SAP FICO Interview Questions Part 8

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 ledger.

We can not post any transaction directly to these reconciliation ledgers. All vendor, customer or asset related line items can be displayed in there respective sub ledger and not in reconciliation account. 

What is the difference between residual payments and partial payment in sap?

Both are used to clear open item transactions. If one open item transaction is cleared partially and for the remaining amount sap has posted another open item transaction by clearing the first one then it’s called residual payment.

In Partial Payment, instead of creating one new open item and clearing the old one, sap will post a new line item for the incoming payment and the original invoice will not be cleared completely. Here both the original invoice and partial payment entry will be shown as open item. Both will be cleared at the time of full payment for the original invoice.

What is the difference between internal and external number range?

In internal number range assignment, document numbers will be generated sequentially for each document created in SAP. When ever we post a transaction in sap financial accounting the current available number gets assigned to it and the next sequential number will be ready for assignment to the next document. These numbers are automatically generated by sap from the number range that is assigned to the transaction posting document types.

In external number range assignment, the end user needs to enter the document number while posting a transaction. In these types of assignment sap does not create any sequential number for a document. The end user can also enter an alphanumeric number.

In external numbering, it’s difficult to maintain an audit trail of the transactions as your numbers are created in a random order.

Can a number range be year dependent?

Yes, we can maintain year dependent number range in sap. While maintaining number range in sap we enter a fiscal year for the range. If we enter fiscal year as 2012 then the number range will be valid for the year 2012 only and in the next fiscal year we need to create another number range. This is called year dependent number range. Transaction code FBN1 is used to configure Financial accounting number range.

What is year independent number range?

Instead of entering any fiscal year such as 2012 or 2013 if we enter fiscal year as “9999” then the number range will be valid for all the fiscal year instead of a particular fiscal year. This is called year independent number range. If you maintain this then it will not be necessary for you to created fiscal year every year. Transaction Code FBN1 is used for configuring financial accounting number range.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.