SAP FICA Interview Questions

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If you're looking for SAP FICA Interview Questions for Experienced or Freshers, you are at
right place. There are lot of opportunities from many reputed companies in the world.
According to research SAP FICA has a market share of about 3.8%. So, You still have
opportunity to move ahead in your career in SAP FICA Manager. Mindmajix offers Advanced
SAP FICA Interview Questions 2019 that helps you in cracking your interview & acquire
dream career as SAP FICA Developer.

Q1) What is the use of SAP FICA in the current industrial scenario?

The SAP FICA is one of the excellent industry-level solutions that are assisting organizations
in improving customer relationship management (CRM) in lightning speed. It provides
administrators to tackle customer issues and deal with them in enormous amounts and offer
resolutions in the most effective way. Moreover, organizations have much more to do with
FICA other than just carrying out essential transactional activities like tackling master data and
preparing invoices. Its key components provide extended facilities that include SAP bill direct.
This is a significant advantage when dealing with a substantial amount of customers.

Q2) Give an estimation of the amount of data that FICA can usually handle

The organizations utilizing SAP FICA generally deal with open items. The most significant
challenge is that these organizations are clearly overwhelmed by the overrated amount of
consumers which automatically increases the number of open items. The advanced design of
FICA helps enterprises deal with nearly 'millions' f consumers efficiently with the management
of open items that are approximately ten times more than the number of customers. FICA has
the capability to process large databases by providing full control to organizational
administrators, and it is mainly due to its adequate memory storage space. It has the capacity
of running complex tasks such as.

1. posting
2. dunning
3. processing
4. paying

Q3) What are the elements of the application administered by FICA documents for the
current accounts assignments?

 The present accounts assignments are given out from the applications listed below.
 The high costs controlling and profitableness analysis known as CO-PA in the technical
term. It involves the cost unit, project, order, and the income unit.
 General Ledger. It usually includes the G/L account, enterprise code, and business
region.
Q4) What are the top sectors in which the module of SAP FICA is widely used as a
solution?

The sectors in which the SAP FICA acts as a core solution includes the following.

1. Public Sector
2. Telecommunication
3. Utilities
4. Insurance and allowance

Q5) What are the segments in which the reconciliation key is stocked?

The posing totals in FICA are categorized based on the independently identified reconciliation
key. The reconciliation key in the SAP FICA are often stored in,

 Posting totals(FICA)
 Document header(FICA)
 General ledger document header as a foreign advertence

Q6) What are some of the core benefits of using SAP FICA

According to several surveys and studies, one of the foremost benefits of SAP FICA is that its
usage not limited to any particular industry. It can be utilized even if the organization does not
belong to the utility, insurance or telecommunication sectors. Moreover, the package's ability
to deal with an extensive amount of customers in a short period with maximum cost-
effectiveness has provided the organizations with the best leverage. The features like A/R
information tracking, materials management (MD) allows tackling large customer databases in
the most integrated technique.

Q7) Can you explain the difference between 'SAP FICA' and 'SAP FICO?'

SAP FICA and FICO are both highly advantageous and far-reaching modules presented by
SAP. The FICO interface offers the ability to deal with much more critical and complex
methodologies required in professional trading bodies. It is often utilized by Tax authority
groups, banking businesses, managers, etc. There are ample facilities for personalizing the
service obtained as per required specifications of users.

The SAP FICA was first introduced in the year 1999 and is one of the most entrusted modules
in today's industry. It was mainly established to reduce pressure and mismanagement when it
comes to handling a substantial amount of consumers. The FICA is a sub-ledger function that
is used alternatively for the FI-AR -module as well as the accounts payable module.

Check Out SAP FICA Tutorials

Q8) State some of the specific utilities of SAP FICA in few points

The usefulness of FICA cannot be explained in a nutshell, but some of the main advantageous
services would include the following:
 1. SAP business affiliate concept
2. Simultaneous Mass Runs
3. FICA is also integrated to SAP packages that include BI, FSCM, CRM, etc.
4. Storage customization and optimization made possible by the advanced document
scheme inbuilt in FICA
5. The documents are accredited to contract accounts and trade associates

Q9) Define the terms TDM and BDM

The master data theory model of the IS-U is grouped in two primary categories which include
the following.

1. Technical data model(TDM) - Customers seek a large number of services from

organizations, and the act of really catering a particular service to the consumer by utilizing a
master data is categorized under the Technical Data model in SAP. For instance, a trading
affiliate who can be an enterprise or an individual.
2. Business data model (BDM) - Customers are often charged and billed for several types of
services. Organizations handle similar categories of service billings in infinite numbers and
hence, they require an order-wise grouping procedure. Consequently, the master data used for
charging consumers are considered under the BDM in the SAP, IS-U model.

Q10) Explain the concept of 'contract account' in SAP FICA

The contract account is a standard terminology often used when working with SAP FICA. It is
the most significant medium through which business affiliates are connected to contracts.
Several contracts can be categorized under many contract accounts, but when allocating a
single contract, it is eligible for only one contract account. The contract account is a highly
methodical and rational medium of categorizing multiple agreements. It is mainly utilized for
tackling payment affairs, dunning, etc.

Q11) What is a point of Delivery?

The point of delivery is a universally recognized distinctive service location where a particular
service or utility is catered. In the deregulated market scenario, there are extensive clusters of
service providers leveraging consumers every day with innumerable types of service. For
instance, a service provider catering power and electricity supply in an enterprise and its related
locations where a different service provider is catering other services like extended assistance
services, billing services, etc. To avoid disputes, the concept of point of delivery is introduced
to detect a service point distinctively.

Q12) What happens in the process of installation?

The installation is a significant level that every service provider needs to pay attention to. It is
a set of several billing techniques and methods that service providers need to follow. Each
scheme is set as per the nature of service. It includes rate tariffs, billing schemes, etc. The
systems are categorized as per registers in the notion that particular billing evaluations can be
settled for their respective services.

Q13) According to you what is one of the drawbacks in the features of the FICA module?
The SAP FICA is definitely a dynamic module that is used by both experienced and
contemporary business figures in today's date. However, the feature of reporting is bound to
specific organizational infrastructure. Business figures using the SAP FICA need to have the
Business Information Warehouse, that is the BW equipped with their infrastructure.
Organizations willing to use the particular package need to install BW separately.

Q14) Substitution and confirmation are utilized in which application operations?

The application fields include,

1. Asset Accounting
2. Consolidation
3. Project system
4. Cost accounting
5. Profit unit accounting

Q15) State some of the modules where financial accounting is integrated

The peripheral modules are as follows.

 Human resource
 Distribution and sales
 Production structuring
 Managing monetary transaction
 Martial maintenance

Q16) Specifically, mention the organizational components in SAP FI

The organizational elements include the following.

1. Trade area
2. Enterprise code
3. Account Chart
4. Functional field

Q18) Explain the concept 'APP' in the module of SAP FICA

The full form of APP is automated payment program. It is one of the highest performing tools
leveraged by SAP to its clients. Enterprises use it for carrying out financial transactions with
consumers and vendors. It assists in bringing more accuracy and perfection in the process while
dealing with consumers and vendors via hand-operated posting.

Q17) State the choices of Financial years in SAP

The financial or fiscal year is an organized method based on which the commercial information
is treasured. SAP offers four specific periods and twelve regular periods. The particular periods
are stocked in the financial year alternatives, which are,
 1. Year dependent financial year
2. The calendar year that includes the periods from January to December and April to
march.

Q19) How many categories of currencies can be composed for an enterprise code?

There are three categories of currencies composed of enterprise code. One of them is 'provincial
currency,' and the other two are 'co-extending currencies.'

Q20) Provide the primary phases of the payment run process of SAP

The phases of the payment run include the following steps.

1. Parameter infiltrating (Enterprise code, dealer accounts, Payment strategies)

2. Scheduling request (A request for the paid bills are put forward by the system)
3. Payment reservation or booking (Indicates the reserving of the invoices in the ledger)
4. Printing forms of payment (For instance, cheque)

Q21) Define one-time dealers or vendors and how do they help?

An organization deals with a significant amount of transactional and financial and financial
affairs. It is not feasible for them to introduce advanced master records for each business
affiliates. This is precisely where the one-time vendor steps into the frame. It offers a dummy
dealer code that is used as a template to carry out billing entries. It also allows utilization of
the data stocked in the vendor or dealer master.

Q22) Name the generic exchange rate category that is used for every SAP transactional
affairs?

The exchange rate category for every transactional activity in SAP is ‘M’, which is the 'average
rate.'

Q23) What are the core elements that SAP FICA is dedicatedly integrated with?

The essential elements of SAP FICA integration are Customer relationship management
(CRM), Controlling (CO) and SD. SAP invoice direct is another integration component that
has contributed largely to the efficient functioning of organizations.

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Q24) State the critical difference between an enterprise and enterprise code?

The enterprise code is a standard terminology often used in SAP. The company or enterprise
code is the minor form of unit, in which a group of autonomous accounts can be utilized for
extraneous reporting purposes. On the other hand, an enterprise or company is an
organizational field that is being used in the legislative consolidation module to assimilate
monetary statements of different enterprise codes.

Q25) How is the distinctive or particular period utilized in the financial variant?
The particular period of time is usually utilized to operate or carry out tasks aligned to the
closing financial year. It may include insertion of audits, tax alteration ad regulation and more.

Q26) Define the concept of the posting period?

The posting period is usually responsible for deciding the type of posting period eligible for
every enterprise code, and the types may include both special and regular. Often organizations
possess differing posting period variants based on every company code within the enterprise.

Q27) What does a controlling area mean?

The concept of controlling area indicates a location where the activities like financial
transactions, revenue evaluation, and other calculative affairs are managed. It is one of the chief
enterprise units and is considered under the CO module.

About The Author

Ravindra Savaram is a Content Lead at Mindmajix.com. His passion lies in writing articles
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