SAP FICO Interview Questions

SAP FICO Interview Questions

Q.Give some examples of GL accounts that should be posted automatically through the system and how is this defined in the system.
Ans: Stock and Consumption accounts are instances of GL accounts that should be automatically posted . In the GL account master record, a check box exists wherein the automatic posting option is selected called “ Post Automatically Only”
Q.What is a Account group and where is it used?
Ans: An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master. It basically controls the fields which pop up during master data creation in SAP.

Q.What is a field status group?
Ans: Field status groups control the fields which come up when the user does the transactions. There are three options for field selection.
    They are:
       Display only
So basically you can have any field either for display only or you can totally suppress it or make it mandatory. The field status group is stored in the FI GL Master Record.
Q.What is the purpose of a “Document type” in SAP?
Ans: A Document type is specified at the Header level during transaction entry and serves the following purposes:
• It defines the Number range for documents
• It controls the type of accounts that can be posted to eg Assets, Vendor, Customer, Normal GL account
• Document type to be used for reversal of entries
• Whether it can be used only for Batch input sessions
Document Type is created for differentiating business transactions. Eg Vendor Invoice, Credit Memo, Accrual Entries,Customer Invoice. It is a two digit character.
Q.What is a Financial Statement Version?
Ans: A FSV (Financial Statement Version) is a reporting tool and can be used to depict the manner in which the financial accounts like Profit and Loss Account and Balance Sheet needs to be extracted from SAP. It is freely definable and multiple FSV’s can be defined for generating the output for various external agencies like Banks and other Statutory authorities.
Q.How are input and output taxes taken care of in SAP?
Ans: A tax procedure is defined for each country and tax codes are defined within this. There is flexibility to either expense out the Tax amounts or Capitalize the same to Stocks.
Q.What are Validations and Substitutions?
Ans:Validations/Substitutions in SAP are defined for each functional area e.g. FI-GL, Assets, Controlling etc at the following levels
1. Document level
2. Line item level
These need to be specifically activated and setting them up are complex and done only when it is really needed. Often help of the technical team is taken to do that.
Q.Is it possible to maintain plant wise different GL codes?
Ans: Yes. To be able to do so the valuation group code should be activated. The valuation grouping code is maintained per plant and is configured in the MM module. Account codes should be maintained per valuation grouping code after doing this configuration.
Q.Is Business area at company code Level?
Ans: No. Business area is at client level. What this means is that other company codes can also post to the same business area.
Q.What are the different scenarios under which a Business Area or a Profit Center may be defined?
Ans: This question is usually very disputable. But both Business Areas and Profit centers are created for internal reporting. Each has its own pros and cons but many companies nowadays go for Profit center as there is a feeling that business area enhancements would not be supported by SAP in future versions.There are typical month end procedures which need to be executed for both of them and many times reconciliation might become a big issue. A typical challenge in both of them is in cases where you do not know the Business Area or Profit Center of the transaction at the time of posting.
Q.What are the problems faced when a Business area is configured?
Ans: The problem of splitting of account balance is more pertinent in case of tax accounts.
Q.Is it possible to default certain values for particular fields? For code.
Ans: Yes it is possible to default values for certain fields where a parameter id is present.
Step 1 Go to the input field to which you want to make defaults.
Step 2 Press F1, then click technical info push button. This would open a window that displays the corresponding parameter id (if one has been allocated to the field) in the field data section.
Step 3 Enter this parameter id using the following path on SAP Easy access screen System à User profile à Own data.
Step 4 Click on parameter tab. Enter the parameter id code and enter the value you want as default. Save the usersettings.
Q.Which is the default exchange rate type which is picked up for all SAP transactions?
Ans: The default exchange rate type picked up for all SAP transactions is M (average rate)
Q.Is it possible to configure the system to pick up a different exchange rate type for a particular transaction?
Ans: Yes it is possible. In the document type definition of GL, you need to attach a different exchange rate type.
Q.What are the master data pre-requisites for document clearing?
Ans: The Gl Account must be managed as an ‘open item management’ . This checkbox is there in the General Ledger Master Record called Open Item Management. It helps you to manage your accounts in terms of cleared and uncleared items. A typical example would be GR/IR Account in SAP (Goods Received/Invoice Received Account)
Q.Explain the importance of the GR/IR clearing account.
Ans: GR/IR is an interim account. In the legacy system of a client if the goods are received and the invoice is not received the provision is made for the same.
In SAP at the Goods receipt stage the system passes an accounting entry debiting the Inventory and crediting the GR/IR Account .Subsequently when an invoice is recd this GR/IR account is debited and the Vendor account is credited. That way till the time that the invoice is not received the GR/IR is shown as uncleared items.
Q.How many numbers of line items in one single entry you can have?
Ans: The number of line items in one document you can accommodate is 999 lines.
Q. A Finance Document usually has an assignment field. This field automatically gets populated during data entry. Where does it get its value?
Ans: This value comes from the Sort key entered in the Gl master record.
Q.How do you maintain the number range in Production environment? Do you directly create it in the Production box or do you do it by means of transport?
Ans: Number range is to be created in the production client. You can transport it also by way of request but creating in the production client is more advisable.
Q.In customizing “company code productive “means what? What does it denote?
Once the company code is live(real time transactions have started) this check box helps prevents deletion of many programs accidentally. This check box is activated just before go live.
Q.What is done by GR/IR regrouping program?
Ans: The balance in a GR/IR account is basically because of 2 main types of transactions:-
Goods delivered but invoice not received – Here the Goods receipt is made but no invoice has yet been received from the vendor. In such a scenario GR/IR account will have a credit balance.
Invoiced received but goods not delivered – Here the Invoice is received from the vendor and accounted for, but goods have not been received. In such a scenario GR/IR account will have a debit balance.The GR/IR account would contain the net value of the above two types of transactions. The GR/IR regrouping program analyses the above transactions and regroups them to the correct adjustment account. The balance on account of first transactions will be regrouped to another liability account and the balance on account of second transactions will be regrouped to an asset account.
Q.What are the functionalities available in the financial statement version?
Ans: In the financial statement version the most important functionality available is the debit credit shift. This is more important in case of Bank overdraft accounts which can have a debit balance or a credit balance. Thus in case of a debit balance you would require the overdraft account to be shown on the Asset side. In case of credit balance you would require the account to be shown on the Liability side.
Q.Is it possible to print the financial statement version on a SAPscript form?
Ans: Yes. It is possible to print the financial statement version on a SAPscript form.
Q.How do you configure the SAPscript form financial statement version?
Ans: It is possible to generate a form from the financial statement version and print the financial statements on a SAPscript form. In the customizing for financial statement version select the FSV you created and choose Goto à Generate form à One column or Two column form.You can also copy form from the standard system.
Q.Is it possible to generate a financial statement form automatically?
Ans: Yes. It is possible to generate a form automatically.
Q.Is it possible to keep the FI posting period open only for certain GL codes?
Ans: Yes. It is possible to keep open the FI posting period only for certain GL codes.
Q.How do you keep the FI posting period open only for certain GL codes?
Ans: In transaction code OB52 click on new entries and maintain an interval or a single GL code for the account type S with the posting period variant. If the GL codes are not in sequence then you need to maintain further entries for the posting period variant and account type S.
Q. Can posting period variant be assigned to more than 1 company code?
Ans: Yes. Posting period variant can be assigned to more than one company code. 
Accounts Receivable and Accounts Payable 
At what level are the customer and vendor codes stored in SAP?
The customer and vendor code are at the client level. That means any company code can use the customer and vendor code by extending the company code view. 
How are Vendor Invoice payments made?
Vendor payments can be made in the following manner:
Manual payments without the use of any output medium like cheques etc.
Automatic Payment program through cheques, Wire transfers, DME etc. 
How do you configure the automatic payment program?
The following are the steps for configuring the automatic payment
Step 1 Set up the following:
Co. code for Payment transaction
Define sending and paying company code.
Tolerance days for payable
Minimum % for cash discount
Maximum cash discount
Special GL transactions to be paid
Step 2 Set up the following:
Paying company code for payment transaction
Minimum amount for outgoing payment
No exchange rate diff
Separate payment for each ref
Bill/exch payment
Form for payment advice 
Step 3 Set up the following:
Payment method per country
Whether Outgoing payment
Check or bank transfer or B/E
Whether allowed for personnel payment
Required master data
Doc types
Payment medium programs
Currencies allowed
Step 4 Set up the following:
Payment method per company code for payment transactions
Set up per payment method and co. code
The minimum and maximum amount.
Whether payment per due day
Bank optimization by bank group or by postal code or no optimization
Whether Foreign currency allowed
Customer/Vendor bank abroad allowed
Attach the payment form check
Whether payment advice required
Step 5 Set up the following:
Bank Determination for Payment Transactions Rank the house banks as per the following
Payment method, currency and give them ranking nos Set up house bank sub account (GL code)
Available amounts for each bank House bank, account id, currency, available amount
Value date specification
Where do you attach the check payment form?
It is attached to the payment method per company code.
Where are Payment terms for customer master maintained?
Payment terms for customer master can be maintained at two places i.e. in the accounting view and the sales view of the vendor master record.
Which is the payment term which actually gets defaulted when the transaction is posted for the customer (accounting view or the sales view)?
The payment term in the accounting view of the customer master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB70) to the customer, then the payment terms is defaulted from the accounting view of the customer master. The payment term in the sales view of the customer master comes into picture if the transaction originates from the SD module. A sales order is created in the SD module. The payment terms are defaulted in the sales order from the sales view of the customer master.
Where are Payment terms for vendor master maintained?
Payment terms for Vendor master can be maintained at two places i.e. in the accounting view and the purchasing view.
Which is the payment term which actually gets defaulted in transaction (accounting view or purchasing view)?
The payment term in the accounting view of the vendor master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB60) to the Vendor, then the payment terms is defaulted from the accounting view of the vendor master.
The payment term in the purchasing view of the vendor master comes into picture if the transaction originates from the MM module. A purchase order is created in the MM module. The payment terms are defaulted in the purchase order from the purchasing view of the vendor master.
Explain the entire process of Invoice verification from GR to Invoice verification in SAP with accounting entries?
These are the following steps:
A goods receipt in SAP for a purchased material is prepared referring a purchase order.
When the goods receipt is posted in SAP the accounting entry passed is:-
Inventory account Debit 
GR/IR account credit
A GR/IR (which is Goods receipt/Invoice receipt) is a provision account
which provides for the liability for the purchase. The rates for the
valuation of the material are picked up from the purchase order.
When the invoice is booked in the system through Logistics invoice
verification the entry passed is as follows:-
GR/IR account debit
Vendor credit
How are Tolerances for Invoice verification defined?
The following are instances of tolerances that can be defined for Logistic
Invoice Verification.
c. Small Differences
d. Moving Average Price variances
e. Quantity variances
f. Price variances
Based on the client requirement, the transaction can be “Blocked” or Posted with a “Warning” in the event of the Tolerances being exceeded.Tolerances are nothing but the differences between invoice amount and payment amount or differences between goods receipt amount and invoice amount which is acceptable to the client.
Can we change the reconciliation account in the vendor master?
Yes. Reconciliation account can be changed in the vendor master provided that the authority to change has been configured. Normally we should not change the reconciliation account.
What is the impact on the old balance when the reconciliation account in the vendor master is changed?
Any change you make to the reconciliation account is prospective and not retrospective. The old items and balances do not reflect the new account only the new transactions reflect the account. There is an advance given by the customer which lies in a special GL account indicator A. 
Will this advance amount be considered for credit check?
It depends on the configuration setting in the special GL indicator A. If the “Relevant to credit limit” indicator is switched on in the Special GL indicator A the advances will be relevant for credit check, otherwise it will not be relevant.
In payment term configuration what are the options available for setting a default baseline date?
There are 4 options available:-
1) No default
2) Posting date
3) Document date
4) Entry date
What is generally configured in the payment term as a default for baseline date?
Generally document date is configured in the payment term as a default for base line date.
How do you configure a special GL indicator for Customer?
You can use an existing special GL indicator ID or create a new one.
After creating a special GL indicator id, update the chart of accounts and the Reconciliation account. Also as a last step you need to update the special GL code.
The special GL code should also be marked as a Reconciliation account. Switch on the relevant for credit limit and commitment warning indicators in the master record.
Bank Accounting:
How is Bank Reconciliation handled in SAP?
The bank reco typically follows the below procedure:
First, the payment made to a Vendor is posted to an interim bank clearing account. Subsequently, while performing reconciliation, an entry is posted to the Main Bank account. You can do bank reconciliation either manually or electronically.
How do you configure check deposit?
The following are the steps for configuring check deposit:-
Step1: Create account symbols for the main bank and incoming check
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create business transactions and assign posting rule
Step6: Define variant for check deposit
What is the clearing basis for check deposit?
In the variant for check deposit we need to set up the following
a) fields document number ( which is the invoice number),
b) amount
c) Short description of the customer.
The document number and the invoice amount acts as the clearing basis.
How do you configure manual bank statement?
 The following are the steps for configuring manual bank statement:-
Step1: Create account symbols for the main bank and the sub accounts
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create business transaction and assign posting rule
Step6: Define variant for Manual Bank statement
How do you configure Electronic bank statement?
The steps for Electronic Bank Statement are the same except for couple
of more additional steps which you will see down below
Step1: Create account symbols for the main bank and the sub accounts
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create transaction type
Step6: Assign external transaction type to posting rules
Step7: Assign Bank accounts to Transaction types
Cost Center Accounting:
How is cost center accounting related to profit center?
In the master data of the Cost Center there is a provision to enter the profit center. This way all costs which flow to the cost center are also captured in the profit center. Cost centers are basically created to capture costs e.g. admin cost center, canteen cost center etc Profit centers are created to capture cost and revenue for a particular plant, business unit or product line.
What is a cost element group?
Cost element group is nothing but a group of cost elements which help one to track and control cost more effectively. You can make as many number of cost element groups as you feel necessary by combining various logical cost elements.
What is a cost center group?
In a similar line the cost center group is also a group of cost centers which help one to track and control the cost of a department more effectively. You can make as many number of cost centers as you feel necessary by combining various logical cost centers Infact you can use various combinations of cost center group with the cost element group to track and control your costs per department or across departments
What is the difference between Distribution and Assessment?
Distribution uses the original cost element for allocating cost to the sender cost center. Thus on the receiving cost center we can see the original cost element from the sender cost center. Distribution only allocates primary cost. Assessment uses assessment cost element No 43 defined above to allocate cost. Thus various costs are summarized under a single assessment cost element. In receiver cost center the original cost breakup from sender is not available. Assessment allocates both primary as well as secondary cost.
What are the other activities in Cost center?
If you have a manufacturing set up, entering of Activity prices per cost center/activity type is an important exercise undertaken in Cost center accounting.
What is an Activity Type?
Activity types classify the activities produced in the cost centers. Examples of Activity Type could be Machine, Labour, Utilities
You want to calculate the activity price through system? What are the requirements for that?
In the activity type master you need to select price indicator 1 – Plan price, automatically based on activity.
When activity price is calculated through system whether activity price is shown as fixed or variable?
Normally when activity price is calculated through system it is shown as fixed activity price since primary cost are planned as activity independent costs.
What is required to be done if activity price is to be shown both fixed and variable?
In this case you need to plan both activity independent cost which are shown as fixed costs and activity dependent costs which are shown as variable costs.
Is it possible to calculate the planned activity output through system?
Yes. It is possible to calculate the planned activity output through system by using Long term Planning process in PP module.
Explain the process of calculating the planned activity output through Long term planning?
In Long term planning process the planned production quantities are entered for the planning year in a particular scenario. The Long term planning is executed for the scenario. This generates the planned activity requirements taking the activity quantities from the routing and multiplying with the planned production. The activity requirements are then transferred to the controlling module as scheduled activity quantities. Thereafter you execute a plan activity reconciliation which will reconcile the schedule activity and the activity you have planned manually. The reconciliation program updates the scheduled activity quantity as the planned activity in the controlling module.
You want to revalue the production orders using actual activity prices. Is there any configuration setting?
Yes. There is a configuration setting to be done.
Where is the configuration setting to be done for carrying out revaluation of planned activity prices in various cost objects?
The configuration setting is to be done in the cost center accounting version maintenance for fiscal year. This has to be maintained for version 0. You need to select revalue option either using own business transaction or original business transaction.
At month end you calculate actual activity prices in the system. You want to revalue the production orders with this actual activity prices.
What are the options available in the system for revaluation?
 The options available are as follows:-
 You can revalue the transactions using periodic price, average price or cumulative price.
Further you can revalue the various cost objects as follows:-
Own business transaction – Differential entries are posted 
Original business transaction – The original business transaction is changed. 
 Q.What is a Company Code and what are the basic organizational assignments to a company code?
Ans: Company Code is a legal entity for which financial statements like Profit and Loss and Balance Sheets are generated. Plants are assigned to the company code, Purchasing organization is assigned to the company code, and Sales organization is assigned to the company code.
Q.What is the relation between a Controlling Area and a Company code?
Ans: A Controlling area can have the following 2 type of relationship with a Company code
        a. Single Company code relation
        b. Cross Company code relation
This means that one single controlling area can be assigned to several different company codes. Controlling can have a one is to one relationship or a one is to many relationship with different company codes.Controlling Area is the umbrella under which all controlling activities of Cost Center Accounting, Product Costing, Profit Center and Profitability Analysis are stored. In a similar way Company Codes is the umbrella for Finance activities.
Q.How many Chart of Accounts can a Company code have?
Ans: A single Company code can have only one Chart of Account assigned to it. The Chart of Accounts is nothing but the list of General Ledger Accounts.
Q.What are the options in SAP when it comes to Fiscal years?
Ans: Fiscal year is nothing but the way financial data is stored in the system.SAP provides you with the combination of 12 normal periods and also four special periods. These periods are stored in what is called the fiscal year variant.
There are two types of Fiscal Year Variant
• Calendar Year – e.g. Jan-Dec
• Year Dependent Fiscal Year .
Q.What is a year dependent fiscal year variant ?
Ans:In a year dependent fiscal year variant the number of days in a month are not as per the calendar month. Let us take an example:- For the year 2005 the period January ends on 29th, Feb ends on 27th, March ends on 29. For the year 2006 January ends on 30th, Feb ends on 26th, March ends on 30th. This is applicable to many countries especially USA. Ever year this fiscal year variant needs to be configured in such a case
Q.How does posting happen in MM (Materials Management) during special periods?
Ans: There is no posting which happens from MM in special periods. Special periods are only applicable for the FI module. They are required for making any additional posting such as closing entries, provisions. Which happen during quarter end or year end.
Q.How many currencies can be configured for a company code?
Ans: A company code can have 3 currencies in total. They are local currency (ie company code currency) and 2 parallel currencies. This gives the company the flexibility to report in the different currencies.
Q.Do you require to configure additional ledger for parallel currencies?
Ans: Where only 2 currencies are configured (Company code currency and a parallel currency) there is no need for an additional ledger. In case the third parallel currency is also configured and if it is different than the second currency type, you would then need to configure additional ledger.
Q.If there are two company codes with different chart of accounts how can you consolidate their activities?
Ans. In this case you either need to write an ABAP program or you need to implement the Special Consolidation Module of SAP. If both the company codes use the same chart of accounts then standard SAP reports gi
Fixed Assets
What are the organizational assignments in asset accounting?
Chart of depreciation is the highest node in Asset Accounting and this is assigned to the company code. Under the Chart of depreciation all the depreciation calculations are stored.
How do you go about configuring Asset accounting?
The configuration steps in brief are as follows:-
a) Copy a reference chart of depreciation areas
b) Assign Input Tax indicator for non taxable acquisitions
c) Assign chart of depreciation area to company code
d) Specify account determination
e) Define number range interval
f) Define asset classes
g) Define depreciation areas posting to general ledger
h) Define depreciation key
Explain the importance of asset classes. Give examples?
The asset class is the main criterion for classifying assets. Every asset must be assigned to only one asset class. Examples of asset class are Plant& Machinery, Furniture & Fixtures, Computers etc. The asset class also contains the Gl accounts which are debited when any asset is procured. It also contains the gl accounts for depreciation calculation, scrapping etc Whenever you create an asset master you need to mention the asset class for which you are creating the required asset. In this manner whenever any asset transaction happens the gl accounts attached to the asset class is automatically picked up and the entry passed. You can also specify certain control parameters and default values for depreciation calculation and other master data in each asset class. 
How are depreciation keys defined?
The specifications and parameters that the system requires to calculate depreciation amounts are entered in Calculation methods. Calculation methods replace the internal calculation key of the depreciation key. Depreciation keys are defaulted in Asset Master from the asset class.
Refer to the configuration for more details of how depreciation is calculated.
A company has its books prepared based on Jan –Dec calendar year for reporting to its parent company. It is also required to report accounts to tax authorities based on April- March. Can assets be managed in another depreciation area based on a different fiscal year variant?
No. Assets accounting module cannot manage differing fiscal year variant which has a different start date (January for book depreciation and April for tax depreciation) and different end date (December for book depreciation and March for tax depreciation). In this case you need to implement the special purpose ledger.
What are the special steps and care to be taken in Fixed asset data migration into SAP system especially when Profit center accounting is active?
Data migration is slightly different from a normal transaction which happens in Asset accounting module. Normally, in asset accounting the day to day transactions is posted with values through FI bookings and at the same time the asset reconciliation is updated online realtime. Whereas In data Migration the asset master is updated with values through a transaction code called as AS91. The values updated on the master are Opening Gross value and the accumulated depreciation. 
The reconciliation GL account is not automatically updated at this point of time.
The reconciliation accounts (GL codes) are updated manually through another transaction code called as OASV. If profit center is active, then after uploading assets through AS91 you should transfer the asset balances to profit center accounting through a program. Thereafter you remove the Asset GL code (reconciliation accounts) from the 3KEH table for PCA and update the Asset reconciliation account (GL code) through OASV. After this step you again update the Asset reconciliation account in the 3KEH table. The reason you remove the Asset reconciliation code from 3KEH table is that double posting will happen to PCA when you update the Asset reconciliation manually.
Is it possible to calculate multiple shift depreciation? Is any special configuration required?
Yes it is possible to calculate multiple shift depreciation in SAP for all types of depreciation except unit of production. No special configuration is required.
How do you maintain multiple shift depreciation in asset master?
The following steps are needed to maintain multiple shift depreciation:
1. The variable depreciation portion as a percentage rate is to be maintained in the detail screen of the depreciation area.
2. The multiple shift factor is to be maintained in the time dependent data in the asset master record. This shift factor is multiplied by the variable portion of ordinary depreciation.Once you have done the above the SAP system calculates the total depreciation amount as follows:-
Depreciation amount = Fixed depreciation + (variable depreciation * shift factor)
Let’s say you have changed the depreciation rates in one of the depreciation keys due to changes in legal requirements. Does system automatically calculate the planned depreciation as per the new rate?
No. System does not automatically calculate the planned depreciation after the change is made. You need to run a program for recalculation of planned depreciation.
What are evaluation groups?
The evaluation groups are an option for classifying assets for reports or user defined match code (search code). You can configure 5 different evaluation groups. You can update these evaluation groups on to the asset master record.
What are group assets?
The tax requirements in some countries require calculation of depreciation at a higher group or level of assets. For this purpose you can group assets together into so-called group assets.
What are the steps to be taken into account during a depreciation run to ensure that the integration with the general ledger works smoothly?
For each depreciation area and company code, specify the following:
1 The frequency of posting depreciation(monthly,quarterly etc)
2 CO account assignment (cost center)
3 For each company code you must define a document type for automatic depreciation posting: This document type requires its own external number range.
4 You also need to specify the accounts for posting. (Account determination)
Finally to ensure consistency between Asset Accounting and Financial Accounting, you must process the batch input session created by the posting report. If you fail to process the batch input session, an error message will appear at the next posting run. The depreciation calculation is a month end process which is run in batches and then once the batch input is run the system posts the accounting entries into Finance.
How do you change fiscal year in Asset Accounting?
n Run The fiscal year change program which would open new annual value fields for each asset. i e next year  The earliest you can start this program is in the last posting period of the current year.
. You have to run the fiscal year change program for your whole company code.
. You can only process a fiscal year change in a subsequent year if the previous year has already been closed for business. Take care not to confuse the fiscal year change program with year-end
closing for accounting purposes. This fiscal year change is needed only in Asset Accounting for various technical reasons.
Is it possible to have depreciation calculated to the day?
Yes it is possible. You need to switch on the indicator “Dep to the day” in the depreciation key configuration.
Is it possible to ensure that no capitalization be posted in the subsequent years?
Yes it is possible. You need to set it in the depreciation key configuration.
How are Capital Work in Progress and Assets accounted for in SAP?
Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class. Usually depreciation is not charged on Capital WIP. All costs incurred on building a capital asset can be booked to an Internal Order and through the settlement procedure can be posted onto an Asset Under Construction. Subsequently on the actual readiness of the asset for commercial production, the Asset Under Construction gets capitalized to an actual asset.
The company has procured 10 cars. You want to create asset masters for each of this car. How do you create 10 asset masters at the same time?
While creating asset master there is a field on the initial create screen called as number of similar assets. Update this field with 10. When you finally save this asset master you will get a pop up asking whether you want to maintain different texts for these assets. You can update different details for all the 10 cars.