2019 latest Sap Simple Finance Interview Questions And Answers

31. What is the Document Change Rule?
Answer: The functionality Document Change Rules configured in the system maintains the information relating to what fields can be changed? and under what circumstances?. As you are already aware, SAPs document principle does not allow changing the relevant fields once a document is posted; any changes can only be achieved through Reversal or additional postings. Fields such as company code, business area, account number, posting key, amount, currency, etc., can never be changed once the document is posted. However, SAP allows changing some of the fields in the line items such as payment method, payment block, house bank, dunning level, dunning block, etc. These can be changed document by document or by using mass change for a number of documents in a single step. The changes to master data are tracked and stored per user for an audit trail.

32. How is it possible for a company to show positive net income but go bankrupt?
Answer: Two examples include deterioration of working capital (i.e. increasing accounts receivable, lowering accounts payable), and financial shenanigans.

33. What is a Bill of Exchange?
Answer: Bills of exchange primarily act as promissory notes in international trade; the seller, or exporter, in the transaction addresses the bill of exchange to the buyer or importer. A third entity, typically a bank, is a party to many bills of exchange to help guarantee payment or receipt of funds.

34. In simple finance even If the customer never utilizes the asset accounting, Is new Asset Accounting mandatory?
Answer: Incase in the Asset Accounting then there is no data, which refers to the both transactional as well as the customizing data, which have to be migrated, in such a scenario there is no compulsion for performing the migration step in Asset Accounting.
If you later decide to use Asset Accounting in new asset accounting, then you can set up the customizing in the IMG.

35. What is the Transport Request?
Answer: Transport Requests (TRS) – is a kind of ‘Container / Collection’ of changes that are made in the development system. It also records the information regarding the type of change, the purpose of transport, request category and the target system. It is also known as Change Requests.

36. Why do capital expenditures increase an organization’s assets (PP&E), while other expenditures, like paying taxes, employee salaries, utility bills, etc. do not increase an organization’s asset base, but instead show up as expenses on the income statement that reduce equity via retained earnings?
Answer: Unlike general expenses that provide benefit over a short period time (i.e., employee’s work, taxes, etc.), capital expenditures provide benefit over a longer period of time. Due to the duration of their estimated benefit–usually, several years–capital expenditures are capitalized on the balance sheet, where shorter-term expenditures are expensed on the income statement. This is the difference between an asset and an expense.

Explain to me what a cash flow statement is and how it works.

You’ll want to start with net income and then proceed line by line through the major adjustments (depreciation, deferred taxes, and working capital changes) required to arrive at cash flow from operations. In your explanation you’ll also want to mention the following:

• Capital expenditures, purchase of intangible assets, sale of real assets, and purchase/sale of investment securities to find cash flow generated from investing activies.
• Issuance/repurchase of debt, sale of equity, and payment of dividends to find cash flow from financing activities.
• Adding the cash flows from operating, investing and financing activities your ability to come up with the total change in cash.
• By taking the cash balance at the beginning of the period and adjusting it for the total change in cash you arrive at the cash balance at the end of the period.

37. What is goodwill and how is it accounted for?
Answer: Goodwill is an intangible asset that is defined as the excess value of the purchase price over the fair market value (book value) of an acquired business. For example, if Walmart is sold for $100 billion with PP&E book value of $50 billion, equity of $30 billion, and debt of $10 billion, then the goodwill paid for Walmart would be $30 billion–the total sales price ($100 billion) minus the book value (Assets-Liabilities) of $70 billion.

The organization acquiring Walmart would show a decrease in cash of $100 billion to finance the acquisition, an increase of $50 billion to PP&E, an increase of debt of $10 billion, and goodwill of $30 billion.

38. Why are increases in accounts receivable a cash reduction on the cash flow statement?
Answer: Net income has to be adjusted to reflect an increase in accounts receivable since the company never actually received the funds. As the cash flow statement begins with net income, it shows a cash reduction what accounts received increases.

39. What is a deferred tax asset and what is its purpose?
Answer: A deferred tax asset (as its name suggests) is when a company pays more in taxes to the IRS than they actually owe (as shown as an expense on their income statement). This is an asset because it can be used to offset future tax expense in the future. Deferred tax assets can result from differences in revenue recognition, expense recognition, and net operating losses.

40. What is a deferred tax liability and what is its purpose?
Answer: Deferred tax liability is just the opposite of a deferred tax asset. The deferred tax liability occurs when a tax expense reported on the income statement is not paid to the IRS during the same period it is recognized–it’s paid at a future date. Deferred tax liabilities can result when there are differences in depreciation expense between book reporting (GAAP) and IRS reporting which lead to differences income as reflected on a companies income statement versus what’s reported to the IRS–and which results in lower taxes payable to the IRS (in the short run).

41. Educate me concerning budgetary change with SAP Simple Finance?
Answer: Changing money related administration with a definitive refinement: straightforwardness. As a major aspect of SAP S/

4HANA, a suite of new organizations, the people to come, SAP Finance Simple Powered by SAP HANA arrangement is intended to give key esteem Live Preview in the fund – all by means of a tweaked client encounter straightforward.

• Utilize a typical perspective of all the data in back to guarantee consistency over the endeavor
• Consolidate expectation, reproduction, and investigation to distinguish the best vital alternatives for the organization
• Giving clients moment, customized knowledge to empower all the more auspicious and significant budgetary choices
• Driving huge disentanglement of the PC with a design which stifles replication and totals
• Get a decision of arrangement – cloud, nearby crossover – to diminish IT costs

42. Brief helpful information about SAP Simple Finance?
Answer: SAP Financial and Controlling module (one of the center modules of SAP from its R/2 days) is a genuinely develop offering with amazing width and profundity.
SAP Simple Finance gives intense in-memory-reporting that takes out the limit between(B/W) controlling and money related reporting, incorporating arranging capacities and improving liquidity examination. PWC can bolster the execution of SAP Simple Finance to Finance work turn into a genuine business accomplice.
.Outline of SAP Simple Finance 2.0
.Design of Simple Finance

43. Do regardless you have the quantity of attributes restriction to 50 in COPA?
Answer: A portion of the interfaces in CO-PA still watch that you are not sending more than 50 qualities, so SAP still suggests that you constrain your working worry to 50 attributes. All things considered since each of the qualities turns into a field in the all-inclusive diary when you come to assemble reports you can utilize ascribe perspectives to decide extra fields, for instance, the material.

44. The movement to SAP Simple Finance controlled by SAP HANA?
Answer: SAP Accounting fueled by HANA contains New General Ledger Accounting, Controlling and New Asset Accounting. On the off chance that you need to actualize and utilize SAP Accounting fueled by SAP HANA, you need to relocate the current client information from the G/L Accounting (FI-GL), Asset Accounting (FI-AA), Controlling and Material Ledger zones. The thorough information table “ACDOCA” contains the greater part of the detail records from FI, FI-AA, and CO. All postings of these applications are composed to the new table after the establishment and movement are finished. 2015-04-02_181732 The above screenshot demonstrates the different bookkeeping applications converge in the new structure of SAP Simple fund controlled by SAP HANA. The accompanying tables were supplanted by SAP HANA sees with similar names:

• The detail, sums tables and application list tables of General Ledger Accounting (GLT0, BSIS, BSAS and FAGLFLEXA, FAGLFLEXT, FAGLBSIS, FAGLBSAS)
• The aggregates tables and application record tables of Accounts Receivable and Accounts Payable (KNC1, KNC3, LFC1, LFC3, BSID, BSIK, BSAD, BSAK)
• The detail and aggregates tables of Controlling (COEP for certain esteem sorts, COSP and COSS)
• The material record tables for parallel valuations (MLIT, MLPP, MLPPF, MLCR, MLCD, CKMI1, BSIM)
• The Asset Accounting tables (ANEK, ANEP, ANEA, ANLP, ANLC)

45. What is the difference between company and company code?
Answer: A company is an organizational unit used in the legal consolidation
module to roll up financial statements of several company codes.
The Company Code is the smallest organizational ! unit for which a
completely self-contained set of accounts can be drawn up for purposes of
external reporting.

46. How Does S/4hana Relate To Simple Finance Driven By Sap Hana?
Answer: The solution of SAP Simple Finance marked the initial step in the customer’s road map of SAP S/4HANA. The solution has verified the assets of instant vision in Finance and simplification like no indexes, no redundancies, and no aggregates. SAP HANA On-Premise edition influences the entire scope of the SAP Accounting driven by SAP HANA comprised in SAP Simple Finance. In addition, the cloud edition of the S/4HANA is also intended to provide a similar scope.

47. Explain what is activity-based costing?
Answer: It is a method which helps in the breakdown of the costs into specific activities in order to the maintenance of accuracy in the distribution of costs in product costing.

48. How many charts of accounts can be attached to a company code?
Answer: One or more Operative Chart of Accounts can be assigned to a company code.

COA must be assigned to a company code. This COA is the operative COA
and is used in both FI and CO. One Chart of Account can bee assigned to
many Company codes i.e., Multiple company codes can either share the
same or have separate COA. But a company code (Country specific Company
code or International Company code) can have a country-specific COA
also along with Operative COA. The link between the regular COA and the
country COA appears in the alternate number field of the G/L master
record.

Eg: If a company’s subsidiaries are located in both US
& Mexico. We need to configure 2 Company codes – one for the US and
another for Mexico, for eg U100 and M100. The same way we create 2 COA’s
one for US & one for Mexico, USCA, and MXCA. Mexico has different
govt reporting requirements than the US so we will need to define a
company code specific to Country Mexico and also create a country-specific COA to be used, in addition to normal COA. In tcode OBY6(Comp
Code Global Parameters) of CC M100 we define normal COA i.e., USCA in
Chart of Accounts field and MXCA in Country Chart/Accts field.

49. What are substitutions and validations? What is the precedent?
Answer: Validations are used to check settings and return a message if the prerequisite check condition is met.
Substitutions are similar to validations; they actually replace and
fill in field values behind the scenes without the user’s knowledge, unlike validations that create on-screen msgs to the user.

50. State the ways of Migration from SAP to Simple Finance?
Answer: Here are some of the ways that state how the companies can migrate from SAP conventional FICO module to Simple Finance (that is SFINE 2.0).

Those who are on New GL are capable of migrating directly to Simple Finance.
Those who are on typical GL need to migrate to New GL first and then migrate to Simple Finance.
This kind of migration occurs only with SPRO and doesn’t require technical assistance. This migration is different from the central component of Finance that supports with moving data distributed Enterprise Resource Planning landscape and non–SAP Enterprise Resource Planning, utilizing SLT.

51. Explain the Various Reference Methods?
Answer: GRN is nothing but Goods Received Note.
At the time of delivery from the supplier to the person who orders the goods, the person will check the quantity and in terms of quality.
He will ensure the ordered quantities are received without any damage.
The storekeeper will put the GRN only those goods which were received at his counter.
Then the store’s ledger will be debited with GRN with concerned material code and credit when it is given for consumption.

52. What are the Configurations for Bank Statement Processing?
Answer: Before you make use of the Bank Statement Processing functionality in SAP, you need to have the following defined or configured in your system:

• Start Variant
• Search ID
• Processing Type
• Internal Bank Determination