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Chapter 6 : Questions & Answers

This chapter contained frequently asked interview questions and answers. Question-1: What is Fiscal Year Variant and its assignment to company code? Question-2: What are Reconciliation Accounts? Question-3: What is Posting Period Variant? Question-4: What is Automatic offsetting Entry or Statistical Entry? Question-5: What is a Noted Item? Question-6: What are Line Items? Question-7: What is Dunning Areas? Question-8: What is Holding & Parking of Documents? Question-9: What is Dunning? Question-10: What is sample account? Question-11: What are Differences between Account Group, Reference, and Sample Account? Question-12: What are Differences between Configuration and customization? Question-13: In SAP what is number range? What are the differences between internal number range and external number range? Question-14: What are Alternative Payer / Payee? Question-15: How to offset Vendor Balances with Customers balance, where customer and vendor have same entity? Question-16: What is a lockbox? Question-17: What is the treatment of one time customer / vendor accounts in SAP? Question-18: What is difference between normal vendor and one time vendor and what purpose to create one time vendor?

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mentioned period as 9 corresponding to calendar month Jan, that mean month January is our posting period 9. Along with end of period further we are defining up to what date of calendar month belongs to posting period. In this case from 1st of Jan. to 15th Jan. belongs to posting period 9. Year Displacement: Year displacement is used to define whether calendar month pertains to current fiscal year or previous fiscal year. In this case fiscal year starting with 16th of April considered as a current fiscal year, hence year displacement is 0, while part of the period starting with 1st January to 15th of April of calendar year 2012 is belongs to fiscal year started in calendar year 2011 treated as previous fiscal year with year displacement -1. A fiscal year can be assigned to N number of company code. By assigning one fiscal year variant we can maintain uniformity across the company codes. SAP comes with few delivered fiscal year variant, however we can create our own fiscal year variant. Refer Variant to create fiscal year variant. Once we have created fiscal year variant we can assign fiscal year variant to company code. Refer Assign Company Code to a Fiscal Year Variant to assign fiscal year variant to company code

Question-2: What are Reconciliation Accounts? Transactions in the sub ledgers (e.g. accounts receivable/payable) are also posted on the reconciliation accounts in the general ledger. The aim is to have the values available in form of totals as well in the general ledger in order to be able to quickly create a financial/income statement. To determine the payables/receivables, the balances of the reconciliation accounts can be directly displayed instead of having to search for the values in the sub ledger. The reconciliation account to be posted to is entered in each customer/vendor master record. The Reconciliation Account field can be found in the company code segment of the customer/vendor master record.

Question-3: What is Posting Period Variant? Frequently called PPV. Posting Period Variant (PPV) controls how the posting period to be controlled for each company code. Since PPV is a variant, we can assign a PPV to one or more company codes. The posting period variant is independent of the fiscal year variant. We can reach configuration screen of posting period variant by following Financial Accounting > Financial Accounting Global Settings > Document > Posting Period > Define variants for open posting periods or transaction code OBBO. Posting period variants are cross-company code and we assign PPV to our company codes. If one posting period variant is assigned to multiple company codes, then posting periods are then opened and closed simultaneously for all company codes via the posting period variants.

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SAP FICO Configuration & User Guide (Classic)

For accounts with line item display, the system uses special indices to define the link between the account and the document. For accounts with many transactions, a corresponding number of indices must be defined and read for line item display. This means that when posting items to such accounts and displaying line items, additional storage space and system time are required. Therefore, we should not use line item display for the following accounts: Reconciliation accounts (detailed information is contained in the sub ledger) Sales revenue accounts (detailed information in the Sales and Distribution application module) Material accounts (detailed information in the "Materials Management" application module) Tax accounts (detailed information is not needed since tax data is contained and checked in the document).

Question-7: What is Dunning Areas?

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