SAP SAP FICO Flashcards

24 sample cards from the SAP FICO deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What is the purpose of Electronic Bank Statement (EBS) processing in SAP?

   EBS imports the bank statement file (e.g., MT940, BAI2, CAMT.053) and automatically posts and reconciles bank transactions—clearing the bank clearing (interim) accounts and matching incoming/outgoing payments to open items.

2. What is the Special Purpose Ledger (FI-SL) in SAP?

   The Special Purpose Ledger is a flexible user-defined ledger used to collect and report data at any combination of dimensions/characteristics for custom reporting (e.g., by region, product, custom period), independent of the standard ledgers. It supports statistical and management reporting.

3. What is SAP Travel Management (FI-TV) used for?

   Travel Management handles the full business-trip lifecycle: travel request/planning, booking, travel expense entry, approval, and settlement. Settled expenses are posted to FI (reimbursements) and CO (cost assignment) and can integrate with Payroll.

4. Name at least four SAP modules that FICO integrates with and one integration point each.

   MM (Materials Management): goods receipt/invoice posts to GR-IR and inventory. SD (Sales & Distribution): billing posts revenue to AR. PP (Production Planning): confirmations post to product costing. HR/Payroll: salary postings to FI. PS (Project System): project costs to CO.

5. How does the MM–FI integration determine which G/L accounts are posted automatically?

   Automatic account determination in MM uses transaction/event keys (e.g., BSX for inventory, WRX for GR/IR, PRD for price differences) configured in the Automatic Postings (OBYC) settings, driven by the valuation class of the material and the movement type.

6. What is Controlling (CO) and how does it differ from Financial Accounting (FI)?

   CO is internal management accounting focused on cost planning, monitoring, and profitability for decision-making. FI is external/statutory accounting for legal reporting. FI is organized by company code; CO is organized by controlling area.

7. What is a Controlling Area in SAP CO?

   A Controlling Area is the organizational unit that structures internal cost accounting. It can encompass one or more company codes (which must share the same operating chart of accounts and fiscal year variant), enabling cross-company-code cost accounting.

8. What is Cost Element Accounting (CO-OM-CEL)?

   Cost Element Accounting classifies the costs and revenues flowing into CO. Primary cost elements correspond to P&L G/L accounts (costs originating in FI); secondary cost elements exist only in CO for internal allocations (e.g., assessments, activity types).

9. What is the difference between a primary and a secondary cost element?

   A primary cost element has a corresponding G/L expense/revenue account in FI and records costs entering CO from outside. A secondary cost element exists only in CO and is used for internal value flows such as assessments, distributions, and activity allocations (no FI counterpart).

10. What is a Cost Center in SAP CO and what does it represent?

    A Cost Center is an organizational unit within a controlling area that represents a location where costs are incurred (e.g., a department). It is used to collect and monitor costs for responsibility accounting; cost centers are grouped in a standard hierarchy.

11. What is the difference between Distribution and Assessment in Cost Center Accounting?

    Distribution reallocates only primary costs and retains the original primary cost elements. Assessment reallocates primary and secondary costs together under a single secondary (assessment) cost element, hiding the original cost breakdown.

12. What is an Activity Type in Cost Center Accounting?

    An Activity Type categorizes the activities/services a cost center provides (e.g., machine hours, labor hours). It is used to allocate costs from a sender cost center to receivers based on quantity consumed multiplied by an activity price.

13. Write the formula for the activity allocation amount in Cost Center Accounting.

    $$\text{Allocated cost} = q \times p$$ where $q$ is the quantity of the activity consumed and $p$ is the (planned or actual) activity price per unit for that activity type.

14. What is an Internal Order in SAP CO?

    An Internal Order is a cost object used to plan, collect, monitor, and settle the costs of a specific task, event, or short-term measure (e.g., a marketing campaign, trade fair, or repair). Costs are collected on the order and then settled to a receiver (cost center, asset, etc.).

15. What is the difference between a statistical and a real internal order?

    A real internal order collects costs that must later be settled to a receiver. A statistical internal order is used only for informational/parallel reporting; costs posted to it are for evaluation only and the real cost object is a cost center—statistical orders are never settled.

16. What is Profit Center Accounting (EC-PCA) in SAP?

    Profit Center Accounting evaluates the internal profitability (profit and loss, and optionally balance sheet items) of responsibility areas called profit centers, which represent management-oriented areas of the company such as divisions, product lines, or regions.

17. What is the difference between a cost center and a profit center?

    A cost center captures where costs are incurred (cost responsibility only). A profit center measures profitability by capturing both revenues and costs (profit responsibility), enabling internal profit-and-loss reporting for a management area.

18. What is Product Cost Controlling (CO-PC) and its main sub-components?

    Product Cost Controlling determines the costs of manufacturing products/services. Sub-components: Product Cost Planning (standard cost estimates via BOM and routing), Cost Object Controlling (actual costs on production orders, WIP, variances), and Actual Costing/Material Ledger.

19. What is a standard cost estimate in Product Cost Planning?

    A standard cost estimate calculates the planned cost to produce a material using the Bill of Materials (component costs) and the Routing (activity/labor/machine costs and overhead). The result is released as the standard price used to value inventory.

20. Write the basic manufacturing variance formula in Cost Object Controlling.

    $$\text{Variance} = \text{Actual cost} - \text{Target (standard) cost}$$ where target cost = standard cost per unit $\times$ actual quantity produced. Total variances split into categories such as price, quantity, resource, and scrap variances.

21. What is Profitability Analysis (CO-PA) and its two forms?

    CO-PA analyzes the profitability of market segments (product, customer, region, etc.). Costing-based CO-PA groups costs/revenues into value fields and can use standard cost of sales; Account-based CO-PA uses G/L cost elements and reconciles directly with FI.

22. Define the contribution margin used in CO-PA and give its formula.

    Contribution margin is revenue minus variable (direct) costs, showing how much a segment contributes to fixed costs and profit. $$CM = \text{Net Revenue} - \text{Variable Cost of Sales}$$ CO-PA reports it in a multi-level contribution-margin scheme.

23. What is the New General Ledger (New G/L) in SAP and what advantages does it offer?

    New G/L is the enhanced general ledger (standard in ECC 6.0 and S/4HANA) that unifies classic FI, profit-center accounting, and special-purpose ledgers. Advantages: document splitting, real-time integration with CO, parallel/multiple ledgers for parallel accounting, and segment reporting.

24. What is document splitting in the New General Ledger?

    Document splitting automatically breaks down line items by defined characteristics (e.g., profit center, segment) so that a complete, balanced financial statement can be produced for each dimension. For example, a vendor payable is split across the profit centers of its expense lines, keeping each segment's books balanced.

What this deck covers

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