SAP PROJECT - Frequently Asked Interview Questions

SAP PROJECT - Frequently Asked Interview Questions

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.

List the Different Modules in SAP.

FI (Financial Accounting)

CO(Controlling)

EC(Enterprise Controlling)

TR(Treasury)

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.

What is Meta data, 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 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.

Is SAP A Database ?

NO. SAP is not a database but its an application that makes use of databases provided by other vendors like Oracle , SQL Server etc.

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.

What is a transaction in SAP terminology ?

In SAP terminology, a transaction is series of logically connected dialog steps.

Can we run business warehouse without SAP R/3 implementation?

Yes, you can run 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 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

·         Characteristics variable

·         Hierarchies

·         Hierarchy nodes

·         Text

·         Formulas

·         Processing Types

·         Replacement Path

·         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

·         Initial Exploration

·         Model building

·         Deployment

Mention what are the different layers in R/3 system?

Different layers in R/3 system includes

·         Presentation Layer

·         Database layer

·         Application layer

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

·         SAP BW

·         Flat files

·         External Systems

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

·         Create recording

·         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

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Explain the differences between Implementation, Support, Upgrade and Roll Out Projects

A : Implementation
Customer wants to install SAP/Include different modules of SAP viz. MM/SD/FI/CO/PP etc. This is implementation project. Here one needs to integrate several modules, migrate data from Legacy system to SAP system. Need to prepare interfaces/RFC's to interact with 3rd party systems.

Support
Customer has already installed SAP & wants to give the work of maintaining those systems. This is support project

Upgrade
Customer has SAP Version 4.6b and wants to update his version i.e. wants to go to Version 4.7. This is upgrade project

Rollouts
Customer has upgraded his version & wants to rollout country specific changes.
This is rollout project

What are functional specifications ?

Functional specifications (functional specs), in the end, are the blueprint for how you want a particular report and transaction to look and work. It details what the report will do, how a user will interact with it, and what it will look like. By creating a blueprint of the report or transaction first, time and productivity are saved during the development stage because the programmers can program instead of also working out the logic of the user-experience. It will also enable you to manage the expectations of your clients or management, as they will know exactly what to expect.

A key benefit of writing up a Functional Spec is in streamlining the development process. The developer working from the spec has, ideally, all of their questions answered about the report or transaction and can start building it. And since this is a spec that was approved by the client, they are building nothing less than what the client is expecting. There should be nothing left to guess or interpret when the spec is completed.

Functional Specification
A functional specification (or sometimes functional specifications) is a formal document used to describe in detail for software developers a product's intended capabilities, appearance, and interactions with users. The functional specification is a kind of guideline and continuing reference point as the developers write the programming code. (At least one major product development group used a "Write the manual first" approach. Before the product existed, they wrote the user's guide for a word processing system, then declared that the user's guide was the functional specification. The developers were challenged to create a product that matched what the user's guide described.) Typically, the functional specification for an application program with a series of interactive windows and dialogs with a user would show the visual appearance of the user interface and describe each of the possible user input actions and the program response actions. A functional specification may also contain formal descriptions of user tasks, dependencies on other products, and usability criteria. Many companies have a guide for developers that describes what topics any product's functional specification should contain.
For a sense of where the functional specification fits into the development process, here are a typical series of steps in developing a software product:

Requirements:
This is a formal statement of what the product planners informed by their knowledge of the marketplace and specific input from existing or potential customers believe is needed for a new product or a new version of an existing product. Requirements are usually expressed in terms of narrative statements and in a relatively general way.

Objectives: Objectives are written by product designers in response to the Requirements. They describe in a more specific way what the product will look like. Objectives may describe architectures, protocols, and standards to which the product will conform. Measurable objectives are those that set some criteria by which the end product can be judged. Measurability can be in terms of some index of customer satisfaction or in terms of capabilities and task times. Objectives must recognize time and resource constraints. The development schedule is often part or a corollary of the Objectives.
Functional specification.: The functional specification (usually functional spec or just spec for short) is the formal response to the objectives. It describes all external user and programming interfaces that the product must support.
Design change requests: Throughout the development process, as the need for change to the functional specification is recognized, a formal change is described in a design change request.

Logic Specification:
The structure of the programming (for example, major groups of code modules that support a similar function), individual code modules and their relationships, and the data parameters that they pass to each other may be described in a formal document called a logic specification. The logic specification describes internal interfaces and is for use only by the developers, testers, and, later, to some extent, the programmers that service the product and provide code fixes to the field.

documentation:
In general, all of the preceding documents (except the logic specification) are used as source material for the technical manuals and online information (such as help pages) that are prepared for the product's users.
Test plan: Most development groups have a formal test plan that describes test cases that will exercise the programming that is written. Testing is done at the module (or unit) level, at the component level, and at the system level in context with other products. This can be thought of as alpha testing. The plan may also allow for beta test. Some companies provide an early version of the product to a selected group of customers for testing in a "real world" situation.

The Final Product:
Ideally, the final product is a complete implementation of the functional specification and design change requests, some of which may result from formal testing and beta testing. The cycle is then repeated for the next version of the product, beginning with a new Requirements statement, which ideally uses feedback from customers about the current product to determine what customers need or want next.
Most software makers adhere to a formal development process similar to the one described above. The hardware development process is similar but includes some additional considerations for the outsourcing of parts and verification of the manufacturing process itself.

What is GAP Analysis ?

A : Gap means small cracks. In SAP world or in Information Technology world, gap analysis is the study of the differences between two different information systems or applications( ex; existing system or legacy system with Client and new is SAP), often for the purpose of determining how to get from one state to a new state. A gap is sometimes spoken of as "the space between where we are and where we want to be."

Gap Analysis is undertaken as a means of bridging that space. Actual Gap Analysis is time consuming and it plays vital role in Business Blueprint [AS IS Process] stage.

A through Gap Analysis will identify the gaps between how the business operates and its needs against what the package can can't do. For each gap there will be one of three outcomes which must be recorded and actioned,

1. GAP must be closed and customized software can be developed
2. GAP must be closed but software cannot be written therefore a workaround is required
3. GAP does not need to be closed.

A point worth mentioning here is that at time people confuse between user-exits and Gap Analysis. User exits are standard gate ways provided by SAP to exit the standard code and we can write our own code with the help of ABAP workbench, its not new functionality which we are trying to build in sap but its slight enhancement within the same code.

Gap analysis is start point of Realization and once business Blueprint is finished we have to find the realization of sap system for client requirement and there will be certain gaps when compared to system fit. Those gaps can be closed either by re-engineering of business process to fit with SAP or we have to use USER exits in case of small deviations or complete enhancements with the help of ABAP to fit with the SAP system.

The Gaps can differ from company to company. Most commonly, however, missing functionality is industry-specific.
Examples:

1. MGM Studios and Lycos sometime back worked with SAP to develop its new intellectual property management and media advertising management functionality, respectively.
2. A leading Oral care product company wanted the promotion of free-goods where they wanted 'Buy one get 2 different products free'.

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Profitability Analysis (CO-PA) Interview Questions

1.  What are the differences between Profit Center Accounting (PCA) and Profitability Analysis (CO-PA)?

PCA	CO-PA
PCA is aimed at Profit reporting on internal responsibility lines or SBU's	CO-PA is aimed at external market segment reporting for example by customer and customer groupings (industries), geographical areas.
PCA is limited to reporting by the profit center hierarchies that you can setup.	PCA can slice & dice your information by a variety of dynamic hierarchies (a 'Rubik’s' cube is often used to symbolize this idea.
PCA can be reconciled easily back to the GL	PCA has 2 'styles' ·         Account based which will reconcile to the GL ·         Costing Based which Allows approximations, estimations or standards to be posted, which may make reconciliation difficult to explain to the user

2.      Why does SAP talk about statistical assignments in CO - why are these different from real Cost Accounting assignments?

The reason is to facilitate reconciliation between FI and CO. The sum of all 'real' assignments in CO should add up to the sum of all expense and revenue postings (where cost/revenue elements have been created for the GL account of course) in FI.   A normal expense invoice posting to expense accounts / cost elements will be a 'real' posting. If the system is displaying an error message insisting on a 'cost accounting assignment' and you think you have entered one, then possibly you have specified a statistical assignment. A common error is in thinking that the business area will do - Business areas are FI elements not CO elements.

Example:

All Profit Center assignments are statistical	EC-PCA is defined as statistical, therefore if posting to a revenue element, the system will insist on a real cost accounting assignment even if profit center is specified.  A cost center will not do, since revenue elements are statistical in cost centers.  The system will accept the following as ‘real’: CO-PA profitability segment, sales order, customer project or a revenue bearing order.
Revenue elements assigned to cost centers will always be statistical	'Revenue' when defined to the system by setting up a revenue element is always statistical in a cost center.  If however you have setup your revenue accounts as primary cost elements then the assignment will be 'real'.

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

'Period Based Accounting' is Accrual Accounting and 'Cost of Sales' is 'Cost of Goods Sold' Accounting. 

Period based Accounting 

"Period based" means that during the month or period, all and only actual events / transactions are posted in the appropriate period.  At the end of the period estimated accruals and deferrals are made and posted to that posting period to give a more accurate view of profit.  IE any expected revenues and expenditures that should relate to the current period are accrued for and equally any prepaid expenses or revenues are deferred to the next period.  (Accruals and Deferrals are posted temporarily, usually to special accounts, and reversed prior to the next period end.)

These accruals and deferrals are usually done at a fairly high level of summarization (eg: at company or business area).  The FI Ledgers and financial statements etc are always period based. 

Cost of Sales Accounting

Cost of Sales in SAP means that we attempt to record or rather report the "costs of sales" against the actual sale at as low a level as possible and during the period. (In CO-PA this is down to a transaction level.)   This enables the company to get a reasonably accurate view of profitability on a real time basis.

This is done by using either standards or estimates for many of the components that make up the "cost of goods sold".  Any variations from the standards are usually posted through to the cost of sales system either at month end or when they occur.  

For example: A product cost estimate might be used to calculate and post a manufactured cost through to CO-PA when every sale goes through.  The actual production orders variances from the product cost estimate can then be settled to a separate line in CO-PA. This has the benefits that

 a reasonably accurate gross profit could be reported in real time at a transaction level and of course therefore at all the characteristic levels in CO-PA.

The impact of any abnormal variances in production can quite clearly be seen and analyzed separately from the normal profitability of a product.

4.      How data flows from SD to COPA?

The normal SD document flow is as follows:

1.      Sales order

2.      Delivery (the delivery creates the goods issue, which debits COGS and credits Inventory – COGS is updated in CO-PA at this time)

3.      Billing Document (the billing document updates A/R, Sales revenue, Discounts, Freight, etc.)

5.      How data flows from CO to COPA?

Through Assessments. Allocates costs from cost centers to profitability segments. 

6.      How data flows through MM into FI?

Through Account assignment model OKB9. Automatic postings created in materials management, can be passed on to CO-PA by means of automatic account assignment to a profitability segment. 

7.      How data flows from PP into FI & COPA?

Through Production Variances. It Posts variances from the production (product cost) estimates or standards to the GL accounts and to Profitability Analysis if real costs are required (vs standard costs).  Standard cost figures would have been used to update Stock and Cost of Goods sold figures when finished stock was issued from the production runs. 

8.      What do you mean by value field groups?

Value Field Groups represent the possible combinations of value fields in an operating concern. Value field groups are used to specify:

·         Which value should be made available to users entering or displaying a line item

·         In what order these value fields should be displayed

·         Which specific value fields can be filled

You plan your data for the characteristics Product, Product group and Customer group. You define three planning levels for which planning data is to be entered: Customer group/product group (independent of the product), product/product group (independent of the customer group), and product/product group/customer group (the lowest, most detailed level). By using transaction-based top-down distribution, you can ensure that all planning data is saved at the lowest level

9.      What are Characteristics Values?

Characteristics are aspects on which we want to break down the profit logically such as customer, region product, sales person etc. 

10.  What do you mean fixed characteristic fields?

Predefined characteristic fields in SAP R/3 system, which are obvious, are known as fixed characteristic fields such as product, sales org and customer 

11.  What are Non-Fixed characteristics or user defined characteristics?

Up to 50 non-fixed characteristics can be added to an operating concern. E.g. Bill-to-party

Create -> Derived the value from Table PAPARTNER (SD partner that can be used in COPA) -> Create user defined characteristic name WW008 -> Save

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FI-CO Interview Questions Only

1.     What is the role of FI consultant in FI-SD integration?

2.     While creating asset master we have two options. One is using asset class and another one is using existing asset master. Here the  question is what default values to be provided by asset class and existing asset master to newly created asset master?

3.     I have created GL master without selection open item management and i have posted business transactions to that GL. Now client wants to change that GL to open item management. is it possible...how?

4.     Give some examples of GL accounts that should be posted automatically through the system and how is this defined in the system.

5.     What is a Account group and where all is it used?

6.     What is a field status group?

7.     What is a Financial Statement Version?

8.     How are input and output taxes taken care of in SAP ?

9.     What are Validations and Substitutions ?

10.  Is it possible to maintain plant wise different GL codes?

11.  Is Business area at company code Level?

12.  What are the different scenarios under which a Business Area or a Profit Center may be defined?

13.  What are the problems faced when a Business area is configured?

14.  Which is the default exchange rate type which is picked up for all SAP transactions?

15.  Is it possible to configure the system to pick up a different exchange rate type for a particular transaction ?

16.  What are the Customizing prerequisites for document clearing?

17.  Explain the importance of the GR/IR clearing account.

18.  How are Vendor Invoice payments made?

19.  How do you configure the automatic payment program?

20.  Explain the entire process of Invoice verification from GR to Invoice verification in SAP with accounting entries?

21.  How are Tolerances for Invoice verification defined?

22.  Can we change the reco account in the vendor master? If so, and how? What is the impact on the old balance?

23.  What is the difference between primary and secondary cost elements?

24.  What is the difference between Assessments and distributions?

25.  What is the difference between profit center and profitability analysis?

26.  What is the difference statistical order and real orders in internal orders?

27.  What is statistical key figure?

28.  What is the difference between Cost center and Internal orders?