1. What is ERP?

Enterprise Resource Planning (ERP) is a software system that helps

you to run your business, supporting automation processes in finance,
Human resources, Manufacturing, Supply chain, Services,
Procurement and More.

2. What is SAP?
SAP Stands for System Application & Product in Data
Processing. SAP is the market leader in ERP Software. SAP was
founded in 1972. SAP is the fourth largest software in the world. It is
a German Multinational Software company.

3. FI-MM Integration?
FI MM integration in SAP is an example of how different modules
of SAP ERP systems are integrated. With the integration, SAP
ensures that data from one module flows to another module
automatically.

4. P2P Cycle?
"Procure to pay," or P2P, is the full cycle of actions and events that
a business engages in when they require goods or services from an
outside supplier. This cycle describes the steps that a company must
take to procure the items and pay the appropriate remittance to the
supplier, less any discounts and adjustments.
5 Major Procure-to-Pay Process Steps:
 Purchase Purchase Order Delivery Invoice
Requisition Oreder Confirmation Notification Payment

5. What is DME?
The Data Medium Exchange (DME) Engine enables you to define
file formats that meet the requirements of your financial institution.
By doing so, you model an externally defined bank format in the SAP
system, which allows you to send or receive data in the form of DME
files in this format. DME is data exchange file which is used to send
Payment Information of an Enterprise to the Bank.
So basically, DME Files contains the Payment Information and
we have to send this DME file to the bank and then bank will pay
the amount to the vendor on behalf of us.

 Payment Process Methods in SAP:

1.APP Check (Company will print the check and send it to
the Vendor.)

2.App IDOC (Intermediate Document)

In IDOC Bank will print the check and send it to the
Vendor.
3.APP DME (After executing DME the output file will be
submitted to the bank and then bank will do the
payments.)

6. What is SPRO?
SPRO Stands for SAP Project Reference Object. SPRO is the first
transaction code when we log in to SAP. It is the transaction for
IMPLEMENTATION GUIDE for most of the SAP Applications.

7. What is Chart of Accounts?

The chart of accounts in SAP is a group of GL Accounts that controls
the name of the General GL Master, the number of GL Master and
some control information. In other words, the grouping of G/L
accounts forms the framework for recording accounting transactions
in a structured way.
There are 3 types of Charts of accounts in SAP:
1) Operational chart of accounts:
Operational chart of accounts is a list of GL a/c and it is used for
recording day-to-day business transactions. We also called them a
standard chart of accounts. Both FI & CO make use of this element.
Therefore, the creation of operational chart of accounts is
mandatory. We can assign more than one company codes to the
same chart of accounts.

2) Country specific chart of accounts:

The country chart of account in SAP helps to meet the country
specific legal requirements. Although it is optional to assign
company code, you need such a chart when you work with a different
operating chart of accounts. Hence it is optional to create the
country specific chart of accounts.
 3) Group chart of accounts:
Group chart of accounts is used for consolidation purpose only. Hence
the creation of group chart of accounts is not mandatory.

8. What is Document Type?

Document Types is a factor from which we can classify accounting
documents in SAP. It is entered in the document header that
distinguishes business transactions and helps in managing document
storage.
We define the Document Type at the client level, which gets applied
to the whole document. In SAP, Document Type is part of the
document header (which is the heading portion of a document).

9. What is Classic GL?

The classic general Ledger contains all the financial transactions of
a business. Besides using the classic general Ledger, businesses make
use of the Special Ledger and other components like Profit Centre
Accounting (PCA) in order to meet statutory as well as internal
requirements.

10. What is Client level Data?

Client level, means there are no other restrictive settings or
parameters at which you do the configuration. Like for example
company code etc to restrict the settings. Example of client level
setting: Valuation area = Plant or company code.

11. What is Cost Object?

Cost object controlling enables you to determine the cost of goods
manufactured and sold goods. SAP has many costs object types
like cost Centre, internal order, profit segment, WBS element,
product cost collector etc. Some can be real cost objects while some
can be statistical cost objects. Within SAP, a cost object can be either
a cost Centre or WBS element. Cost Centres are used to track
income and expenses for state-aided (non-revolving and revolving),
auxiliary, and other types of funds (endowments).

12. What is default Account Assignment?

Whether automatic or default, the account assignments are default
values that can be overwritten in the application. Automatic of
default account assignments are required for primary cost elements
used in automatically-generated postings such as prices differences,
exchange rate differences, and discounts.

13. What is Customizing?

To customise or adapt the system to your business requirements,
which is the process of mapping SAP to your business process. It
involves code changes to create functionality that is not available
through configuration.

14. What Types of Reports Developed?

Following is the important List of Reports in SAP FICO:
 GL Chart of Accounts List
 GL Account List
 GL Account Balances
 GL Account Totals and Balances
 AR Customer Master Data List
 AR Customer Balances
  AR Customer Line Item
 AR Customer Open Item Analysis Drilldown Report
 AR Customer Payment History
 AP Vendor Master Data List
 AP Vendor Balances
 AP Vendor Line Items
 AP Vendor Open Item Analysis

15. Account Entries for MIGO, MIRO, Vendor Payment.

16. What is Profit Centre?

Profit Centre is an SAP Controlling Organisational unit defined for
internal control purposes. Based on Organisational requirements, we
can divide companies into that enables management to analyse the
areas of responsibility.

17. Month end Activities?

Closing activities in SAP FICO involves all the month-end and year-
end activities for finance and controlling modules. Such as carrying
forward the closing balance of ledgers, receivables and Payables.
Further includes the execution of depreciation run for fixed assets and
many more.

18. What is s4Hana?

SAP S/4HANA is an ERP business suite based on the SAP HANA in-
memory database that allows companies to perform transactions and
analyse business data in real time.
S/4HANA was designed to make ERP more modern, faster and easier
to use through a simplified data model, lean architecture and a new
user experience built on the tile-based SAP Fiori UX. S/4HANA
includes or is integrated with a number of advanced technologies,
including AI, machine learning, IoT and advanced analytics. The SAP
HANA in-memory database architecture and the integration of
advanced technologies allow S/4HANA to help solve complex
problems in real time and analyse more information faster than
previous SAP ERP products.

19. What is Material Ledger?

Material Ledger is a Tool that collects transaction data for
materials whose master data is stored in material master. The
material ledger uses this data to calculate prices to valuate these
materials. The material ledger is the basis of actual costing.

20. What is Exchange Rate Process?

Exchange rate types allow you to have different exchange rates for
different purposes for the same pair of currencies, such as one
exchange rate for operational transactions and another for planning. A
standard exchange rate type is provided.

21. What is GR/IR Account?

GR stands for Goods Receipts and IR stands for Invoice Receipts.

22. Where to create GR/IR accounts in GL A/c?

 23. F110 Process
Helps accountants easily keep track of what invoices must be
paid, how the invoices will be paid and the bank accounts
included. Can send payment notices to vendors: informing them that
payments have been processed.

24. APP Process?

Automatic Payment Program (APP) serves the purpose of posting
accounts payable like payment to a vendor based on vendor
invoices automatically. APP is used to find out due/overdue invoices
and to process a list of customer and vendor invoices to make
payments in one go.

25. Field Status Variant

Field Status Variant is used to define the fields which are used for
input like cost centre, profit centre, plant, etc., which are entry
fields, and hidden fields. Field status Variant is a tool which is
provided by SAP to assign the same set of properties to more than one
object.

26. What is Posting Period Variant?

Posting period variant is used to maintain accounting periods that
are open for posting and all closed period are balanced. This is
used for opening and closing period in the fiscal year for posting
purpose. You can assign these posting periods to one or more
company codes.

27. What is Business Partner?

A business partner is a natural person, organization, or group with
which you have a business relationship:
 Natural person (private individual)
 Organization (legal entity, or part of a legal entity)
 Group (for example: married couple, shared living
arrangement)

28. GL account process?

General Ledger (G/L) accounts are used to provide a picture of

external accounting and accounts and to record all the business
transactions in an SAP system. This software system is fully
integrated with all the other operational areas of a company and
ensures that the accounting data is always complete and accurate.

29. What is Cockpit?

Cockpit is an intuitive web application and a central tool that

enables the SAP CC administrators and pricing specialists to
manage the SAP Convergent Charging 2020 systems and data
quickly and efficiently.

30. What is Trading Partner?

A trading partner represents the company code that is in
transaction with your company code. Intercompany Business
Partners. Intercompany transactions can be done at either a general
ledger account or a sub-ledger level.

31. What is alternate account?

The Alternate Account is used as a summary for financial
accounting. Alternate Accounts aggregate Accounts of a similar
nature to facilitate the summarization and review of financial
information.

32. What is cash journal?

The cash journal is a subledger of Bank Accounting. It is used to
manage a company's cash transactions. The system automatically
calculates and displays the opening and closing balances, and the
receipts and payments totals. You can run several cash journals for
each company code.

33. What is Material Master?

The material master contains information on all the materials that
a company procures or produces, stores, and sells. It is the
company's central source for retrieving material-specific data. This
information is stored in individual material master records.

34. What is SAP Concur?

Concur is an SAP SaaS solution that provides travel and expense
management services to our customers. Concur integrates
seamlessly with SAP on premise solutions via an ABAP add-on
installed in the on-premise SAP ERP system.

35. What is IDOC?

IDoc (intermediate document) is a standard data structure used in
SAP applications to transfer data to and from SAP system
applications and external systems. Using IDocs, companies with
SAP ERP systems, for example, can exchange data with external
entities like their partners or customers.

36. What is OTC Process?

The term order-to-cash refers to the entire process from the receipt of
an order to the completion of the transaction through payment by the
customer. In the SAP ERP system, the OTC process represents the
supplier view, i.e., the sales side (SAP SD Sales & Distribution) of
a company.

37. What is Clearing Account?

The technical clearing account needs to be defined as Reconciliation
for Asset and due to the operational and valuating part of the posting,
for each accounting principle in the Chart of Depreciation the balance
in this account would be zero.

38. What is Foreign Currency Revaluation Process?

Forex revaluation is the process of revaluation of vendor open
items, customer open items, G/L open items and G/L balance in
the local currency of the branch (profit centre currency which can
be set up as a freely definable currency).

39. What is Asset Class?

Asset classes are the most important means of structuring fixed
assets. You can define an unlimited number of asset classes in the
system. You use the asset classes to structure your assets according to
the requirements of your enterprise. Asset classes apply in all
company codes.

40. What is Chart of Depreciation?

Charts of depreciation are used to manage various legal
requirements for the depreciation and valuation of assets. These
charts of depreciation are usually country-specific and are defined
independently of the other organizational units. Example. You can use
one chart of depreciation for all company codes in a country.

41. What is Depreciation Key?

The depreciation key contains the value settings which are
necessary for determining depreciation amounts. It represents a
combination of calculation rules, which should be used for the
automatically calculated depreciation types. for ordinary depreciation.
for special depreciation.

42. Where to Assign GL Accounts in Assets?

In this FICO configuration activity, we are able to assign gl accounts
related to the asset transaction in SAP. When you start the
transaction, initially you will have to choose chart of
depreciation. After that choose an account determination and
jump to different areas of G/L assignment.

43. What is System Landscape?

SAP system landscape is defined as an arrangement of SAP servers.
Ideally, in a Sap environment, a three-system landscape exists. A
system landscape consists of Development Server (Dev), Production
Server (PROD), and Quality Assurance server (QAS).

44. What is Document Splitting?

Document splitting is based on the unique assignment of document
types to predefined, non-modifiable business transactions (or their
attributes in a business transaction variant) as well as on the
assignment of accounts to predefined, non-modifiable item categories.
Document splitting in SAP New GL is divided into two types. The
Passive Split and the Active Split (rule-based) or Clearing Lines
by the document.

45. Difference Between HANA & ECC?

The main difference between SAP ECC and SAP HANA is that ECC
is the core ERP product within the SAP Business Suite, whereas
HANA is a cloud-friendly, in-memory database designed to handle
transactions and analytics on one system.
 ECC (ERP) S/4HANA

Database Third-party databases (Oracle, IBM, etc) SAP HANA

A merger of
FI GL accounts are mapped to CO primary Universal journal stores both GL account and
controlling (CO) and
cost elements cost element
finance (FI)

New general ledger Choice of "classic" GL structure or the "new"

Uses only the new GL
(GL) GL structure

Customer vs. Vendor

Separate customer and vendor files Business Partner record
to business partner

Settlement management through condition

Rebates SD rebate processing
contracts

46. What is New GL?

New G/L combines several individual ledgers such as the cost of sale
ledger, profit center accounting and consolidation staging ledgers. It
comes with many new and improved functions for parallel
accounting, segment reporting, document splitting, and fast close with
balanced books at any time. Finally, it helps improve compliance with
a reduced total cost of operation.

47. What is Financial Statement Version (FSV)?

A financial statement version (FSV) is a hierarchical
arrangement of G/L accounts.
The accounts can be arranged in accordance with the legal
regulations used to generate your financial statements.
Alternatively, you can arrange the accounts in accordance
with your requirements.
Use
You need an FSV for the following purposes:
 To generate financial statements
 To create various reports that are structured lists of
account balances, such as Trial Balance
 As a basis for planning in General Ledger Accounting,
for example, by using Balance Sheet/Income Statement.
You can define different FSVs for various needs, for example:
 For different organizational units, such as corporate
group or company code.
 For different levels of detail of your financial statements.
For your accounting department, for example, you want
to list the individual accounts with their respective
balances. For senior management, you might want to
summarize this information to create one set of financial
statements for the whole group.

48. What is Business Partner?

Business Partner (BP)
Business partner is nothing but single entry to maintain
customer master and supplier master (formally we used to
vendor master (ECC) instead of supplier master- S4HANA)
Business partner is used to maintain the multiple
addresses with single usage.
SAP Standard provides roles as below
** Business Partner – 000000
Customer FLCU00- Financial accounting
 FLCU01- Customer
Vendor FLVN00- Financial accounting
FLVN01- Supplier
So steps to create supplier master in s4hana is almost same as we
used maintain in ECC.

49. What is APP Process?

Automatic Payment Program (APP) serves the purpose
of posting accounts payable like payment to a vendor based
on vendor invoices automatically. APP is used to find out
due/overdue invoices and to process a list of customer and
vendor invoices to make payments in one go.

50. FI Enterprise Structure?

SAP defines the enterprise structure as “the definition of
specific organizational units that together represent your
company’s business units and divisions.” Enterprise structures
are the bedrock of the SAP FI solution; without them, you
couldn’t integrate and configure your program. You couldn’t
run SAP FI at all.
Enterprise structure Includes Followings:
Creation of company-OX15
Creations of company code-OX02
Creations Business Area-OX03
Assignment of Company-to-Company code-OX16
Maintain Credit Control Data-OB45
Assign Credit control data to Company code-OB38

51. What is Org. Structure?

Client -> Operating Concern -> Controlling Area ->
Financial Area -> Credit Control Area -> Company ->
Company Code -> Business Area
Details:
1) Client: A commercially, organizationally, and technically
self-contained unit within an SAP System. Clients have their
own master records and set of tables. The client is the highest
level in the SAP System hierarchy. Specifications that you
make, or data that you enter at this level are valid for all
company codes and for all other organizational structures.
You therefore only need to make these specifications, or
enter this data once. This ensures that the data is consistent.
2) Operating Concern: An operating concern represents an
organizational unit in your company for which the sales
market has a uniform structure. It is the valuation level for
Profitability Analysis (CO-PA).
3) Company: The smallest organizational unit for which
individual financial statements are created according to the
relevant legal requirements. A company can include one or
more company codes.
4) Company Code: Smallest organizational unit of external
accounting for which a complete, self-contained set of
accounts can be created. This includes the entry of all
transactions that must be posted and the creation of all items
for legal individual financial statements, such as the balance
sheet and the profit and loss statement. The company code is
the central organizational unit of external accounting within
the SAP System.
5) Business Area: Organizational unit of external accounting
that corresponds to a specific business segment or area of
responsibility in a company. Movements in value entered in
Financial Accounting are assigned to business areas.
Business areas are used in external segment reporting (over
and above company codes), based on the significant areas of
operation of a company (for example, product lines,
branches).
6) Controlling Area: Organizational unit in an organization
that represents a closed system used for cost accounting
purposes. A controlling area may contain one or more
company codes, which can operate in different currencies, if
required. The company codes within a controlling area must
all use the same operational chart of accounts.
7) Credit Control Area: It helps in administering the credit
management functions relating to the customers.