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This is part 3 and concluding part of Certification questions. Preparation for the SAP certification is quite daunting. The best sources is to read the training materials which is provided during the certification. You should read every line of it and any doubts test it in the system.

Take a test on this question

When entering a document using a foreign currency, which date is used to determine the exchange rate if the translation date is not entered ?(Single)

A. Posting date

B. Document date

C. Entry date

D. Baseline date

I got the answer wrong the first time. Write your answer. Check the solution at the end of the post.

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Previous posts:

SAP FICO Questions - 1

SAP FICO Questions - 2

26. Choose the correct statements regarding recurring documents. (Multi)

A. When creating a recurring document, the valid time period must be defined.

B. The posting date is determined by either the run date or the run schedule.

C. Field values can be changed in recurring document.

D. After running the recurring document posting, the next run date cannot be displayed.

E. The original recurring document can be deleted from the batch input menu.

27. In manual bank statement customizing, you must (Multi)

A. Define an internal activity

B. Define a posting rule

C. Define a posting type

D. Define a currency

E. Define an account symbol

28. Which of the following statements about manual planning are correct?(Multi)

A. The planning type determines which bank accounts the plan amount to be inputted to.

B. The expiration date shows how long the payment advice is included in planning.

C. The payment advices for editing can be changed, archived, or reactivated.

D. Archived payment advices are included in planning till the value date.

E. The retention periods are determined by the bank account name.

29. Bank accounts should be controlled as follows when Cash Management is in use:(Multi)

A. Open items are managed for both the main bank account and the bank clearing account.

B. Both the main bank account and the bank clearing account permit line item displays.

C. The main bank account and the bank clearing account use the same sort key.

D. The value date in the field status string for both the main bank account and the bank clearing account must accept entry.

E. The cash-relevance flag in the master records for both the main bank account and the bank clearing account must be set.

30. Which of the following statements about creating customer master records are correct? (Multi)

A. An account group always gets assigned to a customer.

B. The company code is always a required entry.

C. The account number may be assigned by the user externally.

D. Information on each screen may be defined in configuration as mandatory, suppressed or optional, depending upon the account group.

E. Information on each screen may be defined in configuration as mandatory, suppressed or optional, depending upon the company code.

31. Which of the following statements are correct? (Multi)

A. A customer master is divided by client level and company code level.

B. In case of one-time customer you have to enter the customer’s address in the document itself.

C. Address, control data, and reconciliation account are included in the client level of the customer.

D. The most efficient way to create master records is to work with the external number range not internal number range.

32. Which of the following statements are correct? (Multi)

A. If a customer is also a vendor, the system can include outstanding Accounts Receivable invoice items in payment program.

B. If a customer is also a vendor, the system can include outstanding Accounts Payable invoice items when you clear incoming
payment receipts for the customer.

C. The reconciliation account defined on the customer master record is an account used to reconcile CO transactions back to FI.

D. All customer belonging to the same account group must be assigned to the same reconciliation account.

E. The alternative payer is used to transfer outstanding receivable item to the alternative payer’s account.

33. Bulk change of line item - this function allows you to change a whole group of line items simultaneously, instead of having to change individual items in the documents. What data can you change using this function?(Multi)

A. The reconciliation account

B. The company code

C. The payment terms and payment block

D. The house bank and payment method

34. Which of the following order types are internal orders?(Multi)

A. Result analysis orders for posting accrual costs in CO.

B. Capital investment orders for creating assets.

C. Maintenance orders.

D. Sales orders for make-to-order function

E. CO production orders.

35.Which of the following statements are correct regarding Internal Orders?(Single)

A. Planning transactions are allowed under any status.

B. Once an order has been released, only closing entries can be made.

C. Transactions can be allowed or disallowed depending in the
order status.

D. Additional order status categories can be created in the order master.

36.Which of the following statements is true about CO production orders?(Multi)

A. It is an internal order used to control production from a cost accounting point of view.

B. Bills of materials and routings are required.

C. It is not possible to post goods movements to and from the order.

D. You can post primary costs from Financial Accounting to the order.

E. You can post secondary costs from overhead calculation to the order.

37.Which statements are true regarding direct and indirect activity allocations? (Multi)

A. If both the amount of the activity used by the receiver and the total output activity quantity of the sender can be measured, then indirect activity allocation is used.

B. If the amount of activity consumed by the receiver is not measured, then indirect activity allocation is used.

C. Manual activity input planning cannot be performed if actual activities are allocated indirectly.

D. If direct activity allocation is used, the total output activity quantity is determined by summing all of the activity quantities allocated.

38. The primary cost element is one type of master data in Controlling. Before you can create a new primary cost element, certain prerequisites need to be fulfilled.

Which of the following conditions must be fulfilled BEFORE you can create primary cost elements?(Multi)

A. The controlling area must be defined.

B. The cost center must be defined.

C. The G/L account must be defined.

D. The plant must be in the system.

E. The business areas have been defined.

39. What is the difference between distribution and assessments? (Multi)

A. Distribution can be made for both planned and actual figures; assessments cannot.

B. Distributions can be made using statistical key figures; assessments cannot.

C. Distributions are used when the original cost information is necessary on the receiver; assessments are used when this information is not necessary on the receiver.

D. Distributions are made using the original primary cost elements; assessments are made using secondary cost elements.

You should remain calm and relaxed on the SAP Certification Examination. The examination will be computer based and will consist of singe as well as multiple choice questions. I had finished my answers in first one and hour of the examination but stayed there to check my answers again. I revised lot of my answers particularly the multiple choice ones. So it is a good idea to stay in the examination hall for allotted hours. The moment your time is up, you get the results.

The key to pass SAP certification is to read the SAP training documentation, try out the exercises and revise. You will pass the certifications. Good Luck.

The answer to the question

Q. When entering a document using a foreign currency, which date is used to determine the exchange rate if the translation date is not entered ?

A. B. Document Date

Any queries, please comment on the blog post.

Regards,

Santosh Puthran

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A general query by people who have experience in SAP.

• Can I appear for SAP Certification examination without undergoing the training program ?
• I have experience as end user of SAP, can I do SAP certification ?

The answer is available on SAP website on Examination Policies and Procedures.

Participants

• Partners and customers may register suitably qualified employees as candidates for the certification examination.
• Participants in training courses that are given by SAP or SAP’s authorized training partners and that include the certification examination may attempt the certification examination. For all Academy tracks that contain Case Studies, full participation of the student is mandatory to qualify to take the certification exam.

Source: Pandas that survived the China Earthquake

Previous Questions

13. Integration with MM: An asset purchase order is created in Purchasing. The goods receipt is posted on a value basis. Invoice verification then posts the invoice.

What is the name of the auxiliary account used for all of these transactions?(Single)

A. MM/FI clearing account.

B. GR/IR clearing account.

C. Asset purchasing clearing account.

D. Asset acquisition clearing account.

E. Vendor asset acquisition clearing account

14. What additional functions do asset classes offer?(Multi)

A. Specify required entry fields for asset master data
B. Enter default values for asset master data
C. Enter default values entries for depreciation area
D. Enter allowed entries for user fields
E. Define allowed company codes

15. Which of the following statements about manual depreciation (for example unplanned depreciation in FI-AA) area true?(Multi)

A. You cannot post manual depreciation in FI-AA.

B. Manual depreciation is posted immediately after entry(real time).

C. Manual depreciation is initially shown as a planned value after entry and only posted when the depreciation posting report is run.

D. Manual depreciation usually only applies to depreciation areas which you choose when you enter the document.

E. After entering manual depreciation in FI-AA., you also need to enter it manually in FI/CO.

16 .Which correspondence extracts all items in the chosen period from a customers account displays the balance carried forward balance and a closing balance of the Account ?(Single)

A. Payment advice

B. Payment notice

C. Account statement

D. Dunning notice

17. Which of the Following statements about automatic payment are correct ? (Multi)

A. In automatic payment procedures, all incoming invoices as of the second dunning level are paid automatically

B. Direct debiting or bank collection can be used in automatic payment procedures to clear customer invoices

C. Open items posted to G/L accounts can be cleared using the payment program

D. Special G/L transactions(down payment)can be posted using the payment program

E. The payment program can pay vendor invoices using wire transfers and checks

18. Imagine the following scenario:A company wants to execute a payment run on a daily basis and process several company codes at the same time. If the amount exceeds US$ 1000, the vendors are to be paid by bank transfer, amounts less than US$ 1000 are to be paid by check. The customer has two house banks and wants all checks to be processed by bank A and all (Multi)

A You store variants for print programs within customizing. Here you can specify that the information is to be output to a data carrier

B. You specify, per house bank, whether payments are to be made by check only or also by transfer

C. You specify the payment method from within the application,in the master record

D. The payment proposal of the automatic payment program can only be displayed

E. You can precisely schedule the print program from within the application

19. According to which criteria does the payment program determine and select open items (Single)

A. posting date and baseline date

B. document date and posting date

C. baseline date and payment terms

D. posting date and cash discount periods

E. posting date and payment terms

20. Which of the following statements are true with regard to the customizing setting for banks in the automatic payment run ? (Multi)

A. The sequence of the banks for processing outgoing payments is selected randomly

B. You can only determine one payment method per house bank

C. You can select several payment methods per country

D. You can specify by bank and method the anticipated number of days before the bank account is debited

E. You can determine the banks to be used for payments according to postal code

21. Which of the following factors does the systems take into account in a payment run ?(Multi)

A. Fiscal year variant

B. Payment method specifications in the IMG

C. Specifications in the vendor master records

D. Information in the documents(incoming invoices)

E. Specifications made when maintaining the payment run parameters

22. Which of the following statements are correct ?(Multi)

A. When creating a House bank, you do not need to specify the country.

B. The payments program can use a different House bank for each different payment method

C. A House bank account can be defined in more than one currency

D. House bank master data must be created in advance, before assigning the House bank to a payment method in the payment program
configuration

E. A house bank can be assigned to a business area within the payment program configuration

23. When entering a document using a foreign currency, which date is used to determine the exchange rate if the translation date is not entered ?(Single)

A. Posting date

B. Document date

C. Entry date

D. Baseline date

24. where are posting periods defined?(Multi)

A. Posting period variant.

B. Fiscal year variant.

C. Field status variant.

D. Closing period variant.

25. which of the following statements supports the reversal of a document?(Multi)

A. The original document contains no cleared line items.

B. Documents originating in other modules should be corrected there to allow the changes to flow naturally through to financial accounting.

C. If a reversal date is not specified, the system reverses the document using the posting date of the document to be reversed.

D. A new document number is created for the reversal document.

Part 3 and Concluding part next……

Please solve the certification questions. If any queries let me know.

Regards,

Santosh Puthran

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8. Management Accountant Blog Home

Many SAP FICO Consultants are keen on finding the certification question. I am including few of them on the Management Accountant Blog. You can give a try on the following questions. End users on SAP can test their knowledge about the system.

1. A chart of accounts ( Multi Choice)

A. can be allocated to multiple company code

B. can be defined as the group chart of accounts

C. only contains definitions for G/L accounts

D. can only allocated to one company code.

2. A client. ( Single Choice)

A. may only contain a single chart of accounts

B. may contain multiple charts of accounts

C. may only use one currency type

D. may only have one controlling area

3. Identify the correct statement(s) relating to how the main business processes are integrated in the SAP R/3 System. ( Multi Choice)

A. A purchase requisition is a documented request to purchase goods or services. In SAP it can be created manually or automatically.

B. A goods receipt is the recording of the movement of materials into the warehouse. In SAP, a financial document which updates the inventory account and an accrued liability account is created

C. The Invoice receipt and verification process compares the vendor invoice with the purchase order and goods receipt. However, the corresponding financial transaction must be entered through the financial module of R/3.

D. In SAP, payment processing reduces the liability to a vendor and a company’s cash balance, records discounts taken and disburses
payment.

E. A customer delivery is the transfer of the ownership of goods. A customer delivery includes, creation of a delivery document, picking the goods for shipment; physically transferring the goods to the customer and financially recording the goods issue.

4. Identify the correct statement(s) regarding organizational elements within the R/3 System. ( Multi Choice)

A. The Sales area combines the sales organization, distribution channel, and division.

B. The Purchasing Organization is responsible for the purchasing for the only one plant.

C. A plant is a location in which inventory quantities and values are stored or manufactured.

D. A Controlling area can comprise several company codes using different chart of accounts but must operate in the same currency.

E. A profit center is used to generate income statements and operating profit statements.

5. Which of the following statements is true ? ( Single Choice)

A. A Company code can belong to more than one controlling area.

B. A plant must be allocated to a company code

C. A 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

6 . Which of the following statements about year-end closing are correct?(Multi)

A. You carry out year-end closing before the fiscal year change.

B. During year-end closing, the program checks if the year-end closing can be carried out.

C. Once the year-end closing was successfully completed, the system automatically changes certain entries in Customizing (closed fiscal year)

D. You cannot create and post to new fixed assets until The year-end closing is successfully completed

E. You can only conduct year-end closing on June 30 or December 31 of each year.

7. What steps have to be completed before you can generate asset classes form G/L accounts? (Multi)

A. Account selection

B. Account determinations

C. Number range intervals

D. Screen layout variants

E. Asset classes

8. For each depreciation area you need to specify whether you want to (Multi)

A. post depreciation at periodic intervals to the general ledger

B. post asset values at periodic intervals

C. automatically post values online

D. use index classes

E. post to business areas

9. Please click on the button next to the correct answer.(Multi)

A. The business area can run across many company codes, i.e. all company codes can post in all business areas.

B. A company code may belong to more than One Controlling Area.

C. Each company codes uses exactly one chart of accounts and one chart of depreciation.

D. Business areas are used to create internal balance sheets and income statements.

10. The time of the first acquisition posting to the asset sets the following fields in the master of asset(Multi)

A. the depreciation start date per depreciation area

B. the cost enter to be hit through depreciation

C. the date of capitalization

D. the depreciation key

11. Usually one Chart of Depreciation is defined for each country. At which level is the chart of Depreciation created?(Single)

A. at Company Code level

B. at Client level.

C. at Chart of accounts level.

D. at Business area level.

E. at System level.

12. What are the functions asset class?(Multi)

A. Asset number assignment.

B. Cost Center determination.

C. Screen layout

D. Account allocation

E. Definition of default value.

Regards,

Santosh Puthran

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This is a Guest Post by Rajendra Patil, Pune, India

Profile: A technocrat with 17 years of proven success in ERP Implementation, Business Analysis, Consultancy Assignments in Strategic Cost Management, Profitability Analytics, Performance Management and Business Process Management in conjunction with the enterprise wide BI solutions. Currently working as an independent consultant in the area of Performance Management and Profitability.

This is a reply to the earlier post on “Activity Based Costing - How to collect information“. Rajendra answers few questions:

Q. How would a management accountant gather information and set rules for cost allocation ?

A. There are various techniques experts have created to collect the information starting from interviewing people, surveys, story-boarding to auto data transfer from the back-end processing business applications. The rules are defined in the paper model that is created for the organization. This paper model depends on the objectives that the organization has decided for the assignment. This model is different for different objective like profitability, cost improvement, resource planning etc. Sometimes the main model remains the same but multiple small models can be created for specific business pains. The logic for flowing the costs depends on the objective and the model.

Q. If the company has the good information system (ERP), then setting the rules are important. Then it would be an overnight job to run to allocate the costs based on set rules. Otherwise ABC will be labour-intensive with Management Accountants spending lot of time gathering the information rather than analysis them.

A. Yes if the organization has a good OLTP then collecting the data from the system is comparatively easier. Now we have various ETL tools to get the data. Some of the ABM solutions have created their own adapter for the ERPs like SAP or Oracle etc. Even if the organizations has any ERP, there is some part of the data that is still not available in those systems like the time spent on various activities or the no.of visits to a prospect (if CRM is also not present). This data has to come from various persons in the organization. Hence, the success of this assignment lies in the participation of the key personnel from various departments.

Technically this kind of data can be collected via web-based survey systems. The organization has to spend some time in the initial model creation and data collection systems, once that is done then the frequency of data collection is once in a quarter. So the people get ample time to analyze the data.

There are implementation methodologies like ‘Rapid Prototype’, where a first model which is very raw can be build in as less as two days. Then this model is expanded as required by the organization in those areas only. In the modeling the definition of the driver (the logic with which the cost flows) should be as accurate as possible. The corresponding data may not be accurate to start with. The accuracy of the data can be improved, but only when it is required. One should not wait for the accuracy for the data to the last minute or Re etc. This is used take business decisions and 80% accuracy in primary data is also good enough.

Now-a-days this collection of data and processing of it is being outsourced and various KPO organizations are eying that business.

Q. Or is ABC feasible for a company ?

A. Yes, it is feasible for all the organizations, which have multiple products, customers, channels, locations etc. These type of multiple options create the overheads in the organization which ABC puts using cause-and-effect logic. It would be easier if one takes professional help in the initial implementation as well as using commercial software for the same. It helps the internal team on understanding how to analyze the data. The calculation of the numbers is better left to the software application.

I hope these answers will help you to understand the practical solutions for the implementation as well to create new questions in your mind. Do let me know and I will try to answer them.

If you have any questions on Activity Based Management and its implementation, you may post your comments on this blog post or write to Rajendra Patil on rajendra@appsconsulting.in on specific issues or concerns.

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1. Which Institute is best for SAP FICO training ?
2. Are there SAP Training centres in the city ?

A couple of days back, one of my friends asked me whether I had SAP FICO interview questions. The websites that I found to be useful are:

The book “Configuring SAP R/3 FI/CO by David Nowak, Quentin Hurst” is for release 3.1. The concepts explained in the book is relevant in the current releases.

Some competency based questions

Knowledge of the Organisation and Role

• How would you measure your success or failure in this job?
• What skills and personal qualities are essential for success in this role?
• What would you like to know about this organisation?
• What do you believe you can contribute to this organisation?
• What do you know about our industry?
• What do you know about our organisation?
• Why are you interested in working for our organisation?
• Why should I hire you?

You will find the answers in the job description, company’s website and people who are working in the organisation. The question why should I answer you is simple to answer when you relates your experiences and qualification with the job description.

Ability, Competence and Achievement

• Tell us about a time when you had more to do than you could complete in the time allocated: tell us what you did about it and what the outcome was.
  
  

Personal and Career Objectives

• What are your short and long-term goals?
• When and why did you establish these goals and how are you preparing yourself to achieve them?
• What are the most important things you are seeking in a career?
  
  

Problem Solving and Decision Making

• Tell me about a difficult decision that you have made.
• Tell me about an unpopular decision you have made.
• What significant problems have you faced in the project and how you handled them ?
• How do you work under pressure?
• Tell me about a time when you had to make a quick decision.
• What were the circumstances and what did you do?

Today, you will notice that there are lot of opportunities in SAP Consulting. So when the opportunities strikes… be prepared.

Regards,

Santosh Puthran

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