Infosys Interview Questions

1.self

2. “What are the delta changes from SAP ECC to SAP S/4HANA?”

Transitioning from SAP ECC to SAP S/4HANA involves several significant changes and improvements.
Here are some of the key delta changes:
1. Database: SAP ECC uses traditional disk-based databases, while SAP S/4HANA leverages the in-memory
SAP HANA database, enabling real-time data processing and analytics1.
2. Data Model: SAP S/4HANA features a simplified data model, reducing redundancy and improving
efficiency. This contrasts with the more complex data model in SAP ECC1.
3. User Interface: SAP ECC uses the traditional SAP GUI, whereas SAP S/4HANA employs the modern,
intuitive SAP Fiori interface, enhancing user experience1.
4. Business Processes: SAP S/4HANA supports intelligent business processes powered by advanced
technologies like machine learning and analytics, which are not available in SAP ECC1.
5. Deployment Options: SAP S/4HANA offers flexible deployment options, including on-premise, cloud,
and hybrid models, while SAP ECC is primarily on-premise2.
6. Functional Enhancements: SAP S/4HANA includes new functionalities and modules, such as embedded
analytics, advanced financial management, and streamlined supply chain management3.
7. Support and Maintenance: SAP ECC support is scheduled to end by 2027, whereas SAP S/4HANA is
supported

3.FCV?

In SAP FICO, FCV stands for Foreign Currency Valuation. This process is crucial for companies dealing
with transactions in multiple currencies. Here’s a brief overview:

1. Purpose: FCV ensures that all open items and balances in foreign currencies are accurately
converted to the local currency using the current exchange rates. This is typically done at the
end of a financial period.
2. Key Transactions:
o FAGL_FCV: Used in S/4 HANA for foreign currency valuation.
o F.05: Used in older versions (ECC) for the same purpose1.
3. Process:
o Valuation Run: Converts foreign currency amounts to local currency.
o Postings: Creates valuation postings at the end of the period and reversal postings at the
beginning of the next period2.
4. Configuration:
o Valuation Methods: Defined in the system to determine how the valuation should be
performed (e.g., lowest value principle, always valuate)3.
4.When we get realised gain and unrealised gain – sap fico?

In SAP FICO, realized and unrealized gains or losses are related to foreign currency transactions. Here’s a
breakdown of when each occurs:

Unrealized Gain/Loss

 When: These arise from open items (e.g., invoices, receivables, payables) that are not yet
settled.
 How: At the end of each financial period, the system performs a foreign currency valuation to
adjust the value of these open items based on the current exchange rates.
 Posting: Unrealized gains or losses are posted at the period end and reversed at the beginning of
the next period since they are not yet realized1.

Realized Gain/Loss

 When: These occur when the actual settlement of foreign currency transactions happens (e.g.,
when a payment is made or received).
 How: The difference between the exchange rate at the time of the transaction and the exchange
rate at the time of settlement results in a realized gain or loss.
 Posting: Realized gains or losses are posted at the time of clearing the transaction and are not
reversed.

5) In SAP FICO, valuation and substitution

In SAP FICO, valuation and substitution serve different purposes and are used in distinct contexts. Here’s
a comparison to help clarify their roles:

Valuation

 Purpose: Valuation is primarily used for financial reporting and accounting purposes. It involves
assessing the value of assets, liabilities, and transactions, often in the context of foreign
currency valuation.
 Usage: Commonly used for tasks like foreign currency valuation (FCV), asset valuation, and
inventory valuation.
 Example: At the end of a financial period, foreign currency valuation adjusts the value of open
items in foreign currencies to reflect current exchange rates1.

Substitution

 Purpose: Substitution is used to automatically replace or modify data entered into the system
based on predefined rules. It ensures data consistency and accuracy during transaction entry.
 Usage: Often used to enforce business rules by substituting values in financial documents.
 Example: If a document is posted with a specific cost center, substitution can automatically fill in
a corresponding profit center or payment method2.

Key Differences
  Functionality:
o Valuation: Focuses on assessing and adjusting values for accurate financial reporting.
o Substitution: Focuses on ensuring data integrity and consistency by modifying data
during entry.
 Configuration:
o Valuation: Configured through valuation methods and rules in the system.
o Substitution: Configured using transaction codes like OBBH (for substitution) and GGB1
(for validation rules).

7.technical clearing account?

In SAP FICO, a technical clearing account is used to facilitate postings that need to be split across
different ledgers, especially in the context of asset accounting. This account helps ensure that postings
are correctly allocated to each accounting principle, such as IFRS, local GAAP, or tax reporting.

Here’s a brief overview of its purpose and functionality:

1. Reconciliation: The technical clearing account acts as a reconciliation account for assets. It
ensures that all postings related to asset acquisitions are balanced and correctly reflected in the
financial statements1.
2. Ledger-Specific Postings: When you post an asset acquisition, the technical clearing account
allows you to post independently to each ledger. This is crucial for maintaining compliance with
different accounting standards2.
3. Zero Balance: Ideally, the balance in the technical clearing account should be zero after all
postings are completed. This indicates that all transactions have been correctly allocated and
reconciled3.

8.any experience in controlling?

MDM (Master Data Management) data

9.what is account principal in sap fico?

In SAP FICO, an accounting principle refers to a set of rules and guidelines that dictate how financial
transactions should be recorded and reported. These principles ensure that financial statements are
consistent, comparable, and compliant with various accounting standards such as IFRS, GAAP, or local
regulations.

Here’s a brief overview of how accounting principles are used in SAP FICO:

1. Definition: Accounting principles are defined in the system to represent different sets of
accounting rules. For example, you might have one accounting principle for IFRS and another for
local GAAP1.
2. Assignment to Ledgers: Once defined, these accounting principles are assigned to specific ledger
groups. This allows the system to apply the correct accounting rules to each ledger, ensuring
that financial statements are accurate and compliant2.
 3. Parallel Accounting: SAP FICO supports parallel accounting, which means you can maintain
multiple ledgers for different accounting principles. This is particularly useful for companies that
need to report under multiple accounting standards3.
4. Configuration: The configuration of accounting principles involves specifying the rules and
assigning them to ledger groups. This is typically done through the SAP IMG (Implementation
Guide) under Financial Accounting Global Settings.

10.types of depreciation in asset?

In SAP FICO, there are several types of depreciation methods you can use for asset accounting:1

Straight-Line Method (SLM): This method spreads the cost of the asset evenly over its useful life1

. It's simple and commonly used.

Declining Balance Method: This method applies a constant depreciation rate to the asset's book value
each year, resulting in higher depreciation expenses in the earlier years.

Written Down Value Method (WDV): Similar to the declining balance method, but the depreciation rate
is applied to the net book value of the asset.

Multi-Level Depreciation: This method allows for different depreciation methods to be applied at
different levels of the asset's life.

Period Control Method: Depreciation is calculated based on specific time periods rather than calendar
years.

Maximum Amount Method: Depreciation is calculated up to a maximum amount, which can be useful
for tax purposes.

Each method has its own advantages and is suitable for different types of assets and business needs

11.diff b/w straight line method and written down metho?

In SAP FICO, taxes are managed through a combination of configuration and transactional data. Here
are the main types of taxes you can handle in SAP FICO:

Sales Tax: This is applied to sales transactions and is usually calculated based on the tax code assigned
to the transaction.

Purchase Tax: Applied to purchase transactions, similar to sales tax but for incoming goods and
services.

Value Added Tax (VAT): Common in many countries, VAT is applied at each stage of the supply chain.

Withholding Tax: This is typically applied to income and is withheld at the source, such as employee
salaries.

Excise Duty: Specific to certain goods, like alcohol and tobacco.

Customs Duty: Applied to imported goods.

The configuration of these taxes involves setting up tax codes, tax procedures, and tax jurisdictions1

. You can manage these settings in the SAP system to ensure accurate tax calculation and reporting1

13. What are the condition types in taxes?

In SAP FICO, condition types are used to define the rules for calculating taxes. Here are some common
condition types used for taxes:

TX: Tax Code - This is the main condition type used to determine the tax amount.

UTXJ: Tax Jurisdiction Code - Used to determine the tax jurisdiction.

MWAS: Output Tax - Standard condition type for output tax.

MWS: Input Tax - Standard condition type for input tax.

UTXJ: Tax Jurisdiction Code - Used to determine the tax jurisdiction.

These condition types are configured in the SAP system to ensure accurate tax calculation and reporting.
You can also create custom condition types based on your business requirements.

14. Tax codes?t.code?

A tax code in SAP FICO is a code that identifies specific tax rates and rules for transactions. It helps in
calculating the correct tax amounts for various transactions like sales, purchases, and other financial
activities. Each tax code is associated with specific tax rates and conditions, ensuring that taxes are
applied accurately according to regional tax regulations.
Tax codes simplify the tax calculation process by automating the application of the correct tax rate,
making financial reporting more efficient and consistent.

15. Tax procedure?

16. Any experience in FS?

17. Any experience in reports?

18. Any experience in idoc?

19. Activate methodology?

20. Which ticketing tool?

21. Process of FS?

22. Team size?