usually things like, currency revaluation, tax journals, depreciation reconcilation and statutory reporting.
How configurable tax is processed in SAP?
Tax setup is the process of setting up tax categories, rates, and procedures. Its tax structure must conform to local taxation regulations. Tax codes are associated with general ledger accounts for an accurate taxation post to invoices and payments.
What are the common interview failures in a SAP FICO?
Key Dangers -Placing too little emphasis on the complexity of donnecting FI and CO, -Failing to underline the importance of master data quality, -Not describing every step for period-end closing. Be prepared with specific examples from projects or situations.
SAP FICO Interview Question How do you prove you have 2 years of practical knowhow of SAP FICO in an interview?
Communicate some of the issues you were able to solve, such as implementing x business rules, running new tax compliance process or moving your material master. Emphasize the business impact, such as shorter closing time or more accurate data.
Troubleshooting tips for SAP FICO interviews
- Be precise about transactions you’ve used (e.g., FB50 for GL posting, F-53 for outgoing payments) and their purposes.
- Explain how you would diagnose discrepancies between sub-ledgers and the GL.
- Prepare to discuss real-world scenarios, including how you handle data migration, customization, and end-user training.
In-depth preparation strategy
- Focus on FI core topics: GL, AP, AR, Asset Accounting, Tax, Bank Accounting.
- Strengthen CO topics: Cost Elements, Cost Centers, Internal Orders, Profit Centers, Activity-Based Costing.
- Practice end-to-end processes: data migration, configuration, testing, and go-live support.
- Review SAP scripting or debugging basics if relevant to the role.
Goal-oriented closing
Understanding the interplay between FI and CO, master data integrity, and precise period-end processes will distinguish you in an SAP FICO interview. With solid examples and a calm, structured explanation, you’ll present as a competent candidate ready to contribute to the team.
Understanding FI-CO interplay, master data, and period-end processes sets you apart. With solid examples and structured responses to top sap fico interview questions, you’ll shine as a ready contributor.