SAP FICO Interview questions Profitability Analysis

1. WHAT ARE THE DIFFERENCES BETWEEN PROFIT CENTER ACCOUNTING (PCA) AND PROFITABILITY ANALYSIS (CO-PA)?

PCA

CO-PA

PCA is targeted at Benefit confirming on inner liability collections or SBU's

CO-PA is targeted at exterior industry section confirming for example by client and client categories (industries), regional places.

PCA is restricted to confirming by the money center hierarchies that you can installation.

PCA can piece & cut your details by a wide range of powerful hierarchies (a 'Rubik's' cut is often used to indicate this concept.

PCA can be reconciled quickly back to the GL

PCA has 2 'styles'

· Consideration centered which will reunite to the GL

· Charging Based which Allows estimates, estimates or requirements to be published, which may create getting back together challenging to describe to the user

2. Why does SAP discuss mathematical projects in CO - why are these different from real Price Bookkeeping assignments?

The purpose is to accomplish getting back together between FI and CO. The sum of all 'good' projects in CO should add up to the sum of all cost and income content (where cost/revenue elements have been designed for the GL account of course) in FI. A regular cost invoice publishing to cost records / cost elements will be a 'good' publishing. If the program is showing a mistake concept requiring on a 'cost accounting assignment' and you think you have joined one, then probably you have specified a mathematical task. A typical mistake is in considering that the organization place will do - Business places are FI elements not CO elements.

Example:

All Benefit Middle projects are statistical

EC-PCA is determined as mathematical, therefore if publishing to a income factor, the program will require on a real cost accounting task even if profit center is specified. A price center will not do, since income elements are mathematical on price facilities. The program will agree to the following as 'real': CO-PA profitability section, product sales purchase, client venture or a income keeping purchase.

Revenue elements allocated to cost facilities will always be statistical

'Revenue' when described to the program by creating income factor is always mathematical in a cost center. If however you have installation your income records as main cost elements then the task will be 'good'.

3. What do you mean by Interval centered accounting (GL based) and cost of product sales accounting (COPA based)?

'Period Based Accounting' is Accumulation Bookkeeping and 'Cost of Sales' is 'Cost of Products Sold' Bookkeeping.

Period centered Accounting

"Period based" indicates that during the 30 days or period, all and only real activities / dealings are published in the appropriate period. At the end of enough time period approximated accruals and deferrals are created and published to that publishing period to provide a more precise perspective of profit. IE any predicted earnings and costs that should connect with the present period are accumulated for and similarly any pre-paid costs or earnings are postponed to the next period. (Accruals and Deferrals are published momentarily, usually to unique records, and changed before next period end.)

These accruals and deferrals are usually done at a pretty advanced stage of summarization (eg: at organization or organization area). The FI Ledgers and fiscal reports etc are always period centered.

Cost of Sales Accounting

Cost of Sales in SAP indicates that we make an effort to history or rather review the "costs of sales" against the real selling at as low a stage as possible and during enough time period. (In CO-PA this is down to a deal stage.) This allows the organization to get a reasonably precise perspective of profitability on a real-time foundation.

This is done by using either requirements or reports for many of the elements that create up the "cost of products sold". Any modifications from the factors are usually published through to the price of product sales program either at 30 days end or when they happen.

For example: A product cost determine might be used to determine and publish a produced cost through to CO-PA when every selling goes through. The real manufacturing purchases differences from the product cost determine can then be resolved to a individual range in CO-PA. This has the advantages that

a reasonably precise total profit could be revealed immediately at a deal stage and of course therefore at all the attribute stages in CO-PA.

The effect of any irregular variations in manufacturing can quite clearly be seen and examined independently from the regular profitability of a product.

4. How details moves from SD to COPA?

The regular SD papers circulation is as follows:

1. Sales order

2. Submission (the delivery makes items problem, which debits COGS and attributes Stock – COGS is modified in CO-PA at this time)

3. Payments Document (the billing papers up-dates A/R, Sales income, Special discounts, Shipping, etc.)

5. How details moves from CO to COPA?

Through Tests. Allocates costs from cost facilities to profitability sections.

6. How details moves through MM into FI?

Through Consideration task design OKB9. Automated content designed in components control, can be approved on to CO-PA through automatic account task to a profitability section.

7. How details moves from PP into FI & COPA?

Through Production Variances. It Posts differences from the development (product cost) reports or requirements to the GL records and to Success Research if real costs are needed (vs conventional costs). Standard cost numbers would have been used to upgrade Stock and Price of Products marketed numbers when completed stock was released from the development operates.

8. What do you mean by value place groups?

Value Field Categories signify the possible blends of value places in an working problem. Value place groups are used to specify:

· Which value should be created available to customers coming into or showing a range item

· In what purchase these value places should be displayed

· Which particular value places can be filled

You strategy your details for you will Product, Product team and Customer team. You determine three preparing stages for which preparing details is to be entered: Customer group/product team (independent of the product), product/product team (independent of the client group), and product/product group/customer team (the smallest, most particular level). By using transaction-based top-down distribution, you can make sure that all preparing details is stored at the smallest level

9. What are Features Values?

Characteristics are factors on which we want to crack down the money rationally such as client, area product, salesman etc.

10. What do you mean set attribute fields?

Predefined attribute places in SAP R/3 program, which are apparent, are known as set attribute places such as product, product sales org and customer

11. What are Non-Fixed characteristics or customer described characteristics?

Up to 50 non-fixed characteristics can be included to an working problem. E.g. Bill-to-party

Create -> Produced the value from Desk PARTNER (SD associate that can be used in COPA) -> Make customer described attribute name WW008 -> Save