FAQs on SAP
1. What is an ERP ?
ERP stands for Enterprise Resource Planning Software and is a integrated computer based system used to manage a company’s resources effectively. It ensures smooth information amongst various departments in an enterprise or a company and manages workflows.
2. What are the different types of ERP’s ?
JD Edwards (now acquired by Oracle)
Peoplesoft (now acquired by Oracle)
3. Tell me briefly about SAP.
SAP stands for Systems Applications and Products in Data Processing.It was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner, and Tschira and is a German Company.
SAP is the name of the company as well as its ERP product.
SAP is #1 in the ERP market. As of 2010, SAP has more than 140,000 installations worldwide, over 25 industry-specific business solutions, and more than 75,000 customers in 120 countries.
4. What are the different SAP products?
SAP R/3 – It succeeds SAP R/2 and is the market leader in ERP. R/3 stands for three-tier architecture i.e. Presentation, Logic and Data tier. It has many modules like SD, FICO, HR, PP, WM, QM etc which encompass almost all enterprise departments.
mySAP – It is a suite of SAP products which apart from SAP R/3 also includes SRM , PLM, CRM, SCM
5. What is NetWeaver?
Netweaver is an integrated technology platform such that all the products in the mySAP suite can run on a single instance of NetWeaver known as SAP Web Application Server (SAP WEBAs).
The advantage of using Netweaver is you can access SAP data using the web (HTTP protocol) or even mobile. Thus you can save on costs involved in training users on SAP Client-side GUI.
6. List the Different Modules in SAP.
FI (Financial Accounting)
IM (Investment Management)
HR (Human Resource)
SD (Sales and Distribution)
MM (Materials Management)
PM (Plant Maintenance)
PP (Production Planning)
QM – Quality Management
BW (Business Warehousing)
There are many industry-specific solutions that SAP provides apart from the list of modules above which is ever growing.
7. What is Metadata, Master data and Transaction data?
Meta Data: Meta Data is data about Data. It tells you about the structure of data or MetaObjects.
Master Data: This Data is key business information like Customer information, Employee, Materials etc. This is more like a reference data. For Ex. If a customer orders 10 units of your product instead of asking the customer for his shipping address 10 times, the same can be referenced from the Customer Master Data.
Transaction Data: This is data related to day to day transactions.
8. Is SAP A Database?
NO. SAP is not a database but it’s an application that makes use of databases provided by other vendors like Oracle, SQL Server etc.
9. How many SAP Sessions can you work on at a given time?
At any given time for a particular client, you can work on 6 sessions at max.
10. What is a transaction in SAP terminology?
In SAP terminology, a transaction is a series of logically connected dialog steps.
Can we run the business warehouse without SAP R/3 implementation?
Yes, you can run a business warehouse without R/3 implementation. You have to simply transfer structures associated with business warehouse data sources (ODS table, Infocube) to the inbound data files or use third party tools to connect your flat files and other data sources.
Mention what do you mean by datasets?
The data sets are sequential files processed on the application server. They are used for file handling in SAP.
What are the variables?
Variables are parameters of a query that are set in the parameter query definition and are not filled with values until the queries are entered into the workbooks.
Mention what are the different types of variables?
Variables are used in different application
User entry/default type
Mention some of the set-backs of SAP?
It is expensive
Demands highly trained staff
Lengthy implementation time
Interfaces are a little bit complex
Does not determine where master data resides
Mention where are t-code name and program values stored? Explain how can you find a list of all t-codes in the SAP system?
To view transaction table TSTC you can use transaction code st11, and you can define a new t-code using transaction se93.
Mention what is the difference between OLAP and Data Mining?
OLAP: OLAP stands for Online Analytical Processing it is a reporting tool configured to understand your database schema, dimensions and composition facts
Data Mining: It is an analytic process to explore data in search of consistent patterns or systematic relationship between variables.
Mention what are the three stages of data-mining?
Three stages of data-mining includes
Mention what are the different layers in R/3 system?
Different layers in R/3 system includes
Mention what is the process to create a table in the data dictionary?
To create a table in the data dictionary, you have to follow this steps
Creating domains (data type, field length, range)
Creating data elements (Properties and type for a table field)
Creating tables (SE 11)
Mention what is AWB?
AWB stands for Administrator Workbench. It is a tool for monitoring, controlling and maintaining all the processes connected with data staging and processing in the business information warehousing.
Explain what is Bex?
Bex means Business Explorer. It allows end user to locate reports, analyze information, view reports and can execute queries. The queries in workbook can be saved to their respective roles in the Bex browser. It has following components Bex analyzer, Bex Map and Bex web.
Mention what is the importance of ODS in BIW?
An ODS object serves to store debugged and consolidated transaction data on a document level. It defines a consolidated dataset from one or more info-sources. This data-set can be evaluated with a Bex query or Infoset query. The data of an ODS object can be updated with a delta update into InfoCubes or other ODS object in the same system or across systems. In contrast to multi-dimensional data storage with InfoCubes, the data in ODS object is stored in transparent, flat database tables.
Mention what is the difference between Domain and Data Element?
Data Element: It is an intermediate object between domain and table type
Domain: It defines the attributes such as length, type, and possible value range
Mention what are SET parameters and GET parameters?
To use parameter IDs, you need to “set” values in the global memory area and then “get” values from this parameter ID memory area. In the case of the online program, you have to “Set” values from screen fields, and you will “get” these values for screen fields.
Mention what is ALE, IDOC, EDI, RFC and explain briefly?
ALE: Application Linking enabling
IDOC: Intermediatary documents
EDI: Electronic data interchange
RFC: Remote function call
Mention what is LUW (Logical Unit Of Work)?
LUW is a span of time during which database records are updated either commit or rollback.
Mention what is BDC stand for? How many methods of BDC are there?
BDC stand for Batch Data Communication. The methods of BDC are
Direct Input Method
Batch Input Session Method
Call transaction Method
Mention what is meant by a “baseline data” in SAP AR and AP?
The baseline date is the date from which the payment terms apply. Usually, it is the document date on the invoice but can also be the date of entry or posting date from the ledger.
Mention what do you mean by one-time vendors?
In certain industries, it is not possible to create new master records for every vendor trading partner. One-time vendor enables for a dummy vendor code to be used on invoice entry and the information that is normally stored in the vendor master, is keyed on the invoice itself.
Mention what are the standard stages of the SAP Payment Run?
While executing the SAP Payment Run the standard stages of SAP includes
Entering of parameters: It includes entering company codes, vendor accounts, payment methods, etc.
Proposal Scheduling: The system proposes list of invoices to be paid
Payment booking: Booking of the actual payments into the ledger
Printing of Payment forms: Printing of payment forms
Mention what is the difference between the “residual payment” and “partial payment” methods of allocating cash in account receivable?
The difference between the residual and partial payment includes
Partial payment: For example, let say invoice A456 exits for $100 and customer pay $70. With the partial payment, it offsets the invoice leaving a remaining balance $30
Residual Payment: While in residual payment, invoice A456 is cleared for the full value $100 and a new invoice line item is produced for the remaining balance of $30.
Mention what are internal tables, check tables, value tables, and transparent table?
It is the standard data type object; it exists only during the runtime of the program.
Check the table will be at field level checking
Value table will be at domain level checking
Transparent table will exist with the same structure both in the dictionary as well as in the database exactly with the same data and fields
Mention what is an application, presentation and database servers in SAP R/3?
The application layer of a R/3 system is made up of the application server and the message server. Application programs in an R/3 system run on application servers. Using the message server, the application servers communicate with presentation components, the database and also with each other. All the data are stored in a centralized server, which is known as a database server.
Explain what is a company in SAP?
Company in SAP is the highest organizational unit for which financial statements like profit and loss statements, balance sheets can be drawn according to the requirement of organizations. A single company contains one or many company codes. All the company codes in SAP must use same COA (chart of accounts) and fiscal year.
Mention what is the difference between SAP BASIS and SAP ABAP?
SAP ABAP is the programming language used within SAP to customize, generate forms, generate reports, etc. While SAP basis is, the administration module of SAP used to control code changes, upgrades, database admin, network setup, etc.
List out the different types of the source system in SAP?
The different types of the source system in SAP includes
SAP R/3 source system
Explain what is Extractor?
In the SAP source system, extractors is a data retrieval mechanism. It can fill the extract structure of a data source with the data from the SAP source system datasets.
Explain what is extended star schema?
The star schema consists of the fact tables and the dimension tables. The master data related tables are kept in separate tables, which has reference to the characteristics in the dimension tables. These separate tables for master data are termed as the Extended Star Schema.
Explain what should be the approach for writing a BDC program?
The approach to writing BDC program is to
Convert the legacy system data to a flat file into the internal table referred as “Conversion.”
Transfer the Flat file into the SAP system called “SAP Data Transfer.”
Depending upon the BDC type CALL TRANSACTION or CREATE SESSIONS
Mention what are the major benefits of reporting with BW over R/3?
Business Warehouse uses a data warehouse and OLAP concepts for analyzing and storing data While the R/3 was intended for transaction processing. You can get the same analysis out of R/3, but it would be easier from a BW.
Mention the two types of services that are used to deal with communication?
To deal with communication, you can use two types of services
Message Service: In order to exchange short internal messages, this service is used by the application servers
Gateway Service: This service allows communication between R/3 and external applications using CPI-C protocol.
Mention what are reason codes used in Account Receivable?
“Reason Codes” are tags that can be allocated to describe under/overpayments during the allocation of incoming customer payments. They should not be mixed up with “void reason codes” used when outgoing cheques are produced.
Mention what is the protocol does SAP Gateway process use?
The SAP gateway process uses TCP/IP protocol to communicate with the clients.
Mention what is pooled tables?
Pooled tables are used to store control data. Several pooled tables can be united to form a table pool. Table tool is a physical table on the database in which all the records of the allocated pooled tables are stored.
Explain what is an update type with reference to a match code ID?
If the data in one of the base tables of a matchcode ID changes, the matchcode data has to be updated. The update type stipulates when the match-code has to be updated and how it has to be done. The update type also defines which method is to be used for building match-codes.
Explain what the .sca files and mention their importance?
.sca stands for SAP component Archive. It is used to deploy the Java components, patches and other java developments in the form of .sca,.sda,.war and .jar.
Explain what is meant by “Business Content” in SAP?
Business Content in SAP is a pre-configured and pre-defined models of information contained in the SAP warehouse which can be used directly or with desired modification in different industries.
Explain what is dispatcher?
Dispatcher is a component that takes the request for client systems and stores the request in queue.
Mention what are the common transport errors?
The common transport errors include
Return code 4: Imported with warnings, generation of program, columns or row missing
Return code 8: Imported with syntax error, program generation error, dictionary activation error, etc.
Return code 12: Indicates import cancelled due to object missing, object not active, etc.
Return code 18: Indicates import cancelled due to system down while import, user expired during import and insufficient roles or authorization
FAQs on Oracle Apps
Q.What is a journal, how many types of journal?
Journals it is used to record the business transaction it contains debit and credit lines always debit must be equal to credit. Types of journals are Suspense Journal or Unbalanced Journal, Recurring Journals and Reversal journals.
1. P2P Process & O2C Process
2. P2P process start with
1. B. O2C processing four high-level processes i.e. Order, Invoices, Recognize the COGS and Cash Receipt.
Sales orderàBook OderàRelease the OrderàConfirm the OrderàClose the OrderàImport InvoiceàPrint the InvoiceàRevenue RecognitionàDefer the Cost of Goods àenter ReceiptàApply the Receipt.
Q.What is Translations & Revaluation and which level its working?
Translation: It is used to translate functional currency balances into foreign currency balances at the account level
Revaluation: It is used identify the unrealized gain or loss .which is occurring on the currency fluctuation.
-Functional Currency is USD
-Foreign Currency is INR.
-Conversion Rate is 2.
-Created invoice for 100 INR, validated and accounted. Not Paid.
As per the above journal lines on 01-Dec-2009, customer is liable to pay 200 USD to the supplier.
-End of the period, conversion rate has been changed to 2.5.
-So customer’s liability will get increased to 250 USD(100*2.5).
-So customer suppose to pay 250 USD instead of 200 USD to the supplier.
-This is the true liability at the end of the period and this need to be reflected in customer’s General Ledger. Loss 50 USD should be populated in Loss account.
-Revaluation adjusts these amounts and keeps gain/loss amounts in Unrealized Gain/Loss accounts defined in Revaluation window.
What is Security Rules and Cross validation Rules?
It is used to restrict the users from entering the segments. It will work at the responsibility level.
It is used to restrict the end users from entering the code combinations. It will work at structure level
Q.What is Dynamic Insertion?
You can dynamically create new account code combinations when entering data by enabling dynamic insertion in the Key Flexfield Segments window. The alternative method for this is, you can require all accounts to be define manually in the Accounts Combinations window.
Points to Remember:
-Dynamic instertion can be enabled or disabled at any time.
-You can define cross validation rules to prevent incorrect account combinations from being created by dynamic insertion.
-If you are defining an Accounting Flexfield for Oracle Projects, you must define your segment with the Allow Dynamic Inserts option set to Yes.
Q.Difference between Standard Accrual and Standard Cash?
In case of Standard Accrual, Invoice and Payment Accounting will be there.
Reason: Transaction happens in two phases.
1)Order goods and receive goods(Create PO, Create Receipt, Create Invoice and account it)
2)Pay the amount for received goods within due time set by the supplier( Pay the invoice and account it)
Since you are not paying the amount immediately, you need to keep track of the amount needs to pay to the supplier after phase one. You maintain this amount in LiabilityA/C(Cr). After second phase, you debit your LiabilityA/C and credit your CachA/C which shows your cash flow from your organization to the supplier.
In case of Standard Cash, only payment accounting will be there.
Reason: While purchasing an item you pay amount immediately to the supplier. So you don’t have any debt to the supplier to record. so there is nothing to record in LiabiltyA/C.
Q.Explain Flexfield Qualifiers in GL?
Need to assign qualifiers to individual accounting key flexfield segments to identify or represent the purpose in COA.
Natural Account Each Accounting Flexfield structure must contain only one natural account segment. When setting up the values, you will indicate the type of account as Asset, Liability, Owner’s Equity, Revenue, or Expense.
Balancing Account Each structure must contain only one balancing segment. Oracle General Ledger ensures that all journals balance for each balancing segment.
Cost Center This segment is required for Oracle Assets. The cost center segment is used in many Oracle Assets reports and by Oracle Workflow to generate account numbers. In addition, Oracle Projects and Oracle Purchasing also utilize the cost center segment.
Intercompany General Ledger automatically uses the intercompany segment in the account code combination to track intercompany transactions within a single ledger. This segment has the same value set and the same values as the balancing segment.
Q.Primary Ledger Vs Secondary Ledger Vs Reporting Currency
Primary Ledger Vs Secondary Ledger
Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or adjustments for one or more legal entities within the same accounting setup.
For example, use a primary ledger for corporate accounting purposes that use the corporate chart of accounts and subledger accounting method, and
use a secondary ledger for statutory reporting purposes that use the statutory chart of accounts and subledger accounting method.
This allows you to maintain both a corporate and statutory representation of the same legal entity’s transactions in parallel.
Reporting Currency Vs Secondary Ledger
Reporting Currencies are not the same as secondary ledgers. Looking at the 4 C’s that define a ledger, we have a chart of accounts, calendar, accounting method, and currency. If you only need multiple currencies to support your reporting requirements, use reporting currencies. If you need to account for your data using different calendars, charts of accounts, accounting methods in addition to currency, use a secondary ledger.
Q.What is Adjusting Period?
Typically, the last day of the fiscal year is used as an adjusting period to perform adjusting and closing journal entries. Once you begin using your accounting calendar, you cannot change its structure to remove or add an adjusting period. Choosing whether to include an adjusting period or not in your calendar is a very important decision. You can have an unlimited number of adjusting periods.
Q.How many types of Purchase Orders (PO’s)?
Standard Purchase Order: It’s a legal document to buy the goods or services by supplier it will be created when we know the goods or services, price, quotation, delivery schedule and accounting distribution and also is one time purchase order
Blanket PO: Blanket PO is created when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not know the detail of your delivery schedules.
Planned PO: Planned PO is a long–term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.
Contract PO: Contract PO is created when you agree with your suppliers on specific terms and conditions without indicating the goods and services that you will be purchasing.
Q.What is 2 way, 3 way and 4 way matching?
Making payments to the suppliers in 3 ways. what ever you have ordered for the PO we will make the payment for the suppliers in 2-way(we will compare two documents PO and Invoice).
eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so that we will make payment for that 100 items. 2) In 3-Way we will compare 3 documents PO+reciept+Invoice Eg:Suppose we have ordered 100 items in PO. But we had received only 80 items ,But we had received invoice for 100 items. so, we will make payment for only 80 items 3) IN 4-Way we will compare 4 documents PO+Receipt+Invoice+Inspection Eg:Suppose we have 100 items in PO. Suppers send us 80 items We will do inspection on those items what ever we have received, If 10 items got damaged. finally, we are going to make payment to the 70 items only.
Q.What is Payment Terms and How to define Payment Terms?
Payables uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter. Payment terms will default from the supplier site. If you need to change the payment terms and the terms you want to use are not on the list of values, you can define additional terms in the Payment Terms window.
Q.What is SWEEP Program? Explain Process Of Sweep Program?
This particular program is run in order to transfer un-accounted invioce to next opened period during period end closing of Accounts Payable. In fact you can’t close Payable Period if you have Un-Accounted Invoice in Payables. In order to negotiate (Transfer) these invoice to next open period this program is run. So that the Payable period can be closed.
Q.Difference between AP Invoice and AR Invoices?
AP Invoice: it is nothing but what amount going out towards receiving Raw material from the vendor or supplier. (Expenses)
AR Invoice: it is nothing but what amount coming in buy selling the product to customer or parties (Revenues)
Q.What is Pre Payment in AP?
Prepayment is Advance Payment made to supplier by Organization or Employee. Later it will apply against the feature debit
These are two types
1. Permanent Prepayment
2. Temporary Prepayment.
Q.What is Key flex filed how many types in GL, AP, AR, & FA?
Key Flex field: is used to capture mandatory information of the organizations
In GL 3 types 1. Accounting flex field (mandatory) 2. Reporting attribute (optional) 3. Gl ledger flex field (optional)
IN AP No flex fields
IN AR Two types 1. Sales Tax Location flexfield (mandatory) 2. Territory Flexfield
In FA Three Flex field i.e. Category (mandatory), Asset key (mandatory), Locations flex field.
Q.What is Debit Memo and Credit Memo in AP?
Its negative amount identified by Customer and sent to Supplier. Ex: Purchase Returns.
Its negative amount identified by Supplier and sent to the Customer. Ex: TDS Payables
In Payable we are receiving the material from supplier. so we have to pay the amount to the supplier. in case supplier has send the goods more than what we order at the point of we have to return the goods reduce the accounting balance.We send a memo to the supplier is called as debit memo or supplier send a memo is called as credit memo. Both of the reducing our liability. Ex: In Payables Debit Memo and Credit Memo functionality is same It decreases the supplier balance (i.e. decreases the liability) Eg Supplier has send you invoice X with an amount of $100 but Later we found there is mismatch in quantity (more quantity billed)so we will inform to customer. Then customer has sent you the credit memo but if customer says send me the debit memo then you will generate debit memo from your end. Both are same as functionality.
Q.What is Debit Memo and Credit Memo in AR?
In AR Debit memo is Positive Amount for example we are selling the product to the customer.
Either we may forget to add a freight charges or some other thing. So at that time we are prepare or Rise the Debit memo it is increased the Org balance.
(Customer is Under Charged at that time Org prepare Debit memo)
In AR Credit memo is Negative Amount if you billed more than your customer then Org need to raise Credit memo to give the credit to your Customer, so it is decreasing the Org balance.
Q.How many types of AP Invoices?
AP INVOICES: 11 invoice are there
1) Regular invoice (9) 2) Special invoice(2)
1) Regular Invoice
1. Standard invoice 2. Credit memo 3. Debit memo 4. Prepaid invoice 5. Expense report
6. Quick invoice 7. Mixed invoice 8. PO default 9. Withholding Tax invoice
2) Special Invoice
1. Recurring invoice 2. Interest invoice
Q.How Many types of AR Invoices?
AR TRANSACTIONS (Invoice) 7
2. Credit memo
3. Debit memo
7. Bills Receivables.
Q.Explain Approval Hierarchies in PO.
Approval hierarchies let you automatically route documents for approval. There are two kinds of approval hierarchies in Purchasing: position hierarchy and employee/supervisor relationships.
If an employee/supervisor relationship is used, the approval routing structures are defined as you enter employees using the Enter Person window. In this case, positions are not required to be setup.
If you choose to use position hierarchies, you must set up positions. Even though the position hierarchies require more initial effort to set up, they are easy to maintain and allow you to define approval routing structures that remain stable regardless of how frequently individual employees leave your organization or relocate within it.
Q.Difference between Standard and mixed Invoices?
Standard Invoices: Standard Invoice are invoices from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a purchase order or not matched. Standard invoices must be positive amounts.
Mixed Invoices: Mixed Invoices can be matched to both purchase orders and invoices. Mixed invoices can have either positive or negative amounts.