SAP FICO Course in Pune

6. What is the difference between a balance sheet and a profit and loss statement?
A: A balance sheet shows the financial position of an organization at a specific point in time, whereas a profit and loss statement shows the financial performance of an organization over a period of time.

7. What is a withholding tax in SAP FICO?
A: A withholding tax is a tax that is deducted at the source from payments made to vendors and employees. It is deducted by the payer and remitted to the tax authorities on behalf of the payee.

8. What is a tolerance group in SAP FICO?
A: A tolerance group is a group of users who have the authority to approve or reject transactions that exceed certain predefined limits. The limits can be set for various types of transactions, such as invoice postings or payment transactions.

9. What is a cost center in SAP FICO?
A: A cost center is a unit within an organization that incurs costs and contributes to the organization’s overall expenses. It can be a department, a project team, or any other entity that can be attributed with costs.

10. What is the purpose of automatic payment programs in SAP FICO?
A: Automatic payment programs in SAP FICO automate the payment process by generating payment documents, such as checks or electronic transfers, based on predefined criteria. This helps in reducing manual effort and improving the efficiency of the payment process.

11. What is the difference between a vendor and a customer in SAP FICO?
A: A vendor is a party who supplies goods or services to an organization, while a customer is a party who purchases goods or services from an organization. In SAP FICO, vendors are managed through the Accounts Payable (FI-AP) sub-module, while customers are managed through the Accounts Receivable (FI-AR) sub-module.

12. What is the purpose of the Accounts Payable (FI-AP) sub-module in SAP FICO?
A: The Accounts Payable (FI-AP) sub-module in SAP FICO manages the organization’s accounts payable transactions, including invoice verification, payment processing, and vendor master data maintenance.

13. What is the purpose of the Accounts Receivable (FI-AR) sub-module in SAP FICO?
A: The Accounts Receivable (FI-AR) sub-module in SAP FICO manages the organization’s accounts receivable transactions, including customer invoicing, payment receipts, and customer master data maintenance.

14. What is the purpose of Asset Accounting (FI-AA) sub-module in SAP FICO?
A: The Asset Accounting (FI-AA) sub-module in SAP FICO manages the organization’s fixed assets, including acquisition, depreciation, retirement, and transfer of assets.

15. What is the purpose of Profit Center Accounting (EC-PCA) sub-module in SAP FICO?
A: The Profit Center Accounting (EC-PCA) sub-module in SAP FICO enables organizations to analyze the profitability of individual business segments, such as departments, product lines, or sales regions.

16. What is a company code in SAP FICO?
A: A company code is a legal entity within an organization that is responsible for its own financial accounting transactions, such as recording and reporting financial data.

17. What is the purpose of a controlling area in SAP FICO?
A: A controlling area is a unit within an organization that is responsible for controlling activities, such as cost center accounting, profit center accounting, and internal orders.

18. What is a house bank in SAP FICO?
A: A house bank is a financial institution that is authorized to manage the organization’s bank accounts in SAP FICO. It helps in managing bank transactions, such as payments, receipts, and bank reconciliations.

19. What is the purpose of a profit and cost center hierarchy in SAP FICO?
A: A profit and cost center hierarchy in SAP FICO provides a structure for organizing and analyzing financial data at different levels of aggregation. It enables organizations to report on their financial performance and make informed decisions based on the financial data.

20. What is the purpose of a year-end closing in SAP FICO?
A: A year-end closing in SAP FICO is a process of finalizing financial transactions and preparing financial statements for the year-end reporting period. It includes activities such as posting depreciation, adjusting entries, and carrying forward balances to the new fiscal year.