Tuesday 26 July 2016
SAP FICO INTERVIEW QUESTIONS AND ANSWERS
Enterprise Structure
What is a Company Code and what are
the basic organizational assignments to a company code?
Company
Code is a legal entity for which financial statements like Profit and Loss and
Balance Sheets are generated. Plants are assigned to the company code,
Purchasing organization is assigned to the company code, and Sales organization
is assigned to the company code.
What is the relation between a
Controlling Area and a Company code?
A Controlling area can have the
following 2 type of relationship with a Company code
a. Single Company code relation
b. Cross Company code relation
This means that one single controlling
area can be assigned to several different company codes. Controlling can have a
one is to one relationship or a one is to many relationship with different
company codes.
Controlling
Area is the umbrella under which all controlling activities of Cost Center
Accounting, Product Costing, Profit Center and Profitability Analysis are
stored.
In a similar way Company Codes is the
umbrella for Finance activities.
How many Chart of Accounts can a Company code have?
A single Company code can have only
one Chart of Account assigned to it. The Chart of Accounts is nothing but the
list of General Ledger
Accounts.
What are the options in SAP when it comes to Fiscal years?
Fiscal year is nothing but the way
financial data is stored in the system. SAP provides you with the combination
of 12 normal periods and also four special periods. These periods are stored in
what is called the fiscal year variant.
There are two types of Fiscal Year
Variant · Calendar
Year – e.g. Jan-Dec
· Year Dependent Fiscal Year .
What is a year dependent fiscal year variant ?
In a year dependent fiscal year
variant the number of days in a month are not as per the calendar month. Let us
take an example:- For the year 2005 the period January ends on 29th, Feb ends on 27th,
March ends on 29. For the year 2006 January ends on 30th, Feb ends on 26th,
March ends on 30th. This is applicable to many
countries especially USA. Ever year this fiscal year variant needs to be
configured in such a case
How does posting happen in MM
(Materials Management) during special periods?
There is no posting which happens
from MM in special periods. Special periods are only applicable for the FI
module. They are required for making any additional posting such as closing
entries, provisions. which happen during quarter end or year end.
How many currencies can be configured for a company code?
A company code can have 3 currencies
in total. They are local currency ie company code currency) and 2 parallel
currencies. This gives the company the flexibility to report in the different
currencies.
Do you require to configure additional ledger for parallel
currencies?
Where only 2 currencies are configured
(Company code currency and a parallel currency) there is no need for an
additional ledger. In case the third parallel currency is also configured and
if it is different than the second currency type, you would then need to
configure additional ledger.
If there are two company codes with
different chart of accounts how can you consolidate their activities?
In this case you either need to write
an ABAP program or you need to implement the Special Consolidation Module of
SAP. If both the company codes use the same chart of accounts then standard SAP
reports give you the consolidated figure.
FI-GL
Give some examples of GL accounts
that should be posted automatically through the system and how is this defined
in the system.
Stock and
Consumption accounts are instances of GL accounts that should be automatically
posted . In the GL account master record, a check box exists wherein the
automatic posting option is selected called “
Post Automatically Only”
What is a Account group and where is
it used?
An Account group controls the data
that needs to be entered at the time of creation of a master record. Account
groups exist for the definition of a
GL account, Vendor and Customer master. It basically
controls the fields
What is a field status group?
Field status groups control the
fields which come up when the user does the transactions. There are three
options for field selection. They are:
Display only Suppressed
Mandatory
So basically you can have any field
either for display only or you can totally suppress it or make it mandatory.
The field status group is stored in the FI GL Master
Record.
What is the purpose of a “Document type” in SAP?
A Document
type is specified at the Header level during transaction entry and serves the
following purposes:
· It defines the Number range for documents
· It controls
the type of accounts that can be posted to eg
Assets, Vendor, Customer, Normal GL account
· Document
type to be used for reversal of entries · Whether it can be used only for Batch
input sessions
Document Type is created for differentiating business
transactions. Eg
Vendor Invoice, Credit Memo, Accrual
Entries,Customer Invoice. It is a two digit character.
What is a Financial Statement Version?
A FSV (Financial Statement Version)
is a reporting tool and can be used to depict the manner in which the financial
accounts like Profit and Loss
Account and Balance Sheet needs to be
extracted from SAP. It is freely definable and multiple FSV's can be defined
for generating the output for various external agencies like Banks and other
Statutory authorities.
How are input and output taxes taken care of in SAP?
A tax procedure is defined for each
country and tax codes are defined within this. There is flexibility to either
expense out the Tax amounts or
Capitalize the same to Stocks.
What are Validations and Substitutions?
Validations/Substitutions in SAP are
defined for each functional area e.g. FI-GL, Assets, Controlling etc at the
following levels
1. Document level
2. Line item level
These
need to be specifically activated and setting them up are complex and done only
when it is really needed. Often help of the technical team is taken to do that.
Is it possible to maintain plant wise different GL codes?
Yes. To be able to do so the valuation group code should
be activated.
The valuation grouping code is
maintained per plant and is configured in the MM module. Account codes should
be maintained per valuation
Is Business area at company code Level?
No. Business area is at client level.
What this means is that other company codes can also post to the same business
area.
What are the different scenarios
under which a Business Area or a Profit Center may be defined?
This question is usually very
disputable. But both Business Areas and Profit centers are created for internal
reporting. Each has its own pros and cons but many companies nowadays go for
Profit center as there is a feeling that business area enhancements would not
be supported by SAP in future versions.
There are typical month end
procedures which need to be executed for both of them and many times
reconciliation might become a big issue. A typical challenge in both of them is
in cases where you do not know the
Business Area or Profit Center of the
transaction at the time of posting.
What are the problems faced when a Business area is
configured?
The problem of splitting of account
balance is more pertinent in case of tax accounts.
Is
it possible to default certain values for particular fields? For e.g. company
code.
Yes it is possible to default values
for certain fields where a parameter id is present.
Step 1 Go to the input field to which
you want to make defaults.
Step
2 Press F1, then click technical info push button. This would open a window
that displays the corresponding parameter id (if one has been allocated to the
field) in the field data section.
Step 3 Enter this parameter id using
the following path on SAP Easy access screen System à User
profile à Own data.
Step 4
Click on parameter tab. Enter the parameter id code and enter the value you
want as default. Save the usersettings.
Which is the default exchange rate
type which is picked up for all SAP transactions?
The default exchange rate type picked up for all SAP
transactions is M
(average rate)
Is
it possible to configure the system to pick up a different exchange rate type
for a particular transaction?
Yes it is possible. In the document
type definition of GL, you need to attach a different exchange rate type.
What are the master data pre-requisites for document
clearing?
The Gl Account must be managed as an „open
item management‟ . This checkbox is there in the General Ledger Master
Record called Open Item Management. It helps you to manage your accounts in
terms of cleared
and uncleared items. A typical
example would be GR/IR Account in SAP (Goods Received/Invoice Received Account)
Explain the importance of the GR/IR clearing account.
GR/IR
is an interim account. In the legacy system of a client if the goods are
received and the invoice is not received the provision is made for the same.
In SAP at the Goods receipt stage the
system passes an accounting entry debiting the Inventory and crediting the
GR/IR Account .Subsequently when an invoice is recd this GR/IR account is
debited and the Vendor account is credited. That way till the time that the
invoice is not received the GR/IR is shown as uncleared items.
How many numbers of line items in one single entry you can
have?
The number of line items in one
document you can accommodate is 999 lines.
A Finance Document usually has an
assignment field. This field automatically gets populated during data entry.
Where does it get its value?
This value comes from the Sort key entered in the Gl
master record.
How
do you maintain the number range in Production environment? Do you directly
create it in the Production box or do you do it by means of transport?
Number
range is to be created in the production client. You can transport it also by
way of request but creating in the production client is more advisable.
In customizing “company code
productive “means what? What does it denote?
Once
the company code is live(real time transactions have started) this check box
helps prevents deletion of many programs accidentally. This check box is
activated just before go live.
What is done by GR/IR regrouping program?
The balance in a GR/IR account is
basically because of 2 main types of transactions:-
Goods delivered but invoice not
received – Here
the Goods receipt is made but no invoice has yet been received from the
vendor. In such a scenario GR/IR account will have a credit balance.
Invoiced received but goods not
delivered – Here
the Invoice is received from the vendor and accounted for, but goods
have not been received. In such a scenario GR/IR account will have a debit
balance. The GR/IR account would contain the net value of the above two types
of transactions. The GR/IR regrouping program analyses the above transactions
and regroups them to the correct adjustment account. The
balance on account of first
transactions will be regrouped to another liability account and the balance on
account of second transactions will be regrouped to an asset account.
What are the functionalities
available in the financial statement version?
In the financial statement version
the most important functionality available is the debit credit shift.
This is more important in case of
Bank overdraft accounts which can
have a debit balance or a credit balance. Thus in case of a debit balance you
would require the overdraft account to be shown on the Asset side. In case of
credit balance you would require the account to be shown on the Liability side.
Is it possible to print the financial
statement version on a SAPscript form?
Yes. It is possible to print the
financial statement version on a SAPscript form.
How do you configure the SAPscript
form financial statement version?
It is
possible to generate a form from the financial statement version and print the
financial statements on a SAPscript form. In the customizing for financial
statement version select the FSV you created and choose Goto à Generate
form à One column or Two column form.
You can also copy form from the
standard system.
Is it possible to generate a financial statement form
automatically?
Yes. It is possible to generate a form automatically.
Is it possible to keep the FI posting
period open only for certain GL codes?
Yes. It is possible to keep open the
FI posting period only for certain GL codes.
How do you keep the FI posting period
open only for certain GL codes?
In transaction code OB52 click on new
entries and maintain an interval or a single GL code for the account type S
with the posting period variant. If the GL codes are not in sequence then you
need to maintain further entries for the posting period variant and account
type S.
Can posting period variant be
assigned to more than 1 company code?
Yes. Posting period variant can be
assigned to more than one company code.
Payable
At what level are the customer and vendor codes stored in
SAP?
The customer and vendor code are at
the client level. That means any company code can use the customer and vendor
code by extending the company code view.
How are Vendor Invoice payments made?
Vendor payments can be made in the following manner:
Manual payments without the use of
any output medium like cheques etc.
Automatic Payment program through
cheques, Wire transfers, DME etc.
How do you configure the automatic payment program?
The following are the steps for
configuring the automatic payment program:-
Step 1 Set up the following:
Co. code for Payment transaction
Define sending and paying company
code. Tolerance days for payable
Minimum % for cash discount
Maximum cash discount
Special GL transactions to be paid Step
2 Set up the following:
Paying company code for payment
transaction Minimum amount for outgoing payment
No exchange rate diff Separate
payment for each ref Bill/exch payment
Form for payment advice
Step 3 Set up the following: Payment
method per country Whether Outgoing payment Check or bank transfer or B/E
Whether allowed for personnel payment
Required master data Doc types
Payment medium programs
Currencies allowed
Step 4 Set up the following:
Payment method per company code for
payment transactions
Set up per payment method and co. code
The minimum and maximum amount.
Whether payment per due day
Bank optimization by bank group or by
postal code or no optimization
Whether Foreign currency allowed
Attach the payment form check
Whether payment advice required
Step 5 Set up the following:
Bank Determination for Payment
Transactions
Rank the house banks as per the following
Payment method, currency and give
them ranking nos
Set up house bank sub account (GL code)
Available amounts for each bank
House bank, account id, currency,
available amount
Value date specification
Where do you attach the check payment form?
It is attached to the payment method
per company code.
Where are Payment terms for customer master maintained?
Payment terms for customer master can
be maintained at two places i.e. in the accounting view and the sales view of
the vendor master record.
Which is the payment term which
actually gets defaulted when the transaction is posted for the customer
(accounting view or the sales view)?
The payment term in the accounting
view of the customer master comes into picture if the transaction originates
from the FI module. If an FI invoice is posted (FB70) to the customer, then the
payment terms is defaulted from the accounting view of the customer master.
The payment term in the sales view of
the customer master comes into picture if the transaction originates from the
SD module. A sales order is created in the SD module. The payment terms are
defaulted in the sales order from the sales view of the customer master.
Where are Payment terms for vendor master maintained?
Payment terms for Vendor master can
be maintained at two places i.e. in the accounting view and the purchasing
view.
Which is the payment term which
actually gets defaulted in transaction (accounting view or purchasing view)?
The payment term in the accounting
view of the vendor master comes into picture if the transaction originates from
the FI module. If an FI invoice is posted (FB60) to the Vendor, then the
payment terms is defaulted from the accounting view of the vendor master.
The payment term in the purchasing
view of the vendor master comes into picture if the transaction originates from
the MM module. A purchase order is created in the MM module. The payment terms
are defaulted in the purchase order from the purchasing view of the vendor
master.
Explain
the entire process of Invoice verification from GR to Invoice verification in
SAP with accounting entries?
A goods receipt in SAP for a
purchased material is prepared referring a purchase order.
When the goods receipt is posted in
SAP the accounting entry passed is:-
Inventory account Debit
GR/IR account credit
A GR/IR (which is Goods
receipt/Invoice receipt) is a provision account which provides for the
liability for the purchase. The rates for the valuation of the material are
picked up from the purchase order.
When the invoice is booked in the
system through Logistics invoice verification the entry passed is as follows:-
GR/IR account debit Vendor credit
How are Tolerances for Invoice verification defined?
The following are instances of tolerances that can be
defined for Logistic
Invoice Verification.
c. Small Differences
d. Moving Average Price variances
e. Quantity variances
f. Price variances
Based on the client requirement, the
transaction can be “Blocked” or Posted with a “Warning” in the event of the
Tolerances being exceeded. Tolerances are nothing but the differences between
invoice amount and payment amount or differences between goods receipt amount
and invoice amount which is acceptable to the client.
Can we change the reconciliation account in the vendor
master?
Yes. Reconciliation account can be
changed in the vendor master provided that the authority to change has been
configured. Normally we should not change the reconciliation account.
What is the impact on the old balance
when the reconciliation account in the vendor master is changed?
Any change you make to the
reconciliation account is prospective and not retrospective. The old items and
balances do not reflect the new account only the new transactions reflect the
account.
There
is an advance given by the customer which lies in a special GL account
indicator A. Will this advance amount be considered for credit check?
It depends
on the configuration setting in the special GL indicator A. If the “Relevant to
credit limit” indicator is switched on in the Special GL indicator A the
advances will be relevant for credit check, otherwise it will not be relevant.
In payment term configuration what
are the options available for setting a default baseline date?
There are 4 options available:-
2) Posting date
3) Document date
4) Entry date
What is generally configured in the
payment term as a default for baseline date?
Generally document date is configured
in the payment term as a default for base line date.
How do you configure a special GL indicator for Customer?
You can use an existing special GL
indicator ID or create a new one. After creating a special GL indicator id,
update the chart of accounts and the Reconciliation account. Also as a last
step you need to update the special GL code.
The special GL code should also be marked as a
Reconciliation account.
Switch on the relevant for credit
limit and commitment warning indicators in the master record.
Bank Accounting:
How is Bank Reconciliation handled in SAP?
The bank reco typically follows the below procedure:
First, the
payment made to a Vendor is posted to an interim bank clearing account.
Subsequently, while performing reconciliation, an entry is posted to the Main
Bank account. You can do bank reconciliation either manually or electronically.
How do you configure check deposit?
The following are the steps for configuring check
deposit:-
Step1: Create account symbols for the
main bank and incoming check account.
Step2: Assign accounts to account
symbols Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create business transactions
and assign posting rule Step6: Define variant for check deposit
What is the clearing basis for check deposit?
In the variant for check deposit we
need to set up the following
a) fields document number ( which is the
invoice number),
b) amount
c) Short description of the customer.
The document number and the invoice
amount acts as the clearing basis.
The following are the steps for
configuring manual bank statement:-Step1: Create account symbols for the main
bank and the sub accounts Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create business transaction
and assign posting rule
Step6: Define variant for Manual Bank statement
How do you configure Electronic bank statement?
The steps for Electronic Bank
Statement are the same except for couple of more additional steps which you
will see down below
Step1: Create account symbols for the main bank and the
sub accounts
Step2: Assign accounts to account
symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create transaction type
Step6: Assign external transaction
type to posting rules Step7: Assign Bank accounts to Transaction types
Fixed Assets
What are the organizational assignments in asset
accounting?
Chart of
depreciation is the highest node in Asset Accounting and this is assigned to
the company code.
Under the Chart of depreciation all
the depreciation calculations are stored.
How do you go about configuring Asset accounting?
The configuration steps in brief are as follows:-
a) Copy a reference chart of depreciation areas
b) Assign Input Tax indicator for non
taxable acquisitions
c) Assign chart of depreciation area to
company code
d) Specify account determination
e) Define number range interval
f) Define asset classes
g) Define depreciation areas posting to
general ledger
h) Define depreciation key
Explain the importance of asset classes. Give examples?
The asset class is the main criterion
for classifying assets. Every asset must be assigned to only one asset class.
Examples of asset class are
Plant&
Machinery, Furniture & Fixtures, Computers etc. The asset class also
contains the Gl accounts which are debited when any asset is procured. It also
contains the gl accounts for depreciation calculation, scrapping etc
Whenever you create an asset master
you need to mention the asset class for which you are creating the required
asset. In this manner whenever any asset transaction happens the gl accounts
attached to the asset class is automatically picked up and the entry passed.
You can also specify certain control
parameters and default values for depreciation calculation and other master
data in each asset class.
How are depreciation keys defined?
The
specifications and parameters that the system requires to calculate
depreciation amounts are entered in Calculation methods. Calculation
methods replace the internal calculation key of the depreciation key.
Depreciation keys are defaulted in Asset Master from the
asset class.
Refer to the configuration for more
details of how depreciation is calculated.
A company has its books prepared
based on Jan –Dec calendar year for reporting to its parent company. It is also
required to report accounts to tax authorities based on April- March. Can
assets be managed in another depreciation area based on a different fiscal year
variant?
No. Assets
accounting module cannot manage differing fiscal year variant which has a
different start date (January for book depreciation and April for tax
depreciation) and different end date (December for book depreciation and
March for tax depreciation). In this case you need to implement the special
purpose ledger.
What are the special steps and care
to be taken in Fixed asset data migration into SAP system especially when
Profit center accounting is active?
Data migration is slightly different
from a normal transaction which happens in Asset accounting module.
Normally, in asset accounting the day
to day transactions is posted with values through FI bookings and at the same
time the asset reconciliation is updated online realtime. Whereas In data
Migration the asset master is updated with values through a transaction code
called as AS91. The values updated on the master are Opening Gross value and
the accumulated depreciation. The reconciliation GL account is not automatically
updated at this point of time.
The reconciliation accounts (GL
codes) are updated manually through another transaction code called as OASV.
If profit center is active, then
after uploading assets through AS91 you should transfer the asset balances to
profit center accounting through a program.
Thereafter you remove the Asset GL
code (reconciliation accounts) from the 3KEH table for PCA and update the Asset
reconciliation account (GL code) through OASV.
After this step you again update the Asset reconciliation
account in the
3KEH table.
The reason you remove the Asset
reconciliation code from 3KEH table is
that double posting will happen to
PCA when you update the Asset reconciliation manually.
Is it possible to calculate multiple
shift depreciation? Is any special configuration required?
Yes it is possible to calculate
multiple shift depreciation in SAP for all types of depreciation except unit of
production. No special configuration is required.
How do you maintain multiple shift depreciation in asset
master?
The following steps are needed to maintain multiple shift
depreciation:
1. The variable depreciation portion as
a percentage rate is to be maintained in the detail screen of the depreciation
area.
2. The multiple shift factor is to be
maintained in the time dependent data in the asset master record. This shift
factor is multiplied by
the variable portion of ordinary depreciation.
Once
you have done the above the SAP system calculates the total depreciation amount
as follows:-
Depreciation amount = Fixed
depreciation + (variable depreciation * shift factor)
Let‟s
say you have changed the depreciation rates in one of the depreciation keys due
to changes in legal requirements. Does system automatically calculate the
planned depreciation as per the new rate?
No. System does not automatically
calculate the planned depreciation after the change is made. You need to run a
program for recalculation of planned depreciation.
What are evaluation groups?
The evaluation groups are an option
for classifying assets for reports or user defined match code (search code).
You can configure 5 different evaluation groups. You can update these
evaluation groups on to the asset master record.
What are group assets?
The tax requirements in some
countries require calculation of depreciation at a higher group or level of
assets. For this purpose you can group assets together into so-called group
assets.
What are the steps to be taken into
account during a depreciation run to ensure that the integration with the
general ledger works smoothly?
For each depreciation area and
company code, specify the following:
1 The frequency of posting depreciation(monthly,quarterly
etc)
2 CO account assignment (cost center)
3 For each company code you must
define a document type for automatic depreciation posting: This document type
requires its own external number range.
4 You also need to specify the
accounts for posting. (Account determination)
Finally to ensure consistency between
Asset Accounting and Financial Accounting, you must process the batch input
session created by the posting report. If you fail to process the batch input
session, an error message will appear at the next posting run.
The depreciation calculation is a
month end process which is run in batches and then once the batch input is run
the system posts the accounting entries into Finance.
How do you change fiscal year in Asset Accounting?
n Run
The fiscal year change program which would open new annual value fields for
each asset. i e next year
. The earliest you can start this
program is in the last posting period of the current year.
. You
have to run the fiscal year change program for your whole company code.
. You
can only process a fiscal year change in a subsequent year if the previous year
has already been closed for business.
Take care not to confuse the fiscal
year change program with year-end closing for accounting purposes. This fiscal
year change is needed only in
Asset Accounting for various technical reasons.
Is it possible to have depreciation calculated to the day?
Yes it is possible. You need to
switch on the indicator “Dep to the day” in the depreciation key configuration.
Is it possible to ensure that no
capitalization be posted in the subsequent years?
Yes it is possible. You need to set
it in the depreciation key configuration.
How are Capital Work in Progress and Assets accounted for
in SAP?
Capital WIP is referred to as Assets
under Construction in SAP and are represented by a specific Asset class.
Usually depreciation is not charged on Capital WIP.
All costs incurred on building a capital asset can be
booked to an
Internal Order and through the
settlement procedure can be posted onto an Asset Under Construction.
Subsequently on the actual readiness of the asset for commercial production,
the Asset Under Construction gets capitalized to an actual asset.
The company has procured 10 cars. You
want to create asset masters for each of this car. How do you create 10 asset
masters at the same time?
While creating asset master there is
a field on the initial create screen called as number of similar assets.
Update this field with 10. When you finally save this asset master you will get
a pop up asking whether you want to maintain different texts for these assets.
You can update
FI-MM-SD Integration
How do you go about setting the FI MM account
determination ?
FI MM settings are maintained in
transaction code OBYC. Within these there are various transaction keys to be
maintained like BSX, WRX, GBB, PRD etc. In each of these transaction keys you
specify the GL accounts which gets automatically passed at the time of entry.
Few examples could be: BSX- Stands for Inventory Posting Debit
GBB-Standsfor Goods
Issue/Scrapping/delivery of goods etc
PRD- Stands for Price Differences.
At what level is the FI-MM, FI-SD account determination
settings?
They are at the chart of accounts
level.
What are the additional settings
required while maintaining or creating the GL codes for Inventory accounts?
In the Inventory GL accounts (Balance
sheet) you should switch on the „Post
automatically only‟ tick. It is also
advisable to maintain the aforesaid
setting for all FI-MM accounts and FI-SD accounts. This helps in preserving the
sanctity of those accounts and prevents from having any difference between FI
and MM, FI and SD.
What is Valuation and Account assignment in SAP?
This is actually the link between
Materials Management and Finance. The valuation in SAP can be at the plant
level or the company code level.
If you define valuation at the plant
level then you can have different prices for the same material in the various
plants. If you keep it at the company code level you can have only price across
all plants.
Valuation also involves the Price
Control .Each material is assigned to a material type in Materials Management
and every material is valuated either in Moving Average Price or Standard Price
in SAP. These are the two types of price control available.
What is Valuation Class?
The
Valuation Class in the Accounting 1 View in Material Master is the main link
between Material Master and Finance. This Valuation Class along with the
combination of the transaction keys (BSX,WRX,GBB,PRD ) defined above determine the
GL account during posting.
We can group together different
materials with similar properties by valuation class. Eg Raw material,Finsihed
Goods, Semi Finished We can define the following assignments in customizing :
All materials with same material type
are assigned to just one valuation class.
Different materials with the same
material type can be assigned to different valuation classes.
Materials with different material
types are assigned to a single valuation class.
Can we change the valuation class in
the material master once it is assigned?
Once a material is assigned to a
valuation class in the material master record, we can change it only if the
stocks for that material are nil. If the stock exists for that material, then
we cannot change the valuation class. In such a case, if the stock exists, we
have to transfer the stocks or issue the stocks and make the stock nil for the
specific valuation class. Then only we will be able to change the valuation
class.
Does the moving average price change
in the material master during issue of the stock assuming that the price
control for the material is Moving Average?
The moving average price in the case
of goods issue remains unchanged. Goods issue are always valuated at the
current moving average price. It is only in goods receipt that the moving average
price might change. A goods issue only reduces the total quantity and the total
value in relation to the price and the moving price remains unchanged. Also
read the next question to learn more about this topic.
If the answer to the above question is
„Yes‟,
then list the scenario in which the moving average price of the material in the
material master changes when the goods are issued.
The
moving average price in the material master changes in the scenario of Split
Valuation which is sometimes used by many organizations. If the material is
subject to split valuation, the material is managed as Several partial stocks
and each partial stock is valuated separately.
In split valuation, the material with
valuation header record will have „v‟ moving average price. This is where
the individual stocks of a material are managed cumulatively. Here two
valuation types are created, one valuation type can have „v‟
(MAP) and the other valuation type can have „s‟(standard price).
In this case, whenever the goods are
issued from the respective valuation types, always the MAP for the valuation
header changes.
What is the accounting entry in the
Financial books of accounts when the goods are received in unrestricted use
stock? Also mention the settings to be done in the „Automatic
postings‟ in SAP for the specific G/L accounts.
On receipt of the goods in
unrestricted-use stock, the Inventory account is debited and the GR/IR account
gets credited. In customization, in the automatic postings, the Inventory G/L
account is assigned to the Transaction event key BSX and the GR/IR account is
assigned to the
Transaction event key WRX.
If a material has no material code in
SAP, can you default the G/L account in Purchase order or it has to be manually
entered?.
If a
material has no material code in SAP, we can still, default the G/L account
with the help of material groups. We can assign the valuation class to a
material group and then in FI-automatic posting, we can assign the relevant G/L
account in the Transaction event key. The assignment of a valuation class to a
material group enables the system to determine different G/L accounts for the
individual material groups.
What is the procedure in SAP for
Initial stock uploading? Mention the accounting entries also.
Initial stock uploading in SAP from
the legacy system is done with inventory movement type 561( a MM transaction
which is performed).
Material valuated at standard price: For a material valuated at standard price, the
initial entry of inventory data is valuated on the basis of standard price in
the material master. If you enter an alternative value at the time of the
movement type 561, then the system posts the difference to the price difference
account.
Material valuated at moving average
price: The initial entry of inventory
data is valuated as follows : If you enter a value when uploading the initial
data, the quantity entered is valuated at this price. If you do not enter a
value when entering initial data, then the quantity entered is valuated at the
MAP present in the material master.
The accounting entries are: Inventory
account is debited and Inventory Historical upload account is credited.
How do you configure FI-SD account determination?
The FI-SD account determination
happens through an access sequence. The system goes about finding accounts from
more specific criteria to less specific criteria.
This is the sequence it would follow:
1) It will first access and look for the
combination of Customer accounts assignment grp/ Material account assignment
grp/ Account key.
2) If it does not find the accounts for
the first combination it will look for Customer account assignment grp and
account key combination.
3) Furthermore, if it does not find
accounts for the first 2 criteria‟s then it will look for Material
account assignment grp/Account key.
4) If it does not find accounts for the
all earlier criteria‟s then finally it will look for
Account key and assign the GL code.
Thus
posting of Sales Invoices into FI are effected on the basis of a combination of
Sales organization, Account type, or Customer and
Material
Account assignment groups and following are the options available.
a.
Customer AAG/Material AAG/Account type b. Material AAG/Account type
For each of this option you can
define a Gl account. Thus the system uses this gl account to automatically pass
the entries.
Logistics Invoice Verification
Can you assign multiple G/L accounts
in the Purchase order for the same line item?
Yes, we can assign multiple G/L accounts in the Purchase
order for the same line item. The costs can be allocated on a percentage or
quantity basis. If the partial goods receipt and partial invoice receipt has
already taken place, then the partial invoice amount can be distributed
proportionally, i.e. evenly among the account assigned items of a
Purchase order. Alternatively the
partial invoice amount can be distributed on a progressive fill-up basis, i.e.
the invoiced amount is allocated to the individual account assignment items one
after the other.
What is Credit memo and subsequent
debit in Logistics Invoice verification?
The term credit memo refers to the
credit memo from the vendor. Therefore posting a credit memo always leads to a
debit posting on the vendor account. Credit memos are used if the quantity
invoiced is higher than the quantity received or if part of the quantity was
returned. Accounting entries are : Vendor account is debited and GR/IR account
is credited.
Subsequent
debit : If a transaction has already been invoiced and additional costs are
invoiced later, then subsequent debit is necessary. In this case you can debit
the material with additional costs, i.e. GR/IR account debit and Vendor account
credit. When entering the Subsequent debit, if there is no sufficient stock
coverage, only the portion for the available stock gets posted to the stock
account and rest is posted to the price difference account.
What do you mean by Invoice parking,
Invoice saving and Invoice confirmation?
Invoice parking : Invoice Parking is a functionality
which allows you to create incomplete documents and the system does not
check whether the entries are balanced or not. An accounting documents is also
not created when the invoice is in parked mode.
Thus you can create incomplete
documents and then post it later to accounting when you feel it is complete.
You can even rectify the Parked invoice. This feature is used by many companies
as on many occasions all data relating to the invoice might not be available.
Invoice saving :
This is also called Invoice processing or Invoice posting.
The
accounting document gets created when the invoice is posted in SAP. Invoice
confirmation : There is no terminology in SAP as Invoice
What are Planned delivery costs and
Unplanned delivery costs? Planned delivery costs: are entered at the time of Purchase
order. At goods receipt, a provision is posted to the freight or customs
clearing account.
e.g. FRE is the account key for
freight condition, hence the system can post the freight charges to the
relevant freight revenue account and FR3 is the account key for Customs duty,
hence the system can post the customs duty to the relevant G/L account.
These account keys are assigned to
the specific condition types in the MM Pricing schema.
In terms of
Invoice verification : If the freight vendor and the material vendor is the
same : then we can choose the option : Goods service items
+ Planned delivery costs.
If the freight vendor is different
from the material vendor: then for crediting only the delivery costs, we can
choose the option: Planned delivery costs.
Unplanned delivery costs: are the costs which are not specified
in the
Purchase order and are only entered
when you enter the invoice.
What is the basis on which the
apportionment is done of unplanned delivery costs?
Unplanned delivery costs are either
uniformly distributed among the items or posted to a separate G/L account.
For
a material subjected to Moving average price, the unplanned delivery costs are
posted to the stock account, provided sufficient stock coverage exists.
For a material subjected to Standard
price, the unplanned delivery costs are posted to the Price difference account.
There
are cases where Invoice verification is done first before the Goods receipt is
made for the purchase order . In these cases with what values would the Goods
receipt be posted ?
Since the invoice verification has
been done first the Goods Receipts will be valued with the Invoice value.
FI Month End Closing Activities
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