Top SAP FICO Interview Questions and Answers for 2026
Preparing for an SAP FICO interview? This guide compiles the most common questions asked in interviews for both freshers and experienced professionals, based on recent trends. SAP FICO (Financial Accounting and Controlling) is a core module in SAP ERP, and interviewers often focus on conceptual understanding, configuration, integration, and real-world applications. We’ve categorized them into basic, intermediate, and advanced levels for easier preparation. Answers are provided with explanations to help you understand the concepts deeply.
Basic SAP FICO Interview Questions
These questions test foundational knowledge and are common for entry-level roles or freshers.
1 What is SAP FICO?
Answer:
SAP FICO stands for Financial Accounting (FI) and Controlling (CO). It is a module in SAP ERP that handles financial transactions, accounting, and internal cost management for organizations. FI deals with external reporting like balance sheets, while CO focuses on internal reporting for cost control and profitability analysis.
2. Why would you use SAP FICO over other financial systems?
Answer:
SAP FICO offers real-time data processing, seamless integration with other SAP modules (like MM and SD), compliance with global standards (e.g., IFRS, GAAP), and advanced reporting capabilities, making it more efficient for large enterprises than standalone tools.
3. What are the key sub-modules in SAP FI?
Answer:
The main sub-modules include General Ledger (GL) Accounting, Accounts Payable (AP), Accounts Receivable (AR), Asset Accounting (AA), Bank Accounting, and Travel Management. Each handles specific financial processes, such as vendor payments in AP or customer invoices in AR.
4. What are the sub-modules in SAP CO?
Answer:
Key sub-modules are Cost Element Accounting, Cost Center Accounting, Internal Orders, Profit Center Accounting, Product Cost Controlling, and Profitability Analysis (CO-PA). These help in tracking and analyzing costs internally.
5. What is a Company Code in SAP FICO?
Answer:
A Company Code is the smallest organizational unit in SAP for which a complete set of financial statements can be generated. It represents a legal entity and is mandatory for financial accounting.
6. What is a Chart of Accounts?
Answer:
It is a list of all General Ledger accounts used by a company code for financial reporting. There are three types: Operational, Country-Specific, and Group Chart of Accounts.
7. Explain the difference between FI and CO.
Answer:
FI is for external financial reporting and legal compliance, while CO is for internal management reporting, focusing on costs and profitability.
8. What is Posting Key in SAP?
Answer:
Posting Keys determine the type of transaction (debit or credit) and the account type (e.g., vendor, customer) during document posting.
Intermediate SAP FICO Interview Questions
These delve into processes, configurations, and integrations, suitable for mid-level roles.
9. How does SAP FICO integrate with other SAP modules?
Answer:
SAP FICO integrates with SAP MM for procurement-related payments (e.g., vendor invoices), SAP SD for sales-related receivables (e.g., customer billing), and SAP PP for production cost tracking. This ensures automatic financial postings from logistics activities.
10. What is the Automatic Payment Program (APP) in SAP?
Answer:
APP automates vendor payments by selecting open invoices, generating payment proposals, and executing payments via methods like checks or bank transfers. Configuration involves setting up payment methods and bank determination.
11. Explain Dunning in SAP FICO.
Answer:
Dunning is the process of sending reminders to customers for overdue payments. It involves configuring dunning levels, intervals, and letters.
12. What is Asset Accounting in SAP?
Answer:
It manages fixed assets throughout their lifecycle, including acquisition, depreciation (using methods like straight-line or declining balance), and retirement. It integrates with GL for financial postings.
13. What are Cost Centers and Profit Centers?
Answer:
Cost Centers track expenses for departments or functions (e.g., HR, Marketing), while Profit Centers evaluate revenue and costs for business segments (e.g., product lines) to assess profitability.
14. Describe the Fiscal Year Variant.
Answer:
It defines the start and end of the fiscal year, including the number of posting periods (usually 12) and special periods for year-end adjustments. It can be calendar-based or non-calendar.
15. What is Internal Order in SAP CO?
Answer:
Internal Orders track costs for short-term projects or events, such as marketing campaigns. They allow budgeting, monitoring, and settlement to cost centers or assets.
16. Explain Product Costing in SAP.
Answer:
It calculates the cost of goods manufactured, including material, labor, and overhead costs. Methods include standard costing and actual costing, integrated with PP module.
Also Read: Workday HCM Interview questions
Frequently Asked SAP FICO Interview Questions
17. What is the difference between a Company and a Company Code in SAP?
Answer: A Company is an optional organizational unit in SAP, representing a group of company codes for consolidated financial reporting. A Company Code is a mandatory unit representing a legal entity with its own financial statements, such as balance sheets and profit/loss accounts. For example, a multinational might have one Company for the group and multiple Company Codes for subsidiaries in different countries.
18. What is a Document Type in SAP FICO, and how is it used?
Answer: A Document Type classifies accounting documents (e.g., KR for vendor invoices, DZ for customer payments) and determines the account types allowed and number ranges for document posting. It is configured in SPRO under Financial Accounting > Financial Accounting Global Settings > Document > Define Document Types. For instance, document type SA is used for GL postings.
19. What is a Field Status Group, and how does it impact data entry?
Answer: A Field Status Group controls which fields in a GL account are mandatory, optional, or suppressed during data entry. It is assigned to GL accounts in the Chart of Accounts and ensures data consistency. For example, a Field Status Group might make the “Cost Center” field mandatory for expense accounts.
20. Explain the concept of a Controlling Area in SAP CO.
Answer: A Controlling Area is an organizational unit in SAP CO that groups company codes for cost accounting and internal reporting. It defines the framework for cost elements, cost centers, and profit centers. One Controlling Area can include multiple company codes if they share the same fiscal year variant and currency.
21. What is the purpose of the Reconciliation Ledger in SAP CO?
Answer: The Reconciliation Ledger ensures consistency between FI and CO by reconciling cross-company code or cross-functional area cost allocations. It records CO postings that impact FI, such as assessments or distributions, and posts adjustments to the GL. For example, it reconciles secondary cost elements used in CO.
22. What is a Special GL Transaction, and give an example?
Answer: Special GL Transactions handle specific accounting entries, such as down payments or bills of exchange, by using alternative reconciliation accounts. They are identified by Special GL indicators (e.g., A for down payments). For example, a down payment to a vendor is posted using Special GL indicator A, separate from regular Accounts Payable.
23. How do you handle foreign currency transactions in SAP FICO?
Answer: Foreign currency transactions are managed using exchange rate types and valuation methods. Configuration includes defining exchange rates in table TCURR, assigning them to company codes, and setting up automatic valuation (transaction FAGL_FC_VAL) for unrealized gains/losses. For example, a company records an invoice in USD and valuates it in EUR based on the month-end exchange rate.
24. What is the difference between Costing-Based and Account-Based CO-PA?
Answer: Costing-Based CO-PA uses value fields to store detailed revenue and cost data, offering flexibility for custom reporting. Account-Based CO-PA posts directly to GL accounts, aligning closely with FI and using the Universal Journal in S/4HANA for real-time reporting. Costing-based is preferred for granular profitability analysis, while account-based ensures FI-CO reconciliation.
25. What is a Validation and Substitution Rule in SAP FICO?
Answer: Validation checks data during document posting (e.g., ensuring a cost center is entered for a specific GL account). Substitution automatically populates fields based on predefined rules (e.g., assigning a default profit center). Both are configured in SPRO under Financial Accounting > Financial Accounting Global Settings > Document > Line Item > Define Validation/Substitution.
26. What is the purpose of the GR/IR Clearing Account?
Answer: The GR/IR (Goods Receipt/Invoice Receipt) Clearing Account is a temporary account used to record discrepancies between goods receipt and invoice receipt in procurement. It ensures accurate financial postings by clearing the account when goods and invoices match. For example, a goods receipt posts a credit to GR/IR, which is cleared upon invoice receipt.
27. How do you perform year-end closing in SAP FICO?
Answer: Year-end closing involves:
- Running foreign currency valuation (FAGL_FC_VAL).
- Calculating depreciation for assets (AFAB).
- Clearing open items in AP/AR.
- Running profit center and cost center settlements.
- Generating financial statements and closing the fiscal year (FAGL_CLOSING). This ensures compliance and accurate reporting.
28. What is a Financial Statement Version (FSV)?
Answer: An FSV is a hierarchical structure used to define the format of financial statements like balance sheets and P&L statements. It groups GL accounts into nodes (e.g., Assets, Liabilities) and is configured in SPRO under Financial Accounting > General Ledger Accounting > Business Transactions > Closing > Document > Define Financial Statement Versions.
29. How does SAP FICO handle intercompany transactions?
Answer: Intercompany transactions are managed using cross-company code postings. Configuration involves setting up clearing accounts, defining intercompany relationships, and using transaction OBYA to assign reconciliation accounts. For example, when Company Code A sells to Company Code B, SAP automatically posts receivables in A and payables in B.
30. What is the role of the New GL in SAP?
Answer: The New General Ledger (introduced in ECC 6.0) enhances reporting by supporting parallel accounting, real-time FI-CO integration, and document splitting. It uses table FAGLFLEXT for ledger data and enables features like segment reporting and multiple ledgers for different accounting standards.
31. How do you troubleshoot a common error in SAP FICO, like a posting error?
Answer: To troubleshoot:
- Check the error message in the posting log (e.g., via transaction FB01).
- Verify master data (e.g., GL account, cost center).
- Ensure configuration settings (e.g., posting keys, document types) are correct.
- Use debugging tools like SE80 or check for SAP Notes for known issues. For example, a “Balance not zero” error might indicate a missing cost object or incorrect currency settings.
Advanced SAP FICO Interview Questions
These are for experienced consultants, focusing on S/4HANA, customizations, and scenarios.
31. What are the major differences in Asset Accounting between ECC and S/4HANA?
In S/4HANA, Asset Accounting uses the Universal Journal (ACDOCA table) for real-time reporting, eliminates reconciliation between FI and AA, and supports parallel ledgers for multiple valuations.
32. How do you handle regulatory changes in SAP FICO?
For example, updating tax codes or withholding tax configurations due to new laws. This involves testing in a sandbox, migrating changes via transports, and training users to ensure compliance.
33. What is CO-PA (Profitability Analysis)?
CO-PA analyzes profitability by market segments like customers, products, or regions. It uses characteristics and value fields for detailed reporting and supports both costing-based and account-based approaches.
34. Explain Parallel Accounting in SAP.
It allows maintaining multiple ledgers (e.g., one for local GAAP and one for IFRS) within the same company code, enabling simultaneous postings and separate financial statements.
35. What is the Universal Journal in S/4HANA?
The ACDOCA table consolidates data from FI, CO, AA, and ML, providing a single source for real-time analytics and eliminating aggregates like COSP or ANLC.
36. How would you configure a new Company Code?
Steps include: Define the company code in SPRO, assign currency and country, link to Chart of Accounts, set fiscal year variant, and configure global parameters like posting periods.
37. What is your experience with S/4HANA implementations?
(Scenario-based) Focus on migration from ECC, using tools like SAP Readiness Check, handling data conversion, and leveraging Fiori apps for user experience.
38. Describe a challenging FICO customization you’ve done.
(Behavioral) For instance, customizing withholding tax for a multi-country setup, involving BADI implementations and testing for compliance.
39. What are Primary and Secondary Cost Elements?
Primary Cost Elements correspond to GL accounts for external costs (e.g., salaries), while Secondary are used internally for allocations (e.g., assessments) without affecting FI.
Tips for SAP FICO Interview Preparation
- Practice Configuration: Use SAP sandbox environments to practice setups like APP or asset classes.
- Focus on S/4HANA: With the shift to S/4HANA, expect questions on differences from ECC.
- Real-Time Scenarios: Prepare examples from your experience, especially integrations and troubleshooting.
- Certification: Holding SAP FICO certification can boost credibility.