1. List the key features of SAP Simple Finance?
The following are some of the available key features of SAP Simple Finance:
Financial Planning and Analysis
With SAP Simple Finance, companies can forecast, budget and plan as an ongoing approach. With the advantage of Predictive Analysis, companies can forecast the influence of business decisions on their organization financial reports.
Finance and Accounting
With the benefits of advanced Accounting and Finance features, companies can satisfy the legal terms. Further, they can finish the reports of Finance on time. (E learning Portal)
Financial Risk Management
With the benefit of Predictive Analysis, companies can determine the risks present in the processes of Finance at the initial stage itself and take steps to solve them. It is effortless to determine the best feasible investment rates regarding market standards.
Compliance and Risk Management
With a strong financial approach, it is effortless to avoid unauthorized access to important data in the enterprise. It is simple to identify abuse as well as fraud. The companies can able to balance the risk involved in entire financial processes.
2. What are posting periods?
Answer: The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a
different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant.
3. Explain what is capacity requirement planning?
Answer: It is a process for determining the quantity of machine and manual labor resources necessary to assemble a production.
4. What are document types and what are they used for?
Answer: Document type is the identifier of different account transactions like SA for G/L, AA for Asset Accounting, etc.The doc. Types control things
like the type of account that can be posted to, the number range assigned to it, and required doc header fields.
5. How are the tolerance group for employees used?
Answer: Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized persons can make postings.
6. What Are The Main Advantages That Attract Customers To Migrate To Sap S/4hana?
Answer: The main vision and approach of the SAP are to support customers survive simply in the digital world. In order to deliver this mission, SAP S/4HANA redefining how enterprise software makes value. S/4HANA is mainly designed to power instant value across the business and industry lines with the superior sophistication – Simplicity.
Let us explore the advantages of Simple Finance from the point of business value.
SAP S/4HANA makes the unique chance to redefine business models and power new profits in addition to revenues. With Simple Finance, companies can easily link to devices, people as well as business networks to present additional value to their clients on any channels. Hence, offers the following benefits:
Big Data and the Internet of Things (IOT)becomes accessible to any kind of business.
Companies can simplify their approach, power them in a real-world environment and alter them as per their requirement in order to gain new proficiencies. That is, there is no further requirement for batch processing.
Business users can receive a vision of any kind of data from anywhere, including execution, planning, simulation, and prediction.
Let us explore the benefit of Simple Finance in the view of IT value:
The unique chances created by the SAP S/4HANA simplify the landscape. In addition, support condenses Total Cost of Ownership (TCO) with SAP S/4HANA.
Companies can now lessen their data footprint as well as a task with huge data sets in the seamless system (for instance, CRM, ERP, SCM, SRM, PLM co-deployed) in order to save costs of hardware, the cost of operation as well time.
It also made innovation very simple with the open platform (that is none other than SAP HANA Cloud Edition) in order to power advanced applications like recommending, predicting and simulating while protecting standing investments.
Business users can influence simply as well as role-based experience depending on current design principles that increase training efforts when raising productivity. The simple configuration of the SAP S/4HANA also supports the customer by modeling the system.
Enterprise gain opportunity of deployment such as On-Premise, Cloud, and Hybrid to power rapid time-to-value.
7. Suppose I have purchased goods of 10 units(raw materials or semi-finished goods) worth Rs10000 from vendor A (suppose) and also made payment for the same. Now during the manufacturing process, it was observed that 3 units are defective, now my question is how do we deal with the defective units in SAP as I have already made payment for the 10 units(i.e Rs10000).?
If you have a GRN against these materials, then the same can be return
delivered. An appropriate movement type needs to be configured for the
same. As for the payment, raise a credit note on the vendor.
* Using Debit Memo you can get the money for defective 3 units.
8. Explain what is the difference between logistics and transport?
Answer: The difference between logistics and transport is:
Logistics: Logistics is referred to as the procedure of managing goods, resources, and information from the source to the consumers in a manner that fits the requirements of both parties.
Transportation: Transport is the movement of the goods from one point to the other. It is considered a part of logistics.
9. How is the SQL statement executed?
Answer: In the database of the HANA, each SQL query statement is executed with the transaction reference. For each new transaction, a new session is allotted.
10. Explain what is wave picking?
Answer: Wave picking is a technique of assigning orders into groups and release them together, so as to allow several activities to run parallel and complete the task.
11. Explain what is the meaning of Triage?
Answer: The sorting of products or goods based on their condition or quality is referred to as Triage. Some of the goods need to be repaired and sent back, others have to be sold off as used or defective goods.
12. Which Edition Of Sap S/4hana Do You Suggest For Our Companies?
Answer: The On-Premise Edition of the SAP HANA is designed to suit the organizations across companies, which require a broad and deep level of functionality integrated with a highly flexible range of personalization. The cloud edition of the SAP S/4HANA is designed to suit for the companies, which require a standardized cloud submission primarily handling the basic business scenarios of a company or certain business set-up of business lines in industries which are integrated with a rapid innovation cycle. In addition, this edition provides the chance for clients to deploy real-world hybrid setup, combine On-Premise and Cloud solutions for extraordinary IT flexibility as well as stimulated business innovation.
13. What are adjustment postings and its use? Give t.codes and paths if possible?
Answer: fb50,f-02, and others could be used for adjustments. These adjustments are to correct any financial representation that has already been booked into the accounts.
14. What are posting keys? State the purpose of defining posting keys?
Answer: Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.
15. Is it possible for a company to have positive cash flow but be in serious financial trouble?
Answer: Yes, it is. A company that is selling off inventory but delaying payables will show positive cash flow for a while–even though they’re in trouble. Another example would be where a company has strong revenues for the period but future forecasts show that revenues will decline. This would happen when a company hasn’t focused on making sure there were new prospects/sales in the pipeline.
16. What do you mean by Net Postings?
Answer: Usually, when a transaction is posted, for example, a vendor invoice (document type: KR), the system posts the Gross amount with the tax and discount included. However, SAP provides you the option of posting these items as Net. In this case, the posting excludes tax or discounts. Remember to use the special document type KN. (Similarly, you will use the document type DN for customer invoice-Net compared to the normal invoice postings for the customer using the document type DR.) For using this net method of posting you should have activated the required settings in the customization.
17. Explain the impact of the purchase on the income statement, balance sheet, and statement of cash flows?
Answer: At the time of the purchase, there is a cash outflow (cash flow statement) and PP& E goes up (balance sheet). Over the life of the asset, it is depreciated. This shows up a reduction in net income (income statement) and PP& E (balance sheet) decreases by the amount depreciated. At the same time, retained earnings (balance sheet) also goes down. However, the depreciation is added back in the cash from operations section (cash flow statement) as it is a non-cash expense the reduced net income.
18. How many financial statement versions can be assigned to co.code?
Answer: As many FSVs as you want can be assigned to the co code i.e. 1:n as of Co Code: FSV.
have created the Company Code and all other configuration related to the
code. Also in MM, I have created a purchase order, created vendor,
material, etc. I couldn’t activate the PO due to the following error
messages in red:
19. What are the field status groups?
Answer: Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.
20. Explain what is chargeback?
Answer: When any shipment that does not meet the customers decided terms and conditions, a financial penalty is charged against the supplier by customer. This charge is referred to as a chargeback. For example, the lack of proper packaging or labeling.
21. Explain what is cycle time?
Answer: Cycle time is the time consumed to get an order from order entry to the shipping dock.
22. Explain what is bonded warehouse?
Answer: A bonded warehouse is a dedicated portion of a facility where imported goods are stored before the customs duties or taxes are being paid.
23. What is a Document Header?
Answer: The Document Header contains information that is valid for the whole document such as:
• Document Date
• Document Type (Control Information)
• Document Number
• Posting Date
• Posting Period
• Company Code
24. What are shortened fiscal year? When are they used?
Answer: Shortened Fiscal Year: a financial year, which has less than 12 periods.
25. In inventory management what do you mean by allocation?
Answer: assigned to company code we can assign company code to chart of account.
26. In inventory management what do you mean by allocation?
It is a demand which is created by the Sales Order or Work Orders next to a particular team.
27. Basically, if we can expand the profit center structure by using the new field can I do Kp26 cost center activity type with functional area planning as well?
Answer: You can’t do this using transaction KP26 since this hasn’t been enabled to derive the functional area. IF you want to fill all the dimensions during planning, then investigate Integrated Business Planning for Finance.
28. In simple finance, can I have a new field based on business need which can link with logistics? For example, a team field which will drive from sales Oder which will flow to GL posting?
Answer: You can add a field to the universal journal easily but you will have to create derivation logic of some kind to fill it and as with any derivation the more complex you make the logic to fill it, the more you’ll impact performance during posting.
29. How is Account Type Connected to Document Type?
Answer: The Document Type is characterized by a 2-character code such as AA, DG, etc., whereas an Account Type is denoted by a 1-character code such as A, D, etc., specifying which accounts a particular document can be posted to. The common account types include:
• D Customer (Debtor)
• K Vendor (Creditor)
• M Materials
• S GL
30. State the main difference between the migration to SAP S/4HANA On-Premise and migration to SAP S/4 Finance?
Answer: There is no notable difference between the migration to SAP S/4 HANA On-Premise and migration to SAP S/4 Finance from the perspective of Finance. On the other hand, because of the logistics influences, it is suggested to consider several things with SAP S/4 HANA.
31. How can the partner of SAP support the migration of customer to SAP S/4 HANA?
Answer: SAP comprises a well-known partner ecosystem (which covers systems integrator and value-added retailers). This ecosystem is ready to service and resell SAP Simple Finance for the available as well as new customers to develop future inventions. Partners handled surprisingly more than 50 percent of the Business Suite of SAP that is powered by HANA. SAP and Partners will help customers on their digital journey with migration, system shifting in the cloud as well as deployment suites for fast time to value. Entire organization regardless of the sizes will experience advantage from the ultimate quality service and reseller abilities that partners offer.
32. Is it Possible to Change an Existing B/S GL A/C to the P& L Type?
Answer: Technically, you will be able to change all the fields, except the account number, of a GL account in the Chart of Accounts area. However, in this particular instance when you change the GL account type from B/S to P& L, make sure that you again run the balance carry-forward program after saving the changes so that the system corrects the account balances suitably.
33. What are the Various Components of SAP HANA?
- SAP HANA DB
- SAP HANA Appliance
- SAP HANA Studio
- SAP HANA Application cloud
34. When should a company consider issuing debt instead of equity?
Answer: A company should always optimize its capital structure. If it has taxable income it can benefit from the tax shield of issuing debt. If the firm has immediately steady cash flows and is able to make their interest payments it may make sense to issue debt if it lowers the WACC.
35. How do you calculate the WACC?
Answer: WACC (weighted average cost of capital) is calculated by taking the percentage of debt to total capital, multiplied by the debt interest rate, multiplied by one minus the effective tax rate, plus the percentage of the equity to capital, multiplied by the required return on equity.
36. Explain what is consignment inventory?
Answer: Consignment inventory is in the possession of the customer but still owned by the supplier. It means you will pay the supplier only when their goods are sold.
37. Explain what is blind shipment and bread bulk?
Answer: When the source of the supplier is hidden from the customer, such shipment is referred to as a blind shipment.
Bread bulk is referred to overseas shipments, where the cargo being shipped consists of smaller units like crates, bales, cartons and so on.
38. What are the major transportation issues in warehousing?
The major transport issues in warehousing are:
- Tracking and communications
- Warehouse Safety
39. Which is cheaper, debt or equity?
Answer: Debt is cheaper because: it is paid before equity and has collateral backing it. Debt ranks ahead of equity on liquidation of the business. Learn more about the cost of debt and cost of capital.
There are pros and cons to financing with debt vs equity that business needs to consider… it is not automatically better to use debt finance simply because it’s cheaper. A good answer to the question may highlight the tradeoffs if there is any followup required.
A company has learned that due to a new accounting rule, it can start capitalizing R&D costs instead of expensing them.
This question has four parts to it:
40. What Are The Various Compression Techniques Available?
There are three compression techniques and they are as follows:
In Sap Simple Finance, Even In Case The Client Never Uses The Asset
41. Do we need to have the HANA Live installed for these reports?
Answer: Your classic reports (Report Writer, Drill-Down, ABAP List Viewer) will run as before using compatibility views to select the relevant data from the universal journal. For the modern reports such as the multi-dimensional trial balance, line item browser or income statement are using a combination of HANA views and operational data providers or virtual info providers to feed the queries.
42. Is universal journal updated after document splitting?
Answer: The BSEG entries for payables and receivables won’t be split, but the split will happen in the universal journal (ACDOCA) based on the splitting rules.
43. Is it also unified, in addition to, universal, journal and who is the D000002 using?
Answer: User D000002 is Hasso Plattner, one of the founders of SAP and still an active blogger. As to unified vs universal, we started the project talking about the need to unify our structures but ended up with a universal journal.
44. In Column, the table view is SAP BW SID concept moving to ERP?
SAP BW SIDs are for the master data.
Here’s a nice tutorial about row vs column store
45. Is costing based COPA document different from the new Universal document?
Answer: Yes the costing-based CO-PA document will be as before a combination of CE1XXXX for the transactions and CE4XXXX for the characteristics. In the universal journal, you will have fields for each characteristic in CE4XXXX and a link to CE4XXXX via the PAOBJNR for reasons of backward compatibility.
46. In simple finance, can I have a new field based on business need which can link with logistics? For example, a team field which will drive from sales Oder which will flow to GL posting?
Answer: You can add a field to the universal journal easily but you will have to create a derivation logic of some kind to fill it and as with any derivation the more complex you make the logic to fill it, the more you’ll impact performance during posting.
47. What is SAP Simple Finance?
Answer: SAP Simple Finance is a comprehensive finance solution based on SAP HANA, which can be deployed in the cloud or on-premise. Designed to be easy to use, it can deliver instant insight for finance professionals. It enhances the current finance solution portfolio from SAP, preserving its functional strength while enabling non-disruptive migration.
48. I buy a piece of equipment, walk me through the impact on the 3 financial statements?
Answer: Initially, there is no impact (income statement); cash goes down, while PP&E goes up (balance sheet), and the purchase of PP&E is a cash outflow (cash flow statement)
Over the life of the asset: depreciation reduces net income (income statement); PP&E goes down by depreciation, while retained earnings go down (balance sheet); and depreciation is added back (because it is a non-cash expense that reduced net income) in the cash from operations section (cash flow statement).
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