1.

0: Basic Settings

1.1 Organizational Units

 Client is the highest level in the SAP ERP system. A company code represents an
independent balancing / legal accounting entity. Business areas represent separate
areas of operations within an organization for internal reporting that can be used
across company code. Companies (NOT COMPANY CODE) are used as basis for
the consolidation functions for financial accounting in the SAP system
Note: Company and company code are defined in FI. Company codes are to be assigned uniquely
to a company for consolidation. Business areas are not assigned to company code, they are
separate. If CO is implemented, company codes are to be uniquely assigned to controlling area.
Controlling areas are uniquely assigned to company. Cost centers, profit center, segments and
functional areas are used in CO for various management reporting. (You can also create profit
center and functional areas in FI under new General Ledger accounting to comply the
requirements of GAAP, IFRS etc, without implementing CO)

1.2 Basic Settings in GL Accounting

 According IFRS, companies are obliged to provide information in their reports on

financial results of operating segments. The profit center accounting evaluates the
success of individual independent areas within the company

 When you use copy function for company code (which is optional) it copies
existing company code parameter viz., definition global parameters, customization
tables, account determination. (Definition: Company name, City, Country,
Currency, Language, Address; Global Parameters: Chart of Accounts, Fiscal Year,
Company Code defaults.
You can use county installation program to a company code for a country that has country
template if you need a company code for a country that has a country template, you can use the
country installation program to copy the country-specific tables from the country template to
company code 0001. Company code 0001 is then configured for the corresponding country. You
should then copy this company code into your new company code. You may then start the country
installation program again to create a template for another country and so on. The country
installation program not only creates a country-specific company code template but also a
country-specific template for controlling areas, plants, purchasing organizations, sales
organizations, credit control areas, financial management areas, and so on. Do not forget to copy
the country template before you continue. Do not use company code 0001 as your productive
 company code because the country version program always uses this company code as the target
company code. Also, you should only run the country installation program in a new installation of
mySAP ERP and not in an upgrade installation. This is because the structure of the country-
specific Customizing may have changed from one mySAP ERP release to another .

1.3 Variant Principle

 Variant Principle: Define the variant; Determine the value; Assign the variant to
the object. (The variant principle is used for field status, fiscal year, posting
period.)

1.4 Fiscal Year

 The fiscal year can be defined as year specific (where period can vary from year to
year) or year independent. To assign business transactions to different periods,
you have to define a fiscal year with posting periods. You define the fiscal year as
a variant that is assigned to the company code. The fiscal year variant contains the
definition of posting periods and special periods. Special periods are used for
postings that are not assigned to time periods, but to the business process of year-
end closing. In total, you can define 16 periods. The system derives the posting
period from the posting date.

If the posting date falls within the last normal posting period, you can post the transaction in one
of the special periods. The posting period could be comprised as follows: Period
13=accrual/deferral postings; period 14= audit postings; period 15=general meeting of
shareholders: period 16= adjustment postings .

To post in special periods conditions are to be met are: The posting date must be in the last
posting period ( irrespective it is open or close); special period must be open, special period must
be entered manually; and optionally authorization to post in special period must be given.

 If each fiscal year of a fiscal year variant uses the same number of periods, and the
posting periods always start and end on the same day of the year, the variant is
 year-independent. A year-independent fiscal year variant can be defined as:
Calendar year or Non-calendar year

 If the fiscal year is defined as the calendar year, the posting periods are equal to
the months of the year. Therefore, a fiscal year that is a calendar year must have 12
posting periods. If the fiscal year differs from the calendar year, but the posting
periods correspond to calendar months, the day limit for February should be 29 to
consider leap years. Fiscal years are normally year-independent. If the fiscal year
is defined as a non-calendar year, you have to define the posting periods by
assigning end dates to each period. A non-calendar year can have between 1 and
16 posting periods. If the non-calendar year does not start on January 1st, the
periods of the year that belong to the former or the coming fiscal year must have
an indicator -1 or +1.

 If one year of a fiscal year variant has less posting periods than the others, it is
called a shortened fiscal year. You have to define the shortened fiscal year and its
number of posting periods before you can define the period dates. For this year,
you can only assign a lower number of posting periods.

 In G/L accounts you can have not more than 16 posting periods. You can have
maximum 366 periods only in case of special purpose ledger. If you use multiple
ledgers (classical approach) you also have the option of defining a different fiscal
year in non-leading ledgers.

1.5 Currencies

 A currency key must be assigned to every currency used. Most currencies are
already defined in the SAP System with standard international currency keys. Each
currency key can have a validity date.

 For every combination of two currencies, you can maintain different exchange
rates which are distinguished by an exchange rate type. These can be used for
various purposes such as valuation, conversion, translation, and planning.
Exchange rate types are: Historical; Bank buying; Bank selling; the average; on a
certain Date. Currency key is to be assigned for a currency which has a validity
date. The relationship between currencies must be maintained per exchange rate
type and currency per using translation ratios
 Maintaining exchange rates is an on-going task. To reduce maintenance, mySAP
ERP offers several tools. For each exchange rate type you can use one of the
following tools: Inversion (of the tools available, inversion is the oldest and is
seldom used today); Base currency; Exchange rate spreads. You can only use one
of these tools for each exchange rate type. You can however use different tools for
different exchange rate types.
Using report RFTBFF00, which enables you to transfer external market data in file form; you can
automatically update the exchange rate table by uploading an input file in Multi-cash form. You
can also use the reports RFTBDF07 and RFTBDF14 to transfer exchange rates; the data is
transferred real time using a data feed interface if the external data feed supports real time
provision of exchange rates. Remote Function Call (RFC) creates a direct connection between an
external system and the SAP System. For more information about the file input format, data
providers, file structures, and so on, see the documentation for this report .

 Exchange rate spreads between the bank buying/selling rate and average rate usually
remain constant. If the exchange rate spread of an exchange rate type is entered in the
system, you only have to maintain the average rate since the buying and the selling rate
can be derived by adding/subtracting the exchange rate spread to/from the average rate.

Combination of base currency and exchange rate spreads is a very efficient combination of the
exchange rate tools.. Using a base currency for the average rate (M); using the exchange rate
spreads to calculate the buying and selling rates (B and G)

 A base currency can be assigned to an exchange rate type . You then only have to
maintain exchange rates for all other currencies into this base currency. The
relationship between currencies must be maintained per exchange rate type and
currency per using translation ratios. A translation between two foreign currencies
is calculated via the base currency, that is, by combining two exchange rates.

 You can use more than one base currency per exchange rate type. Legal
requirements may make it necessary to use different base currencies for the
translation into different currencies. All mySAP ERP applications and functions
process exchange rates using direct quotation as well as indirect quotation. In
direct quotation, one unit of foreign currency is quoted for the local currency,
whereas in indirect quotation, one unit of local currency is quoted for the foreign
currency. For each currency pair you can define either the direct quotation or the
indirect quotation as the standard notation for the exchange rate. If the exchange
rate you enter does not have the same quotation as the standard quotation set up
here, the exchange rate is highlighted to show this. Whether the exchange rate is
defined or communicated using the direct or indirect method of quotation depends
on the market standard or the individual business transaction. The use of indirect
quotation is neither application nor country-specific - it affects all the components
in which exchange rates are used.
You can define authorization work list to maintain relevant exchange rates in lots of companies,
the maintenance of the exchange rate table TCURR is shared by several employees. You can
define work-lists and then maintain the exchange rates using the transaction TCURMNT. This has
the following advantages: Only the relevant exchange rates can be maintained. You can also
assign authorizations for work-lists. . Only the relevant quotation can be maintained. The work-
list is smaller and therefore clearer. Parallel processing of different work-lists is possible.
Questions

1 The length of G/L account number should be mentioned in

a G/L account groups
b G/L account
c Chart of accounts
d None of the above

2 If we are using the same chart of account in more than one company
code
a The company code segments are same in all company codes
b The account name and account number is the same in all company codes
c The currency in company code segment in all company codes is the same
d The group account number is different in all company codes

3 The appearance of the company code segment of a G/L account is based

on
a Account group entered in the chart of account segment
b Group account number entered in chart of account segment
c Assignment of group chart of account in chart of account
d None of the above

4 Postings in a company code are done in G/L account of

a Consolidation chart of accounts
b Operative chart of accounts
c Country chart of accounts
d   All of the above

5 Posting in a G/L account is controlled by

a Account group of the G/L account
b Field status group in the chart of accounts segment
c Field status group in the company code segment
d All of the above

5 Which of the following is true?

a Company code can have one retained earnings account only
b Company code can have more than one retained earnings account
c Chart of accounts can have more than one retained earnings account
d Chart of accounts can have one retained earnings account only
e None of the above
7 Which of the following is true for account group?
a Account group controls the document field status
b Account group controls the number range of G/L accounts
c Account group controls the master record field status
d All of the above

8 Each account code in alternate COA can be mapped to following number

of account codes in operating COA
a Only one account code
b Maximum three account codes
c Many account codes
d It cannot be mapped

9 Following fields form part of the chart of account segment of a G/L

account master
a Account currency
b Account group
c Field status group
d Option to state whether it is a balance sheet or profit and loss type
account

10 Retained earnings account is

a Specific to company code
b Specific to client
c Specific to chart of accounts
d None of the above

11 If a G/L account is defined using a sample account, following data is

referenced from the sample account
a The control data in COA segment
b Only company code segment data
c Only account control and account management data in company code
segment
d Entire master data

12 While creating a sample account, following information may be entered

a Only company code segment data
b Only COA segment data
c Both COA segment and company code segment data
d Only account control and account management data from company code
segment
e Only control data of COA segment
13 Account groups are used to control the following properties
a Field status of transaction fields
b Field status of master fields
c Field status of master fields and number range
d Field status of master fields, number range and whether accounts are P &L
or B/S

14 You can post transactions to an account in any currency only if

a Account currency is not maintained
b Account currency is same as local currency of the company code
c Account currency is different from company code currency
d Under all circumstances

15 You can carry forward P&L account balances to

a Multiple retained earnings accounts, automatically
b Single retained earnings account, automatically
c Multiple retained earnings accounts, through period end processing
d Only C227Single retained earnings accounts, through period end
processing

16 Every company code must have

a Operational COA
b A country COA
c A group COA
d At least two chart of accounts

17 What is meant by the option open items management in a G/L account

master record
a Items on that account can never be cleared
b Items on that account can be cleared
c No balances are available for that account
d None of the above

18 What is meant by the option line item display in a G/L account master
record
a Only line items can be displayed
b Only balances can be displayed
c Line items and balances can be displayed
d None of the above

19 Updating of reconciliation account

a Happens on a daily basis
b Is real time update
c Happens after the end of the posting period
d None of the above

20 Name the tools for maintaining the exchange rates

a Inversion
b Base currency
c Exchange rate spreads
d Baying rate

21   While posting a GL doc, 2 different field status(for posting key & GL a/c)has an
impact on the posting. What happens if the field status is required entry &
other one is hidden entry?
a   Document can be posted anyway
b   Error message will occur
c   The field will be available for entry
d Field will be hidden

22 Currency assigned in company code master is

a Transaction currency
b Group currency
c Hard currency
d Local currency

23 Which of the following is true?

a Company code can have one retained earnings account only
b Company code can have more than one retained earnings account
c Chart of accounts can have more than one retained earnings account
d Chart of accounts can have one retained earnings account only
e None of the above

24 Which of the following is true for account group?

a Account group controls the document field status
b Account group controls the number range of G/L accounts
c Account group controls the master record field status
d All of the above

25 Every company code can have following combinations as chart of

accounts (COA)
a One operating COA and many group COAs
b Many operating COAs and one group and one alternate COA
c One operating COA and one alternate COA
d One operating, one group and one alternate COA
Answers

1
a F
b F
c T
d F

2
a F
b T
c
F
d F

a T
b F
c F
d F

4
a F
b T
c F
d F

5
a F
b F
c T
d F

5
a F
b T
c T
d F
e F

7
a F
b F
c T
d F

a T
b F
c F
d F

9
a F
b T
c F
d T

10
a F
b F
c T
d F

11

a F
b T
c
F
d F

12
a F
b F
c T
d
F
e F

13
a T
b T
c T
d
F
14
a F
b T
c F
d F

15
a F
b F
c T
d F

16
a T
b F
c F
d F

17

a F
b T
c F
d F

18

a T
b F
c F
d F

19
a F
b T
c F
d F

20
a T
b T
c T
d F

21

a F
b T
c F
d F

22
a F
b F
c F
d T

23
a F
b T
c T
d F
e F

24
a F
b F
c T
d F

25

a F
b F
c T
d T
QUESTION
S

1 Pre-closing activities that begin in the old month include: (2)

a Open new accounting period
b Foreign currency valuations and financial statement adjustments
c Enter accruals/deferrals, process recurring entries and bad debt expense
in AR, post depreciation and interest expenses in asset accounting
d Creation of external and internal reports

2 Identify the correct statement(s) relating to how the main business

processes are integrated in the SAP R/3 system. (2)
a 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
b
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 ofR/3.
c In SAP, payment processing reduces the liability to a vendor and a
company codes cash balance, records discounts taken and disburses
payment.
d 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.

3 In which of the following phase the cut-over activities are carried out?
(2)
a Project preparation
b Blueprinting
c Realization
d Final Preparation
e Go-live and support

4 Which SAP NetWeaver component ensures company-wide unification of

data and information in heterogeneous IT environments?
a Enterprise Portal
b Knowledge Management
c Enterprise Search
d Master Data Management

5 Which three major areas are supported SAP Solution Manager during
operations (3)
a Computer center management system
b Process reengineering
c technical implementation
d  
Solution Monitoring
e Operation Management
f Support desk

6 What are the phases of a Fixed Asset within a Company? (1)

a Acquisition, Master Data, Transference, Desincorporation, Depreciation,
Admministration Data
b Acquisition, Master Data, Transference, Desincorporation, Depreciation,
Accounting Data
c Investment, Master Data, Transference, Desincorporation, Depreciation,
Finance Information
d Investment, Master Data, Transference, Desincorporation, Depreciation,
Administrative data

6 Activating Document splitting will consist of following steps. True /

False: (3)
a Splitting is first activated client-wide in customizing.
b Inheritance must be activated at the level of detail to project segment.
c Inheritance must be activated when document splitting is active.
d It is not mandatory to activate document splitting or inheritance.

Which of the following segments contains the general data of a

customer or vendor that can be accessed throughout the organization?
7 (1)
a Organization level
b Client level
c Company code
d Account level

8 True or False: Please choose the correct answer. (3)

a The New GL is optional for existing SAP Customers.
b New SAP customers will have to activate New GL by Default.
c ECC 6.0 will prohibit the use of PCA above General Ledger.
d The new SAP Installation will choose between Old and New Ledger.
e Customers within New Ledger will have limited extensibility.

9 State true or false in respect of vendor and customer master data (2)
a In Financial Accounting, after the customer or vendor account is created,
you can no longer change the account group
b A one-time account master record contains information about a specific
customer or vendor
c Customer and vendor accounts can use the same number ranges
d
The field status entries in individual areas, such as account group, activity,
and company code, compete with each other and the field status with the
 highest priority is use

Answers

1
a T
b F
c T
d F

2
a T
b F
c T
d F

3
a T
b T
c F
d F
e F

4
a F
b F
c F
d T

a F
b F
c F
d T
e T
f T

6
a F
b T
c F
d F
6
a
T
b T
c T
d F

7
a F
b T
c F
d F

8
a T
b T
c T
d F
e F

9
a T
b F
c F
d T
QUESTIONS

1 Validations are used (Which is true) (1)

a To substitute values in fields
b To support data entry
c To validate the data being entered is meeting certain criteria when certain
prerequisites are met

2 Posting using the special G/L indicator updates (1)

a Sub ledger only
b Sub ledger and the general ledger accounts
c General ledger account only

3 Which of the following is true? (1)

a Any accounting document can be reversed
b Only documents posted through the parking method can be reversed
c Only documents with external numbering can be reversed
d Only documents with internal numbering can be reversed

4 Accounting for down payment request involves (1)

a Statistical items
b Parked items
c Noted items
d Regular items

5 Validations are used (1)

a To substitute values in fields
b To support data entry
c To validate the data being entered is meeting certain criteria when
certain prerequisites are met
d None of the above

6 Choose correct Answers from followings (2)

a You can use F1 key to obtain the technical details of the field
b You can use F4 key to call the SAP library
c In business term, the client is independent unit
d Radio button allows you to have multiple input

7
A company uses Change Request Management with SAP Solution Manager
to document and transport changes. After a successful log-on to the SAP
Solution Manager system, a new developer is not able to process a change
request on the SAP Solution Manager system. What is a possible reason for
this (1)
a The user ID of the new developer has not been assigned to a business partner
in the Employee role
b The developer is not logged on to the development system
c The developer does not have a valid developer key in the SAP Solution
Manager system
d The development system is located in a transport domain different from the
SAP Solution Manager system

8 Which of the following statements are TRUE regarding SAP Solution

Manager? (2)
a It is the same tool-set as ASAP.
b It is an integrated platform that controls both implementation and operation
of the live system.
c Supports customers in ALL project phases, from creating a blueprint to
configuring business processes and testing through support of the live
environment.
d Documentation in SAP Solution Manager is limited to the documentation
types delivered by SAP.

9
The downtime of a SAP system is a crucial aspect within an upgrade project.
What do you recommend to keep system downtime to a minimum? (2)
a Use the latest service release for the upgrade
b Use a powerful separate hardware for the shadow instance
c
Use the incremental conversion (ICNV) for large tables that need to be
converted
d Use the parallel processing option of R3 load to speed up the import of the
shadow repository
Answers

1
a F
b F
c
T

2
a F
b T
c F

3
a T
b F
c F
d F

4
a F
b F
c T
d F

5
a F
b F
c T
d F

6
a T
b F
c T
d F

7
a T
b F
c F
d F
8
a F
b T
c T
d F

9
a T
b F
c T
d F
QUESTIONS

1 Into which types can special GL transactions divided? (3)

a   Interest
b   Noted Item
c    Automatic offsetting entry
d    Value adjustment
e    Free offsetting entry

2
During organization 2 cost centers are merged & all future posting should
go through only one of them. The posting are made to wrong cost center.
In future for FI posting your customer wants to ensure that the wrong cost
center is automatically replaced by the correct one.(1)
a Define substitution for the line item call
b Select a user specific program to substitute the wrong cost center
automatically right
c Define substitution in FI with wrong cost center as a prerequisite & correct
one as substitute value

3 Down payment can be posted using a special GL transaction. What is

benefit? (1)
a It shows data in appendix of Bal sheet
b It posts down payment to a recon a/c that is different from order pay &
recon
c    Automatically clears down payment against final invoice
d Automatically clears down pay request

4 Which are the necessary steps to create a validation? (1)

a Prerequisite, check, update, control
b Check, update, message
c Check, control, message
d Prerequisite, check, message

5 Which of the following is a typical process

sequence in Product Sale from Stock? (1)
a Purchase requisition -> Billing -> Transport/Goods
receipts -> Dunning and payment
b Purchase requisition -> Delivery/Transport -> Dunning
and payment -> Billing
c Incoming order -> Transport/Delivery -> Billing ->
Dunning and payment
d Incoming order -> Goods receipts/Transport -> Dunning
and payment -> Billing
6 To meet the new rules and regulations, organizations now have to
store employee background information and the credit rating of its
buyers and suppliers. These are made available using industry
Standard protocols for application integration. Which of the
Following technology solutions will enable organizations to
integrate? (1)
a SAP mobile infrastructure (SAP MI)
b SAP business information warehouse (SAP BW)
c SAP master data management (SAP MDM)
d SAP exchange infrastructure (SAP XI)

7 Which SAP netweaver component ensures company wise verification of

data & information ? (1)
a   Master data management
b    Business warehouse
c   Enterprise portal
d    Knowledge management

8 Which scenario solution manager use? (3)

a   Operations
b   Implementation
c   Optimization
d Retirement
e Scoping

9 What are processes for posting a vendor invoice in FI? (2)

a   Create company code in vendor master
b Create purchase segment in vendor master
c   Activate & configure the doc splitting junction
d Set up number range for vendor invoice
Answers

1
a F
b T
c T
d F
e T

2
a F
b
F
c T

3
a F
b T
c F
d F

4
a F
b F
c F
d T

5
a F
b F
c T
d F

6
a F
b F
c F
d T

7
a T
b F
c F
d F

8
a T
b T
c T
d F
e F

9
a T
b F
c F
d T