SAP FICO Interview Questions Part 6

SAP FICO Interview Questions Part 6

What is the use of “only balances in local currency” and account currency in sap gl master?

When we select “only balances in local currency” under the control tab of gl master (tcode: fs00), sap shows the gl balances in local currency. If you enter transactions in another currency, sap converts it to the company code currency (local currency).

When we enter a currency other than the company code currency in “account currency” field of gl master (under control tab), sap allow us to post transactions only in that currency. If we enter company code currency in that place then sap allow us to enter transactions in any currency.

We use transaction code FS00 for gl master creation. 

How many types of chart of account can be created in sap? What are the charts of accounts that can be assigned to a company code?

Sap allows us to create only three types of chart of accounts. Those are;

  • Operating chart of account
  • Country specific chart of account
  • Group chart of account

All the three chart of accounts can be assigned to a company code. But you can not assign more than one operating chart of account, group chart of account and country chart of account. In total only 3 chart of accounts (i.e. group chart of account, country specific chart of account and country specific chart of account) can be assigned to a company code.

What is the difference between validation and substitution?

Validation will validate the conditions that are set in the validation rule and if such conditions are satisfied then it will allow the transaction to post or else it will display an error message. If validation conditions are not satisfied then you can not enter the transaction.

Suppose in validation rule, we have set a condition that a particular cost element should be entered with a particular cost center. In this case such cost element will be allowed only with that cost center entered in validation. If we enter any other cost center then sap will return an error message.

Substitution will also work like validation but in substitution sap will not display an error message. It will replace the value that you have set in substitution rule. Suppose we have set a substitution rule that a particular cost center should pick up a particular functional area. In that case when ever the user enters the cost center, in the back end sap will picked up the functional area that is set in the substitution rule. End user will not be aware of this functionality. When we visit the document display screen we can see the item that has been substituted by substitution rule.

Where we use a shortened fiscal year?

Shortened fiscal year is used where we have a fiscal year which is less than 12 posting periods. This is used when you have newly started up you business in between the year and sap has been implemented to your organization or you are sifting from one accounting period to another accounting period i.e. from april-march you are moving to January-December.

What is a posting period? Why should I divide a fiscal year to posting period?

Posting period represents months of a fiscal year. If we follow a fiscal year from April to march then April, may, June etc are posting periods. We divide a fiscal year in to posting periods for easy reporting of financial data and to facilitate the closing process in financial accounting. By dividing fiscal year to posting period we manage the postings of financial transactions in a better way.

Posting period is divided in to normal posting period (which represents months as discussed above) and special posting period. Once you create special posting period system divides the last normal posting period in to special posting period.

When an end user enters a transaction he/she uses the normal posting period including the 12th posting period (last posting period divided in to special posting period) but at the year end when the organization enters adjustment entries they use special posting periods.

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