SAP C_TS4FI_1909 – S/4HANA for Financial Accounting Associates Interview Questions
The SAP C_TS4FI_1909 – SAP S/4HANA for Financial Accounting Associates (SAP S/4HANA 1909) certification is recommended as an entry-level qualification to allow consultants to get acquainted with Financial Accounting projects. For you to successfully pass the interview, you must have the knowledge and skills working with SAP S/4HANA Finance, and financial policies as they relate to SAP S/4HANA Finance software. These comprise “closing the books” on a financial accounting period, general ledger accounting, payables and receivables, and accounting for assets. The exam also assesses your knowledge of SAP HANA, S/4HANA, and Fiori.
You may also go through our SAP C_TS4FI_1909 online tutorial to further strengthen your expertise. We also provide SAP C_TS4FI_1909 Free Practice Tests to help attain the certification and become more desirable to employers in an ever-changing job market. To be successful in the interview, professional standards say that you should know about the following topics in advance. And for your assistance, we have compiled below, a list of some highly expected SAP C_TS4FI_1909 Interview Questions. So let’s begin!
Top SAP C_TS4FI_1909 Interview Questions
1. How do exchange rates affect financial statements?
When analyzing a company’s financial trends over multiple periods, it’s important to consider exchange-rate shifts. When translating the results of operations for a reporting period, a weighted average exchange rate is typically used. However, when significant shifts in currency exchange rates occur, they can have a dramatic effect on revenue and profit trends.
2. Who determines the exchange rate of valuation?
When a country pegs its currency to another country’s currency, it uses that country’s central bank to supply enough of the other nation’s currency to maintain its peg. To maintain the peg, it must buy and sell its own currency against the pegged currency when necessary.
3. Can you elaborate on the importance of exchange rates?
Although most people conduct transactions in U.S. dollars, the exchange rate is important because it affects the prices of imported goods relative to domestic goods. The exchange rate also affects the price of U.S. goods overseas, relative to the goods produced in those countries.
4. What are the theories of exchange rate determination?
At the most basic level, exchange rates are determined by the demand and supply of one currency relative to the demand and supply of another. However differences in relative demand and supply explain the determination of exchange rates, they do it only in a superficial sense.
5. What are the provisions in financial accounting?
At the most basic level, exchange rates are determined by the relative demand and supply of one currency versus another. However, differences in relative demand and supply only explain the determination of exchange rates in a superficial sense.
6. What are the types of provisions in accounting?
- Provision for bad debt
- Accumulated depreciation
- Guarantees
- Warranties
- Income tax
- Accrued expenses
7. What is the difference between accruals and provisions?
Accruals are expenses or revenues that have been incurred but not yet paid, while provisions are set amounts for probable future expenses.
8. How would you define a financial closing cockpit?
SAP Financial System provides a very powerful tool, the closing cockpit, which includes a structured interface for executing transactions and programs meant to form parts of complex processes, such as periodic and annual closures.
9. Why is the closing cockpit used?
- Even the most complex closing cycles can be accelerated to meet financial reporting standards and compliance requirements
- Enhance automation and central monitoring and control to increase user efficiency
10. How does accrual accounting affect financial statements?
An accrual basis of accounting provides a more accurate picture of a company’s financial situation, as income is recorded when it is earned and expenses are incurred, allowing revenue to match expenses.
11. How do deferrals affect financial statements?
In many companies, these revenues are not included in their income statements as direct income, since if something goes wrong, perhaps the company will need to return these revenues. Hence, the deferred revenue is a Liabilities account.
12. Why are adjustments needed at the end of an accounting period?
The purpose of adjusting entries is to update the balance sheet and income statement accounts so that they conform with the accrual basis of accounting. At the end of the reporting period, some income and expenses may not have been recorded or updated; therefore, it is necessary to adjust the account balances.
13. Which data do you define on the bank master record?
- A bank’s country
- Unique code called bank key
14. Could you explain to me what is meant by document splitting in SAP?
The accounting practice of document splitting allows one to create financial statements beyond the scope of a company’s code. This can be useful in complying with segment reporting requirements, as it allows for greater flexibility.
15. What are active and passive document splitting in SAP?
Active splitting implies that we can enter the bus area, and profit center in the debit or credit lines, and the system will update all related lines. Passive splitting, on the other hand, means values will be captured from invoice levels to the rest of the process.
16. Could you elaborate on the purpose of a special GL account in SAP?
GL transactions with special implications are posted to alternative reconciliation accounts in order to allow them to be distinguished from general customer and vendor postings. Normal G/L transactions flow from sub-ledgers to the general ledger via a reconciliation account.
17. What are the different types of Special G/L transactions?
- Bills of exchange.
- Down payments.
- Miscellaneous special G/L transactions, such as guarantees.
18. What is meant by payment medium workbench in SAP?
SAP Payment Medium Workbench is used to create payment media. The user can create the structure of notes for the payee and select different notes for the payee according to their origin.
19. What are the advantages of the payment medium workbench PMW?
A flexible, easy-to-adapt format can be delivered to customers or banks without requiring any modifications, including separate selection parameters for payment mediums. It is not necessary for users to have programming knowledge for the DME Engine to create new formats.
20. Could you differentiate between the chart of depreciation and depreciation area?
A chart of depreciation is a directory of depreciation areas organized according to business management requirements. Each chart of depreciation has one or more depreciation areas, each with its own characteristics and significance. A chart of depreciation can have only one depreciation area assigned to it.
21. Which statements best describe a chart of depreciation?
There are multiple depreciation areas listed on a chart of depreciation, and they can all be added and deleted as needed. The chart of depreciation delivered as part of SAP S/4HANA is country-specific.
22. How would you define an FI-AA in SAP?
The Financial Institution-Assets Accounting (FI-AA) component is ideally used for managing the fixed assets in an FI system. It provides detailed information on transactions involving those assets, which are recorded in General Ledger, the primary ledger of financial accounting systems.
23. Could you explain the use of parallel accounting in SAP?
Parallel accounting enables you to perform valuations and closing operations for a company’s financial records using accounting principles defined for the entire group as well as other accounting principles, such as those defined by local standards.
24. What is meant by parallel currencies in SAP?
Parallel currencies, which are also known as dual currencies or parallel payments systems, can be used in foreign business transactions. Parallel currencies allow businesses to do international payments and receivables transactions easily.
25. What do you know about an organization assignment?
The Organizational Assignment (0001) info type is used to incorporate an employee into the organizational structure and to define his or her relationship with other employees, departments, and divisions. This data is essential for authorizing payroll transactions.
26. How would you define the term process integration in business?
Business process integration (BPI) allows companies to connect their people, data, and applications. With BPI, organizations can better coordinate both internally and with partners, customers, and vendors to achieve better results. By coordinating processes more effectively with BPI, companies can achieve greater success as they grow.
27. What are the architecture layers of SAP’s 4HANA?
- Presentation Layer
- Application Layer
- Database Layer
28. Could you tell me something about the SAP HANA architecture?
SAP HANA, previously known as HANA, is a relational database management system (RDBMS). It offers in-memory storage and processing of data that enables faster access and results than is possible with traditional databases. You can use HANA on-premises or in the cloud.
29. What are the deployment options for SAP HANA?
- S/4HANA Cloud
- S/4HANA Cloud Extended Edition
- S/4HANA Cloud Private Edition
- S/4HANA Any Premise managed by SAP on HANA Enterprise Cloud (HEC)
- S/4HANA Any Premise managed by the user or third party.
30. What is SAP’s 4 HANA and its future?
SAP S/4HANA provides next-generation processes to connect the entire business, and artificial intelligence capabilities so everyone can make smarter decisions. This new experience is guided by a system that learns from users’ interactions.
