8 Most Commonly Asked SAP FICO Interview Questions and Answers

The interviewer asks the questions for a position in finance, that test your understanding of the Systems, Applications and Products (SAP) modules such as SAP FICO. With the knowledge of the Financial Accounting (FI) and Controlling (CO) module, you can approach financial reporting duties with self-confidence. Studying for the interview in advance will help you construct a thoughtful and comprehensive answer to the questions you could encounter.

In this article, we will discuss why employers ask SAP FICO interview questions and will show some questions and answers.

What is SAP FICO?

SAP FICO is the controlling module in SAP that specifies finance as well as a cost within a company. As one of the most generally used financial systems in SAP, lots of companies will expect you to understand exactly how SAP FICO works as well as why companies utilize it. Experts such as analysts, technology consultants as well as accounts receivables frequently utilize SAP FICO in their jobs.

By asking questions particular to SAP FICO, an interviewer can ensure they’re hiring someone who will be comfortable managing, analyzing as well as delivering financial reports. You should prepare for your interview by going over questions and crafting responses that reveal your understanding of the topic.

Common SAP FICO Interview Questions with Sample Answers

Below are some SAP FICO questions you might encounter in your meeting.

1. Why would you use SAP FICO over other approaches?

Employers ask this question to measure how well you understand the Benefits of Using SAP FICO. Your answer should show why SAP FICO is useful in a financial career and how it might provide advantages that similar programs may not offer.

Example: “SAP FICO has a tendency to be more flexible than various other approaches. It offers you more options for accounting integration and control, which is usually missing out in other systems. Unlike some other approaches, SAP FICO also lets you control financial statements that include  multiple currencies.”

2. Why are financial statements important for a company?

Businesses need accurate Financial Reports to run efficiently. When answering this question, show the interviewer you understand how, why, and when to create financial statements. Describing why financial reports are important to a company will assist you to assure your potential employer that you have the expertise required to handle their financial data with minimal supervision.

Example: “Financial Statements allow a company to track how much they spend on specific transactions. These reports are beneficial considering that you create a digital record you can refer to in the future. Having electronic documents makes it less complicated to prepare and send them when the company requires to make decisions or plans. The ability to create electronic documents makes SAP FICO valuable.”

3. What does Year-Dependent Fiscal Year mean?

When using SAP FICO, know how to create and keep track of fiscal year reports for your company, which can cover any 12-month period. Your answer to this question should show that you know how this term applies to SAP FICO. 

Example: “Year-Dependent Fiscal Year is a useful function in SAP FICO systems that allows you to create and review financial reports for a particular fiscal year, which might be different from that fiscal year. As an example, not all months have 30 working days in a fiscal year. Based on numerous projects they are dealing with, a company could need to end the month a few days early. One month could only have 20 days according to the Year-Dependent Fiscal Year.”

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4. Describe SAP FICO.

This may be among the first questions a hiring manager asks you in your interview. Before you answer questions related to SAP FICO, you will need to completely understand what it is and how it works.

Example: “FICO is an SAP Module that means Financial Accounting and Controlling. This is a valuable tool that prepares financial statements for an organization or company. FICO helps make Inventory sheets, calculate tax, help with calculating and store financial data. All information that FICO uses is secure, so customers don’t need to bother with a safety and security violation.”

5. What are some common reasons for errors in accounting, and what impact can they have on an organization?

You may come across some mistakes when making use of SAP FICO, so let your job interviewer know that you can recognize the more common ones and also what to do regarding them. When providing your response, listing some instances of usual errors that a user can make in SAP FICO.

Example:” Errors occur in SAP FICO for many reasons. It can be easy for the individual to make a mistake, as even entering one number wrong will certainly create numerous issues in the company. This error can result in false information regarding Profits and Losses. Errors might also occur as a result of a fault in the system, accounting errors, bills, or claims that are prepared incorrectly and fail to update sheets. To help prevent these types of circumstances, anyone who works in SAP FICO should thoroughly examine their work before submitting it.”

6. Specify company code and when you would use it?

An interviewer may ask you this question to determine you know how to access to company code. When you answer this question, give details about the relevance of company code as well as what kinds of activities you can perform using it.

Example: “Company code is the entity under which you can create financial statements. Every company needs its own code within the SAP FICO system. Before you can create any financial statements for your company within the SAP system, you will require to register at least one company code first.”

7. How do you take care of taxes in SAP FICO?

You can configure taxes in SAP FICO and many finance careers will certainly require you to do so. When you answer this question, show the interviewer you extensively understand how you can complete taxes using this system.

Example: “Every business needs to configure their taxes according to their country, which you can easily do with SAP FICO. Additional taxes are also applicable to various countries. SAP FICO defines its tax procedure for different nations, so if I ever need to figure out additional taxes in various other countries, I can look them up in the SAP system.”.

8. What significant applications of SAP FICO do you know?

SAP FICO Features multiple applications, so familiarize yourself with some of the system’s most common features before your interview. This will assist you to ensure your potential employer that you can change easily into a position that needs regular use of the SAP system.

Example: “I  try to stay updated with SAP FICO all at once, but I became especially aware of accounts receivables statements in my last position. I can quickly create reports that track new customer accounts, down payments, and monthly invoices.”.

Go through our Top 16 SAP FICO Interview Questions to crack the Interviews.

Bottomline

With the knowledge of the Financial Accounting (FI) and Controlling (CO) module, you will be able to do the financial reporting work with self-confidence. I hope these few questions will help you to construct a thoughtful and understanding approach so that you could encounter the interviews. All the Very Best!

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Check out this insightful video on SAP FICO Tutorial for Beginners: