Sunday, June 9, 2013

FI Notes.

1. What is chart of account? What is the relevance of defining chart of account?
A. It is the top level financial structure, contains the GL Accounts we define the all the accounts and one chart of accounts assign to company code and one chart of accounts will assign to many company codes. It is list of Gl accounts and it contains account no, account name, language, length, cost element, blocking information that controls the how an account functions and how a gl account created in company code. COA Key.

2.  What is account group? What does it control?
A. IT determines which fields you need to configure on the GL master record. It is necessary to have at least 2, one for B/S and another one for P&L accounts. It controls the number ranges of GL. The Status fields of the master record of GL Belong to company code area.

3.  What is posting key? What is its role?
A. It controls the line item of GL entry debit and credit.

4.  What is business area?
A. Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Financial statements can be created for business areas for internal purposes. They are primarily used to facilitate external segment reporting across company codes covering the main operation of a company (product line, Branches). The Business area may be the branch of the company or product lines it deals with

5.  While defining chart of account, there is field “manual creation of cost element” and “automatic creation of cost element”, what is it?A. Generally when ever we are creating cost elements we can create some of expenditures manually some automatically so we can create manually cost elements in defining chart of accounts.

6. After creating a customer/vendor, how can we check that under which account group we have configured this customer/vendor?
A. We can check through customer group and vendor group it was created by ours when we are creating vendor and customer groups.

7. How the system will know that April is your first posting period?
A. Yes the system will find out April was first posting period. While configuring fiscal year we giving April to 1 may to 2, June to 3, like this system will identify April was the first posting period.

8. Define the term “fiscal year”, “posting period variant” & ” field status variant”.
A.  FSGV controls the additional account assignments and other fields that can be posted at the line item level for GL a/c. FSGV can be control at three level i.e.,
1) In OBC4 (ch of a/c’s) – which controls the screen for a particular GL a/c group,
2) Posting Keys – which controls the screen for a particular posting key transaction is taken,
3) Accounting Groups – which controls the screen for a particular account group i.e., customer group or vendor group.
A. Posting period variant, which controls posting periods, both   normal and special periods are open for each company code. The posting period is independent of fiscal year variant.
A. Fiscal year is controls the type year we are following like calendar year, year dependent year.

1.  How can be or in what way baseline date is important in Automatic Payment Program run? 
The Baseline date is used to calculate the due date by taking into account the payment terms. On the APP, the baseline date helps to pick the relevant invoices for payment. During the APP run when invoices are pulled into the run, the system checks the ‘Next Payment Date’ before picking the invoices to be paid.

 2.  Please tell me the procurement cycle how it works?
Procurement cycle – a sales order is placed on a requirement made by a customer, after which it is passed on to create a purchase order (this could either happen based on the requirements on the SO, or a planned SO). The value flow gets passed on to FI at the time of goods movement. In the case of SD, the impact on FI happens only at the time of billing.

 3.  Difference between Depreciation, Accumulated Depreciation and APC? What is APC?
Depreciation – a decrease in the value of an asset due to wear and tearAccumulated Depreciation – the total amount of depreciation calculated on a particular asset.APC – refers to Asset transactions other than depreciation

4.  What is GR/IR? What  journal entries we should pass for this?
The GR/IR – the goods receipt/Invoice Receipt account is used to post to whenever goods that are not yet invoiced have been received or when invoices arrive b4 the delivery of goods.
During the time between the invoice being created and delivery of goods, there can be a timing difference, in order to accommodate this timing difference; a GR/IR account is maintained temporarily to record the flow.

 5. What are the accounting entries take place in MM and SD?
Value from MM to FI is defined in OBYC…. on the material master the flow of values are assigned on the Costing, acc, tabs where the system helps to post the necessary stock values into the appropriate GL accounts. Helps to determine, the GL accounts updated when there is a movement of goods.

 6. Can we assign one Controlling area to two different Company Codes (but the company codes having different  fiscal years/different currencies?
Company code should have same financial year, may have different currencies.
You can assign 2 or more company codes to one controlling area as long as the chart of accounts are same. Furthermore, if you have different fiscal year variant in the company code, then make sure that the number of period remains the same.

 7.  While posting transaction, can we give cost centre / production order at time.
Yes it is possible, but in such situation cost centre will be real and production order is statically.
If you assign both cost center and Prd Order then since Prod. Order are real co object, Cost center entry would be statistical.

 8.  Which Master data uploads will be done?
The question is not very clear. If you are talking about CO Master data. Then Cost center need to be uploaded. You can use Data Transfer Workbench or write abap for it.

 9.  Can we run Payment Program giving ( Hdfc  vendor details ) City bank in Payment run program?
Yes can be possible, this can resolved through ranking order and bank optimization in FBZP.
You use further selection in proposal parameter, if you would like to filter the open item based on the city

10.  What does document header control?
Field status.

11. After entering a document can you delete the entry? Can you change the document? Which fields’ can/not is changed?
Document header cannot be changed, after posting the document you cannot change. Only if you want to change the document the reversal entry.

12. What is a special GL transaction?
The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of exchange, Interest payable, aqusition

13. How do you reverse cleared documents?
By doing reversal posting.

14.  What is base line date? Why is that used? Can this be changed?
For payment terms it is used. Base line date is the due date.

15. How many statistical objects can be selected in when you post an FI document?       
Where CCtr, PCtr, OM are active?
Only two.

1. Tell me about FI Organizational structure?
Ans:     Client|Operating Concern|Controlling area1      
 Controlling Area 2|Co. Code 1 Co. Code 2|Bus area 1  Bus area2  Bus Area3  Bus Area 4

2. How many Normal and Special periods will be there in fiscal year, why do u use special periods?Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for posting tax and audit adjustments to a closed fiscal year.

3.Where do you open and close periods?Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr. Code. OB52.

4.What do you enter in Company code Global settings?
Ans: 4 digit Alphanumeric key.Name of the companyCityCountryCurrencyLanguageAddress

5.What is document type, and what does it control? Examples.
Ans: Document type is nothing vouchers containing line items. Several business transac! tions can be identified within a particular document type.It controls the document number ranges.It controls the Header part of documentIT controls the line item level of the documentHelps filing of physical document

6. What is posting key and what does it control?
Ans: These are special classification keys. Two character numerical key it controls the entry of line items.Posting key determines Account type, Debit/credit posting, Field status of transaction.

7. What is field status group, what does it control? 
Ans: FSG is mandatory field in ! GL Creation. You use this field to define which fields are displayed when you post business transactions to a G/L account.A field may have one of the following statuses.- Suppressed- Display- Optional- Required

8. What is chart of account and how many charts of accounts can be assigned to a company?
·         Ans: Chart of account is a list of all G/L accounts used by one or several company codes.
·         For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a Company code.
·         You have to assign a chart of accounts to each company code. This chart of accounts is the Operating chart of accounts and is used for the daily postings in this company code.
·         You have the following options when using multiple company codes.You can use the same chart of accounts for all company codes
·         If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country.
·         In addition to the operating chart of accounts, you can use two additional charts of accounts If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries.
·         The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the co! mpany codes which use different charts of accounts together or separately.

9. What does definition of a chart of account contains?
Ans: chart of account keyNameMaintenance languageLength of the GL Account NumberControlling IntegrationGroup chart of accounts (Consolidation)Block Indicator

10. Can one COA be assigned to several companies?
Ans: yes. One COA can be assigned to several companies.

11) What is account group and what does it control? Ans: Account group determines which fields you can configure on the G/L master record. It is necessary to have at least two one for B/S and another one for P&L a/c.It controls the Number ranges of GL A/C.The status of fields of the master record of GL belongs to company code area.

12) What is reconciliation account; can you directly enter documents in that a/c?Ans: When you p! ost items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger.We can’t use reconciliation account for direct postings.

13) How do you control field status of GL master records and from where do you control! Ans: Field status variant is maintained all FSGs.

14) What are the segments of GL master record?Ans:- COA SegmentA/C groupNature of accountShort textGL a/c long textTrading partnerGroup Account Number-  Company code segmentAccount currencyTaxReconciliation a/c for a/c typeOIM,LID,FSG.

15) What does Field status group assigned to a GL master record controls?Ans: It controls the account assignments that are made to the account. Specifically the field status group controls whether postings to cost centers, internal orders, profitability segments and so on are required, not allowed (suppressed), or optional.

16) What is Country and operational chart of account? Why do you use group chart of account?Ans: Operational chart of account – Day to day activities It is mandatory.Country COA – It’s used for legal specific requirement of each country. It’s additional and optional.Group COA used for consolidation of Company codes. This is for group consolidation purpose.

17) What are all the segments in a Customer/Vendor master record?Ans: Segments in Customer           Segments in Vendor-      General Data segment            General data segment-      Company code segment         Company code segment-      Sales area segment                 Purchasing organization Segment

18) What is open line item management? What do you mean by clearing open line items?Ans: Open item management is further reconciliation function. OIM allows you to display the open and cleared items and amounts in an account. OIM should be used if an offsetting entry is made for every line item posted in the account. The a/c is reconciled and cleared against another account. Ex. Salary clearing account and GR/IR Clearing account.

19) What is residual payment and part payment?
Ans: Residual payment it clears original invoice with incoming amount and create new line item for remaining outstanding amount.Partial payment it leaves the original invoice amount and creates newline item for incoming amount.

20) What is internal and external number ranges?
Ans: Internal Number Ranges: Doc. No will be provided by the system automatically in serial order allotting the next available progressive number. The number must be in numerical.External Number ranges: Doc. No will be given manually by the end user. System will not lock no automatically in this case. User can pick the number randomly. Number may be an alpha numeric.

1. Since the line item display takes up additional system resources,  you should only use it if there is no other way of looking at the line  items. So, you should not activate the line item display for the  following accounts (Note: we can have more than one correct sentence. Please select the sentences you think they are correct):
a) [  ]  P+L Statement.
b) [  ] Reconciliation.
c) [  ] Revenue.
d) [  ] Material Stock.
e) [  ] Tax.

2. Consider the following statements:
2.1. Accounts with open item management must have line item display activated.
2.2. You can activate or deactivate open item management every time, even if the account hasn’t a zero balance.
2.3. you can select both local and foreign currencies as account currency.
2.4. if the account is the local currency, the account can only be posted to this currency.
2.5. When using the Only Balances in Local Currency indicator in the master data record, transaction figures are only managed for amounts translated into local currency.

Which of the above statements are true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] 2.1. 
b) [  ] 2.2. 
c) [  ] 2.3. 
d) [  ] 2.4. 
e) [  ] 2.5.

3. True or false?
3.1. The “Only Balances in Local Currency” indicator must not be set in reconciliation accounts for customers or vendors.a) [  ] Trueb) [  ] False.
3.2. The “Only Balances in Local Currency” indicator is usually set in balance sheet accounts that are not managed in foreign currencies and not managed on an open item basis.a) [  ] True.  b) [  ] False.
3.3. Accounts with a foreign currency as an account currency can be posted to any currency.a) [  ] True.  b) [  ] False.
3.4. You can use a group chart of accounts for internal purposes.a) [  ] True.  b) [  ] False.
3.5. The usage of a financial statement version for the group chart of accounts is optional.a) [  ] True.  b) [  ] False.

4. What is the disadvantage of using the group chart of accounts  (Please choose the correct sentence)?
a) [  ] Because changes to existing G/L Accounts are effective as soon as they have been saved and could have extensive consequences.
b) [  ] Because accounts with the account currency as local currency can only be posted to this local currency.
c) [  ] Because the company codes use different operational chart of accounts, you cannot carry out cross-company code controlling.
d) [  ] Because the group chart of accounts must be assigned to each operational chart of accounts.
e) [  ] Because you must enter the group account number in the chart of accounts segment of the operational account.

5. Consider the following statements:
5.1. You cannot use the country chart of accounts if you desire to use the cross-company code controlling.
5.2. The disadvantage of using country chart of accounts is the accounting clerks who may be familiar with the country chart of accounts first have to get used to using the operational chart of accounts.
5.3. Reconciliation accounts are updated on a daily basis.

Which of them are false (Please choose the correct sentence)?
a) [  ] 5.1 and 5.2.
b) [  ] 5.1 and 5.3. 
c) [  ] 5.2 and 5.3. 
d) [  ] all of them. 
e) [  ] none of them.

6. Which are the segments of the SD view of the customer account master data (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] Client. 
b) [  ] Company Code. 
c) [  ] Controlling Area.
d) [  ] Sales Area. 
e) [  ] Purchasing Organization.

7. Which are the segments of the MM view of the customer account master data (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] Client. 
b) [  ] Company Code. 
c) [  ] Controlling Area. 
d) [  ] Sales Area.
e) [  ] Purchasing Organization.

8. What is the segment that makes complete both customer and vendor accounts (Please choose the correct sentence)?
a) [  ] Client
b) [  ] Company Code. 
c) [  ] Controlling Area. 
d) [  ] Sales Area. 
e) [  ] Purchasing Organization.

9. What characteristics are configured as standard for every customer/vendor account (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] Line Item Display. 
b) [  ] Company Code. 
c) [  ] Currency.
d) [  ] Open Item Management. 
e) [  ] Purchasing Organization. 

10. Consider the following statements:
10.1. Number ranges for customer/vendor accounts can overlap.
10.2. An one-time account is a special customer/vendor master record which a company rarely do business.
10.3. The account group is used to control the fields displayed in the master record.
10.4. If you enter an alternative payer, the amount to clear the open items due in the account is paid by the alternative payer.
10.5. One number range can only be assigned to one account group.

Which of the above statements are true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] 10.1.
b) [  ] 10.2. 
c) [  ] 10.3. 
d) [  ] 10.4. 
e) [  ] 10.5.

11. True or false?
11.1. For every bank that is used in the system (for example, as a house bank or as a customer/vendor bank) you have to create a bank master record.a) [  ] True.  b) [  ] False.
11.2. Banks that are used by your company are defined as house banks.a) [  ] True.  b) [  ] False.
11.3. You cannot create bank master data when entering bank information in the customer or vendor master record.a) [  ] Trueb) [  ] False.
11.4. Bank Account and G/L Account are the same master data object.a) [  ] True.  b) [  ] False.
11.5. Customers that use the lockbox function can create a batch input session that automatically updates customer banking information in the master record.a) [  ] True.  b) [  ] False.

12. Consider the following statements:
12.1. The system can assign the document numbers or the user can assignthe number during document entry.
12.2. A business transaction creates only one document.
12.3. Document types are defined at company code level.
12.4. Number ranges for document numbers and account types defined for postings are defined by the document types.
12.5. Document types also define whether invoices are posted with the net procedure.
Choose the correct option:
a) [  ] 12.1, 12.4 and 12.5 are correct.
b) [  ] 12.2, 12.4 and 12.5 are correct.
c) [  ] 12.3, 12.4 and 12.5 are correct.
d) [  ] 12.1, 12.3 and 12.4 are correct.
e) [  ] 12.1, 12.2 and 12.5 are correct.

13. What do the posting keys specify (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] Whether the line item is connected to a payment transaction or not.
b) [  ] Whether the posting is sales-relevant and the sales figure of the account is to be updated by the transaction, for example, by the posting of a customer invoice.
c) [  ] Whether the line items contain “credit” or “debit” values.
d) [  ] Whether the line items are valid for a business transaction.
e) [  ] Whether the accounts are allowed for posting.

14. Consider the following statements:
14.1. A company code must be assigned to a posting period variant to have the control for posting periods.
14.2.‘+’ symbol represents all account types in the posting period customizing screen.
14.3. The account interval in the posting period customizing screen can be both G/L and subledger accounts.
14.4. The maximum amounts are defined per company code in “tolerance groups”.
14.5. It is not possible to assign tolerance groups to user logon ID’s.

Choose the correct option:
a) [  ] 14.1, 14.4 and 14.5 are correct.
b) [  ] 14.2, 14.4 and 14.5 are correct.
c) [  ] 14.3, 14.4 and 14.5 are correct.
d) [  ] 14.1, 14.2 and 14.4 are correct.
e) [  ] 14.1, 14.2 and 14.5 are correct.

15. What fields of a FI Document Header section can be changed after a document has already been posted (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] Fiscal Year
b) [  ] Reference Number. 
c) [  ] Text fields. 
d) [  ] Header text. 
e) [  ] Posting date.

16. About the change control, what conditions below are applicable (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
16.1. The posting period is already closed. 
16.2. The line item is not yet cleared. 
16.3. The document is a credit memo for an invoice. 
16.4. The document is not a credit memo from a down payment. 
16.5. The line item is either a debit in a customer account or a credit in a vendor account.

a) [  ] 16.1
b) [  ] 16.2. 
c) [  ] 16.3.
d) [  ] 16.4. 
e) [  ] 16.5.

17. What are the prerequisites to enable negative postings (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?
a) [  ] You have to define reversal reasons for negative reversal.
b) [  ] You have to ensure company code permits negative postings.
c) [  ] You have to define the document type that explicitly allows negative postings.
d) [  ] You have to use cleared items.
e) [  ] You have to reset cleared items.

18. What is the purpose of the terms of payment (Please choose the correct sentence)?
a) [  ] Calculate a cash discount and invoice due date.
b) [  ] Calculate the tax amounts.
c) [  ] Enable the cross-company code transactions.
d) [  ] Define the baseline date.
e) [  ] Calculate only the required conditions for SD invoices.

19. Consider the following statements:
19.1. Terms of payments are copied from invoice to credit memos when they are linked to.
19.2. Inserting a in the invoice reference field during document entry means the terms of payment are activated in thenon-invoice-related credit memos.
19.3. The account type field in terms of payment basic data screen should be defined separately, to prevent any done change in the term of payment.
19.4. The system cannot define the splitment of an installment payment, at least you define it in the terms of payment.
19.5. The day limits define the dates of the cash discount periods.

Which of the statements above is false (Please choose the correct sentence)?
a) [  ] 19.1.
b) [  ] 19.2.
c) [  ] 19.3.
d) [  ] 19.4.
e) [  ] 19.5.

20. True or false?
20.1. SAP supports tax on sales and purchases, US sales tax, additional taxes and withholding tax as tax systems for different countries.a) [  ] True.  b) [  ] False.
20.2. Only national level of taxation is allowed in the R/3 system.a) [  ] True.  b) [  ] False.
20.3. A tax calculation procedure is assigned to every company code for carrying out tax calculations.a) [  ] True.  b) [  ] False.
20.4.A jurisdiction code is a combination of the codes of tax authorities that tax movements of goods and use their own tax rates.a) [  ] True.  b) [  ] False.
20.5. If you desire to post manual tax postings, you have to flag the “Post Automatically Only” field of the account master record.a) [  ] True.  b) [  ] False.

1. About evolution in the world of business, we can affirmate that (Please choose the correct sentence):

a) [ ] The internet revolution could turn available to companies the use of ERP functionality.
b) [ ] The next generation of “new dimension” products appeared taking functionality out of the company, to bring value through extending the Internet Revolution.
c) [ ] The internet has driven to a collaborative environment where value is created through collaboration within business comunities.
d) [ ] In the first the companies were looking at Cost reduction and efficiency through integration of business comunities.


2. About the definition of ERP and e-business functionalities, we can say that (Note: we can have more than one correct sentence. Please select the sentences you think they are correct):

a) [ ] ERP offers enterprise centric functionality (general ledger, payroll, order entry) to integrate core, internal processes.
b) [ ] ERP is mySAP Financials and mySAP HR.
c) [ ] ERP is SAP R/3, while e-business is
d) [ ] About Business Model, ERP can be considered as enterprise centric and e-business, as extended and collaborative.
e) [ ] About Architecture, ERP can be considered as an integrated system and e-business, as an integrated system and an open integration platform.
f) [ ] About Processes, ERP can have them integrated, core within enterprises and collaborative, beyond company boundaries.

Answers:A, C, D, E.

3. What is a SAP Business Object (Please choose the correct sentence)?

a) [ ] It is all the transaction data generated via transactions.
b) [ ] It is the instancied class of the Class Builder.
c) [ ] It is composed of tables that are related in a business context, including the related appplication programs and it is maintained in the Class Repository.
d) [ ] It is the representation of a central business object in the real world, such as an employee, sales order, purchase requisition, invoice and so on.
e) [ ] It is a sequence of dialog steps that are consistent in a business context and that belong together logically.


4. About BAPI (Business Application Programming Interface), what is true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) [ ] It is a well-defined interface providing access to processes and data of business application systems.
b) [ ] BAPIs offer a stable, standardized interface for integrating third-party applications and components in the Business Framework.
c) [ ] A BAPI is assigned to one and only one business object.
d) [ ] In the R/3 Enterprise version (4.7) we can use BAPI to create an internal order inside a customized ABAP program.
e) [ ] A business object in the Business Object Repository (BOR) can have many methods from which one or several are implemented as BAPIs.

Answers:A, B, C, D, E

5. What can we say about ALE (Application Link Enabling, Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) [ ] Business processes cannot be distributed using ALE.
b) [ ] The ALE concept is related to an enterprise structure with areas that have central tasks and areas with tasks that are decentralized.
c) [ ] The applications are integrated via a central database.
d) [ ] The applications are integrated via the message exchange.
e) [ ] The ALE concept supports the implementation and operation of distributed SAP applications.

Answers: B, D, E

6. A company code is:

a) [ ] an independent accounting entity (the smallest organization element for which a complete self-contained set of accounts can be drawn up).
b) [ ] an organizational unit in an enterprise that represents a closed system used for cost accounting purposes.
c) [ ] an organizational unit that provides an additional evaluation level for the purpose of segment reporting, for example.
d) [ ] a dependent accounting entity, according to Fiscal Year.
e) [ ] the highest level in the R/3 system hierarchy.


7. Consider the following sentences:

7.1. The variant principle is a three-step method used in R/3 to assign special properties to one or more R/3 objects.
7.2. One of the disadvantages to use variants is that it can't deal with the maintenance of properties, which are common among several business objects.
7.3. For using the variant principle, you must define the variant, populate it with values and assign it to the R/3 objects.
7.4. This principle is used for Fiscal Years, Posting Periods and so on.

Which of them is false?
a) [ ] 7.1 and 7.2.
b) [ ] 7.1 and 7.3.
c) [ ] 7.1.
d) [ ] 7.2.
e) [ ] 7.3.

In fact, the main advantage of using variants is that it is easier to maintain properties, which are common among several business objects.

8. Consider the following sentences:

8.1. A fiscal year has to be defined by means of separating business transactions into different periods.
8.2. Special periods are used for postings, which are related to the process of the year-end closing. In total, 16 special periods can be used.
8.3. The Fiscal Year variant only defines the amount of periods and their start and finish dates.
8.4. The Fiscal Year is defined as a variant, which is assigned to the chart of accounts.

Which of them are true?

a) [ ] 8.1 and 8.2.
b) [ ] 8.1 and 8.3.
c) [ ] 8.2 and 8.3.
d) [ ] 8.2 and 8.4.
e) [ ] 8.3 and 8.4.

Answers: B

9. What is an independent fiscal year variant (Please choose the correct sentence)?

a) [ ] It is a variant which the postings periods are only equal to the months of the year.
b) [ ] It is a variant which you can define different number of periods, according to the year.
c) [ ] It is a variant which each own fiscal year uses the same number of periods, and the postings periods always start and end at the same day of the year.
d) [ ] It is a variant which allows the use of different number of posting periods.
e) [ ] It is a variant not normally used because of its particularity.

Answers: C

10. Consider the following statements about currencies concepts:

10.1. The currency code identifies each currrency that will be used into R/3 system.
10.2. You have to define all the worldÂ’s currency into R/3 system
10.3. Exchange rate types distinguishes the exchange rates to be considered for various purposes, such as valuation, translation, conversion, planning, etc.

Which of them is true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) [ ] 10.1.
b) [ ] 10.2.
c) [ ] 10.3.
d) [ ] none of them.
e) [ ] all of them.

Answers:A, C

11. Consider the following sentences:

11.1. A base currency can be assigned to an exchange rate type.
11.2. To deal with exchange rate spreads, two very efficient combinations of the exchange rate tools are using a base currency for the average rate (M) and using the exchange rate spreads to calculate the buying and selling rates (B and G).
11.3. A base currency can be used for an average, a buying or a selling rate.
11.4. The relations between currencies have to be maintained per exchange rate type and currency pair in the translation factors.

Which of these combinations is true?

a) [ ] 11.1, 11.3 and 11.4.
b) [ ] 11.1, 11.2 and 11.4.
c) [ ] 11.2, 11.3 and 11.4.
d) [ ] 11.1, 11.2 and 11.3.
e) [ ] 11.1, 11.2, 11.3 and 11.4.

Be careful: A base currency can only be used for an average rate, not for a selling or a buying rate.

12. Consider the following sentences about the direct quotation:

12.1. It is also known as price notation.
12.2. The currency value is expressed in units of the foreign currency per unit of local currency.
12.3. For direct quotation, the prefix to indicate the rate is “/”.

What is the correct option?

a) [ ] 12.1.
b) [ ] 12.2.
c) [ ] 12.3.
d) [ ] none of them.
e) [ ] all of them.

Answers: A

13. Consider the following sentences about the indirect quotation:

13.1. It is also known as volume notation.
13.2. The currency value is expressed in the local currency per unit of foreign currency.
13.3. For indirect quotation, there is no prefix to difference between direct quotation.

What is the correct option?

a) [ ] all of them.
b) [ ] none of them.
c) [ ] 13.3.
d) [ ] 13.2.
e) [ ] 13.1.


14. What of these alternatives are considered master data (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) [ ] Chart of Accounts.
b) [ ] G/L Accounts.
c) [ ] Vendor.
d) [ ] Customer.
e) [ ] Asset.

Answers: B, C, D, E.
A chart of accounts is a variant, which contains the structure and the basic information about general ledger accounts.

15. What can we define into the chart of accounts customizing transaction (OB13 transaction, Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) [ ] Description.
b) [ ] Maintenance language.
c) [ ] Length of the company code.
d) [ ] Length of the G/L account number.
e) [ ] Blocking / unblocking chart of accounts.

Answers: A, B, D, E

16. Consider the following sentences about the chart of accounts segment:

16.1. It contains the Company Code, Account number and the field status group.
16.2. Whenever you need to enter information for a company code for an account number, you have to type again the information related to chart of accounts segment.
16.3. Texts can be displayed using the program “Account assignment manual”(RFSKTH00).
16.4. Key words facilitate the search for account numbers.

Which of these combinations are false (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?

a) [ ] 16.1.
b) [ ] 16.2.
c) [ ] 16.3.
d) [ ] 16.4.
e) [ ] none of them.

Answers:A, B

17. True or false?

17.1. Every company code that needs to use an account from the assigned chart of accounts has to create its own company code segment.
a) [ ] True b) [ ] False

17.2. For P+L statement accounts, the balance is carried forward to the same account.
a) [ ] True b) [ ] False

17.3. In the chart of accounts segment, it is necessary to indicate whether the account will be a balance sheet or a profit+loss statement account.
a) [ ] True b) [ ] False

17.4. Number intervals for G/L account master records can overlap.
a) [ ] True b) [ ] False

17.5. It is not possible to influence the appearance of an account’s master data.
a) [ ] True b) [ ] False

Answers: True or false:

17.1. True.
17.2. False. For P+L statement accounts the balance is carried forward to a retained earnings account and the P+L statement account is set to zero.
17.3. True.
17.4. True.
17.5. False. It is possible to influence the appearance of an account’s master data using the field status.

18. Consider the following sentences about field status:

18.1. Fields which are _____________ can be ____________.
18.2. Fields which have an entry that ________________ can be set to
_________ only (even in change mode).

Which of the options below matches the blank spaces of those sentences?

a) [ ] used/supressed for 18.1; must be changed/display for 18.2.
b) [ ] not used/supressed for 18.1; must be changed/display for 18.2.
c) [ ] not used/optional for 18.1; should not be changed/supressed for 18.2.
d) [ ] not used/supressed for 18.1; should not be changed /display for 18.2.
e) [ ] used/optional for 18.1; must be changed/display for 18.2.

Answers: D

19. Consider the following sentences about field status:

19.1. Fields which _____________ can be made ____________.
19.2. Fields that can be entered, but are not required, can be set to _________ entry.

Which of the options below matches the blank spaces of those sentences?

a) [ ] must not have an entry/optional for 19.1; suppresed for 19.2.
b) [ ] must have an entry/supressed for 19.1; suppresed for 19.2.
c) [ ] must have an entry/optional for 19.1; optional for 19.2.
d) [ ] must have an entry/required for 19.1; optional for 19.2.
e) [ ] must not have an entry/required for 19.1; optional for 19.2.

Answers: D

20. Consider the following sentences:

20.1. Reconciliation accounts are general ledger accounts assigned to the business partner master records to record all transactions in the sub-ledger.
20.2. For accounts without line item display, the most important data from the posted line items is stored in a special index table.
20.3. The account currency must be in the local currency.
20.4. Items in accounts with open item management means the G/L accounts should have a offsetting posting for a given business transaction.

Which of these are true (Please choose the correct sentence)?

a) [ ] 20.1 and 20.3.
b) [ ] 20.2 and 20.4.
c) [ ] 20.1 and 20.2.
d) [ ] 20.2 and 20.3.
e) [ ] 20.1 and 20.4.

Client (Organizational Unit)

-Represents a company within SAP.
-Is a business-independent entity in R/3 system that contains its own set of master data and table contents.
-Is not a legal entity but is more technical in nature

Company code (Organizational Unit)

-Has smallest entity for accounting
-Has own balance sheet
-Has own profit and loss statement

Inventory Management is responsible for:

1) Accurately counting stock/evaluating,
2) Accurately representing and documenting any goods movement,
3) Managing expiration periods of perishable goods,
4) Closely working together with quality management,
5) Checking incoming quantities against ordered quantities,
6) Balancing stock level versus delivery readiness in stock planning considerations.

Invoice Verification is responsible for:

1) Verifying accuracy of incoming invoices,
2) Comparing actual goods receipt quantities with billed quantities,
3) Checking correct taxes,
4) Forwarding information to Financial Accounting,
5) Blocking payments in certain cases.

Main Function of MM:

to ensure that the company has the right material, with right quality, and in the right quantity at the right time, and right location, by applying right conditions of purchasing.

Material Requirements Planning (MRP) is responsible for:

1) Derivation of future requirements by statistical methods, ad hoc, or explicit planning by forecasts,
2) Guaranteeing that required quantities of specific materials are available at the right point in time, and
3) Balancing stock level versus readiness for delivery in stock planning considerations

Materials Management

Materials Management is the activity of controlling goods flows inside a company and in relationship to external business partners, managing internal warehouse process:
-Stock keeping
-Planning material requirements
-Procuring materials or services externally by applying economical targets and optimization calculations

Non-Trade Vendor (NTRD)

A Business Partner who received the PO, Supplies Goods/Services, and receives payment. Account Group -0001. In the partner function, by default the same vendor # is populated as ordering address, vendor and invoicing party. The partner functions can be configured per account group. This is the main partner role to which other roles are assigned to. Unless assigned with a separate partner role, a vendor with this account group is responsible for all partner functions.

One Time Vendor

A vendor record which will be used for one time purchase; Very minimal data entry in vendor master is required, Vendor address will be entered during PO creation.

Organizational levels in a procurement cycle:

1) Client,
2) Company Code,
3) Plant,
4) Storage Location,
5) Purchasing Organization,
6) Purchasing Groups

Partner Different Ordering Address (PDOA)

A Business Partner location who only ships the goods (a shipping or a warehouse location). Example: Incase of return deliverables this may be the address to which the goods will be returned. This account group is used to create vendors who are just shipping locations, but no other role as a business partner.

Partner Different Payment Address (PDPA)

Invoicing Party is the business partner who raises the (vendor) invoice and it is the address with which invoice is posted in SAP. If a 'Alternative payee' is maintained in the vendor master of the 'Invoicing Party, it will be used with the associated bank information for payment processing. If no alternative payee is specified, but the bank details in the invoicing party is maintained, it will be used too for payment processing.

Plant (Organizational Unit)

-Subdivides an enterprise from the viewpoints of production, procurement, and materials planning,
-Represents a site or location,
-Is usually mapped to a physical location even though "virtual" ones can also exist

Purchasing Group

-Is the subdivision of Purchasing Organization?
-Is responsible for operational buying.

Purchasing is responsible for:

1) Selecting potential vendors and negotiating conditions,
2) Setting up outline agreements with vendors,
3) Converting requisitions into actual purchase orders,
4) Maintaining vendor and material master data,
5) External procurement of raw materials/trading goods,
6) "Make or Buy" decisions.

Purchasing Organization

-Is the organizational unit within logistics?
-Procures materials or services for plants.
-Negotiates conditions with vendors.


Stands for "Systems, Applications and Products in data processing".
Is the world's third-largest independent software provider
Was founded by 5 former IBM employees in 1972 and headquartered in Walldorf, Germany
Is the global market leader in ERP and in collaborative and inter-enterprise business solutions

SAP MM consists of four central components:

1) Materials requirements planning,
2) Purchasing,
3) Inventory management, and
4) Invoice verification

SAP R/3 Main Modules are:

1) Financial Planning (FI)
2) Controlling (CO)
3) Materials Management (MM)
4) Sales and Distribution (SD)
5) Production Planning and Execution Process (PP)
6) Logistics Execution (LE)
7) Quality Management (QM)
8) Project System Management (PS)
9) Plant Maintenance (PM)
10) Customer Service (CS)

Storage Location (Organizational Units)

-Is the physical stock inside a singular plant?
-Is the place where inventory management takes place here?
-Codes can be repeated under a different plant.

Business Partner

SAP Supplier Relationship Management (SRM) uses the SAP business partner concept. An internal or external business partner is created in SRM for every person, organization, or group of people that could be involved in a business transaction. Within the context of business transactions (a bid invitation or a purchase order, for example) business partners can adopt various partner functions, as long as they have fulfilled the relevant requirements.
Business partners aggregate the master data of a person, organization or group of people.

  • The organizational structure exists.
  • The business partner functions must have been created in partner processing. Here you can enter your own description for the partner function, within a partner function type. These texts are then displayed in the appropriate documents of a business transaction.
    • Menu path in the Implementation Guide (IMG): Supplier Relationship Management ® SRM Server ® Cross-Application Basic Settings ® Define Partner Functions.
In SRM, the following partner functions exist for an external business partner:
·         Bidder
Company that can submit bids in response to a bid invitation
·         Vendor
Business partner from whom goods and services can be obtained
·         Preferred vendor
Business partner suggested as vendor by requester
·         Contact person
Specific contact person from the bidder or vendor company
·         Ship-from address
Outbound delivery address of the company from where the goods are shipped
·         Invoicing party
Business partner that sends the invoice
During invoice creation, you can also enter an invoicing party that differs from the vendor. The invoicing party is a mandatory partner. If you do not enter an invoicing party, the system suggests an invoicing party using the vendor.

In SRM, the following partner functions exist for an internal business partner:
·         Requester
Employee in a company that requests a requirement A requirement coverage request can also be created on behalf of another employee
·         Purchasing company
Company that uses SRM for procurement
·         Goods recipient
Employee in a company that confirms goods receipt or performance of service
·         Location
Business partner that represents a delivery address or a plant in the backend.
·         Ship-to address
Ship to address of a company to where the goods are delivered
·         Invoice recipient
Business partner to whom the invoice is sent
·         Employee responsible
Employee in the company who is responsible for the contract

Using the partner function, the corresponding business partner is assigned to the relevant documents of the business transaction.

Internal Business Partner
These are created for an organizational unit or employee in the organizational structure (with the exception of the location). When a business partner is created for an employee, this business partner is assigned to the relevant organizational unit within the organizational structure.
The employee relationship to the business partner of the associated organizational unit is created for the internal user’s business partner. For example, when creating the business partner for employee LE TISSIER, the employee relationship to the business partner of the organizational unit SALES is defined. The employee relationship covers the employee’s business address that is used when goods are delivered, for example.

External Business Partner
Business partners with the role vendor or bidder are created within vendor groups in the organizational plan.
For every external employee of a vendor or bidder, a contact person is created in addition to the business partner for that company.
When you create a bidder or a vendor you also have to define a contact person. A backend user is then created for the contact person. You can then send the user his/her user ID and password via e-mail. The relationship of the contact person covers the business address of the corresponding contact person.

Partner Processing
Through partner processing, the dynamic structure of the partner functions is formed for the different business transactions in the SRM system. In this way, an internal employee can adopt the partner function Requester or Goods Recipient, when creating a shopping cart.

The partner functions Vendor, Vendor’s Contact Person, Requester, and Goods Recipient appear in the header or item documents of a purchase order, for example.
A semantic and syntactic check of the entered data is performed automatically in partner processing.

Amongst other things it checks whether the business partner may adopt the assigned partner function.