What is accumulated depreciation?

ANs:Accumulated depreciation is contra account in Assets section of Balance sheet.

That means, assets normally have debit balance but Accumulated depreciation has
credit balance. This is a unique type of account and it serves the purpose of
showing the viewers the original amount of assets and the resulting depreciation on
those assets. Acc dep is also an ingredient in depreciation journal entry. Where
Depreciation expese is debited and acc dep is credited.

What is the difference between book depriciation and derived depriciation?

Ans:Book depriciation is that which we follow the method or book the depriciation.
And derived depriciation is that which is already held the method or derived the
rate of method of depriciation.

What is Asset life cycle?

Ans:1.Acquisition or procurement of assets.

2. depreciation of assets.
3. transfer of assets.
4. retirement of assets.

After run depreciation i have forget calculate depreciation of one asset then how
to calculate depreciation of that asset

Ans:if u forgot depreciation we have to follow the preliminary principal of the

depreciation. That is

value of asset/life time of asset*100.

If you forget to post the depreciation of a Single Asset. You can again run the
Depreciation thru txn code AFAB and you can give the Asset code(in from to range)
that asset and run the depreciation. Provided the Period for the previous
month/year is open it will post the depreciation for that particular asset

Explain NON PERFORMING ASSET?

Ans:An asset or account of borrower,which has been classified by a bank or

financial instution as sub-standard,doubtful or loss assets as per the guidelines
issued by RBI.

An Asset/Advance is considered as non-performing in casse if interest or isntalment

of principal or both remain unpaid for more than two quarters in a financial year.

What experience have you had in fixed assets accounting?

Ans:Maintenance charges, depreciation

Maintenance of Fixed Assets Register ,

Classification of Assets into Block of Assets,
Recognition of Capital Expenditures,
Various Methods of calculating Depreciation,
Methods of calculating Goodwill and its write off,
Overhauling and Maintenance Charges,
Section 32 of Income Tax Act.

Which depreciation is superior WDV or SLM and Why?

Answers:

We can decided which method of deprecation is best on the basis of usefulness

(benefits) provided by the asset.
When we prefer SLM:-
we preferred SLM where the equal amount of benefit is derived from the asset
through the useful life of the asset. e.g A room's capacity of storing the goods
remain same in each year weather old or new.
When we prefer DBM:-
we preferred DBM where resulting benefit from the asset diminishing (decreasing)
year by year.

I think WDV method is most superior method because in this method charge every year
some % of assets. if we purchase or sales any assets then also WDV method is very
easy. But in SLM method every year charge fixed amount of assets & if any assets
purchases or sales then SLM method is not easy to follow. Income Tax Act, 1961 is
also allow WdV method for every businessmen.

What are fixed asset?

Ans:fixed asset are assest which gives the business future benfife

Fixed assets are those which are tangiable in nature and is not meant for sale in
the near future and from which future benefits are derived.

Fixed Assets are those which are tangible and used for running the day to day
business which are owned. As they are utilised for business, we save a part of the
profit earned in the business to replace these Assets when they worn out.

Fixed assets(like- bulding, plant, machinery etc.) are those which generate future
economic benefit. It's not sale in ordinary course of business & use in business
activity. AS-10 deal with fixed assets. Fixed Assets are significant portion of
total assets & it's shows in Balance Sheet. Depreciation is also charge every year
on assets. Fixed asset should be eliminated from the financial statements on
disposal or when no further benefit is expected from its use.

What is the Difference between Current Assets and Fixed Assets and how would you
classified it?

Ans:The difference between current assets and fixed assets as

follows:

Current assets are flexible in nature, easy to encashable

and floting money to company whereas

Fixed assets are Fixed in nature in other words non-moving

assets, not easy to encash, regularly depreciated.

Classification:

Current assets:

Cash - at hand and at bank

Inventories
Sundry Debtors
Advance and Deposits
Fixed Assets:

Land and Building

Furniture and Fittings
Tools and tackles
Plant and Machinery
Computer ( including assessories and UPS)

i would like to classify current assets and fixed assets on basis of their
conversion into cash because a current asset took short time while converting into
cash whereas a fixed took long time example of current assets bill receivable,cash
in hand.fixed assets machinery,plant etc

What are the various means of calculating depreciation?

Ans:Depreciation can be calculated by using any of the following methods:

1) Straight Line Method
2) Written Down Method
3) Annuity Method
4) Activity Method

What is fectitious assets?

What is meant by cash book and day book and general leder?
Employee salary deductions under section of the income tax act of india?

Ans:Fictitious Assets :<br><br>These are the assets which can not be seen, but
exist in the business.<br><br>ex: Goodwill, patents, etc<br><br>Cash Book: It is
one of the Subsidiary Book which is generally used by any business organisation to
record all the cash transactions which helps to know the cash position as and when
desired. In it all the entries will be recorded. Generally the cash book can be
balanced once in a month.<br><br>Day Cash book: It is the book maintained by
accountant to record all the cash transactions with takes place during the day (it
can be receipt or payment). At later stage these will be posted into cash
book.<br><br>General Ledger : While preparing Trial balance to check the
arithmetical accuracy, some times the debit and credit balances may not tally, to
make the process easy the accountant will open an account named General Ledger to
post the entries which r causing balancing problem.<br><br>

What is parallel and local currency in SAP?

Ans: Each company code can have two additional currencies, in addition to the
company code, currency entered to the company code data. The currency entered in
the company code creation is called local currency and the other two additional
currencies are called parallel currencies. Parallel Currencies can be used in
foreign business transactions. In order to do international transaction, parallel
currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD
CURRENCY.

Where can you use the internal order?

Ans: To track the cost, internal orders are used; they are proposed to be incurred
over on a short term basis.

Is it possible to calculate depreciation to the day?

Ans: Yes, it is possible to calculate depreciation, to do that you have to switch
on the indicator Dep. to the day in the depreciation key configuration.

In Asset Accounting what is the organizational assignments?

Ans: In Asset Accounting, chart of depreciation is rated as the highest node, and
this is assigned to the company node. All the depreciation calculations are stored
under the chart of depreciation.

Explain in simple terms what is field status and what does it control?
Ans: Field status group is a group configured in FSV (Field Status Variant) to
maintain field status for G/L (General Ledger) accounts. It controls which field
should suppress, display, optional and required.

What is short-end fiscal year?

Ans: A short-end fiscal year results when you change from a normal fiscal year to a
non-calendar fiscal year, or other way around. This type of change happens when an
enterprise becomes part of a new co-corporate group.

What is an account group and where it is used?

Ans: To control the data that needs to be entered at the time of the creation of a
master record an account group is used. Account group exist for the definition of
GL account, Customer Master and Vendor.

What is the purpose of �Document type� in SAP?

Ans: The purpose of � Document type� in SAP is

a) Number range for documents are defined by it

b) Types of accounts that can be posted are controlled by it, e.g Assets,
Vendor, Customer, Normal GL account

c) It is used for the reversal of entries

In SAP, Customer and Vendor code are stored at what level?

Ans: The Vendor and Customer codes are stored at the client level. It means that by
extending the company code view any company code can use the customer and vendor
code.

What are the statistical internal orders?

Ans: Statistical internal orders are dummy cost objects used for reporting and
analysis purposes. It must be posted to in conjunction with a real object such as a
cost center.

Is business area at company code level?

Ans: No. Business area is at client level which means other company codes can also
be posted to the same business area.

What is posting period variants?

ans: In fiscal year posting period is a period for which the transactions figures
are updated. The posting period variants in SAP is accountable to control which
accounting period is open for posting and ensures that the closed periods remain
balanced.

How can you create Credit Control Area in SAP?

Ans: By using transaction code OB45 or path you can create Credit Control Area in
SAP

SPRO> enterprise structure >maintain structure>definition>financial

accounting>maintain credit control area and then enter the following description

a) Update

b) Name of the credit control area in SAP

c) Currency

d) Description

e) Credit Limit

f) Risk Category

g) Fiscal Variant

h) Rep group

What are the major components of Chart of Accounts?

Ans: The major components of Chart of Accounts are:

a) Chart of account key

b) Name

c) Maintain Language

d) Length GL account number

e) Controlling Integration

f) Consolidation-Group chart of accounts

g) Block indicator

What are the application areas that use validation and substitutions?
Ans: a) FI- Financial accounting

b) CO-Cost accounting

c) AM-Asset accounting

d) GL-Special purpose ledger

e) CS-Consolidation

f) PS-Project system

g) RE-Real estate

h) PC-Profit center accounting

Explain what is validations and substitutions in SAP?

Ans: For each functional area in SAP Validation or Substitution is defined eg,
Assets, Controlling etc. at the following levels

a) Document Level

b) Line item Level

What is the default exchange rate type which is picked up for all SAP transactions?
Ans: For all SAP transaction, the default exchange rate is M (Average Rate).
EBS

How is the electronics bank statement gets uploaded in the sap system, how the
reconciliation and document posting happens? explain in detail...?

Ans: There are different programs to upload electronic bank

statement.
FF.5 or FF_5.
I think your case Multicash format you are using.

You need have three files in FF.5 and two files in FF_5

You can prepare a Z program in order to truncate the

electronic bank statement into two or three part files and
save them on the application server.

1. Take all the external codes list from bank.

2. Take any available documentation from the Bank
describing the relevance of the external codes.
3. Make sure that your Chart of Accounts (Bank Accounts)
last digits logic is appropriate to meet the requirements.
4. Based on this decide the Account Symbols that are
required to be created.
5. Make sure that the masking rules are configured properly.
6. Decide the posting rules that needs to be created.
7. Link up your external symbols provided by the bank with
Posting rules and give proper algorithms for posting and
clearing logic.
6. Concentrate on the posting areas to be posted while
uploading the bank statement.

Further explanation would help you to understand the

functionality when uploaded the electronic bank statement.

Main purpose of uploading the bank statement into SAP is to

make your Bank Main Account and physical bank statement
balance in sync.

You do not have any traditional Bank Reconciliation

Statement (BRS) report in SAP.

SAP is normally you maintain bank main account and bank sub
account. Whenever you make a payment through F-53 or F-58
or F110, the entry would be:

Vendor Account Dr
To Bank Sub Account

The ending digits of the sub-account would be important in

configuring the masking rule. Based on this masking rule
when you upload the bank statement the entry the system
would pass is:

Bank Sub Account Dr

To Bank Main Account

It depends on the configuration, either the sub account

will be cleared by the system automatically or you need to
run F.13 to clear the sub accounts.

At the time of receipts, you have different accounting

entries unlike payments. It needs to post to two posting
areas. 1. GL Accounting 2. Sub-Ledger Accounting

The entries would system itself pass is:

Bank Main Account Dr

To Bank Sub Account

Bank Sub Account Dr

To Cutomer account.

Clearing logic mentioned for your posting rules and the

alogrithm used for your external bank symbols will also
play pivotal role in clearing the accounts.

Ideally you will use

FF67 / FF.5 / FF_5 for uploading manual or electronic bank

statement
FEBA / FEBA_BANK_STATEMENT is used for furthe rprocessing.

GO THROUGH SAP NOTE 48854

Please go through SAP Note. 48854. You will get an idea

regarding the functionality of the algorithms.
Though this note is in relevant to GB specific, you will
find this very useful.

description follows below regarding the normal procedure

for maintaining table T028G. Due to the different bank
codes and posting rules, pre-Customizing is not possible at
this point.

The following processing types are available - unless

stated otherwise, you should use the interpretation
algorithm: '000 - No interpretation' in each case.

1. '00': There is no processing. The entry line is ignored.

2. '01': A validation is made whether an entry exists for
the transferred check number in the check table (PAYR). The
check number and payment document number are transferred
for further processing. Interpretation algorithm: outgoing
check processing '011'-'013'; the update in the check file
is via the interpretation algorithm.
3. '02': Transfer of the ending balance to the electronic
bank statement
4. '03': Transfer of the opening balance to the electronic
bank statement
5. '04': Clearing via the allocation number which is
delivered with the bank statement. No interpretation
algorithm.
6. '05': Clearing of BACS payments or BACS bank collection.
The reference text field is first read to ascertain whether
it involves payments initiated by users or bank collection
via BACS. Providing it does involve a cash transaction
initiated by the user, the payment document numbers
concerned are determined via the reference number and
transferred as a reference to further processing.
Interpretation algorithm: '000 - No interpretation'
or '019 - Reference number DME'.
Note
To differentiate between the two procedures in table T028G,
you have to maintain two separate entries.

Example: the bank uses bank code '62' for cash receipts and
for BACS bank collection.

Ext. Transaction +/- sign Posting rule Int. Algorithm

Processing type 62 + GB62 001 5
62 SAPBACS + GB63 000 5

7. '06': Bank costs or interest revenues

Recommended interpretation algorithm: '000 - No
interpretation'
8. '07': Total amount of cash disbursements
9. '08': Total amount of cash receipts
10. '09': Items not paid
Recommended interpretation algorithm: '000 - No
interpretation'

How many types of document splitting procedure?

Ans: There are 3 types of Document Splitting,
1)Active Document Splitting
2)Passive Document Splitting
3)Zero Balancing

what is the use of parked,recurring and sample document?

Ans: Parked document is complete document but it's not updated in
the system.Actually these docts are created by the lower level
people and posted by the higher people in the organization.

sample document is template by using this one we post

'n'number of transactions

How Many Leavels we can create GL account ?

Ans: We can create G/L Accounts at 3 Levels.

Menu Path->Accounting->financial accounting->General

Ledger->Master records->G/L Accounts->Individual Processing->

1)FS00-CENTRALLY

2)FSP0- IN CHART OF ACCOUNTS

3)FSS0- IN COMPANY CODE

Meaning: 1)Creating G/L centrally means G/L account will be

created at company code level as well as centralized chart
of account level and can extended to other co-code
2) Creating G/L account at chart of account level means G/L
will be created at particular Chart of account level only.If
multiple COA is in place than other COA cann't use this G/L.
3)Crating G/L account at company code means that G/L will
only belong to respected co-code only and other company code
cann't use this G/L account

WHAT IS THE DIFFERENCE BETWEEN NEW GL AND CLASSIC GL?

Ans: New GL and Classic GL are two ways to implement General Ledger functionality
in SAP ECC5 and ECC6. New GL provides lot of benefits over classic GL. The New GL
benefits

- Provide an extension to the existing functionality in classic GL, or

- Provide new functionality compared to classic GL, or

- Provide a technologically superior way to perform a functionality in Classic GL

It is imperative to understand the differences between Classic and New GL to be

able to understand which solution addresses the business requirements better. I am
providing a comparative analysis of the basic differences between Classic and New
GL.

(1) Extended Data Structure provides flexibility

SAP has consolidated the multiple totals table (GLT0, GLPCT, etc) in classic GL
into a single FAGLFLEXT Totals table with New GL. One Summary Table provides
flexibility and faster response time for reporting. FAGLFLEXT can also be enhanced
by adding customer defined fields.

(2) Segment Reporting to ensure Statutory Requirements

IAS accounting standards define the statutory requirements for segment reporting.
New GL has document splitting functionality that enables segment reporting.
Standard Segment Reporting functionality is not available in Classic GL.

(3) Real Time Integration between FI and CO

Classic GL has the period-close reconciliation ledger functionality to synchronize
FI and CO for cost transfers across functional area, business area and company code
originating in CO. New GL has a real-time integration between FI and CO that
happens with each transaction originating in CO instead of a summary posting done
by reconciliation ledger during period-close.

(4) Parallel Accounting

New GL provides Non-leading ledgers for parallel accounting like IFRS and GAAP.
Parallel accounting can also be implemented using Account based approach which is
also available in classic GL.

(5) Reduce TCO by Faster Period Close Activities

Faster Period Close is possible with New GL as,

(a) Reconciliation Ledger is not required

(b) Balance sheet Adjustments are not required

(c) Profit and Loss Adjustment are not required

(d) Activities related to Special Purpose Ledger are not required

(e) Depreciation posting is online instead of a batch session

(6) Flexible Drill-down Reporting in New GL

New GL has advanced drill-down capabilities by segment and other characteristics

What is Z Report in SAP FICO

Ans:Hi, Your Z report is made by your ABAP Programmer.

In certain cases where the end user wants to create or submit reports in a
particular format we create a Z report.

You must remember that as far as possble never alter the system, use the Z for
reports

WHAT IS THE USE OF SORT KEY CAN U EXPLAIN BREEFLY

Ans: It is nothing but sorting the transaction based on the Doc
date, Posting Date, Doc no etc.........

what is the difference between Field Status Varient and Field Status Group. Please
explain in Brief.
Ans: Field Status Group are used to control the screen
appearance for document posting. This is achieved through
General Ledged Account by assigning field status group to
General Ledger account or through posting key. For, this we
need Field Status variant, which contains field status
groups, and assign the field status variant to your company
code.

In the field status group we can manage the fields as

Fields, which must have an entry, can be made required

fields - Required

Fields that can be entered, but are not required can be set
to optional entry Optional

Fields, which is not required, can be suppressed.

what is retained earnings?

Ans: Retained earnings automatically carry forward the balances of

GL accounts to the Profit and loss account in the year end.

Financial Statement Version?purpose etc?

Ans: Formatting of Balance sheet in G/L Reports is known as

"Financial Statement Version."

Where we define new in ifrs and gaap

IFRS AND GAAP is are the Non-Leading Ledgers in indian company
code point of view,parllal accounting concept is the feature
of NEW G/L ACCOUNTING.

define ledger of general ledger accounting.

define curries for leading ledgers
define and acitivate non leading ledgers .
What is internal number range? What advantages & risk?

Ans: We assign internal Number ranges for different document

types,then system will allocate document numbers
sequentially. Otherwise we have to allocate document
numbers externally
Internal number range: System will allocate document number
sequentially

External Number range: At the time of posting document user

has to assign number for the posting document

What is base line date? Why is that used? Can this be changed?
Ans: base line date is date from which terms of payment apply.
by default base line date will display in invoice posting.
we can control the base line date in Terms of payment
configuration step(Tcode is OBB8).

Base line date may be :---

a)document date
b)posting date
c)no default(for this option , the user should explicitlly
must define the baseline date in invoice posting).
d)entry date

What is the Bank Sub Account?

Ans: For Bank Main Accounts, we use different Sub accounts(
Clearing GL Accounts )

1. Check Issued Out

2. Outgoing fund transfer
3. Check Received..etc.,

For eg., for check issued out the following will be entry

Dr Check Issued Out

Cr Bank Main A/c

After uploading bank statement in SAP system, the GL Account

( Bank Main A/c in SAP) will exactly match with Bank A/c.
All the clearing Accounts(Bank Sub account) will be the
reconciliation items.

This is applied in Electronic Bank statement or Manual Bank

statement.

************************************************
EXTENDED WITHHOLDING TAX
What is Valuation Class?
Ans:The Valuation Class in the Accounting 1 View in Material Master is the main
link between Material Master and Finance. This Valuation Class
along with the combination of the transaction keys (BSX,WRX,GBB,PRD ) defined above
determine the GL account during posting. We can group together different materials
with similar properties by valuation class. Eg Raw material,Finsihed Goods, Semi
Finished
We can define the following assignments in customizing : All materials with same
material type are assigned to just one valuation
class. Different materials with the same material type can be assigned to different
valuation classes. Materials with different material types are assigned to a single
valuation
class.

--------------------------------------------------------------------------------

Valuation class is the main integration point between MM and FI.

Valuation class determines the gl accounts when the goods movement related
transaction are posted

How do you configure Electronic bank statement?

Ans:The steps for Electronic Bank Statement are the same except for couple
of more additional steps which you will see down below
Step1: Create account symbols for the main bank and the sub accounts
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create transaction type
Step6: Assign external transaction type to posting rules
Step7: Assign Bank accounts to Transaction types

Where are Payment terms for vendor master maintained?

Ans:Payment terms for Vendor master can be maintained at two places i.e. in the
accounting view and the purchasing view.
Where are Payment terms for customer master maintained?
Ans:Payment terms for customer master can be maintained at two places i.e. in the
accounting view and the sales view of the vendor master record

Explain briefly how you can import electronic bank

statements into SAP.
Ans:A text file is received from the bank which is then uploaded into the SAP
system. The file contains details of the company?s bank movements e.g. cheques,
bank interest, bank charges, cash receipts etc. Depending on the system
configuration SAP will attempt to book these
transactions automatically to the correct accounts to avoid the need for manual
entries by SAP users. Any postings which the system cannot derive automatically can
be booked through ?post-processing
What are the problems faced when a Business area is configured?
Ans: The problem of splitting of account balance is more pertinent in case of tax
accounts.

--------------------------------------------------------------------------------

If the same customers/vendors are posted across the business areas, getting the
opening balances business area wise is not possible.