1) Which of the following is an example of transaction data.

a. Incoming invoices.
b. GL account master records
c. Vendors
d. Banks

2) Which of the following statements is true?

a. A company code can belong to more than one controlling area.
b. A plant must be allocated to a company code.
c. Controlling area and a company code must have the same local currency.
d. A business area and a company code are assigned to each other in the corporate
structure img.

3) R/3 system contains

a. Data base server only
b. Application server only
c. Presentation server only
d. All of the above.

4) All data and programs are contained in

a. Application Server.
b. Database Server.
c. None of the above

5) SAP business object consists of

a. Attributes
b. Methods
c. Attributes and Methods.
d. None of the above

6) Maximum number of sessions a user can open when he logs on to SAP

a. One
b. Three
c. Five
d. Six.

7) mySAP business suite contains the following:

a. Cross industry solutions.
b. Industry solutions.
c. Technology.
d. Services.

8) BAPI is assigned to one and only one business object

a. True
b. False.

9) You can only work in one window (session) at a time in an SAP system
a. True
b. False.
10) Which of the following statements accurately describe a client in an SAP system
a. A client represents a completely independent business entity.
b. A client has its own database
c. A client corresponds to a customer
d. A client may represent an entire company.

11) The following strings are valid entries in the command field:
a. /nend.
b. /nex.
c. ?SM04
d. /nsm04.
e. From SAP easy access: SM04.
f. From SAP easy access: search_sap_menu.

12) You can use the F1 key to

a. Display an explanation of a field's uses.
b. Display a list of possible input values
c. Change your user data (e.g. the logon language)
d. End the session you are in
e. Display detailed.

13) You can use the F4 key to

a. Start another session
b. Display detailed technical information on a program
c. Call the SAP library
d. Display possible entries for an input field.

14) You can also call the context sensitive SAP library using the F1 Key
a. True.
b. False

1) Explain the concept of 'organizational units' in SAP.

Ans: Organizational units in SAP are the elements which actually represent the real world
business and is used for reporting. The various organizational units in SAP are company
code, company, client, controlling Area, plants, sales organization, purchasing
organizaion, employee group etc.

2) Explain the concept of company code in SAP FI.

Ans: company code in SAP is the smallest organizational unit for which one can draw
individual financial statements (Balance Sheet and profit and loss account) for external
reporting. It is mandatory to define company code in SAP FI.

3) Explain the concept of 'Business area' in SAP.

Ans: A business area in SAP corresponds to specific business segments of a company. for
eg. A company may have different business specializations like infrastructure, real estate,
petro-chemicals etc. Each refers to a business area in SAP. the definition of business area
is optional. we can draw financial statements per business area for the purpose of internal
reporting.
4) Explain the concept of 'Chart of Accounts' in SAP.
Ans: The list of all G/L accounts used in one or more company codes is called chart of
accounts. Every G/L account in a chart of account will have a account name, account
number and other details. There are three types of chart of accounts.
* Operating Chart of accounts. * Country Chart of accounts. * Group Chart of accounts.

5) Brief what an operating chart of account is.

Ans: Out of the three types of chart of accounts operating (or standard) chart of account is
used for day to day postings in a company. It is used by both FI and CO. It is mandatory
that it is assigned to the company code.

6) Explain the concept of posting period and what a posting period variant is.
Ans: Every fiscal year in SAP is divided into various posting periods, where the books of
account are open for postings. Normally is SAP system there will be 12 posting periods
and 4 special posting periods.
a posting period variant is used for 'closing and opening' a posting period. In SAP
system a posting period variant is defined and is assigned to various company codes. If
we want to close the posting of a particular company code it can done simply and
centrally.

7) Explain the concept of 'shortened fiscal year'.

Ans: In many cases an enterprise would have a financial year with less than 12 months.
Configuring such a scenario in SAP requires the concept of a shortened fiscal year. eg. A
company is started in the month of september where the fiscal year is from March to
April.

8) Explain what a 'Tax jurisdiction code' is in SAP.

Ans: A tax jurisdiction code is a combination of the codes defined by tax authorities. It is
used in countries like US. upto four levels can be defined below the federal level. The
four levels are.
Sub-City level, city level, country level, state level.
The following paremeters should be configured before defining a jurisdiction code
* Create access sequence * Create condition type * Create Jurisdication codes.

9) Explain the concept of 'Document' in SAP.

Ans: SAP is a table driven software and SAP FI is module based on the principle of
document. All the transactions performed in FI would result a document. A document is a
result of a posting in accounting in SAP. There are actually two types of documents,
original document and processing document. Every document consist of
A document header and two or more line items.

10) What is a line item in SAP FI?

Ans: All the information relating to account number, amount, debit/credit, tax, code etc.
are maintained in a line item. A single document can have up to 999 line items. Apart
from the line items created by human the system also can create it's own line items called
'system generated line items'. The main point to be kept in mind is that, what ever be
entered in line item, the grand total should always be zero, i.e. total credit should always
equal total credit. Otherwise the system would not allow posting the document.
11) Explain the concept of posting key in SAP FI.
Ans: The entry of line item is controlled by a 2 digit alpha numeric key called a posting
key. A posting key also determines the following facts, which side of account the entry
can be posted to, either the debit side or the credit side.
The layout of a particular screen to be used for a particular transaction
What account can be posted to SAP comes with many predefined posting keys:
40(GL debit), 50(GL credit), 01(customer credit memo), 21(vendor credit memo) etc.

12) Explain what a field status group is in SAP FI.

Ans: A field status group is an individual field or a group of fields which is assigned to a
field status variant. The field status variant is then assigned to a particular GL account
master records.

1) What is the term 'Cost element'.

Ans: A cost element represents the origin of costs. The two types of cost elements are:
1) Primary cost elements. 2) Secondary cost elements.

2) What is the various components in controlling.

Ans: 1) Cost element controlling 2) Cost Controling 3) Cost center accounting 4) Internal
Orders 5) Activity-based costing 6) Product cost controlling 7) Profitability analysis 8)
Profit center accounting.

3) Elaborate the term 'Controlling Area'

Ans: The central organizational structure in 'controlling' used in cost accounting is called
controlling area. Analogous to company code in FI, Controlling area is a self-contained
cost accounting entity for internal reporting purposes. Controliing area is assigned to
more than one company code.

4) What is the various 'organizational Elements of CO.

Ans: The organizational elements in CO are,
1) Operating concern-top most reporting level for profitablity analysis and sales and
marketing controlling.
2) Controlling area-central organization for controlling, structuring the internal
accounting operations.
3) Cost centers-lower most organizational units where costs are incurred and
transferred.

5) What is the term 'Purchase Order'

Ans: The legal agreement between a vendor and a buyer with the material/service to be
purchased/procured, mentioned in it is called a Purchase Order. Along with various terms
and conditions the order also clearly says the quantity to be purchased, price per unit,
delivery related conditions etc.

6) What is a 'Contract'?
Ans: The long term legal agreement between the buyer and the seller for procurement of
materials or services over a period of time is called a contract. A contract can be created
directly or in referance to a PR or another contract has the start and end date clearly
mentioned. Quantity contracts and value contracts are the two typed of contracts.
7) What is 'Purchase Requisition' is in SAP AP?
Ans: The documents which outlines a company's purchasing needs of a material or
service from vendor or vendors is called purchase requistion. Purchase Requisition (PR)
is an internal document produced internally of automatically. The demand of the material
or service is identified and the purchase department is autorized to procure the same.

8) What is the 'Purchase cycle' in SAP FI-AP?

Ans: All the activities starting from purchase requisition, purchase order, goods
movement, goods receipt, invoicing, invoice verification, payment to vendors and ending
with updating vendor account balances are collectively called purchase cycle or
procurement cycle.

9) What is 'Dunning' in SAP?

Ans: To dun is to remind. In SAP one can remind the business partners or customers
automatically through dunning. The dunning program selects the overdue open items,
determines the dunning level of the account and finally creates dunning notices. The
dunning data is also saved. The administration of dunning is achieved through dunning
key, dunning procedure and dunning area.

10) What is a 'House Bank'?

Ans: For every company code, there will be a bank or a financial institution where money
transfer and monetary interactons takes place. This is called a house bank in SAP. The
details of all the house banks maintained for a company code is held in the Bank
directory.

11) What is 'Bank Directory' is in SAP AR.

Ans: The master data of the banks (details like bank name, bank country, bank address
etc.) are maintained in Bank Directory. The table which contains all these detail is bank.
Bank details can be created both manually and automatically.

12) What is the term 'Alternate Payee' in SAP FI-AR.

Ans: A customer who pays on behalf of another customer is known as 'Alternate Payee'.
all the transactions done by the alternate payee is maintained by the system under the
actual customer created in the system. An alternate payee can be maintained at both
Client level and company code area. defining in the client specific area allows us to use
the alternate payee across all company codes.

13) What is the 'Number Range Interval' in SAP.

Ans: In SAP a number interval is defined to assign to documents when it is posted. When
a document is posted system assigns a number from this interval. Different documents
types have different number ranges assigned to it. Each document in SAP can be
uniquely identified by the combination of document number, company code and fiscal
year.

14) What is the 'Document Reversal' in SAP.

Ans: Suppose there are some discrepancies in a document that is already posted in the
system, the changes can be made only by reversing the already posted document and
posting a new document with the correct information. During reversal the system
automatically picks the appropriate document type and defaults the relevant posting keys.
15) What is the term 'Automatic Posting' in SAP.
Ans: While posting a document in some cases, the system automatically posts some
additional line items to the documents. This is called automatic posting. It reduces the
work and increase readability.

16) What is the term 'Parking' in SAP.

Ans: Before posting a document there can be situations when the details given are
incomplete and the document should not be posted. So a 'preliminary posting' is done
where the system does not perform the mandatory validity checking and the automatic
postings. Thus a parked document can be later called upon for copletion and posting.

17) What is the 'document change rule'?

Ans: The Document principle followed in SAP does not allow the fields in the document
to be changed once the document is posted. It can only be reversed or additional postings
can be done. The fields like company code, business area, account number, posting key
amount etc. can never be changed once the posting is made. The document change rules
configured in the system maintains the information relating to what fields can be changed
and under what circumstances it can be changed.

18) What is the various 'Reference Methods' used in SAP FI-GL

Ans: To facilitate faster and easier document entry into the system a document entry tool
called Reference method is used in SAP. This comes handy when the same data is to be
entered again and again. The advantages of using reference method are *Makes the
document entry process less time consuming. *Helps in error free document. > The
various reference methods are, *Sample documents *Reference documents *Account
Assignment Models.

19) What is 'Net Postings' are in FI-GL

Ans: In the SAP system when a transaction is posted, the system posts the Gross amount
which includes the tax and discounts applicable. for eg. The vendor invoice (document
type KR) may contain the tax applied and the discounts set by the vendor. However in
SAP there is an option to give the Net Amount rather than the Gross amount. Here the tax
and the discounts are excluded. The special document type KN is used in this case.

20) What is 'Credit Contral Area' is in the context of SAP FI.

Ans: The organizational unit which helps in the administration of credit management
functions concerned with the customers is called 'credit control area'. More than one
credit control area can be configured in the client and each company code is assigned to
more than one credit control are. Credit control area is used in both Sales and Distribution
module and FI-AR (Accounts Receivable) sub-module extensively.

21) Name the sub-modules withiin SAP FI

Ans: The various sub-modules within SAP FI are
* FI-AA Asset Accounting
This sub-module handles the financial side (deprecition, appreciation, aging,
insurance) etc. of Assets through its entire lifecycle. The lifecycle of an asset start with
the procurement and ends with scrapping or sales
* FI-AP Asset Payable
 This sub-module manages vendor transactons by linking with material management,
asset Accounting, travel management etc. There is a special payment program for making
payment to the vendors.
* FI-AR Accounts Receivable
This sub-module manages customers and receivables with highly integrated with sales
and Distribution module. It has special programs like dunning and credit management.
* FI-BL Bank Accounting
* FI-FM Funds Management
* FI-GL General Ledger Accounting

23) What is the concept of posting key in SAP-FI.

Ans: The entry of line item is controlled by a 2 digit alphanumeric key called a posting
key. A posting key also determines the following facts.
* Which side of account the entry can be posted to, either the debit side or the
credit side?
* The layout of a particular screen to be used for a particular transaction
* What account can be posted to?
SAP comes with many predefined posting keys:40(GL debit), 50(GL credit),
01(customer credit memo), 21(vendor credit memo) etc.

MM