Yes. One Fiscal Year Variant can be assigned to multiple company codes, but one company code can have only one fiscal year variant.

No. Cheque numbers are unique and strictly controlled.

Cheque status updated
Bank balance restored
New cheque issued if required

PDC is a cheque with future date. In SAP, it is tracked separately until clearance.

OBY6 is used to define global parameters for a company code, controlling currency, fiscal year, chart of accounts, and posting rules in SAP FICO.

FCH5 is used to:
- Create cheque information
- Display cheque details
- Track cheque status

Cheque Lot is a range of cheque numbers received from bank.

FCHI is used to create cheque lots. Cheque lot defines:
- Bank
- Cheque number range

Cheque Management is used to:
- Print cheques
- Track cheque numbers
- Monitor cheque status (issued, cleared, cancelled)

Possible reasons:
- No bank GL account
- Payment method not assigned
- House bank not assigned to payment program

FBZP is used to configure automatic payment program. House Bank is defined inside FBZP.

It happens when:
- Opening balance is not maintained
- Wrong postings done
Proper cash count and reconciliation is required.

Because:
- It is legally critical
- High business impact
- Errors lead to penalties

No. Tax code is mandatory for GST applicable transactions.

GST is applicable at time of advance receipt/payment, depending on rules.

Reverse document
Repost with correct tax code
GST corrections should be done carefully.

SAP checks:
- Company GSTIN
- Customer/Vendor GSTIN
Based on this, CGST+SGST or IGST is applied.

Used to assign company code to non-taxable tax codes.

Used to assign posting keys to company code for tax postings.

Used to assign company code to GST tax procedures.

OB40 is used to assign GST GL accounts to tax accounts.

To post:
- Input tax
- Output tax
- Tax payable
- Tax credit
Without GL mapping, posting fails.

FTXP is used to create GST tax codes for:
- Sales
- Purchases
Tax rates are maintained here.

OBBG is used to assign country to tax calculation procedure.

Tax Calculation Procedure defines:
- Sequence of tax calculation
- Which tax applies first
- Base amount for tax
Also configured using OBYZ.

OBCN is used to check and change tax processing settings.

Condition Type represents tax components like:
- CGST
- SGST
- IGST
Defined using OBYZ.

Because GST depends on:
- Place of supply
- Tax rates
- Business location
- Input tax credit rules
SAP handles this using condition technique.

Cost center is mandatory for depreciation posting, not acquisition.

Yes, especially for Asset Under Construction (AUC).

Costs remain open and month-end close is incomplete.

Cost Center, because:
- Regular recurring cost
- Department-based

Internal Order, because:
- One-time activity
- Needs separate cost tracking

Yes, but business rule decides priority.

One posting updates:
- FI (GL account)
- CO (Cost center / Internal order)

Because internal order is temporary and cannot hold balances permanently.

Settlement transfers costs from:
Internal order → Cost center / Asset / Profit center

Used to create internal order.

Used to define number ranges for internal orders.

Order Type controls:
- Number range
- Settlement rule
- Status management
Defined using KOT2.

Cost Center:
- Permanent
- Department-based
- Long-term

Internal Order:
- Temporary
- Activity/project-based
- Short-term

Internal Order is used to collect costs for a specific purpose or project. Example:
- Marketing campaign
- Repair work
- Short-term project

Yes, if company codes belong to same controlling area.

- Wrong depreciation key
- Wrong asset class
- Missing cost center

AUC is used for assets not yet ready for use.

Different laws require different depreciation values.

Balance sheet becomes incorrect, and audit issues occur.

Yes, by reversing depreciation run before period close.

Sale value – Net book value = Profit or Loss

Selling asset to a customer with or without revenue.

Asset retirement means removing asset from books.

Controls which fields appear during asset creation.

Used during integrated asset acquisition. Acts as a temporary clearing between:
- Vendor
- Asset

Account Determination links:
Asset class → GL accounts
It decides where asset values are posted.

To:
- Post asset values
- Track acquisition cost
- Post depreciation
Created using FS00.

Depreciation Areas represent different valuation views of assets. Example:
- Book depreciation
- Tax depreciation

Yes. If they follow same depreciation rules.

Because depreciation rules differ by:
- Country laws
- Accounting standards
Example:
- India – Companies Act
- IFRS / Local GAAP

Chart of Depreciation defines rules for depreciation calculation. It is country-specific and used across company codes.

To ensure:
- Sub-ledger & GL always match
- No manual manipulation

Use:
- Residual payment
- Or post as advance
Handled through tolerance & clearing.

Reverse wrong document
Or clear using credit memo
Depends on business policy.

OBYR is used to define Special GL indicators for vendors.

Used for:
- Down payment
- Guarantee
- Bill of exchange
Handled separately from normal vendor balance.

OBXU is used to maintain automatic posting accounts for vendor-related transactions.

Partial:
- Invoice remains open
- Multiple open items
- Less used

Residual:
- Invoice cleared
- One open item
- More common

Residual payment clears invoice partially and creates new open item for balance.

By checking:
- FBL5
- Reconciliation account
- Document flow

Use:
- Residual payment
- Partial payment
- Tolerance settings
Depends on business requirement.

OBXR is used to define Special GL indicators for customers.

Special GL is used for special customer transactions like:
- Down payment
- Guarantee
- Bill of exchange

OBXI is used to maintain automatic posting accounts for AR transactions.

Partial payment does not clear invoice. Invoice remains open and payment is shown separately.

Residual payment clears invoice partially and creates new open item for remaining amount.

Yes, in real-time business CO is mandatory, especially in S/4HANA where Universal Journal integrates FI & CO.

Postings will:
- Fail or
- Go to error accounts
FI-CO integration is mandatory for expense postings.

Yes, if:
- Same fiscal year variant
- Same currency (or conversion allowed)

OKKP is used to create Controlling Area. We define:
- Fiscal year variant
- Currency
- Cost center standard hierarchy

Controlling Area represents internal cost tracking. It is used to monitor:
- Costs
- Revenues
- Profitability
It works closely with FI module.

Yes. Different retained earnings accounts can be assigned for different P&L account types.

Yes. Fields can be suppressed, but key accounting fields should never be suppressed.

If Cost Center is mandatory for expense accounts:
- You mark Cost Center as Required
- Posting without cost center is blocked
This ensures proper cost tracking.

SAP follows priority rule:
Required > Optional > Suppressed
If one says required and other suppressed → Required wins.

Key fields:
- Posting key
- Cost center
- Profit center
- Assignment
- Text
- Business area

Field Status Group is assigned to GL accounts. It decides which fields appear when that GL is used.

OBC5 is used to assign Field Status Variant to Company Code.

OBC4 is used to define Field Status Variant and Field Status Groups.

To:
- Avoid unnecessary data entry
- Enforce mandatory fields
- Improve data accuracy
- Maintain clean accounting documents

Field Status Variant controls which fields appear during posting and whether they are:
- Required
- Optional
- Suppressed
- Display only
It controls screen behavior in FI postings.

Yes.
Example:
- GL & Vendor periods closed
- Asset period still open for depreciation posting
This is commonly used during month-end close.

Manual Cheque:
- Entered manually
- Less control
- Error-prone

Automatic Cheque:
- System assigned
- Full tracking
- Audit safe

Vendor A/c Dr
To Bank A/c

Flow:
- Vendor payment posted
- Cheque assigned
- Cheque printed
- Cheque cleared in bank

Bank Master:
- External bank details
- IFSC, address
- Used for reference

House Bank:
- Company's bank
- Linked to company code
- Used for posting

Yes. Example:
- Current Account
- Salary Account
- Collection Account
Each account has separate GL.

Bank GL account represents actual bank balance in SAP. Each house bank account is linked to one GL.

Because SAP needs:
- Bank GL account
- Payment method
- Bank details
Without house bank, payments cannot be processed.

House Bank represents company's bank account in SAP. It is required for:
- Customer receipts
- Vendor payments
- Cheque processing

Yes, but only if:
- Tax code is enabled
- Business allows GST on petty expenses
Otherwise GST is normally avoided.

Expense A/c Dr
To Cash A/c

FBCJC2 is used to assign GL accounts to Cash Journal transaction types. Example:
- Stationery → Stationery Expense GL
- Travel → Travel Expense GL

FBCJC1 is used to define number range for Cash Journal documents.

FBCJC0 is used to create Cash Journal. Here we define:
- Company code
- Cash GL account
- Currency

Because:
- Petty expenses are frequent
- Posting via F-02 is time-consuming
- Cash journal gives simple entry screen
- Better control & transparency

Cash Journal is a tool in SAP to manage cash receipts and payments centrally. It simplifies:
- Posting
- Tracking
- Reporting of cash transactions

Affects:
- Tax liability
- Input credit
- P&L and balance sheet

GST amount becomes expense, not recoverable.

ITC is GST paid on purchases which can be adjusted against output GST liability.

Expense / Asset A/c Dr
Input GST A/c Dr
To Vendor A/c

Customer A/c Dr
To Revenue A/c
To Output GST A/c

Tax Code represents:
- Tax percentage
- Input or output tax
- GL posting behavior
Example:
- I1 – IGST 18%
- C1 – CGST+SGST

GST (Goods and Services Tax) in SAP is used to manage indirect tax calculation, posting, and reporting for India. It replaces:
- VAT
- Service Tax
- Excise
SAP supports CGST, SGST, IGST through configuration.

Electricity bill posted to:
- Expense GL
- Cost Center: Admin
This helps track Admin department costs.

System gives error if cost center is mandatory. This ensures expense accountability.

Cost Center Hierarchy organizes cost centers in tree structure for reporting and control.

Cost Center helps:
- Track departmental expenses
- Control costs
- Analyze profitability
- Support management decisions

A Cost Center represents a location or department where costs are incurred. Examples:
- HR department
- IT department
- Finance department
It is mainly used for internal cost tracking.

Expected time asset generates economic benefit.

Capitalization date determines start of depreciation.

Depreciation Expense A/c Dr
To Accumulated Depreciation A/c

Depreciation run posts:
- Depreciation expense
- Accumulated depreciation
Usually run monthly.

Depreciation posting distributes asset cost over useful life.

Asset A/c Dr
To Vendor A/c

Two ways:
- Integrated acquisition (with vendor)
- Manual acquisition (without vendor)

Number range controls asset numbering. Defined per asset class.

Depreciation Key defines:
- Method of depreciation
- Useful life
- Rate of depreciation
Example:
- Straight Line
- Declining Balance

Asset Master Data contains:
- Asset description
- Asset class
- Cost center
- Depreciation details
It is the foundation for asset postings.

Asset Class groups similar assets together. It controls:
- Number range
- GL accounts
- Screen layout
Example:
- Building
- Furniture
- Computers

Because fixed assets:
- Have high value
- Used for long term
- Affect balance sheet & P&L
Asset Accounting ensures legal compliance and accurate valuation.

Asset Accounting manages fixed assets like:
- Land
- Buildings
- Machinery
- Vehicles
- Computers
It tracks:
- Asset acquisition
- Depreciation
- Asset sale
- Asset retirement

AR:
- Money receivable
- Customer focused
- F-22 / F-28

AP:
- Money payable
- Vendor focused
- F-43 / F-53

Because it is posted using Special GL indicator, not normal vendor balance.

F-54 is used to clear vendor down payment against invoice.

Vendor Down Payment A/c Dr
To Bank A/c

F-48 is used to post vendor down payment.

OBB8 defines cash discount terms applicable for vendor payments.

Vendor Cash Discount is discount received for early payment.

Vendor A/c Dr
To Bank A/c

Expense / Asset A/c Dr
To Vendor A/c

Reconciliation Account is a GL account where vendor balances are updated automatically. Direct posting to this GL is not allowed.

Vendor Tolerance Group controls:
- Payment differences
- Residual and partial payments
Configured using OBA3.

OBAS is used to assign vendor account group to number range.

XKN1 is used to define number ranges for vendors.

Vendor Account Group controls:
- Number range
- Mandatory / optional fields
- Vendor type (Domestic, Import, One-time)
Defined using OBD3.

Vendor Master Data stores supplier-related information such as:
- Name and address
- Bank details
- Payment terms
- Reconciliation account
It is mainly used for procurement and payment processing.

Because it is posted using Special GL indicator, not regular AR.

F-39 is used to clear customer down payment against invoice.

Bank A/c Dr
To Customer Down Payment A/c

F-29 is used to post customer down payment.

SAP automatically posts:
- Discount to Cash Discount GL
- Difference handled via tolerance

OBB8 is used to define cash discount terms like:
- Percentage
- Valid days
- Discount base

Cash Discount is discount given for early payment.

Residual:
- Invoice cleared
- New balance created
- Used commonly

Partial:
- Invoice open
- Separate open item
- Used rarely

Bank A/c Dr
To Customer A/c

Customer A/c Dr
To Revenue A/c
To Tax A/c

It ensures:
- AR sub-ledger always matches GL
- Automatic integration
- Accurate balance sheet

Reconciliation Account is a GL account linked to customer. All customer postings automatically update this GL account. Direct posting to reconciliation account is not allowed.

Customer Tolerance Group controls:
- Payment differences
- Residual posting
- Partial payment limits
Configured using OBA3.

OBAR is used to assign customer account group to number range.

XDN1 is used to create number ranges for customer accounts.

Customer Account Group controls:
- Number range
- Field status
- Customer type (Domestic, Export, One-time)
Defined using OBD2.

Customer Master Data stores all customer-related information such as:
- Name & address
- Payment terms
- Reconciliation account
- Credit limit
It is used across Sales, Finance, and Reporting.

It helps management:
- Analyze cost behavior
- Control expenses
- Improve profitability

When you post Rent expense:
System automatically updates:
- GL account (FI)
- Cost Center (CO)

FI:
- External reporting
- Legal requirement
- Balance sheet focus

CO:
- Internal reporting
- Management purpose
- Cost & profit focus

Posting:
- Creates accounting entry
- Generates document

Clearing:
- Settles open items
- Closes open balances

F-04 is used for GL clearing. Example:
- Clearing advance received
- Clearing suspense account balances

Year-end closing cannot be completed, and system throws error during balance carry forward.

OB53 is used to assign Retained Earnings Account to the Chart of Accounts.

Retained Earnings Account stores net profit or loss at year-end. All P&L account balances are transferred to this account automatically.

OBD4 is used to define Account Groups in Chart of Accounts.

It helps:
- Organize GL accounts logically
- Prevent wrong account creation
- Apply control on financial structure

Account Group controls:
- Number range of GL accounts
- Screen layout during GL creation
- Type of account (Balance Sheet / P&L)

OB62 is used to assign Chart of Accounts to Company Code. Without this assignment, company code cannot post any entry.

OB13 is used to create or edit Chart of Accounts. Here we define:
- COA name
- Language
- Length of GL account numbers

Yes. One COA can be assigned to multiple company codes, provided they follow same accounting structure.

Operating COA: Used for daily postings
Group COA: Used for consolidation
Country COA: Used for statutory reporting

Chart of Accounts (COA) is a list of all General Ledger (GL) accounts used by a company code. It defines how financial data is structured, posted, and reported in SAP. Without COA, no accounting postings are possible.

Yes. Tolerance groups are company code specific.

Customer/Vendor Tolerance Group controls:
- Payment differences
- Residual item posting
- Partial payment handling
Configured via OBA3.

OB57 is used to assign users to tolerance groups. Without assignment, tolerance limits will not apply.

It ensures:
- Junior users cannot post huge amounts
- Posting authority is controlled
- Risk of fraud is reduced

Employee Tolerance Group controls:
- Maximum amount a user can post
- Allowed cash discount difference
- Payment difference limits
Configured using OBA4.

There are mainly:
- Employee Tolerance Group
- Customer/Vendor Tolerance Group

Tolerance Group defines limits for posting differences, such as:
- Cash discount difference
- Payment difference
- Maximum posting amount
It prevents unauthorized or wrong postings.

Only senior FI consultants or finance leads. Giving OB52 access to end users is a major audit risk.

A: Asset
D: Customer
K: Vendor
S: G/L
+: All account types

OB52 is used to open and close posting periods. We can control:
- Period range (from – to)
- Fiscal year
- Account type (A, D, K, S)
It is one of the most sensitive transactions in FI.

Posting Period control is required to:
- Prevent wrong back-dated postings
- Stop postings in closed months
- Ensure proper month-end and year-end closing
- Maintain audit control

Posting Period Variant controls which accounting periods are open for posting in a company code. It decides who can post, when they can post, and for which account types (GL, Customer, Vendor, Asset).

Fiscal Year Variant:
- Defines year structure
- Number of periods
- Assigned to company code

Posting Period Variant:
- Controls posting
- Open/close periods
- Assigned to company code

Enterprise Structure defines how the business is represented in SAP. If it is designed wrongly:
- Reporting becomes incorrect
- Legal compliance fails
- Consolidation becomes complex
So interviewers always test concept clarity here first.

Yes. One Credit Control Area can be assigned to multiple company codes, especially when companies belong to the same group and want centralized credit management.

Credit Control Area is used to manage customer credit limits. It controls how much credit a customer can use across one or multiple company codes. It helps avoid bad debts and over-exposure.

Company:
- Used for legal consolidation
- One company can have many company codes
- No transactions posted

Company Code:
- Used for daily accounting
- Posting happens only here
- All FI transactions posted

A Company in SAP represents the legal entity of an organization. It is mainly used for legal consolidation and reporting at group level. A company can have multiple company codes under it. In real projects, company is used for consolidated financial statements, not for daily postings.

FBCJ is used to post petty cash transactions like:
- Cash payment
- Cash receipt

Petty Cash is used to record small day-to-day cash expenses like:
- Tea / snacks
- Auto / travel
- Office stationery
Instead of creating separate vouchers, SAP uses Cash Journal for easy handling.

CGST: Intra-state (Central)
SGST: Intra-state (State)
IGST: Inter-state

KS03 is used to display cost center.

KS02 is used to change cost center.

KS01 is used to create cost center.

AS01 is used to create asset master.

F-53 is used to post outgoing payment to vendor.

FBL1 is used to display vendor line items such as:
- Invoices
- Payments
- Credit notes

F-43 is used to post vendor invoice.

F-28 is used to post incoming customer payment.

FBL5 displays customer line items such as:
- Invoices
- Payments
- Credit notes
Used for reconciliation and follow-up.

F-22 is used to post customer invoice. It creates:
- Customer debit
- Revenue credit
- Tax posting (if applicable)

FBL3 displays GL line item reports. It helps to:
- Track transactions
- Audit postings
- Analyze balances

F-02 is used for manual GL postings. It is commonly used for:
- Journal entries
- Adjustment entries
- Rectification postings

FS00 is used to:
- Create GL account centrally
- Control company code settings
- Maintain field status & account control
It combines chart of accounts level and company code level.

System gives error or warning, and posting is blocked until corrected.

System throws error: "Posting period XX is not open"
No accounting document can be posted until period is opened.

If posting period is closed:
- SAP does not allow posting
- System throws error like "Posting period is closed"
This helps in financial control and audit safety.

Posting Periods control which month is open for posting. SAP allows opening or closing periods using OB52 to prevent wrong postings.

Fiscal Year Variant defines how many periods a financial year has and how dates are assigned. It can be:
- Calendar year (Jan–Dec)
- Non-calendar year (Apr–Mar)

Business Area is used to represent different lines of business within a company code. It helps to generate profit & loss statements for each business segment like Manufacturing, Services, Trading. Business Area is optional and mostly replaced by Profit Center in S/4HANA.

Company Code is the smallest organizational unit for which complete financial accounts can be maintained. All accounting transactions like GL postings, customer invoices, vendor payments, asset postings happen at company code level. Without company code, no financial posting is possible in SAP.