Interview Questions:

Your interview was for an FICO (Financial Accounting and Controlling) position. When implementing FI and CO, you need the following key organizational structures:

• Company Code (FI) - Represents an independent legal entity for financial reporting.
• Controlling Area (CO) - Defines the structure for cost accounting and internal management.

• Plant (MM - Materials Management)
• Sales Area (SD - Sales & Distribution), including: 
• Sales Organization
• Distribution Channel
• Division
• Purchasing Organization (MM - Procurement & Inventory Management)

Business Processes:

1) Procure-to-Pay (P2P)

1. Requirement Identification - The business identifies a need for goods or services, and the respective department issues a Purchase Requisition (PR).
2. Supplier Selection - The purchasing organization reviews the PR, identifies potential suppliers, and issues a Request for Quotation (RFQ). Suppliers respond with pricing, delivery timelines, and product availability.
3. Purchase Order Creation - After evaluating supplier responses, a Purchase Order (PO) is created and sent to the selected supplier.
4. Goods Receipt (GR) - Upon delivery, a goods receipt is recorded, and inventory is updated.
5. Invoice Receipt (IR) & Verification - The supplier submits an invoice, which is verified against the PO and GR. Once confirmed, the invoice is posted in FI, creating a liability in the vendor's account.
6. Payment Processing - Based on agreed payment terms, the invoice is settled, and the payable is cleared, completing the procurement process.

2) Order-to-Cash (O2C)

1. Pre-Sales Activities - Engaging with potential customers and providing price quotations.
2. Sales Order Creation - Upon customer confirmation, a Sales Order (SO) is generated, specifying item details, quantities, and delivery schedules.
3. Delivery & Shipping - Goods are prepared for delivery and shipped to the customer.
4. Goods Issue - The inventory is updated in MM to reflect the stock reduction.
5. Billing & Invoice Generation - An invoice is issued to the customer, and the billing document is recorded in FI as a receivable in the customer's account.
6. Payment Collection - The customer settles the invoice via cash, check, bank transfer, or direct debit. The payment clears the outstanding receivable, completing the O2C process.

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SAP Controlling

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SAP FI (Financial Accounting) Configuration Hints and Tips

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SAP ABAP/4 Programming, Basis Administration, Configuration Hints and Tips