SAP FI/CO

1.Explain the concept of organizational units in SAP. Organizational units in SAP are the elements which actually represent the real world business and is used for reporting. The various organizational units in SAP are company code, company, client, Controlling Area , plants, sales organization, purchasing organization, employee group etc.

2.Explain the concept of company code in SAP FI. Company code in SAP is the smallest organizational unit for which one can draw individual financial statements(Balance sheet and profit and loss account) for external reporting. It is mandatory to define company code in SAP FI.

3.Explain the concept of business area in SAP. A business area in SAP corresponds to specific business segments of a company. For eg. A company may have different business specializations like infrastructure, real estate, petro-chemicals etc. Each refers to a business area in SAP. The definition of business area is optional. We can draw financial statements per business area for the purpose of internal reporting.

4.Explain the concept of chart of accounts in SAP. The list of all G/L accounts used in one or more company codes is called chart of accounts. Every G/L account in a chart of account will have a account name, account number and other details. There are three types of chart of accounts, Operating chart of accounts Country chart of accounts

Group chart of accounts.

5.Brief what an operating chart of account is. Out of the three types of chart of accounts operating(or standard) chart of account is used for day to day postings in a company. It is used by both FI and CO. It is mandatory that it is assigned to the company code.

6.Explain the concept of posting period and what a posting period variant is. Every fiscal year in SAP is divided into various posting periods, where the books of account are open for postings. Normally in SAP system there will be 12 posting periods and 4 special posting periods. A posting period variant is used for closing and opening a posting period. In SAP system a posting period variant is defined and is assigned to various company codes. If we want to close the posting of a particular company code it can done simply and centrally.

7.Explain the concept of shortened fiscal year In many cases an enterprise would have a financial year with less than 12 months. Configuring such a scenario in SAP requires the concept of a shortened fiscal year. Eg. A company is started in the month of septemper where the fiscal year is from march to april.

8. Explain what a Tax jurisdiction code is in SAP.

A tax jurisdiction code is a combination of the codes defined by tax authorities. It is used in countries like US.Upto four levels can be defined below the federal level. The four levels are, Sub-city level, city leve, country level, state level. The following paremeters should be configured before defining a jurisdiction code Create access sequence Create condition type Create jurisdiction codes.

9.Explain the concept of document in SAP. SAP is a table driven software and SAP FI is a module based on the principle of document. All the transactions performed in FI would result a document. A document is a result of a posting in accounting in SAP. There are actually two types of documents, original document and processing document. Every document consist of A document header and two or more line items.

10. What is a line item in SAP FI? All the information relating to account number, amount, debit/credit, tax, code etc are maintained in a line item. A single document can have upto 999 line items. Apart from the line items created by human the system also can create its own line items called system generated line items. The main point to be kept in mind is that, what ever be entered in line item, the grand total should always be zero, ie, total credit should always equal total credit. Otherwise the system would not allow to post the document.

11. Explain the concept of posting key in SAP FI. The entry of line item is controlled by a 2 digit alphanumeric key called a posting key. A posting key also determines the following facts,

Which side of account the entry can be posted to, either the debit side or the credit side. The layout of a particular screen to be used for a particular transaction What account can be posted to. Sap comes with many predefined posting keys;40(GL debit), 50(GL credit), 01(customer credit memo), 21( vendor credit memo) etc.

11.Explain what a field status group is in SAP FI A field status group is an individual field or a group of fields which is assigned to a field status variant. The field status variant is then assigned to a particular GL account master records. 12. What is a house bank in FI For every company code, there will be a bank or a financial institution where money transfer and monetary interactions takes place. This is called a house bank in SAP. The details of all the house banks maintained for a company code is held in the Bank directory. 13. what is the number range interval in SAP In SAP a number interval is defined to assign to documents when it is posted. When a document is posted system assigns a number from this interval. Different documents types have different number ranges assigned to it. Each document in SAP can be uniquely identified by the combination of document number, company code and fiscal year. 14. what is Document reversal in SAP Suppose there are some discrepancies in a document that is already posted in the system, the changes can be made only by reversing the already posted document and posting a new document with the correct information. During reversal the system automatically picks the appropriate document type and defaults the relevant posting keys.