To log on to the SAP system, a user must possess the following elements: A client key Log in Password A user master record in the client.
In the system hierarchy, a company code is the most important organizational unit of financial accounting. True False.
In the hierarchy of an SAP ERP application, a client occupies the highest level. False True.
Each client is an independent unit that contains separate set of Tables Rows Data master records Columns.
In business terms, the client level corresponds to a corporate group or a group of affiliated companies. False True.
Data entered at the client level is not valid for all organizational units in SAP ERP applications. True False.
A company code represents an independent balancing or legal accounting entity, such as a company, with independent accounts within a corporate group. False True.
Data entered at the client level is not valid for all organizational units in SAP ERP applications. In addition, data defined at the client level have to be redefined all other levels. Relevant information or data, such as exchange rates, can not be entered at the client level. False True.
To create a company code, copy an existing company code by "Copy Company Code" function. This copies the following Global Parameters Organizational Hirarcy Definition Posting Periods General Ledger Accounts Customizing Tables Account determination.
In Customizing, following steps are required to create a company code: Copy, Delete, Check Company Code Rename existing Company Code Over write existing Company Code Edit Company Code Data.
Company Code Key consists of the following characters 10 digits 4 digit Alpha Numeric Key 6 digit Alpha Numeric Key 4 digit Numeric Key.
You have the option of using the copy function or creating a new company code and configuring it. You have to require a reference company code to create a new company code. True False.
Following are the General Parameters of a Company Code: 4 Character Company Code Key Language Currency Fiscal Year variant City Company Name Address.
Global Parameters of a Company Code consists of the following: Company Code Key Company Code Defaults Fiscal Year Posting Period Chart of Account Fiscal Year variant.
When defining a business area, you only have to enter a four-digit alphanumeric key and a short description. Segments have ten characters, while companies have six characters, which can be numeric or alphanumeric. True False.
In the SAP ERP application, company code 0001 is a template for a general company code with the international chart of accounts INT and no special country specifications. True False.
Creating a country-specific company code template, the country installation program can also create a country-specific template for objects such as controlling areas, plants, purchasing organizations, sales organizations, credit control areas, and financial management areas. True False.
Run the country installation program in later stage while installing SAP ERP. Run the country installation program in an upgrade because the structure of the country-specific Customizing feature does not change from one SAP ERP release to another. False True.
You can assign a Business Area to a Company Code True False.
Besides the company code, there are other organizational units that are also important in Financial Accounting. However, unlike the company code, these organizational units are optional elements: Business Area Cost Centre Profit Centre Company Code Segment Functional Area Company.
Business Area, Profit Centres, Segments, Companies and Functional Areas help customers in their Internal as well as external reporting False True.
The following questions can help clients select organizational objects in accounting: What is the most important accounting principle used in my enterprise? Does my company structure its profit and loss statement according to total costs or cost-of-sales accounting? Is my company obliged to issue segment reporting according to the law? Does my company have to issue a consolidated financial statement? Does my company has Cross Company Transactions? Which accounting principles are used for internal or external figure-reporting in my enterprise?.
Which one of the followings are International Accounting requirements? Period Accounting Cost of Sales Accounting Segment Reporting Preparation for Consolidation Parallel Accounting (Local & International Law).
Which of the following Organizational Unit is defined by the International Accounting Principles IFRS 8 SFAS 131? Business Area Profit Center Segment Company.
What is the name of leading ledger that SAP provides with the standard system? OL 1L 2L L5.
Each Company can have only one leading ledger True False.
Cross Company Code cost accounting does not requires the use of same Fiscal Year Variant and the same Operating Chart of Accounts across all Company Codes True False.
More than one Company Codes can be assigned to one or more controlling areas. This enables the cross company code cost accounting between the assigned Company Codes. True False.
The controlling area is the most important organizational element in Controlling. A controlling area identifies a self-contained organizational structure for which costs and revenues can be managed and allocated. It represents a separate unit of cost accounting. True False.
Classic Accounting enables parallel accounting, or parallel valuation approaches, by using different ledgers. False True.
You can define Leading and Non Leading Ledgers in New General Ledger Accounting True False.
In Ledger approach, different valuation approaches and valuations are posted to different accounts. When financial statements are prepared, the system determines which accounts are relevant and need to be evaluated as defined in the ‘financial statement version’. True False.
A non Leading Ledger can be used for each Local Accounting Principle True False.
The non-leading ledgers are parallel to the leading ledger and are automatically activated per company code. For example, one of the non-leading ledgers may be used to depict local accounting principle. True False.
The leading ledger reflects the accounting principles used to draw up consolidated financial statements. It is integrated with all the subledgers and is updated in all the company codes. True False.
Account Approach consists of the following Specific account groups for each GAAP -> complex chart of accounts structure Minimum one retained earnings account for each GAAP Account Approach is not considered as equal to Ledger Approach Complex financial statement definition Relevance of postings for local or international GAAP specified at the account level All valuation approaches can be posted to Controlling.
Ledger Approach Consists of the following: No specific accounts area -> no change to chart of accounts Minimum one retained earnings accounts for all GAAPs Ledger Approach is regarded equal to Account Approach Standard financial statement definition Relevance of postings for local or international GAAP specified at the document level Only the leading valuation can be posted to Controlling.
Which one of the following are the Scenarios provided with ECC6 SAP ERP Solution? Cost Center Update (FIN-CCA) Preparation for Consolidation (FIN_CONS) Business Area (FIN_GSBER) Profit Center Update (FIN_PCA) Segment Reporting (FIN_SEGM) Cost of Sales Accounting (FIN_UKV).
A scenario defines which accounts are updated in the ledgers (in the general ledger view) during a posting (from other application components).The accounts updated by the scenarios can be used to map certain business requirements, such as segment reporting.
True False.
The scenarios are available in new General Ledger Accounting.You cannot define your own scenarios.The scenarios provided are assigned to the ledgers in Customizing.
True False.
You can assign a leading ledger to one or more scenarios, or even all six at once. The number of scenarios you decide to assign depends solely on the facts or business aspects you want to map in New General Ledger Accounting. True False.
You can assign a Leading Ledger to only one Client True False.
The variant principle is a three-step method used in SAP ERP to assign special properties to one or more objects: Define Varaint Variant Properties Determine Value for the Variant Name the Variant Assign the Variant to the objects.
The variant Principle is used in SAP System to assign particular properties to one or more objects. How many steps does the Variant Principle have? 5 3 2 4.
Which one is the first step in Variant Principle Determine values for the Varaint Assign Variant to the Objects Define Variant.
Fiscal Year can be defined as: Year Independent (The number, start and end dates of the period for every year are the same) Calendar year Non Calendar Year Year Specific (Period can vary from year to year).
You must define a fiscal year with the posting period variant to assign business transactions to different periods. The fiscal year is defined as a variant and assigned to a company code. True False.
The fiscal year variant contains the definitions of posting periods and special periods. Special periods are used for postings that are assigned to the business process of year-end closing and not to time periods. In total, you can define 16 periods. True False.
The system derives the posting period from the posting variant. If the posting period variant falls within the last normal posting period, you can post the transaction in one of the special periods. True False.
The fiscal year variant does not specify whether a posting period is open or closed. This data is managed in another table. The fiscal year variant only defines the number of periods and their start and finish dates. True False.
There are two types of year-independent fiscal year variants: Calendar year Year Specific Non-calendar year Fiscal Year.
If you define a fiscal year as the calendar year, then the posting periods are equivalent to the months of the year. Therefore, a fiscal year must have 16 posting periods. True False.
If a fiscal year is defined as a non-calendar year, each of the posting periods are defined with their end dates. A non-calendar year can be defined with the posting periods ranging from 1 to 16. 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. True False.
If the fiscal year differs from the calendar year, but the posting periods correspond to calendar months, then select 28 as the day limit for February to take leap years into consideration. True False.
A fiscal year variant is defined as year-specific based on one or both of the following conditions: The start and the end dates of the posting periods for some fiscal years differ from the dates of other fiscal years. Calendar year Non-calendar year Some fiscal years use a different number of posting periods.
If one year of a fiscal year variant has less posting periods than the others, it is called a shortened fiscal year. This variant could be required if closing has to be carried out before the end of the normal fiscal year. For example, in a case where the beginning of the fiscal year needs to be changed or if the company was sold. True False.
For a shortened fiscal year, you can only assign a lower number of posting periods. True False.
The Fiscal Year Variant contains the definition of Posting Period and Special Periods True False.
The Fiscal Year variant also specify as the peiord are open or close True False.
Every currency key used in the SAP ERP application must have a currency key assigned to it. By default, most of the currencies in the SAP ERP application are defined with standard international currency keys. True False.
You can not assign a validity date to each currency key defined in the SAP ERP application. True False.
You can maintain the exchange rate for a combination of two currencies. You can then use different exchange rates for different purposes, such as: Valuation Translation Conversion Inversion Exchange Rate Planning.
You can reduce the amount of work involved in the maintenance of exchange rates by using one of the following tools: Base currency Exchange Exchange rate spreads Inversion Conversion.
The relationship between currencies must be maintained per exchange rate type and currency pair using translation ratios. This activity usually has to be performed only once. Since inflation can deeply influence the relationships between currencies, translation ratios are maintained on a time period basis. True False.
If an entry is missing for an exchange rate, you can use the inverse exchange rate relationship to translate from one currency to another. For example, you have maintained the exchange rate relationship between EUR and USD. You do not have to maintain the inverse relationship from USD to EUR using the “inversion” tool; it is calculated automatically. False True.
An efficient combination of the exchange rate tools includes the following actions: Using a base currency for the average rate (M) Inversion Using the exchange rate spreads to calculate the buying and selling rates (B and G) Conversion.
Which one of the following helps to reduce the amount of work involved in maintaining exchange rates Conversion Inversion Echange Static Rate.
You can assign a base currency to an exchange rate type. This allows you to maintain exchange rates for each currency separately into their own base currency. You can use the base currency to calculate a translation between two foreign currencies by combining two exchange rates. True False.
Exchange rates can be entered as direct or indirect quotations. You can maintain two prefixes to differentiate between direct and indirect quotation exchange rates during input and display. The standard setting is valid if you do not enter a prefix. False True.
Standard setting, if direct quotation is mostly used: You can enter direct quotation exchange rates without a prefix. You can define an alternative prefix for both types of quotations.
Both indirect quotation and direct quotations are used: You can define an alternative prefix for both types of quotations.For example, use “*” for direct quotation and “/” for indirect quotation. You can enter direct quotation exchange rates without a prefix. “*” for direct quotation, “ ” (blank) for indirect quotation. If you follow this suggestion, the configuration does not allow exchange rates to be entered without a prefix and an error message occurs. Users are therefore forced to consider the correct quotation and enter the rate with a valid prefix.
Indirect quotation is the most widely used notation at your company: “*” for direct quotation, “ ” (blank) for indirect quotation. For example, use “*” for direct quotation and “/” for indirect quotation. exchange rates to be entered without a prefix, whereas the less used direct quotation exchange rates have to be entered with a prefix. You can enter direct quotation exchange rates without a prefix.
Name three commonly used Exchange Rates types and mention what they are used for M: Average rate for posting and clearing G: Buying Rate B: Selling Rate A: Average Rate B: Buying Rate S: Selling Rate.
In SAP ERP, currencies are defined using Currency Keys False True.
Direct Quotation : Uses one unit of foreign currency for the local currency True False.
Indirect Quotation : Uses one unit of local currency for the foreign currency True False.
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