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 THE TERM SAP FICO?
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
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
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 CHART 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 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.