Many SAP FICO Consultants are keen on finding the SAP FICO certification questions.

I am including few of the SAP FICO certification questions on the Management Accountant Blog. You can give a try on the following questions. End users on SAP can test their knowledge about the system.

1. A chart of accounts ( Multi Choice) A. can be allocated to multiple company code B. can be defined as the group chart of accounts C. only contains definitions for G/L accounts D. can only allocated to one company code.

2. A client. ( Single Choice) A. may only contain a single chart of accounts B. may contain multiple charts of accounts C. may only use one currency type D. may only have one controlling area

3. Identify the correct statement(s) relating to how the main business processes are integrated in the SAP R/3 System. ( Multi Choice) A. A purchase requisition is a documented request to purchase goods or services. In SAP it can be created manually or automatically. B. A goods receipt is the recording of the movement of materials into the warehouse. In SAP, a financial document which updates the inventory account and an accrued liability account is created C. The Invoice receipt and verification process compares the vendor invoice with the purchase order and goods receipt. However, the corresponding financial transaction must be entered through the financial module of R/3. D. In SAP, payment processing reduces the liability to a vendor and a company's cash balance, records discounts taken and disburses payment. E. A customer delivery is the transfer of the ownership of goods. A customer delivery includes, creation of a delivery document, picking the goods for shipment; physically transferring the goods to the customer and financially recording the goods issue.

4. Identify the correct statement(s) regarding organizational elements within the R/3 System. ( Multi Choice) A. The Sales area combines the sales organization, distribution channel, and division. B. The Purchasing Organization is responsible for the purchasing for the only one plant. C. A plant is a location in which inventory quantities and values are stored or manufactured. D. A Controlling area can comprise several company codes using different chart of accounts but must operate in the same currency. E. A profit center is used to generate income statements and operating profit statements.

5. Which of the following statements is true ? ( Single Choice) A. A Company code can belong to more than one controlling area. B. A plant must be allocated to a company code C. A controlling area and a company code must have the same local currency. D. A business area and a company code are assigned to each other in the corporate structure IMG

6 . Which of the following statements about year-end closing are correct?(Multi) A. You carry out year-end closing before the fiscal year change. B. During year-end closing, the program checks if the year-end closing can be carried out. C. Once the year-end closing was successfully completed, the system automatically changes certain entries in Customizing (closed fiscal year) D. You cannot create and post to new fixed assets until The year-end closing is successfully completed E. You can only conduct year-end closing on June 30 or December 31 of each year.

7. What steps have to be completed before you can generate asset classes form G/L accounts? (Multi) A. Account selection B. Account determinations C. Number range intervals D. Screen layout variants E. Asset classes

8. For each depreciation area you need to specify whether you want to (Multi) A. post depreciation at periodic intervals to the general ledger B. post asset values at periodic intervals C. automatically post values online D. use index classes E. post to business areas

9. Please click on the button next to the correct answer.(Multi) A. The business area can run across many company codes, i.e. all company codes can post in all business areas. B. A company code may belong to more than One Controlling Area. C. Each company codes uses exactly one chart of accounts and one chart of depreciation. D. Business areas are used to create internal balance sheets and income statements.

10. The time of the first acquisition posting to the asset sets the following fields in the master of asset(Multi) A. the depreciation start date per depreciation area B. the cost enter to be hit through depreciation C. the date of capitalization D. the depreciation key

11. Usually one Chart of Depreciation is defined for each country. At which level is the chart of Depreciation created?(Single) A. at Company Code level B. at Client level. C. at Chart of accounts level. D. at Business area level. E. at System level.

12. What are the functions asset class?(Multi) A. Asset number assignment. B. Cost Center determination. C. Screen layout D. Account allocation E. Definition of default value.

A general query by people who have experience in SAP.

Can I appear for SAP FICO certification examination without undergoing the training program ?

I have experience as end user of SAP, can I do SAP certification ?

The answer is available on SAP website on Examination Policies and Procedures. Participants

Partners and customers may register suitably qualified employees as candidates for the certification examination.

Participants in training courses that are given by SAP or SAP's authorized training partners and that include the certification examination may attempt the certification examination. For all Academy tracks that contain Case Studies, full participation of the student is mandatory to qualify to take the certification exam.

Previous Questions

13. Integration with MM: An asset purchase order is created in Purchasing. The goods receipt is posted on a value basis. Invoice verification then posts the invoice. What is the name of the auxiliary account used for all of these transactions?(Single) A. MM/FI clearing account. B. GR/IR clearing account. C. Asset purchasing clearing account. D. Asset acquisition clearing account. E. Vendor asset acquisition clearing account

14. What additional functions do asset classes offer?(Multi) A. Specify required entry fields for asset master data B. Enter default values for asset master data C. Enter default values entries for depreciation area D. Enter allowed entries for user fields E. Define allowed company codes

15. Which of the following statements about manual depreciation (for example unplanned depreciation in FI-AA) area true?(Multi) A. You cannot post manual depreciation in FI-AA. B. Manual depreciation is posted immediately after entry(real time). C. Manual depreciation is initially shown as a planned value after entry and only posted when the depreciation posting report is run. D. Manual depreciation usually only applies to depreciation areas which you choose when you enter the document.

E. After entering manual depreciation in FI-AA., you also need to enter it manually in FI/CO.

16 .Which correspondence extracts all items in the chosen period from a customers account displays the balance carried forward balance and a closing balance of the Account ?(Single) A. Payment advice B. Payment notice C. Account statement D. Dunning notice

17. Which of the Following statements about automatic payment are correct ? (Multi) A. In automatic payment procedures, all incoming invoices as of the second dunning level are paid automatically B. Direct debiting or bank collection can be used in automatic payment procedures to clear customer invoices C. Open items posted to G/L accounts can be cleared using the payment program D. Special G/L transactions(down payment)can be posted using the payment program E. The payment program can pay vendor invoices using wire transfers and checks

18. Imagine the following scenario:A company wants to execute a payment run on a daily basis and process several company codes at the same time. If the amount exceeds US$ 1000, the vendors are to be paid by bank transfer, amounts less than US$ 1000 are to be paid by check. The customer has two house banks and wants all checks to be processed by bank A and all (Multi)

A You store variants for print programs within customizing. Here you can specify that the information is to be output to a data carrier B. You specify, per house bank, whether payments are to be made by check only or also by transfer C. You specify the payment method from within the application,in the master record D. The payment proposal of the automatic payment program can only be displayed E. You can precisely schedule the print program from within the application

19. According to which criteria does the payment program determine and select open items (Single) A. posting date and baseline date B. document date and posting date C. baseline date and payment terms D. posting date and cash discount periods E. posting date and payment terms

20. Which of the following statements are true with regard to the customizing setting for banks in the automatic payment run ? (Multi) A. The sequence of the banks for processing outgoing payments is selected randomly B. You can only determine one payment method per house bank C. You can select several payment methods per country D. You can specify by bank and method the anticipated number of days before the bank account is debited E. You can determine the banks to be used for payments according to postal code

21. Which of the following factors does the systems take into account in a payment run ?(Multi) A. Fiscal year variant B. Payment method specifications in the IMG C. Specifications in the vendor master records D. Information in the documents(incoming invoices) E. Specifications made when maintaining the payment run parameters

22. Which of the following statements are correct ?(Multi) A. When creating a House bank, you do not need to specify the country. B. The payments program can use a different House bank for each different payment method C. A House bank account can be defined in more than one currency D. House bank master data must be created in advance, before assigning the House bank to a payment method in the payment program configuration E. A house bank can be assigned to a business area within the payment program configuration

23. When entering a document using a foreign currency, which date is used to determine the exchange rate if the translation date is not entered ?(Single) A. Posting date B. Document date C. Entry date D. Baseline date

24. where are posting periods defined?(Multi) A. Posting period variant. B. Fiscal year variant. C. Field status variant. D. Closing period variant.

25. which of the following statements supports the reversal of a document?(Multi) A. The original document contains no cleared line items. B. Documents originating in other modules should be corrected there to allow the changes to flow naturally through to financial accounting. C. If a reversal date is not specified, the system reverses the document using the posting date of the document to be reversed. D. A new document number is created for the reversal document. This is part 3 and concluding part of SAP FICO certification questions. Preparation for the SAP certification is quite daunting. The best sources is to read the training materials which is provided during the certification. You should read every line of it and any doubts test it in the system.

Take a test on this question When entering a document using a foreign currency, which date is used to determine the exchange rate if the translation date is not entered ?(Single) A. Posting date B. Document date C. Entry date D. Baseline date I got the answer wrong the first time. Write your answer. Check the solution at the end of the post.

Previous posts: SAP FICO Questions - 1 SAP FICO Questions - 2

26. Choose the correct statements regarding recurring documents. (Multi)

A. When creating a recurring document, the valid time period must be defined. B. The posting date is determined by either the run date or the run schedule. C. Field values can be changed in recurring document. D. After running the recurring document posting, the next run date cannot be displayed. E. The original recurring document can be deleted from the batch input menu.

27. In manual bank statement customizing, you must (Multi) A. Define an internal activity B. Define a posting rule C. Define a posting type D. Define a currency E. Define an account symbol

28. Which of the following statements about manual planning are correct?(Multi) A. The planning type determines which bank accounts the plan amount to be inputted to. B. The expiration date shows how long the payment advice is included in planning. C. The payment advices for editing can be changed, archived, or reactivated. D. Archived payment advices are included in planning till the value date. E. The retention periods are determined by the bank account name.

29. Bank accounts should be controlled as follows when Cash Management is in use:(Multi) A. Open items are managed for both the main bank account and the bank clearing account. B. Both the main bank account and the bank clearing account permit line item displays. C. The main bank account and the bank clearing account use the same sort key. D. The value date in the field status string for both the main bank account and the bank clearing account must accept entry. E. The cash-relevance flag in the master records for both the main bank account and the bank clearing account must be set.

30. Which of the following statements about creating customer master records are correct? (Multi) A. An account group always gets assigned to a customer. B. The company code is always a required entry. C. The account number may be assigned by the user externally. D. Information on each screen may be defined in configuration as mandatory, suppressed or optional, depending upon the account group. E. Information on each screen may be defined in configuration as mandatory, suppressed or optional, depending upon the company code.

31. Which of the following statements are correct? (Multi) A. A customer master is divided by client level and company code level. B. In case of one-time customer you have to enter the customer's address in the document itself. C. Address, control data, and reconciliation account are included in the client level of the customer. D. The most efficient way to create master records is to work with the external number range not internal number range.

32. Which of the following statements are correct? (Multi) A. If a customer is also a vendor, the system can include outstanding Accounts Receivable invoice items in payment program. B. If a customer is also a vendor, the system can include outstanding Accounts Payable invoice items when you clear incoming payment receipts for the customer. C. The reconciliation account defined on the customer master record is an account used to reconcile CO transactions back to FI. D. All customer belonging to the same account group must be assigned to the same reconciliation account. E. The alternative payer is used to transfer outstanding receivable item to the alternative payer's account.

33. Bulk change of line item - this function allows you to change a whole group of line items simultaneously, instead of having to change individual items in the documents. What data can you change using this function?(Multi) A. The reconciliation account B. The company code C. The payment terms and payment block D. The house bank and payment method

34. Which of the following order types are internal orders?(Multi) A. Result analysis orders for posting accrual costs in CO. B. Capital investment orders for creating assets. C. Maintenance orders. D. Sales orders for make-to-order function E. CO production orders.

35.Which of the following statements are correct regarding Internal Orders?(Single) A. Planning transactions are allowed under any status. B. Once an order has been released, only closing entries can be made. C. Transactions can be allowed or disallowed depending in the order status. D. Additional order status categories can be created in the order master.

36.Which of the following statements is true about CO production orders?(Multi) A. It is an internal order used to control production from a cost accounting point of view. B. Bills of materials and routings are required. C. It is not possible to post goods movements to and from the order. D. You can post primary costs from Financial Accounting to the order. E. You can post secondary costs from overhead calculation to the order.

37.Which statements are true regarding direct and indirect activity allocations? (Multi) A. If both the amount of the activity used by the receiver and the total output activity quantity of the sender can be measured, then indirect activity allocation is used. B. If the amount of activity consumed by the receiver is not measured, then indirect activity allocation is used. C. Manual activity input planning cannot be performed if actual activities are allocated indirectly. D. If direct activity allocation is used, the total output activity quantity is determined by summing all of the activity quantities allocated.

38. The primary cost element is one type of master data in Controlling. Before you can create a new primary cost element, certain prerequisites need to be fulfilled. Which of the following conditions must be fulfilled BEFORE you can create primary cost elements?(Multi) A. The controlling area must be defined. B. The cost center must be defined. C. The G/L account must be defined. D. The plant must be in the system. E. The business areas have been defined.

39. What is the difference between distribution and assessments? (Multi) A. Distribution can be made for both planned and actual figures; assessments cannot. B. Distributions can be made using statistical key figures; assessments cannot.

C. Distributions are used when the original cost information is necessary on the receiver; assessments are used when this information is not necessary on the receiver. D. Distributions are made using the original primary cost elements; assessments are made using secondary cost elements.

You should remain calm and relaxed on the SAP Certification Examination. The examination will be computer based and will consist of singe as well as multiple choice questions. I had finished my answers in first one and hour of the examination but stayed there to check my answers again. I revised lot of my answers particularly the multiple choice ones. So it is a good idea to stay in the examination hall for allotted hours. The moment your time is up, you get the results.

The key to pass SAP certification is to read the SAP training documentation, try out the exercises and revise. You will pass the certifications. Good Luck.

The answer to the question

Q. When entering a document using a foreign currency, which date is used to determine the exchange rate if the translation date is not entered ? A. B. Document Date

21. Which of the following statements about asset data transfer from a previous system are correct?(Multy) A. Transferring asset data during the fiscal year is only possible on july 1 of the given year. B. When you transfer asset data during the fiscal year, the system automatically determines replacement values and insurable values using batch input. C. During the asset transfer, you can enter either the APC or the net book value. D. During the asset transfer, you can specify the order in which the depreciation are apper. E. When you transfer asset data during the fiscal year,you must enter the last depreciation posting period from your previous system in the SAP R/3 System. 22. Intergration with MM: An asset purchase order is created in Purchasing. The goods receipt is posted on a value basis. Invoice verification then posts the invoice. What is the name of the auxiliary account used for all of these transactions?(Single) A. MM/FI clearing account. B. GR/IR clearing account. C. Asset purchasing clearing account. D. Asset acquisition clearing account. E. Vendor asset acquisition clearing account

23. What additional functions do asset classes offer?(Multy) A. Specify required entry fields for asset master data B. Enter default values for asset master data C. Enter default values entries for depreciation area D. Enter allowed entries for user fields E. Define allowed company codes 24. Which of the following statements about manual depreciation (for example unplanned depreciation in FI-AA) area true?(Multy) A. You cannot post manual depreciation in FI-AA. B. Manual depreciation is posted immediately after entry(real time). C. Manual depreciation is initially shown as a planned value after entry and only posted when the depreciation posting report is run. D. Manual depreciation usually only applies to depreciation areas which you choose when you enter the document. E. After entering manual depreciation in FI-AA., you also need to enter it manually in FI/CO. 25 .Which correspondence extracts all items in the chosen period from a customers account displays the balance carried forward balance and a closing balance of the account ?(Single) A. Payment advice B. Payment notice C. Account statement D. Dunning notice 26. Which of the Following statements about automatic payment are correct ? (Multy) A. In automatic payment procedures, all incoming invoices as of the second dunning level are paid automatically B. Direct debiting or bank collection can be used in automatic payment procedures to clear customer invoices C. Open items posted to G/L accounts can be cleared using the payment program D. Special G/L transactions(down payment)can be posted using the payment program E. The payment program can pay vendor invoices using wire transfers and checks 27. Imagine the following scenario:A company wants to execute a payment run on a daily basis and process several company codes at the same time. If the amount exceeds US$ 1000, the vendors are to be paid by bank transfer, amounts less than US$ 1000 are to be paid by check. The customer has two house banks and wants all checks to be processed by bank A and all (Multy) A You store variants for print programs within customizing. Here you can specify that the information is to be output to a data carrier B. You specify, per house bank, whether payments are to be made by check only or also by transfer C. You specify the payment method from within the application,in the master record D. The payment proposal of the automatic payment program can only be displayed E. You can precisely schedule the print program from within the application 28. According th which criteria does the payment program determine and select open items (Single) A. posting date and baseline date

B. document date and posting date C. baseline date and payment terms D. posting date and cash discount periods E. posting date and payment terms 29. Which of the following statements are true with regard to the customizing setting for banks in the automatic payment run ? (Multy) A. The sequence of the banks for processing outgoing payments is selected randomly B. You can only determine one payment method per house bank C. You can select several payment methods per country D. You can specify by bank and method the anticipated number of days before the bank account is debited E. You can determine the banks to be used for payments according to postal code 30. Which of the following factors does the systems take into account in a payment run ?(Multy) A. Fiscal year variant B. Payment method specifications in the IMG C. Specifications in the vendor master records D. Information in the documents(incoming invoices) E. Specifications made when maintaining the payment run parameters 31. Which of the following statements are correct ?(Multy) A. When creating a House bank, you do not need to specify the country. B. The payments program can use a different House bank for each different payment method C. A House bank account can be defined in more than one currency D. House bank master data must be created in advance, before assigning the House bank to a payment method in the payment program configuration E. A house bank can be assigned to a business area within the payment program configuration 32. When entering a document using a foreign currency, which date is used to determine the exchange rate if the translation date is not entered ?(Single) A. Posting date B. Document date C. Entry date D. Baseline date 33. where are posting periods defined?(Multy)

A. Posting period variant. B. Fiscal year variant. C. Field status variant. D. Closing period variant. 34. which of the following statements supports the reversal of a document?(Multy) A. The original document contains no cleared line items. B. Documents originating in other modules should be corrected there to allow the changes to flow naturally through to financial accounting. C. If a reversal date is not specified, the system reverses the document using the posting date of the document to be reversed. D. A new document number is created for the reversal document. 35. Choose the correct statements regarding recurring documents.(Multy) A. When creating a recurring document, the valid time period must be defined. B. The posting date is determined by either the run date or the run schedule. C. Field values can be changed in recurring document. D. After running the recurring document posting, the next run date cannot be displayed. E. The original recurring document can be deleted from the batch input menu. 36. In manual bank statement customizing, you must (Multy) A. Define an internal activity B. Define a posting rule C. Define a posting type D. Define a currency E. Define an account symbol 37. Which of the following statements about manual planning are correct?(Multy) A. The planning type determines which bank accounts the plan amount to be inputted to. B. The expiration date shows how long the payment advice is included in planning. C. The payment advices for editing can be changed, archived, or reactivated. D. Archived payment advices are included in planning till the value date. E. The retention periods are determined by the bank account name. 38. Bank accounts should be controlled as follows when Cash Management is in use:(Multy) A. Open items are managed for both the main bank account and the bank clearing account.

B. Both the main bank account and the bank clearing account permit line item displays. C. The main bank account and the bank clearing account use the same sort key. D. The value date in the field status string for both the main bank account and the bank clearing account must accept entry. E. The cash-relevance flag in the master records for both the main bank account and the bank clearing account must be set. 39. Which of the following statements about creating customer master records are correct? (Multy) A. An account group always gets assigned to a customer. B. The company code is always a required entry. C. The account number may be assigned by the user externally. D. Information on each screen may be defined in configuration as mandatory, suppressed or optional, depending upon the account group. E. Information on each screen may be defined in configuration as mandatory, suppressed or optional, depending upon the company code. 40. Which of the following statements are correct? (Multy) A. A customer master is divided by client level and company code level. B. In case of one-time customer you have to enter the customers address in the document itself. C. Address, control data, and reconciliation account are included in the client level of the customer. D. The most efficient way to create master records is to work with the external number range not internal number range.

1. Which of the following statements are correct with respect to business area 1. 2. 3. 4. one business area can be used for many company codes business areas must be assigned to company code in the IMG they are used for internal P&L and balance sheets a company code can have many business areas

2. Which of the following statements are correct 1. 2. 3. 4. a plant is assigned to only one company code a company code must be assigned to one chart of accounts only a chart of accounts can be assigned to multiple company codes a plant can be assigned to many company codes

3. What are true with respect to business area 1.

2. 3. 4.

a company code can have many6. business areas a business area can be across company codes use of business area is not optional in R/3 system balance sheets and profit and loss statements can be drawn up for business areas

4. Which of the following statements may be false with respect to a business area 1.
2. 3. 4.

the use of business area is optional a company code can have many business areas business area balance sheet will always balance none of the above

5. The standard delivery clients in a R/3 system are 1.

2. 3. 4. 5.

client 000, 001 and 002 testing client 777 and training client 999 client 001, 000,002 and training client 999 client 000 and 001 client 001, 000 , testing client 777 and training 999

6. What are all the possible meanings of the word client that have been used 1.
2. 3. 4. 5.

a customer implementing R/3 system an individual PC in which batch inputs are done for uploading to SAP at a later date the highest technical entity in R/3 the data server

the front end presentation PC which interacts with SAP system 7. The three tier in R/3 system is represented by 1.
2.

client, customer and application data, user and application user, data base, programs presentation client, R/3 application and data base application, data base and customer of R/3

3. 4. 5.

8. The entity in R/3 to provide financial statements and results at the lowest level is 1.
2. 3. 4. 5.

company company code controlling area plant enterprise controlling

9. Which of the following statements is always false with respect to a company code 1.
2.

a company code can have many plants a company code can have many companies

3. 4. 5.

a company code can be linked to only one controlling area a company code need not be linked to an operating concern a company code can have many sales organizations

10. Which of the following statements are always true 1.

2. 3. 4. 5.

a sales organization can be assigned to only one company code a company can have many company codes a company must be linked to a controlling area a company code must always be assigned to a company an operating concern can indirectly contain only one company code

11. Which of the following entities are optional to implement the core financial module of R/3 1.
2. 3. 4. 5.

operating concern controlling area business area plant company code

12. The menu hierarchy in standard R/3 system is 1. 2. 3. 4. 5. main menu, application menu and task menu main menu, sub menu, task menu and help menu system menu, application menu and help menu main menu, application menu and help menu client menu, application menu and user menu

13. For a user with two user ids to the same SAP R/3 client, the maximum no. of sessions that could be open are 1. 2. 3. 4. 5. six nine twelve eighteen twenty four

14. The order of fields as they appear during the log on to an R/3 system is 1. 2. 3. client, user id, password language, client id, password client, user id, password, language

4.

user id, client, password, language

15. Which of the following is not seen by the user normally in the status bar of the SAP screen 1. 2. 3. 4. 5. client number/id session number data server name/id user id/name information, error, and warming messages

16. A user has multiple sessions open and when open of the session is closed by the user 1. 2. 3. 4. the system does not automatically save the data/information of the session being closed system always prompts for saving the data in the session being closed system always automatically saves the data/information of the session being closed without prompting system prompts for saving the dta of the session being closed at the time of user log-off from the system

17. Which of the following entities cannot be directly assigned to a company code 1. 2. 3. 4. 5. company business area controlling area functional area financial management area

18. ABAP stands for 1. 2. 3. 4. 5. advances in business applications programming applications in business and advanced program advanced business applications programming advanced business for advanced program advantage in business applications programming

19. The configuration of the R/3 is done through 1. 2. 3. 4. 5. the implementation guide the implementation assistant business navigator business engineer sessions manager

20. The ASAP CD contains 1. 2. 3. 4. 5. the implementation guide implementation assistant concept check tool business navigator Q&A Db

21. Which of the following statements are true regarding ASAP project preparation phase 1. 2. 3. 4. the business blueprint document must be prepared enterprise scope area document must e prepared for initial project planning project plan must be prepared the project kick off meeting is very essential to involve all the key users and project team members to

communicate the objectives and mission of the project 5. technical requirements planning must be taken up

22. Which of the following are true with respect business blueprint phase 1. when customer inputs are updated on the Q&A db, there is a direct automatic updation of the IMG for the

business processes/components in scope to be customized 2. when the business processes are identified and updated in the system, a list of activities to be taken up in

IMG for customization is generated 3. 4. the standard reference model of R/3 system cannot be directly accessed from the Q&A db business blueprint document shall be generated

23. Which of the following statements re true with respect to testing and quality reviews as recommended by SAP 1. 2. he volume and stress test must be conducted on the same system in which user training is done testing a tool which avoids retrospective changes and acts as an early warning system to correct the

customization of business processes 3. the power (key) users shall not be involved in the testing process as it would hinder timely completion of

the activity 4. 5. there must be quality control of the first four stages before the go-live phase external consultants must always carry out quality control

24. What are the three data types in SAP 1. master data, transaction data, and balance data

2. 3. 4. 5.

master data, table data, and user data master data, table data, and transaction data table data, user data and transaction data master data, table data and server data

25. Various company codes access a controlling area should have 1. 2. 3. 4. same currency same fiscal year variant same chart of accounts same controlling organization structure

KEY 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. A-T, B-F, C-T, D-T A-T, B-F, C-T, D-T A-T, B-T, C-F, D-T A-F, B-F, C-F, D-F A-F, B-F, C-F, D-T, E-F A-F, B-F, C-T, D-F, E-F A-F, B-F, C-F, D-T, E-F B B B C,D A C C . A B,D C A B,C,E B,C,D,E B,D B,C,D C C

I passed my SAP FI certification ECC 6.0. I want to thank each one of them in the group for their support. People who are going to attend the certification exam kindly concentrate on the TFIN50 and

TFIN52 Tips for people who are going to attend the exam:

Understand the concepts. Don't memorize. If possible kindly practice the configuration part (Not mandatory). Do the preparation based on the syllabus not based on books. {You will be getting 99% from the syllabus} You have to cover all the chapters. No straight Questions. You will be getting chapter wise questions like AA, Masters, APP, NEW GL and so on..............

But one thing I can say if you are through with syllabus 'YOU' can easily pass. Take the certification date only once you finish one round of study of all books. Two types of Questions:

Single answer questions {SAQ will be around 10 - 15 questions and remaining will be True/False} A statement will be given. Based on that 4 to 6 options. You have to select each option is True or False.
Approx number of questions asked 2 questions on depreciation area, 3 questions on asset class, 4 questions on asset transactions and depreciation 1 question on M/E closing, 3 on Balance confirmations

Subject - No of questions Asset Accounting - 13 questions Closing Operations in Financial Accounting - 5

Main questions on cash discount, 1Q on Cross Co.Code, 1Q Doc Reversal, 2Q on Foreign currency, 1Q on authorisation, 1Q on FSG, Document and Posting Control - 14 1Q on posting period, 1Q on tolerance group, NO questions on TAX. Evaluation Options in Reporting - 7 2 Q on list viewer and 3 questions on drill down report Financial Accounting Master Data 3Q on Bank, 4Q on Customer, 3Q on Vendor, 2Q on GL 15 Payment Program, Dunning Program, Correspondence, Interest 3 questions on payment program Calculation - 6 SAP Overview - 5 2 Questions related to MM, 1 on navigation SAP Solution Manager - 4 2Q on Roadmap Special General Ledger 1Q on Park & Post, 2Q on Splgl, 2Q on Substitution & Validation Transactions, Document Parking,

Validation & Substitution - 6 The New General Ledger -5

1 on Basics, 2 on document split, 1 on reports

I think this information will be helpful for all of YOU. *-- Venkat
Which of the following statements are correct? A More than one chart of accounts can be created for each client B The chart of accounts contains all the G/L accounts, vendor accounts and customer accounts C More than one company code can be allocated to the same chart of accounts D The chart of accounts controls all the customising settings in the R/3 system E All accounts within a chart of accounts must have the same tax code Question: What status reports does Cash Management and forecasting include? A. Cash B. C. Credit D. E. Bill holdings management position forecast limit report balances

Liquidity G/L account

Question: Which of the following are clearing procedures in accounts receivable? A. B. C. D. Transfer posting Incoming Down Credit payment payment request memo

Question: When creating an Overhead Cost Order, the first order information which must be entered is: A. B. C. D. E. Classification code Order Order Settlement status type type Curreny

Question: When creating an Overhead Cost Order, the settlement rule must be entered in the control data. Which settlement receivers are available for internal orders? A. B. Cost center Orders

C. General D. E. Vendor

ledger

accounts Asset

Question: In Controlling, a distinction is made between master data, planning, actual data and the information system. Which of the following master data belongs to Controlling? A. B. C. D. E. Supplier G/L Work Cost Activity account center center type

Question: Withing Overhead Cost Controlling activities are calculated. A Sender/Receiver relationship exists. However, not all Sender/Receiver combinations are allowed. Which of the following combinations make business sense? A. B. C Sender. Receiver. Cost Cost Center, Center, Cost Order, Order, Center, Project Project Order Project Center

Sender. Receiver. Cost Sender. Receiver. Cost Center, Order, Project, Cost Object

Question: Period closing activities are also performed in Controlling. This is dependent on certain prerequisites. Which of the following are MINIMUM criteria before it makes sense to carry out period closing? A. The posting B. Materials C. Personnel D. Overhead E. An order was closed. period have costs has have been has been been been closed. withdrawn. incurred. incurred.

1. Since the line item display takes up additional system resources, you should only use it if there is no other way of looking at the line items. So, you should not activate the line item display for the following accounts (Note: we can have more than one correct sentence. Please select the sentences you think they are correct): a) b) c) d) e) [ ] Tax. [ [ [ [ ] ] ] ] Material P+L Statement. Reconciliation. Revenue. Stock.

2. Consider the following statements: 2.1. Accounts with open item management must have line item display activated. 2.2. You can activate or deactivate open item management everytime, even if the account hasn't a

zero balance. 2.3. You can select both local and foreign currencies as account currency. 2.4. If the account is the local currency, the account can only be posted to this currency. 2.5. When using the "Only Balances in Local Currency" indicator in the master data record, transaction figures are only managed for amounts translated into local currency. Which of the above statements are true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) [ ] 2.1. b) [ ] 2.2. c) [ ] 2.3. d) [ ] 2.4. e) [ ] 2.5. 3. True or false? 3.1. The "Only Balances in Local Currency" indicator must not be set in reconciliation accounts for customers or vendors. a) [ ] True. b) [ ] False. 3.2. The "Only Balances in Local Currency" indicator is usually set in balance sheet accounts that are not managed inforeign currencies and not managed on an open item basis. a) [ ] True. b) [ ] False. 3.3. Accounts with a foreign currency as an account currency can be posted to any currency. a) [ ] True. b) [ ] False. 3.4. You can use a) [ ] True. b) [ ] False. a group chart of accounts for internal purposes.

3.5. The usage of a financial statement version for the group chart of accounts is optional. a) [ ] True. b) [ ] False. 4. What is the disadvantage of using the group chart of accounts sentence)? (Please choose the correct

a) [ ] Because changes to existing G/L Accounts are effective as soon as they have been saved and could have extensive consequences. b) [ ] Because accounts with the account currency as local currency can only be posted to this local currency. c) [ ] Because the company codes use different operational chart of accounts, you cannot carry out cross-company code controlling. d) [ ] Because the group chart of accounts must be assigned to each operational chart of accounts. e) [ ] Because you must enter the group account number in the chart of acounts segment of the operational account. 5. Consider the following statements: 5.1. You cannot use the country chart of accounts if you desire to use the cross-company code controlling. 5.2. The disadvantage of using country chart of accounts is the accounting clerks who may be familiar with the country chart of accounts first have to get used to using the operational chart of

accounts. 5.3. Reconciliation accounts are updated on a daily basis. Which of them are false (Please choose the correct sentence)? a) [ b) [ c) [ d) [ e) [ ] none of them. ] ] ] ] 5.1 5.1 5.2 all and and and of 5.2. 5.3. 5.3. them.

6. Which are the segments of the SD view of the customer account master data (Note: we can have more than onecorrect sentence. Please select the sentences you think they are correct)? a) [ b) [ c) [ d) [ e) [ ] Purchasing Organization. ] ] ] ] Company Controlling Sales Client. Code. Area. Area.

7. Which are the segments of the MM view of the customer account master data (Note: we can have more than onecorrect sentence. Please select the sentences you think they are correct)? a) [ b) [ c) [ d) [ e) [ ] Purchasing Organization. ] ] ] ] Company Controlling Sales Client. Code. Area. Area.

8. What is the segment that makes complete both customer and vendor accounts (Please choose the correct sentence)? a) [ b) [ c) [ d) [ e) [ ] Purchasing Organization. ] ] ] ] Company Controlling Sales Client. Code. Area. Area.

9. What characteristics are configured as standard for every customer/vendor account (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) [ ] b) [ c) [ d) [ ] e) [ ] 10. Consider the following statements: Line ] ] Open Item Purchasing Item Company Display. Code. Currency. Management. Organization.

10.1. Number ranges for customer/vendor accounts can overlap. 10.2. An one-time account is a special customer/vendor master record which a company rarely do business. 10.3. The account group is used to control the fields displayed in the master record. 10.4. If you enter an alternative payer, the amount to clear the open items due in the account is

paid by the alternative 10.5. One number range can only be assigned to one account group.

payer.

Which of the above statements are true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) b) c) d) e) [ ] 10.5. 11. True or false? 11.1. For every bank that is used in the system (for example, as a house bank or as a customer/vendor bank) you have to create a bank master record. a) [ ] True. b) [ ] False. 11.2. Banks that are used by your company are defined as house banks.a) [ ] True. b) [ ] False. 11.3. You cannot create bank master data when entering bank information in the customer or vendor master record. a) [ ] True. b) [ ] False. 11.4. Bank Account a) [ ] True. b) [ ] False. and G/L Account are the same master data object. [ [ [ [ ] ] ] ] 10.1. 10.2. 10.3. 10.4.

11.5. Customers that use the lockbox function can create a batch input session that automatically updates customerbanking information in the master record. a) [ ] True. b) [ ] False. 12. Consider the following statements: 12.1. The system can assign the document numbers or the user can assign the number during document entry. 12.1. A business transaction creates only one document. 12.3. Document types are defined at company code level. 12.4. Number ranges for document numbers and account types defined for postings are defined by the document types. 12.5. Document types also define whether invoices are posted with the net procedure. Choose the correct option: a) [ ] 12.1, b) [ ] 12.2, c) [ ] 12.3, d) [ ] 12.1, e) [ ] 12.1, 12.2 and 12.5 are correct. 12.4 12.4 12.4 12.3 and and and and 12.5 12.5 12.5 12.4 are are are are correct. correct. correct. correct.

13. What do the posting keys specify (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) b) [ the c) d) e) [

[ ] Whether the line item is connected to a payment transaction or not. ] Whether the posting is sales-relevant and the sales figure of the account is to be updated by transaction, for example, by the posting of a customer invoice. [ ] Whether the line items contain "credit" or "debit" values. [ ] Whether the line items are valid for a business transaction. ] Whether the accounts are allowed for posting.

14. Consider the following statements: 14.1. A company code must be assigned to a posting period variant to have the control for posting periods. 14.2.'+' symbol represents all account types in the posting period customizing screen. 14.3. The account interval in the posting period customizing screen can be both G/L and subledger accounts. 14.4. The maximum amounts are defined per company code in "tolerance groups". 14.5. It is not possible to assign tolerance groups to user logon ID's. Choose the correct option: a) [ ] 14.1, b) [ ] 14.2, c) [ ] 14.3, d) [ ] 14.1, e) [ ] 14.1, 14.2 and 14.5 are correct. 14.4 14.4 14.4 14.2 and and and and 14.5 14.5 14.5 14.4 are are are are correct. correct. correct. correct.

15. What fields of a FI Document Header section can be changed after a document has already been posted (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) b) c) d) e) [ ] Posting date. [ [ [ [ ] ] ] ] Fiscal Reference Text Header Year. Number. fields. text.

16. About the change control, what conditions below are applicable (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? 16.1. The posting period is already 16.2. The line item is not yet 16.3. The document is a credit memo for an 16.4. The document is not a credit memo from a down 16.5. The line item is either a debit in a customer account or a credit in a vendor account. a) b) c) d) e) [ ] 16.5. [ [ [ [ ] ] ] ] closed. cleared. invoice. payment.

16.1. 16.2. 16.3. 16.4.

17. What are the prerequisites to enable negative postings (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) [ ] You have to define reversal reasons for negative reversal. b) [ ] You have to ensure company code permits negative postings. c) [ ] You have to define the document type that explicitly allows negative postings. d) [ ] You have to use cleared items. e) [ ] You have to reset cleared items. 18. What is the purpose of the terms of payment (Please choose the correct sentence)? a) [ ] Calculate a cash discount and b) [ ] Calculate the c) [ ] Enable the cross-company d) [ ] Define the e) [ ] Calculate only the required conditions for SD invoices. 19. Consider the following statements: 19.1. Terms of payments are copied from invoice to credit memos when they are linked to. 19.2. Inserting a "V" in the invoice reference field during document entry means the terms of payment are activated in the non-invoice-related credit memos. 19.3. The account type field in terms of payment basic data screen should be defined separately, to prevent any done change in the term of payment. 19.4. The system cannot define the splitment of an installment payment, at least you define it in the terms of payment. 19.5. The day limits define the dates of the cash discount periods. Which of the statements above is false (Please choose the correct sentence)? a) b) c) d) e) [ ] 19.5. [ [ [ [ ] ] ] ] 19.1. 19.2. 19.3. 19.4. invoice tax code baseline due date. amounts. transactions. date.

20. True or false? 20.1. SAP supports tax on sales and purchases, US sales tax, additional taxes and withholding tax as tax systems for different countries. a) [ ] True. b) [ ] False. 20.2. Only national level of taxation is allowed in the R/3 system. a) [ ] True. b) [ ] False. 20.3. A tax calculation procedure is assigned to every company code for carrying out tax calculations. a) [ ] True. b) [ ] False. 20.4.A jurisdiction code is a combination of the codes of tax authorities that tax movements of goods and use their own tax rates. a) [ ] True. b) [ ] False. 20.5. If you desire to post manual tax postings, you have to flag the "Post Automatically Only" field of the account master record. a) [ ] True. b) [ ] False. Answers: 1. 2. A, C, E.

B,

C,

D,

E.

3. True or false: 3.1. True. 3.2. True. 3.3. False. Accounts with a foreign currency as an account currency can only be posted to in this foreign currency. 3.4. True. 3.5. False. You must use a financial statement version for the group chart of accounts. 4. C. Item "a" is related to Collective Processing for G;L Accounts Master Data. Item "b" is not true for the R/3 system concept. If the account currency is the local currency, the account can be posted to in any currency. Item "d" and "e" are some actions to be done for using group chart of accounts, so, they are not the disadvantage. 5. B. In fact, since all company codes use the same operational chart of accounts for postings, you can carry out cross-company code controlling. About Reconciliation accounts, they are updated realtime. 6. 7. 8. 9. 10. B, C, D. A, A, A, D. E. B. D.

NOTE: A number range can be assigned to several account groups. 11. True or false? 11.1. True. 11.2. True. 11.3. False. In fact, we can create bank master data when entering bank information in the customer or vendor master record. 11.4. False. Each bank account is reflected in the SAP System by a combination of house bank ID and account ID. This combination is entered in a G/L account that represents the bank accounting the general ledger. 11.5. True. 12. 13. 14. 15. 16. 17. 18. 19. E. A. E. D. C. E. C. A.

A, B, A,

B, B, D, B,

C,

The day limits are used to store several versions of terms of payment under the same terms of payment key. 20. True or false: 20.1. True. 20.2. False. Two types of taxation can be represented in the R/3 system: taxation at national level

and taxation at regional/jurisdiction level. 20.3. False. A tax calculation procedure is assigned to every country for carrying out tax calculations. 20.4. True 20.5. False. If you have selected this field, no manual tax postings are allowed.

1. Where to assign activity type in cost centers? OR how to link cost centers & activity types? >> There is no direct assignment. You plan the output for a cost center first in kp26. Then you've to plan the value of that cost center which you budget for a period in kp06. Planned Activity expenditure / Planned Actvty qty gives yoa planned act rate which you can use to valuate your activity confirmations in mfg ordrs. You can also define your own prices,but you have to run the price revaluation if you want to revaluate your actual activity prices. 2. For stat. key figure what is the significance of sender & receiver cost elements & cost centers? >> Stat key fig are not real account assignments. In simple traditionl terms it is the base to allocate or define praportions with which the cost is allocated. SKFs are used to calculate the debit on a receiver object. These values can be used for assessing common costs which are used by all the other cost centers. 3. How SKF works .. Kindly give me T Codes Also. >> You create & plan SKF. Create using KK01 & PLAN the parameters of SKF in KP46

1. Does any one know what is Software life cycle, it was a question asked in an interview. 2. In GL master we have a option "Balance in local currency" and "Account currency". What does it mean? 3. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type? 4. In FI when doing Special GL transaction what determines the fields statues of the screen and why do we have so many screens followed by it. Is it determined by Posting Keys? is it to determine Account type for which we are using the Special GL and debit and credit? Q: Software Life Cycle,

Ans: it is nothing but Road Map - five phases like, Project Preparation, Blue print, Realisation, Final preparation and Go-live support. Q: In GL master we have a option "Balance in local currency" and "Account currency".What does it mean? Ans: Account currency is that the GL account in which currency do you want to maintain. if you decided that you want maintain in company code currency, you can post any currency in that account. If not, you want to maintain separate currency for that GL then exchange rate difference will come because the conversion rate. Balance in local currency - some GL account can't be maintain on open item basis and can't in foreign currency like clearing account and discount account etc., in such case you can assign this indicator to show the balance in local currency. Q. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type? Ans: Basically, the system does not know which GL has to be updated with what. here, we are giving a direction to the system to update the data. What you said is correct, the system will update the value and qty in the material master. You would have seen some more fields also, like Movement indicator, consumption, value string and transaction event key etc., While creating a PO, the system will take the Movement type as a base, with MT, it will identify the MI(movement indicator - used to define whether it is goods movement for production order, purchase order, delivery note etc), and it will identify the consumption,( like it is assets, or consumption or sales order) and it will identify the value string ( it is must to assigned to movement type, through allocation of value string to movement type, system will automatically identify the GL ) and it will post the entry (dr/cr)in the GL based on the transaction and event key figure which is used to determine the debit and credit entry of a GL

4. In Field Status Group there are options like Suppress, optional, Required, Display. So that it is followed by so many screens and it is determined by posting key. Its both debit (or) (Both) credit.
3.1. The "Only Balances in Local Currency" indicator must not be set in reconciliation accounts for customers or vendors. a) [ ] True. b) [ ] False.

3.2. The "Only Balances in Local Currency" indicator is usually set in balance sheet accounts that are not managed inforeign currencies and not managed on an open item basis. a) [ ] True. b) [ ] False. 3.3. Accounts with a foreign currency as an account currency can be posted to any currency. a) [ ] True. b) [ ] False. 3.4. You can use a) [ ] True. b) [ ] False. a group chart of accounts for internal purposes.

3.5. The usage of a financial statement version for the group chart of accounts is optional. a) [ ] True. b) [ ] False.

5.1. You cannot use the country chart of accounts if you desire to use the cross-company code controlling. 5.2. The disadvantage of using country chart of accounts is the accounting clerks who may be familiar with the country chart of accounts first have to get used to using the operational chart of accounts. 5.3. Reconciliation accounts are updated on a daily basis.
1. The length of G/L account number should be mentioned in Chart of accounts. 2. The G/L account becomes a complete G/L account if we have added the company code segment to chart of account segment. 3. If we are using the same chart of account in more than one company code the account name and account number is the same in all company codes. 4. The appearance of the company code segment of a G/L account is based on account group entered in the chart of account segment. 5. Creation of duplicate accounts in A/P can be prevented by using the match code before creating the new account & switching on automatic duplication check. 6. By mentioning the base line date, cash discount periods, and cash discount percentage rate in payment terms, system will calculate due date of the invoice and cash discount. 7. The specifications for permitted payment differences can be found in both types of tolerance groups. They control the automatic posting of cash discount adjustments and unauthorized deductions. Ans: True 8. All reconciliation accounts and all general ledger accounts with open item transactions in foreign currency must be assigned to the revenue/expense accounts for realized losses and gains. Ans: True 9. R/3 system contains Ans: 1. Data base server 2. Application server 3. Presentation server only. 10. All data and programs are contained in Application server & Database server 11. SAP business object consists of attributes and methods 12. Maximum number of sessions a user can open when he logs on to SAP? Ans: six 13. Fiscal year can be both year dependent and year independent. 14. Fiscal year which is a calendar year can have 12 normal periods.

15. Shortened fiscal year can have should have less than 12 periods. 16. Company code can have one local currency only. 17. Postings in a company code are done in G/L account of operative chart of accounts. 18. Retained earnings account is specific to chart of accounts. 19. Company can use both direct and indirect exchange rates - True 20. Business areas are used for reporting across company codes - True 21. Posting in a G/L account is controlled by field status group in the company code segment 22. Company code can have more than one retained earnings account - TrueChart of accounts can have more than one retained earnings account - True 23. account group controls the master record field status - True 24. Which of the following are correct with respect to your G/L account house bank name a. the g/l account house bank name shall be the same as in the bank directory - False b. the g/l account house bank name need not be the same as the banks name in the bank directory - True c. the g/l account house bank name is user-definable - True d. the g/l account house bank name is defined at the chart of account level - True e. the g/l account house bank name is modifiable at the company code segment of the chart of accounts - False 25. Your house bank number cannot be set to be defaulted from house bank key - True 26. The G/L account for a bank is linked to one house bank plus one account id 27. One bank account is mapped in SAP to Account id & House bank

Q1. The organizational units of Financial Accounting are used for external reporting purposes, that is, they fulfil requirements that your business is subject to from external parties, for example, legal regulations. Which of the following Organizational units are mandatory in an ERP system with FI? (More than one answer is correct) A. B. C. D. Client Business Area Company code Company

Answer: A, C You create your company-specific organizational structure in the SAP System by defining the organizational units and making the basic settings. Defining organizational units for Financial Accounting is obligatory, that is, you have to define these units in order to be able to implement the Financial Accounting component.

Organizational unit

Definition

Client Company Company code Business area

Obligatory Optional Obligatory Optional

Apart from this, there are certain Basic settings that are mandatory as well. These are: Chart of accounts Fiscal year Currencies

Q2. You can configure different types of Chart of Accounts in the ERP system. Some of these are: A. Operating chart of accounts B. Group chart of accounts C. Country-specific chart of accounts D. Plant specific chart of accounts

Answer: A, B, C Charts of accounts can have three different functions in the system: Operating chart of accounts The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts. You have to assign an operating chart of accounts to a company code. Group chart of accounts The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group. The assigning of an corporate group chart of accounts to a company code is optional.

 Country-specific chart of accounts The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements. The assigning of an country-specific chart of accounts to a company code is optional.

Q3. The company code, business area and controlling area organizational units can be combined in a number of ways. Using these combinations you can represent organizations with different structures. Which of the following are valid combinations? A. One Company Code can be assigned to multiple Controlling areas B. One Controlling area can be assigned to multiple company codes C. One business area can be assigned to multiple company codes D. One company code can be assigned to multiple business areas Answer: B, C, D

One Controlling Area is Assigned to One Company Code In this example, the financial accounting and cost accounting views of the organization are identical. Multiple Company Codes Assigned to One Controlling Area This example is Cross-Company Code Cost Accounting. Cost accounting is carried out in multiple company codes in one controlling area. All cost-accounting relevant data is collected in one controlling area and can be used for allocations and evaluations. In this case, the external and internal accounting perspectives differ from each other. For example, this method can be used if the organization contains a number of independent subsidiaries using global managerial accounting. Cross-company code cost accounting gives you the advantage of using internal allocations across company code boundaries. Company Codes and Business areas have an n:m relationship

Q4. You need to assign more than one company code to one controlling area. Under what kind of a business scenario would you need to consider such a decision? A. Cross-company code transactions that MUST be processed in a controlling area B. Multilevel Product Cost Management across company codes C. Representation of intercompany processes, whereby producing and delivering plant are the same. Answer: A, B

A 1:n relationship between controlling area and company code is recommended for the following situations: Cross-company code transactions that MUST be processed in a controlling area, for example, production in an associate plant, special cases of intercompany processing. Cross-company code CO postings that can be displayed in the reconciliation ledger, such as assessments, capitalization of internal activity in Asset Accounting, activity allocation. Representation of group costing. Use of Profit Center Accounting and transfer prices.

Multilevel Product Cost Management across company codes

A 1:1 relationship between controlling area and company code is recommended for the following situations: Consolidated analysis of settled transactions across company codes in Profitability Analysis (CO-PA) In this situation, you assign more than one controlling area to an operating concern Representation of intercompany processes, whereby producing and delivering plant are the same.

Q5. Which of the following tax types does the SAP System support for calculating, posting, and correcting tax, as well as for tax reporting? A. Tax on sales & purchases B. Withholding Tax C. Top Up Tax D. Additional Tax Answer: A, B, D

The following Tax types are supported in a standard SAP system: Tax on sales and purchases Taxes on sales and purchases are levied on every sales transaction in accordance with the principles of VAT. This applies to input and output tax, for example. Input tax is calculated using the net invoice amount and is charged by the vendor. Output tax is calculated using the net price of products and is charged to the customer. Companies can offset input tax against output tax, paying the balance to the tax authorities. Tax authorities can set a nondeductible portion for input tax which cannot then be claimed from the tax authorities. Additional tax Additional taxes are taxes that are posted in addition to tax on sales/purchases. They are usually country-specific, such as investment tax in Norway, or sales equalization tax in Belgium.

Sales tax An example of sales tax is the sales and use tax that exists in the USA. Sales transactions that are taxed must be kept strictly separate from sales transactions that are not taxed. In general, goods that are intended for production or for resale to a third party are procured untaxed; that is, the vendor does not calculate tax on the sale of these goods (sales tax). Procurement transactions for individual consumption, on the other hand, are taxable (use tax). The principle of sales tax does not permit the option of offsetting input tax against output tax. The vendor must pay the taxes to the tax authorities. The system calculates sales tax based on material and customer location and posts it in Sales and Distribution (SD) and Materials Management (MM). If customers or vendors are exempt from taxation, you can specify this in their master records by entering the appropriate indicator. Withholding tax In some countries, a portion of the invoice amount must be withheld for certain vendors and paid or reported directly to the tax authorities. SAP currently provides two functions for calculating withholding tax: Classic withholding tax and extended withholding tax. Extended withholding tax includes all the features of classic withholding tax and, in addition, also fulfills a number of further country-specific requirements. If you wish to implement the withholding tax functions, you should choose extended withholding tax.

Q6. Depending on your systems configuration, the system can generate and post line items automatically. For which business transactions can this be done? A. Entering a customer invoice B. Entering Special G/L transactions C. Posting a Vendor Payment Answer: A, B, C

The following line items are generated for each of the above business transactions: Entering a customer or vendor invoice

 Tax on sales/purchases (output tax when posting a customer invoice, input tax when posting a vendor invoice) Payables and receivables between company codes (when posting cross-company code transactions) Posting a customer or vendor payment and clearing open items Cash discount (paid and received when posting payments) Backdated tax calculation for tax on sales/purchases (after cash discount deduction) Gains and losses from exchange rate differences (between invoice and payment) Unauthorized deduction of cash discount (when a payment is slightly different to the amount due) Residual items Bank charges Entering special G/L transactions Bill of exchange charges Tax adjustment for a down payment

Q7. You can add details to any automatically generated line item. For example, you can add text to a tax on sales/purchases line item. A. True B. False Answer: A If you are permitted to make additional account assignments to the automatically generated line items, the system branches directly to the document overview. Here, the automatically generated items are highlighted. To enable this, you need to make sure that the G/L account is marked as adjustable and that the appropriate field is defined as optional or required in the field status group.

Q8. The document type is a key that is used to classify accounting documents. It is entered in the document header and applies to the whole document. Which of the following purposes are achieved by using document types?

A. Assigning document numbers B. Posting to account types C. Clearing line items D. Differentiating between business transactions Answer: A, B, D The following purposes are served by using 'Document Types: Differentiating between business transactions. The document type tells you instantly what sort of business transaction is in question. This is useful, for example, when displaying line items for an account. Controlling the posting to account types (vendor, customer, or G/L accounts). The document type determines which account types that particular document can be posted to. Assigning document numbers. A number range is assigned to every document type. The numbers for the documents you create are taken from this number range. The original documents from one number range should be stored together. In this way, the document type controls document storage. For more information, see Document Number Assignment and Controlling Document Storage Using the Document Type Applying the vendor net procedure. This means that any discount and the net amount are calculated (and posted) when the vendor invoice is posted.

Q9. If you have entered an incorrect document, you can reverse it, thereby also clearing the open items. With reference to 'document reversal', which of the following are true? A. A document can be reversed if it has no cleared items B. Documents in MM can be reversed with a credit memo C. If the posting period of the source document has already been closed, you have to enter a date that falls in an open posting period (for example, the current one) in the Posting date field. Answer: A, C A document can only be reversed if: It contains no cleared items It contains only customer, vendor, and G/L account items It was posted with Financial Accounting All entered values (such as business area, cost center, and tax code) are still valid If a line item from a source document has been cleared, a reversal can only be carried out after the clearing is reset. Information on clearing is available in FI General Ledger Accounting as well as FI Accounts Receivable and Accounts Payable. Documents from SD can be reversed with a credit memo. Documents from MM must be reversed with functions in that component because the reversal function in FI does not reverse all the values required. There are two ways of updating transaction figures when reversing a document: The document and the reverse document increase the account transaction debit and credit figures by the same amount. After a document has been reversed, the balance of the account affected is shown as if the document had never been posted. (Negative Postings)

You generally post the reversal document in the same posting period as the corresponding original document. If the posting period of the source document has already been closed, you have to enter a date that falls in an open posting period (for example, the current one) in the Posting date field.

Q10. A number of periodic tasks are executed on a regular basis (daily, weekly, or monthly) in the SAP System. This process is supported by the individual components of the Schedule Manager. Which of the following are components of the Schedule Manager? A. Flow definition B. Scheduler C. Monitor D. Exception area Answer: A, B, C

The following are the key components of schedule manager: Flow definition In a flow definition, you can link tasks to each other if they are related or if you wish to use a worklist in them. You can therefore schedule a flow definition as a task in the scheduler. Scheduler In the scheduler, you can schedule tasks in a structure tree. You can use drag-and-drop in a daily overview to enable the system to execute the tasks at a certain time. Monitor The monitor gives you an overview of the scheduled tasks during and after processing. You can correct faulty objects in a worklist. Worklist Objects that are to be processed in a processing step sequence are managed in the worklist. The worklist monitor presents information such as which objects were processed without errors and which objects could not be processed. You can display information on the cause of errors, and thus control the way in which the object is processed further. The worklist ensures that when a processing step sequence is processed again, the system only processes the objects which had errors or which you manually instructed the system to reprocess.

Q11. You would like to use recurring entries for periodic transaction. Which of the following are False with reference to 'recurring entries'? A. Posting Key, Account and Amount never change in recurring entries

B. Postings can be made periodically or on a specific date C. Recurring documents do Not require a separate number range. Answer: C Recurring entries are business transactions that are repeated regularly, such as rent or insurance. The following data never changes in recurring entries: Posting key Account Amounts You enter this recurring data in a recurring entry original document. This document does not update the transaction figures. The recurring entry program uses it as a basis for creating accounting documents. Structure The system uses the recurring entry original document that you enter as a reference. It is not an accounting document and therefore does not affect the account balance. In the recurring entry document, you define when a posting is to be created with this document. You have two options for scheduling. Postings can be made periodically or on a specific date: For periodic postings, specify the first and last day of execution, as well as the interval in months. If you want to specify certain dates, enter a run schedule in the recurring entry original document. Store the required dates in the Implementation Guide (IMG). Choose Define Run Recurring Entries Document Financial Accounting Global Settings Schedules/Enter Run Dates. To post recurring entry documents, you have to set up a separate number range for the company codes that use them. You have to use key X1 for the number range. The system takes numbers for the recurring entry original document from this number range.

Q12. You are responsible for 'dunning' configuration. Which of the following are part of configuring the dunning functionality? A. Dunning Codes B. Dunning Items C. Dunning areas Answer: C The dunning configuration consists of configuring the following:

 Dunning procedure The dunning procedure controls how dunning is carried out by the system. You can define as many dunning procedures as you like. Dunning level The dunning levels are calculated based on the number of days open items are in arrears. You can also have the system calculate the dunning levels based on the dunning amount or a percentage paid (sales-related dunning level determination). You can determine more than one dunning level per dunning procedure. Dunning areas A dunning area is an organizational unit within a company code used for the dunning process. A dunning area can be a division or a sales organization. You assign a dunning area to an open item when you are posting. You can dun items separately by dunning area.