What are the segments we have in vendor master creation? Vendor master has three segments i.e. 1) General Data Segment 2) Company code Segment 3) Purchase Organization Segment. These segments manage different fields for vendor masters. General segment and company code segment are related to financial accounting module. SAP FI consultant needs to take care of these two … [Read more...] about SAP FICO Interview Questions Part 12
Archives for September 2013
TDS under section 194D – Insurance Commission
Section 194D deals with TDS on insurance commission. It’s applicable to any person responsible for paying any income to a resident by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance. Such person shall deduct Tax … [Read more...] about TDS under section 194D – Insurance Commission
TDS under section 194H – Commission or brokerage
TDS under section 194H is applicable to the person paying commission or brokerage to a resident exceeding Rs. 5, 000 per annum. Tax at Source has to be deducted at the rate of 10%, at the time of credit or payment whichever is earlier. Section 194H is not applicable to insurance commission as referred in section 194D of income tax act. While deducting TDS under section 194H … [Read more...] about TDS under section 194H – Commission or brokerage
SAP FICO Interview Questions Part 11
What is difference between a normal reversal and negative reversal? In normal reversal of a transaction the earlier debit line item will be credited and the earlier credit item will be debited by which the document will be shown on the opposite side of gl account where the original document was posted. In negative posting, the original document gets a posting with minus … [Read more...] about SAP FICO Interview Questions Part 11
Section 80G – Tax deductions for Donations to specific fund
Any person can claim income tax deduction under section 80G of the Income tax act, 1961, for the amount donated to approved funds or charitable institutions. To understand section 80G of the Income tax act, 1961, we have divided types of donation in to two parts. For “Type I” donations we need not do any calculation. If we have donated to a fund that is coming under “Type I” … [Read more...] about Section 80G – Tax deductions for Donations to specific fund
TDS on contracts – Section 194C of income tax act, 1961
Any person responsible for making any payment to a resident contractor for a contact to carry out any work or in connection to a contact for carrying out any work has to deduct TDS under section 194C of income tax act, 1961. Section 194C is also applicable to a sub contractor and any contractor supplying labour to carry out any work. As such, TDS has to be deducted by the … [Read more...] about TDS on contracts – Section 194C of income tax act, 1961
SAP FICO Interview Questions Part 10
How do you control document line item fields in sap fi transaction posting? Document line item fields are controlled by the field status group assigned to the general ledger master and by the field status groups in posting key used for transaction posting. We use transaction code FS00 to assign the field status group to gl account master. OB41 can be used to have a look … [Read more...] about SAP FICO Interview Questions Part 10
What is cost element category in sap
Primary and secondary cost elements are broken down into different cost element category. These categories will determine its uniqueness within the controlling module. While defining the primary or secondary cost elements (CE) you need to assign this defaulted cost element category in sap. Category for Primary Element Primary element can be assigned to following … [Read more...] about What is cost element category in sap
SAP FICO Interview Questions Part 9
What are the steps we followed to customize cash journal in sap? To maintain cash journal postings we start with creation of general ledger accounts then define the document types for cash journal postings. In the next step cash journal document number ranges are created for the document type. After the creation of gl account, document type and number range in sap we … [Read more...] about SAP FICO Interview Questions Part 9
SAP FICO Interview Questions Part 8
What is the use of reconciliation ledger? Reconciliation ledgers are used to post transactions from subsidiary ledgers to general ledger accounting. In Sap we have different sub ledgers like vendor, customer and asset accounting. Each line item posted to these ledgers is kept there. Through reconciliation ledger we can have these postings from sub ledgers to general … [Read more...] about SAP FICO Interview Questions Part 8