1.    Discuss the concept of hierarchy levels with regard to the balance sheet in SAP.

There are ten levels possible in the financial statement hierarchy.  For each level, an item name and total is assigned to a group of accounts.  Higher levels provide more summarization than lower levels, level one being the highest and therefore, least detailed.

2.    Describe how G/L accounts are assigned to the financial statement hierarchy.

G/L accounts are attached to the lowest level of the financial statement hierarchy.
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1.    Discuss the monthly closing process in SAP.

The only technical requirements of period-end closing are to close the current posting period and to open the new one.  Month-end reports can be run after the posting period has been closed.  There are additional business processes (e.g., valuing foreign currency open items and G/L accounts, analyzing open items and accounts that will be closed out, etc.) that should also be completed for proper control, even though they are not required for closing.

2.    Discuss the annual closing process in SAP.

1.  Execute the month-end closing process for the last period.
2.  Run the balance sheet adjustment programs and make any manual adjusting entries.
3.  Generate year-end reports.
4.  Carry G/L, customer, and vendor accounts forward.
5.  Open the new posting period.
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1.    How can a document obtain exchange rate information?

•    From the Exchange rate table
•    From a manual entry in the document exchange rate field

2.    What are exchange rate types used for? List and describe five exchange rate types.

Exchange rate types are used for foreign currency revaluations and postings.

–    B (Bank Selling Rate)
–    G (Bank Buying Rate)
–    M (Average Rate) – The default rate type for posting documents.
–    EURO – Used for exchange rates between EU member nation currencies (e.g., DEM:FRF)
–    EURX – Used for exchange rates between an EU member nation currency and a non-member nation currency (e.g. DEM:USD)
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1.    Discuss the steps involved with configuring and running the payment program.

A)    Payment Program Configuration
- Set up paying and sending company codes
- Payment methods per country
- Payment method per company code
- Bank Selection (rank banks, available amounts, G/L account assignment)

B)    Check Lot Configuration
- Per house bank and account

C)    Running the Payment Program (application side)
- Maintain parameters (company codes, payment method, next run date, vendors, Additional Log)
- Schedule Proposal
- Display/Edit Proposal
- Create Variant for Print Program
- Schedule Payments (clears vendors’ accounts)
- Schedule Print (cuts checks)
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1.    Invoice verification provides a link between which modules?

Invoice verification provides a link between Materials Management and the Financial Accounting, Controlling and Asset Accounting modules.

2.    What are the two ways to enter taxes on invoices?

(a)    Manually enter it in the Tax field
(b)    Leave the Tax Amount field blank and turn on the Calculate Tax indicator to have the system calculate the tax based on the Tax Code.

3.    When a Vendor invoice is posted in the system, what 5 things happen?

•    An Invoice Receipt document is created
•    The Material Master record is updated when appropriate.
•    The Purchase Order History is updated when appropriate.
•    Entries are posted to the appropriate General Ledger Accounts
•    The Vendor account (Sub-ledger) is updated.
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