1. What is SAP Simple Finance?
SAP Simple Finance is a primarily based on SAP HANA, which can be deployed in the cloud or on-premise. Designed to be convenient to use, it can deliver immediate insight for finance professionals. It improves the current finance solution portfolio from SAP, its purposeful strength remains the same while enabling non-disruptive migration. ( SAP Hana Finance Interview Questions)
2. If it were up to you, what would the budgeting process look like?
This is somewhat subjective. In my opinion, a good budget is one that has buy-in from all departments in the company, is realistic yet strives for achievement, has been risk-adjusted to allow for a margin of error, and is tied to the company’s overall strategic plan. In order to achieve this, the budget needs to be an iterative process that includes all departments. It can be zero-based (starting from scratch each time) or building off the previous year, but it depends what type of business you’re running as to which is better. It’s important to have a good budgeting/planning calendar that everyone can follow. This is an important part of how to be a world-class financial analyst.
3. What do you mean by SAP HANA?
HANA stands for High performance Analytical Application and is one of the best available tools for database management. It can directly be linked to ERP systems. It is possible for the users to consider the frontend modeling for the replication center in this approach. In addition to this, it is one of the best available tools for load control and management in the server.
4. For closed fiscal years before migration is the reporting still done via old tables?
All your data which includes that of closed fiscal years will be migrated into the new database tables. All the reporting on migrated data both of closed fiscal years and of the open fiscal can still be done by selecting the old tables by virtue of using the compatibility views.
5. What is SAP HANA?
SAP HANA is an in-memory computing engine (IMCE) used for real-time processing of huge volumes of data and building and deploying real-world applications. Adopting the row-based and column-based DB technology, SAP HANA is an advanced relational DB product serviced by SAP SE. With this high-performance analytic (HANA) system, the big data exists on the main memory and not on the hard disk. It replaces the onus of data maintenance separately on the legacy system and simplifies the tasks of administrators in this digital world.(Online Training Institute)
6. What are the different modes in data provision in HANA Studio?
7. What is a restricted user in SAP HANA system?
Restricted users are those users who access HANA system with some applications and they don’t have SQL privileges on HANA system. When these users are created they don’t have any access initially.
If we compare restricted users with Standard users:
- Restricted users can’t create objects in HANA database or their own Schemas.
- They don’t have access to view any data in database as they don’t have generic Public role added to profile like standard users.
- They can connect to HANA database only using HTTP/HTTPS.
8. Can you tell some important benefits that users can have from the SLT Replication in SAP HANA?
It is basically an approach that has been categorized as triggered one i.e. users need not to worry about the overall impact of performance on the source system. The users can simply make sure of filtering, as well as transformation of the data even if the size is bulky. In addition to this, real-time data replication can also be assured by the users. It is possible for the users to simply make sure of multiple source systems to only one system based on HANA. The reverse action is also possible.
(SAP Hana Finance Interview Questions)
9. What are the advantages of views can bring in the database?
1. They simply make sure of accuracy
2. All the outcomes can be generated without the wastage of the resources
3. Access to the important data is always restricted and it doesn’t allow any sort of modifications in the data.
10. How to Secure a sap Hana user connexion?
A Sap Hana database user is protected in the first place with a password. However, a password is very often required at the command line in order to connect and execute a batch or an SQL script. The username and password are then visible to anyone. In order to avoid that situation, it is possible to create a special key in relation to a particular user. Username and password are then invisible via the use of that key.
11. Is it a mandate to run AFAR?
Any changes required to be made to an asset also requires the plan depreciation values to be revised. During customizing changes is the only period when you still need to run AFAR.
12. What is the most essential assist that SAP Simple Finance does?
SAP Financial and Controlling module (one of the center modules of SAP from its R/2 days) is a virtually advance presenting with high-quality width and profundity. (Company)SAP Simple Finance offers extreme in-memory-reporting that takes out the limit between (B/W) controlling and cash related reporting, incorporating arranging capacities and enhancing liquidity examination. PWC can bolster the execution of SAP Simple Finance to Finance work flip into a proper enterprise accomplice.
13. Do you have any idea about the transformation rules?
These are basically the rules which are responsible for managing the source table. All the tasks that are performed on the table depend largely on these set of rules and regulations. A few of these rules are also applicable while handing some replication processes.(SAP Training Online)
14. Why is technical clearing GL account used?
The new Asset Accounting is extremely flexible as far as its architecture is concerned. Which means that going forward by virtue of utilizing both the approaches of ledger and the accounts, you should be able to parallel work on the valuations of your assets by virtue of utilizing both the approaches of ledger and the accounts.
It is not a mandate now to use the depreciation area 01 for the same. Now the leading valuation can be logged in any of the depreciation area. Both the values of the parallel valuation in real time as well as the actual values of the leading valuation on a real time basis are posted by the system. This results in posting of delta values which is substituted; which refers to the delta depreciation areas and that is not required.
New Asset Accounting enables the posting on a real time in all valuations, which is also applicable for all accounting principles. Through this, the tracking the postings of all valuations is made possible without considering the postings of all the leading valuation, which is quite similar to the case in classic Asset Accounting.
For successful implementation of these features, the architecture had to be modified in such a way that the positing is done for asset accounting of each valuation in a separate document. Therefore, only specific postings are made for certain accounting principles. In technical language, we do ledger-groups specific postings.
In the accounts payable and accounts receivable which are also known as the operational part, the value for each accounting principle is always the same and does not differ. Hence in the operational part postings which are considered valid for all accounting principles are only performed. In this technically only those postings are performed which do not specify the ledger-group.
For dividing the business process between an operational and a valuating document a need for establishing the “technical clearing account for integrated asset acquisition”, arose.
The vendor invoice which constitutes a part of the operational side the system ideally posts a document which is valid for all accounting principles as against the technical clearing account for integrated asset acquisitions. The system generates a ledger-group-independent document for a technical perspective.
For each valuating part (asset posting with a capitalization of the asset), the system generates a separate document that is valid only for the given accounting principle. This document is also posted against the technical clearing account for integrated asset acquisitions. From a technical perspective, the system generates ledger-group-specific documents.
It is imperative to look from the view point of a specific accounting principle. As Per, the accounting Principle, both the operational document as well as the valuation document are balancing to zero.
15. What is the use of Persistence layer in SAP HANA system?
Persistence layer provides inbuilt mechanism for disaster recovery in HANA system. It ensures that database is restored to most recent state in case of a system failure.
Persistence layer also manages data, transaction and configuration logs and backup of these files. Backups of data and log files are performed at save points and is normally scheduled every 5-10 minutes.
16. What is the use of parameters and variables in Semantic layer?
Variables are used as an explicit SQL filter directive for view consumers to filter the view data, based on attribute column values specified in variable UI prompt of a BI Client. When you go to data preview, variables allow users to pass the value of attribute defined in the variable.(2018 latest Sap Simple Finance Interview Questions And Answers)
17. Do you still have the number of characteristics limitation to 50 in COPA?
Some of the interfaces in CO-PA still check that you are not sending more than 50 characteristics, so SAP still recommends that you limit your operating concern to 50 characteristics. Nevertheless since each of the characteristics becomes a field in the universal journal when you come to build reports you can use attribute views to determine additional fields for example, the material.
(SAP Hana Finance Interview Questions)
18. Can I just increase the memory of my traditional Oracle database to 2TB and get similar performance?
You might have performance gains due to more memory available for your current Oracle/Microsoft/ Tera data database but HANA is not just a database with bigger RAM.
It is a combination of a lot of hardware and software technologies. The way data is stored and processed by the In-Memory Computing Engine (IMCE) is the true differentiator. Having that data available in RAM is just the icing on the cake.
19. What are the main advantages that attract customers to migrate to SAP S/4HANA?
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 the 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 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 the 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 simple 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 customer by modeling the system.(SAP Simple Finance Online Training)
Enterprise gain opportunity of deployment such as On-Premise, Cloud, and Hybrid to power rapid time-to-value.
20. What is Transport Request?
It’s a kind of a collection of changes that are made in the development system. The information pertaining to the type of change, the purpose of transport, request category and the target system are all recorded. It is also known as Change Requests.
21. If I can run NetWeaver BW on IMDB/HANA, why can’t I run the Business Suite/ERP 6.0?
Just on the grounds that it’s not developed enough yet to bolster business basic applications. From an innovation viewpoint, it is as of now conceivable to maintain the Business Suite on IMDB and SAP has trialed moving some vast databases into IMDB as of now.
22. State the ways of Migration from SAP to Simple Finance.
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. (SAP Hana Finance Interview Questions)
23. For the process of account approach, for defining Asset Balance Sheet Accounts of Parallel Valuation as Reconciliation Accounts is required. Incase the parallel ledger approach is in use, is this still essential?
No, for the ledger approach this particular step is not needed because the asset balance sheet accounts have already been implemented as reconciliation accounts.
For the account approach considering the classic asset accounting the following applies: the asset balance sheet accounts meant for the leading valuation have already had been set up as reconciliation accounts. however, for the asset balance sheet accounts which is for the parallel valuation these have not been set up as reconciliation accounts.
In case the accounting approach in place, then this step is applicable for the asset balance sheet accounts for all parallel valuations.
24. Explain the column and Row store in HANA?
HANA supports both type of data store in database. Row store is used when you need to use Select statement and no aggregations are performed.
Column store is used to perform aggregations and HANA Modeling is supported only on Column based tables.
25. What do you understand by SAP HANA In-Memory Computing Engine IMCE?
In-Memory concept of SAP HANA means that all the data is stored in RAM memory. A conventional database transfer data from memory in 5 milliseconds however SAP HANA In-memory takes 5 nanoseconds to read data.
SAP HANA uses multicore CPU architecture and stores data in row and column based storage in HANA database.
26. What are the different components in SAP HANA Architecture? What is the use of Index server?
- Index Server
- Name Server
- Statistical Server
- Preprocessor Server
- XS Engine
- SAP Host Agent
- LM structure
- SAP Solution Manager Diagnostic Agent
Index server contains engine to process data in HANA database. These data engines are responsible to handle all SQL/MDX statement in HANA system. Index server also contains Session and Transaction Manager which is responsible to manage all running and completed transactions.
27. What is a new calculated column in a HANA Modeling view?
New calculated column is defined as a column added on the fly in Analysis tab when a view is activated. This column doesn’t exist at database level or in Data Foundation or Star Join level.
28. What is SAP HANA Analytic Privileges?
Analytic Privileges are used to limit access on HANA Information views. You can assign different types of right to different users on different component of a View in Analytic Privileges.
29. How you can connect SAP HANA to Microsoft Excel?
MDX Provider is used to connect MS Excel to SAP HANA database system. It provides driver to connect HANA system to Excel and is further used for data modelling. You can use Microsoft Office Excel 2010/2013 for connectivity with HANA for both 32 bit and 64 bit Windows.
30. What are different recovery mechanism can be performed in HANA system?
Most Recent State: Used for recovering the database to the time as close as possible to the current time. For this recovery the data backup and log backup have to be available since last data backup and log area are required to perform the above type recovery.
Point in Time: Used for recovering the database to the specific point in time. For this recovery the data backup and log backup have to be available since last data backup and log area are required to perform the above type recovery.
Specific Data Backup: Used for recovering the database to a specified data backup. Specific data backup is required for the above type of recovery option.
Specific Log Position: This recovery type is an advanced option that can be used in exceptional cases where a previous recovery failed.
Note : To run recovery wizard you should have administrator privileges on HANA system.
(SAP Hana Finance Interview Questions)
31. Define Database Management System in your own way?
A Database Management system is basically an array of programs with applications with the help of which the users are free to organize the information, retrieve the same, restore and maintain data efficiency in positive manner.
32. What exactly is the significance of Persistence Layer in SAP HANA?
It is actually an important later in SAP HANA which plays a very important role. Actually, HANA has a computing engine built inside and the users have to utilize the data directly without taking any backup. The same can create an issue during powerful failure and thus it is necessary to keep a backup of the same. This layer comes as a savior and it make sure no loss of data during such a situation.(SAP Simple Finance Training Videos)
33. What are the Configurations for Bank Statement Processing?
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
34. What do you mean by Net Postings?
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.
35. What is a Document Type?
SAP comes delivered with a number of Document Types, which are used in various postings. The document type helps to classify an accounting transaction within the system, and is used to control the entire transaction and determine the account types a particular document type can post to.
For example: the document type AB allows you to post to all the accounts, whereas type DZ allows you to post only the customer payments. Every document type is assigned a number range.
The common document types include:
- AA — Asset posting
- KG — Vendor credit memo
- AB —Accounting document
- KN — Net vendors
- AF — Depreciation postings
- KR — Vendor invoice
- DG — Customer credit memo
- KZ — Vendor payment
- DR — Customer invoice
- KG — Vendor credit memo
- DZ — Customer payment
- SA — GL account document
- X1 — Recurring entry doc.
- X2 —Sample document
36. Narrate the useful details of SAP Simple Finance ?
SAP Financial and Controlling module (which is one among the core modules of SAP) is a mature submission with attractive depth and width. However, there is a tremendous change in the world with technology. Hence, there is a need to change for the new financial regulation. In addition, there is also a requirement for instant financial reports lighting. Since the world of data is rapidly changing, the financial operations are in need to deal with large volume of data that is processed at higher speeds.
With this strategy and having the benefit of a high-performance feature of the HANA, the SAP software company made its finances as well as next range control module by releasing “Simple Finance” (Finco – in short) with the SAP S/4 HANA. By launching this platform, SAP eliminates some of the inconveniences with the traditional FICO module. It also comprises some influential new features.
37. Which edition of SAP S/4HANA do you suggest for our companies?
The On-Premise Edition of the SAP HANA is designed to suit for 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 submissions 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.
38. In SAP Simple Finance, even in case the client never uses the Asset Accounting, Is it mandatory to have a new Asset Accounting?
In Asset Accounting, in case there is no data that refers to the both customizing and transactional data that have to be shifted, in such a situation there is no mandatory for doing the migration steps in the Asset Accounting.
If the customer decided to use the Asset Accounting in their new asset accounting later, then they can set up the personalizing in the IMG.(SAP Hana Finance Interview Questions)
39. List the key features of the SAP Simple Finance?
The following are some of the available key features of the 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.
Financial Risk Management
With the benefit of Predictive Analysis, companies can determine the risks present in the processes of the Finance at the initial stage itself and take steps to solve them. It is effortless to determine the best feasible investment rates regarding the market standards.
SAP S/4HANA Simple Finance Training Certification FAQs
Compliance and Risk Management
With the 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.
40. State the ways of migration from SAP To Simple Finance?
Here are some of the ways that kingdom how the corporations can migrate from SAP traditional FICO module to Simple Finance (that is SFINE 2.0). The ones who are New GL are capable of migrating directly to Simple Finance. Those who are on usual GL want to migrate to New GL first and then migrate to Simple Finance. This sort of migration takes place only with SPRO and doesn’t require technical assistance. There is a distinction when migration is from the central factor of Finance that supports with shifting information dispensed Enterprise Resource Planning panorama and non–SAP Enterprise Resource Planning, utilizing SLT.
41. Why do capital expenses enlarge an corporations assets, while different expenditure like paying taxes, employees’ salaries, utility bills etc. do now not amplify an organisation’s asset base, nut as a substitute show up as fee on the earnings announcement that decrease equity by means of retained earnings?
Unlike regular prices that furnish benefit over a short period time (i.e., employee’s work, taxes, etc.), capital expenditures supply advantage over a longer duration of time.Because of the span of their assessed benefit– normally various years– capital charges are capitalized by the stability sheet, the place shorter time period bills are expensed on the income statement. This is the difference between an asset and an expense. You’ll favor to start with internet income and then proceed line by means of line thru the essential changes (depreciation, deferred taxes, and working capital changes) required to arrive at cash glide from operations.
In your rationalization you’ll additionally choose to mention the following:
Capital expenditures, buy of intangible assets, sale of actual assets, and purchase/sale of investment securities to locate money float generated from investing actives. Issuance/repurchase of dept., sale of equity, and payment of dividends to locate money float from financing activities. Adding the cash flows from operating, investing and financing activities you’re in a position to come up with the whole alternate in cash. By taking the cash stability at the establishing of the length and adjusting it for the whole alternate in cash you arrive at the money balance at the stop of the period.
42. What are the benefits that SQL can bring for you?
If the queries in the SQL are simple, the users are free to retrieve a very large sum of data very easily from the system. Another good thing about SQL is it is very easy to learn and implement. There is a vast support available for SQL and all the queries can be addressed reliably. Using SQL, the database can be managed very easily and in fact without considering a large amount of coding.
43. What is the best way to manage, operate, and monitor sap hana systems?
Sap Hana is a young database with interesting features of SAP HANA. First of all Sap Hana is an in-memory database. It is accessible for administration via various channels. Directly from the Server, It is not the most convenient method but you can use hdbsql to manage databases. With the web-based interface Hana cockpit, you can browse and manage sap hana environments. The Client Hana Studio is the complete tool to administer Sap Hana but it has to be physically installed and therefore is dependent on the client hardware.
44. Original tables still remain in Simple finance and can be viewed by xxx_ORI. Does that mean footprint will not be smaller? Rather, it will be bigger?
With sFIN2.0 it is only possible to store the data once in the universal journal. Before sFIN2.0 the data was originally stored in the general ledger and in the sub ledger. So this data stored was all terminated.
With sFIN2.0 the data is migrated to the universal journal. For future business processes only update the universal journal ACDOCA.
With the FAAV__ORI one can access the content of the old tables. These old tables can even optionally be archived or even deleted even if memory footprint is critical.
45. What do you understand by trusted RFC connection? Which transaction is used to create and configure trusted RFC?
On your source SAP system A1 you want to setup a trusted RFC to target system B1. When it is done it would mean that when you are logged onto A1 and your user has enough Authorization in B1, you can use the RFC connection and logon to B1 without having to re-enter user and password.
46. Why DML compiler is significant according to you in a database management system?
The DML compiler is the one which is responsible for translations of DML statements into a language which is easy to understand by the Query Evaluation engine. It simply makes sure of no occurrence of errors in the database management.
(SAP Hana Finance Interview Questions)
47. How does S/4HANA relate to Simple Finance driven by SAP HANA?
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.
48. What is deferred tax liability and what is the purpose?
A deferred tax liability is simply the contrary of a deferred tax asset. The deferred tax liability occurs when a tax price said on the earnings statement is not paid to the IRS in the course of the same length it is recognized–it’s paid at a future date. When there are differences in depreciation price between e book reporting (GAAP) and IRS reporting Deferred tax liabilities can end result which leads to variations profits as reflected on a company’s earnings assertion versus what’s suggested to the IRS–and which results in lower taxes payable to the IRS (in the quick run).
49. Organizations have to spend a very large amount of money every year on database management, are you agree with this?
Yes, this is totally right. However, it largely depends on the way a users is handling this approach. Basically, data management is a complex approach and there are a lot of tasks which are actually very critical. Managing the database without an effective tool is a big challenge. If an organization can consider a powerful tool like SAP HANA, a lot of tasks can be made simply and a ton of favorable outcomes can be derived simply.
50. What you should look for in a Relational Database Management Tool while selecting the same?
There are certain things that largely matters. The needs can vary depending on business to business. A few of the top factors to pay attention to are listed below:
1. It should be compatible and comfortable to us
2. The support must be extensible to different type of formats
3. There should be no limit on the data handling
4. The tool should be good enough to maintain the privacy and the security of data
5. There must be some defined filters for data management
6. The overall cost associated with the tools
7. Configuration and maintenance requirements
51. What are the various tasks in the SAP HANA which are performed by the Modeling Studio?
The very first task it perform is selecting the type of tables which are to be stored in the HANA. The selection of Meta data is also the responsibility of the modeling studio. All the data services for entering the data from warehouse or other location are handled by it. It simply manages the ERP instances connections. The entire data services can be used for modeling only through the modeling studio. Any sort of other modeling in the SAP HANA itself is handled by the studio. Moreover the tasks associated with the encoding are also managed and controlled by the modeling studio.