Sap Erp Interview Questions

1). What is ERP?

Ans)ERP stands for “enterprise resource planning”. The definition of enterprise resource planning is an integrated software solution used to manage a company’s resources. ERP systems integrate all business management functions, including planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, and more.

2).Why implement an ERP system?

Ans)ERP software integrates all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs. ERP combines finance, HR, manufacturing and distribution all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other. This integrated approach can have a tremendous payback provided the software is installed and used correctly.

3).What kinds of ERP systems have you worked with?”

Ans)Some organizations have deployed a hybrid comprised of multiple ERP solutions, while others may have created their own using open-systems software. Make sure your candidate is familiar with the system (or systems) you use or plan to use.

4).What functional areas do you know best, and how have you built bridges from there to other parts of the enterprise?”

Ans)If the candidate has only worked on financial systems, for example, how did she handle integrating payroll automation with HR? You might also invite the candidate to discuss a few examples of flaws or bugs that she later resolved.

5).How have you worked with the different functional areas to keep projects moving forward?”

Ans) Any ERP implementation calls departmental autonomy into question. So implementing ERP systems requires skills in both project management and persuasion. The best ERP analysts are both reassuring and assertive.

6).Have you developed custom transaction software?

Ans)Well-designed and well-implemented ERP systems help management keep track of the tiniest pieces of inventory. Custom transaction software enables employees to make real-time inventory changes. While this concept seems geared toward manufacturing, it’s applicable to any business that offers something for sale. For instance, it would also be appropriate for a retail store, food-service operation or a government facility.

7). How can an ERP analyst improve the speed of an ERP implementation?”

Ans)Seip strongly recommends utilizing the SAP ASAP Methodology for SAP systems. Your ideal candidate should be familiar with ASAP or industry best-practice information published continuously by other leading ERP software providers.

8).What Are The Typical Modules Of Erp?

Ans)Typical Modules of ERP include sales (sales forecasting, customer prospecting, customer follow-up, support for telemarketing, database marketing), order processing (inquiry handling, order taking) shipping, transportation, invoicing, finance (G/L, AR, AP), asset management, cost accounting, financial accounting, manufacturing and materials management. Optionally quality project, warehouse, continuos production and other modules are also present in different ERP software. Industry specific modules to cater to hospitals, retail, banking, insurance, oil, shipping and transportation are also available from some vendors.

9).Why Is Top Management Commitment Necessary For The Success Of Erp?

Ans) ERP will ultimately affect everyone in the organization. An ERP implementation represents a major organizational intervention. The process view of ERP would remove many of the "kingdoms" in the organization. This would lead to a shift in power centers; naturally ERP represents a major change. Managing change of such high order cannot be done without top management commitment.
ERP exercise is also a major exercise and can cost anyway from several lakhs to several crores of rupees. Such large resource requirements also necessitate commitment from top management. Last, but not the least, ERP implementation is a long process, generally running into several months. Keeping an activity alive for such long duration would be nearly impossible without top management commitment.

10).Why Is Change Management Necessary For Erp?

Ans)ERP being a major initiative costing significant amount of money, lasting several months and ultimately affecting everyone in the organization, change management is the key for the success of any ERP project. ERP software brings along with them some of the best practices. Implementing such practices would need change. To profit from ERP such change must be managed. That is the reason ERP needs top management commitment.

11). Is Erp Too Expensive For Indian Companies?

Ans) The cost of ERP software should not be viewed as an expense. It is an investment towards an ability that provides better profitability, market share or customer service. Of course, the up-front cost of ERP software is very high.
Most software pieces used by the corporations for commercial applications never had price tags of crores of rupees which ERP software carry. ERP decisions are a "high-risk high reward" decision. The view that ERP is expensive only looks at the risk but not the rewards.

12). How Do You Cost Justify Erp?

Ans)It is difficult to calculate return on investment for ERP decisions, though several successful installations of ERP had dramatic returns on investment. For example, Microsoft estimates that the investments in ERP will be paid back by way of better performance in flat two years. It must be realized that the ERP is an enabler.
ERP gives agility to organization, which can be exploited to improve profitability, market share or customer service. Without ERP, the organization may not be in a position to handle larger business or provide faster response to customers. The results from enlarged business or faster customer response should pay back for ERP investment. It is predicated on the fact that the organization would leverage the agility towards such corporate goals. ERP helps in pursuing such goals often successfully.
But mere ERP implementation does not necessarily translate to benefits. Better health enables a human being to do things, which would have been difficult, if not impossible, without such sound health. But if the individual does not make use of his improved status towards the pursuit of any goal, he or she is not capitalizing on the improved health. ERP must also be viewed as a way of providing a better health to an organization.

13).What Is The Erp Life Cycle?

Ans)The set of activities through which ERP is implemented in an organization constitutes the ERP life cycle. This can be compared to the well developed System Development Life Cycle (SDLC) in the traditional Structured System Analysis and Design (SSAD). Typical ERP project consists of the following steps:
Step 1: ERP readiness assessment
Step 2: Preparing the organization for ERP
Step 3: ERP Feasibility Study
Step 4: Process modelling and documenting the "AS IS" processes & "TO BE" processes (along with BPR)
Step 5: Detailed plan for ERP implementation (includes ERP software selection, selection of implementation partners, implementation methodology - "Big Bang" or Modular Implementation - and the final and precise extent of implementation)
Step 6: Detailed implementation including development, quality assurance and production system
Step 7: Preparing to "go live" including data migration
Step 8: Going live
Step 9: Performance assessment, documentation, training (continues in early stages also) and future plans.

14).Why Do Erp Consultants Charge A High Fee?

Ans)ERP consultants operate in the "high risk high reward" area. Contemporary ERP software are complex pieces which need years to master. ERP consultants invest significant amount of time and effort, which need to be rewarded. ERP Consultancy is also given to the highest levels of management often at the level of CEO. CEO level consulting cannot come cheap. A well-implemented ERP can translate to crores of rupees of saving for an organization justifying once again the high cost of ERP consultants.
ERP consultants also combine a rare combination of communication skill, domain knowledge and software expertise, once again justifying the high cost. Last, but not the least, ERP sales are growing fast and the demand for ERP consultants is all time high. The gap in supply-demand also explains the unusually high cost of ERP consultants.

15).What Is The Role Of Process-modeling Tools Erp Implementation?

Ans) Process Modelling provides a means to map the organization processes and visualize it in a graphical manner. This helps in communication, clarification and documentation of the "AS IS" and "TO BE" processes. Process modelling can be used to reinforce the central theme of ERP, namely, a shift from function orientation to process orientation.

16).Why Implement An Erp System?

Ans)ERP software integrates all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. ERP combines finance, HR, manufacturing and distribution all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other. This integrated approach can have a tremendous payback provided the software is installed and used correctly.

17).How Much Does It Cost To Go For Erp?

Ans)The cost of ERP project would vary significantly from one instance to other. The actual cost depends on the nature of the industry, the size of the firm, the geographical distribution of the organizational units such as offices, plants, warehouses and distribution points, the number of user licenses and the extent of ERP implementation (the number of functional modules implemented).
A typical mid-size Indian company with about Rs 100- 300 crores of annual business will have to invest about five to twenty crores of rupees in the ERP project. This includes ERP software licenses, server cost, communication network cost and the cost of consultants who would do the implementation. Large corporations with Rs 1000+ crores of annual business might invest Rs 100+ crores in ERP project.
A number of small companies have managed to implement ERP in about Rs 1 crore. It may be noted here that in a typical installation the cost of ERP software accounts for only about 20% of the overall cost. A major component in ERP project is the cost of the implementation consultant (both internal and external).

18)What Does "going Live" Mean?

Ans) After many months of implementation plan every organization would decide a particular date when they would shift from their legacy system to the ERP system. Up to that time the ERP software would be under development followed by testing and quality assurance.
Once by ERP implementation team feels convinced that the development is complete and testing is satisfactory, they would decide to "go live". In a sense "go live" date marks the end of ERP project completion. Generally most ERP project "go live" on the starting of the fiscal/ financial year, namely April 1 in India.

19). Who Are The Project Champions?

Ans)Project champions (for the crore processes that are taken up for implementation) would be those individuals who would take the ownership of implementation. They are expected to provide the leadership so as to sustain the trials and tribulations of ERP implementation.

20).What Is An Erp Project Team?

Ans) ERP project team would be charged with the responsibility of implementing the ERP for the specific organization. A champion, who is skilled in communication and understands the organization well should head the ERP team.
The leader must be well accepted by the most employees of the organization. The leader also must be a person who can keep the motivation level of the implementation team at fairly high levels throughout the several months of implementation.
The implementation team would consist of dozens of people. There will be a number of teams for each of the functional area with every team consisting of key users and IT personnel to provide technology support.

21). How To Prepare An Organization For Erp Implementation?

Ans) There is no easy magic through which one can prepare an organization for ERP implementation. Exposing the top management to the benefits of ERP through the real world case studies, sharing of experience by other corporations that have successfully implemented ERP and creation of awareness is the first step. Convincing the top management to use a high risk, high reward scheme such as ERP is a major challenge.
Almost all the members of the organization should get the excitement about ERP project implementation. Communicating and sharing of the ERP vision is the most important organizational preparation for a successful ERP implementation.

22). Is There A Benchmarking Tool To Fine Tune Erp Performance?

Ans) Every ERP vendor provides performance guidelines that can be used by system administrators to fine tune performance. Some of them are very comprehensive and address fine-tuning at the application, database, operating system, processor and even the network level. Other ERP vendors provide tools that can leverage the leading edge database tuning, operating system tuning and network performance tuning tools.

23).Why Do Consultants Recommend Changing Business Practice To Suit The Erp Software Rather Than Customizing The Software To Every User Needs?

Ans)A key contribution of ERP software is the bundled business process knowledge that come along with ERP software. These processes have evolved over the past two decades of ERP implementation in some of the most well-managed corporations around the world.
By adapting to those processes that have proved successful in some of the finest corporations around the world, an organization implementing ERP would get the advantage of these "best of the breed" practices. That is the reason behind the consultant recommendations.

24).Why Are "financials", The First Module Implemented In Many Indian Erp Implementations?

Ans)These are basically n array of tools that are useful in monitoring and analyzing the SAP systems. The tools that are of significance importance and are widely preferred are Exception analysis, Workload Analysis as well as trace Analysis. A few tools in the group have multi-dimensional features and i.e. they can be deployed for different tasks and reasons.

25).Erp Being Integrated Software Does One Benefit By Implementing Only Specific Modules?

Ans)Yes. The full benefit of ERP would accrue if all the ERP modules are implemented. However many organizations implement ERP only in those functions, which are, considered to be of strategic importance. Some of the modules, though they appear to be limited to specific functions, in fact integrate with many other functions indirectly.
For example finance module primarily targets the accounting and finance functions. However the accounts payable module address all the material purchases and in turn impacts the entire materials management functions. Many more examples can be quoted to reinforce our viewpoint. The process orientation of ERP software definitely contributes to a better management of the organization. Even partial implementation of the ERP therefore leads to significant benefits.

26).What Is Meant By India Version Of Specific Erp Software?

Ans) ERP software must address all the enterprise needs of an organization within the social context in which the enterprise operates. This would imply that the local accounting practices, locally applicable taxation laws (excise, customs, sales tax and income tax) are fully adhered to in implementing the various business processes.
The software vendor must incorporate India specific features before selling the software. The specific ERP software that has been adopted to suit to Indian statutory laws is called India specific ERP.

27). How many successful ERP installations have you performed?

Ans)ERP implementation can be a complex and sometimes unpredictable undertaking. Any consultant you hire for the project should be well experienced with years of expertise so that they are equipped to handle any situation that may arise.

28).Who is your ideal customer?

Ans)ERP software is an effective way to manage your business or organization but not all solutions will be a match to your particular industry, company size, revenue, etc. Finding a consulting firm that fits your company persona is important. They should know your industry and have worked with companies similar to yours in order to provide you the most effective software solution possible.

29).Describe your consulting resources. How many full-time consultants do you employ, and are they qualified?

Ans) A consulting firm is only as good as its consultants. Be sure to enquire about your consultants’ qualifications and years of technical and accounting experience. Sometimes you can request for either a junior or a senior consultant. Price may vary if this option is available to you. Ensure the firm has enough bandwidth to allow them to respond to your needs on a timely basis.

30).How will I know if the software will fit my business requirements?

Ans)We suggest that you have a needs analysis performed first. Before you look at any software solutions you must first understand where the issues lie. Sometimes you may not even realize areas that could be more effective. For this process, allow an outside consultant to interview your employees. This will help you discover where time could be saved and effectiveness could be improved.

31). What do you do to ensure each project comes in on time and on budget?

Ans)ERP implementation is infamous for going over budget. Gartner says that 57% of all ERP projects cost 189% of the original estimate. We recommend that you work with a firm that believes in fixed-fee billing. You will know the exact price of the project before you start, guaranteed. This will eliminate any unnecessary stress and you can focus on ensuring the software is exactly to your requirements. Ask about their implementation process. Do they offer project management?

32).Different types of ERP?

Ans) SAP, BAAN, JD Edwards, Oracle Financials, Siebel, PeopleSoft. Among all the ERP’s most of the companies implemented or trying to implement SAP because of number of advantages over other ERP packages.

33).Explain the concept of “Business Content” in SAP Business Information Warehouse?

Ans)>Business Content is a pre-configured set of role and task-relevant information models based on consistent Metadata in the SAP Business Information Warehouse. Business Content provides selected roles within a company with the information they need to carry out their tasks. These information models essentially contain roles, workbooks, queries, InfoSources, InfoCubes, key figures, characteristics, update rules and extractors for SAP R/3, mySAP.com Business Applications and other selected applications.

34).What should be the approach for writing a BDC program ?

Ans)Convert the legacy system data to a flat file and convert flat file into internal table. Transfer the flat file into sap system called “sap data transfer”. Call transaction (Write the program explicitly) or create sessions (sessions are created and processed, if success data will transfer).

35). What are datasets

Ans)The sequential files (processed on application server) are called datasets. They are used for file handling in SAP.

36). What are internal tables check table, value table, and transparent table?

Ans)Internal table: It is a standard data type object, which exists only during the runtime of the program. Check table: Check table will be at field level checking. Value table: Value table will be at domain level checking ex: scarr table is check table for carrid. Transparent table: – Exists with the same structure both in dictionary as well as in database exactly with the same data and fields.

37). What are the major benefits of reporting with BW over R/3? Would it be sufficient just to Web-enable R/3 Reports?

Ans)Performance Heavy reporting along with regular OLTP transactions can produce a lot of load both on the R/3 and the database (cpu, memory, disks, etc). Just take a look at the load put on your system during a month end, quarter end, or year-end — now imagine that occurring even more frequently. Data analysis — BW uses a Data Warehouse and OLAP concepts for storing and analyzing data, where R/3 was designed for transaction processing. With a lot of work you can get the same analysis out of R/3 but most likely would be easier from a BW.

38). How can an ERP such as SAP help a business owner learn more about how business operates

AnsIn order to use an ERP system, a business person must understand the business processes and how they work together from one functional area to the other. This knowledge gives the student a much deeper understanding of how a business operates. Using SAP as a tool to learn about ERP systems will require that the people understand the business processes and how they integrate.

39). What is the difference between OLAP and Data Mining?

Ans)OLAP – On line Analytical processing is a reporting tool configured to understand your database schema, composition facts and dimensions. By simple point-n-clicking, a user can run any number of canned or user-designed reports without having to know anything of SQL or the schema. Because of that prior configuration, the OLAP engine “builds” and executes the appropriate SQL. Mining is to build the application to specifically look at detailed analyses, often algorithmic; even more often misappropriate called “reporting.

40). What is “Extended Star Schema” and how did it emerge ?

Ans) The Star Schema consists of the Dimension Tables and the Fact Table. The Master Data related tables are kept in separate tables, which has reference to the characteristics in the dimension table(s). These separate tables for master data is termed as the Extended Star Schema.

41). Define Meta data, Master data and Transaction data ?

Ans) Meta Data: Data that describes the structure of data or MetaObjects is called Metadata. In other words data about data is known as Meta Data. Master Data: Master data is data that remains unchanged over a long period of time. It contains information that is always needed in the same way. Characteristics can bear master data in BW. With master data you are dealing with attributes, texts or hierarchies. Transaction data: Data relating to the day-to-day transactions is the Transaction data.

42).. What is Bex?

Ans)>Bex stands for Business Explorer. Bex enables end user to locate reports, view reports, analyze information and can execute queries. The queries in workbook can be saved to there respective roles in the Bex browser. Bex has the following components: Bex Browser, Bex analyzer, Bex Map, Bex Web.

43).What is AWB?. What is its purpose?

Ans)AWB stands for Administrator WorkBench. AWB is a tool for controlling, monitoring and maintaining all the processes connected with data staging and processing in the business information whearhousing.

44).What is the significance of ODS in BIW ?

Ans) An ODS Object serves to store consolidated and debugged transaction data on a document level (atomic level). It describes a consolidated dataset from one or more InfoSources. This dataset can be analyzed with a BEx Query or InfoSet Query. The data of an ODS Object can be updated with a delta update into InfoCubes and/or other ODS Objects in the same system or across systems. In contrast to multi-dimensional data storage with InfoCubes, the data in ODS Objects is stored in transparent, flat database tables.

45).Why implement an ERP system?

46).How much does it cost to go for ERP?

Ans)The cost of ERP project would vary significantly from one instance to other. The actual cost depends on the nature of the industry, the size of the firm, the geographical distribution of the organizational units such as offices, plants, warehouses and distribution points, the number of user licenses and the extent of ERP implementation (the number of functional modules implemented). A typical mid-size Indian company with about Rs 100- 300 crores of annual business will have to invest about five to twenty crores of rupees in the ERP project. This includes ERP software licenses, server cost, communication network cost and the cost of consultants who would do the implementation. Large corporations with Rs 1000+ crores of annual business might invest Rs 100+ crores in ERP project. A number of small companies have managed to implement ERP in about Rs 1 crore. It may be noted here that in a typical installation the cost of ERP software accounts for only about 20% of the overall cost. A major component in ERP project is the cost of the implementation consultant (both internal and external).

47). What is an ERP Project team?

Ans) ERP project team would be charged with the responsibility of implementing the ERP for the specific organization. A champion, who is skilled in communication and understands the organization well should head the ERP team. The leader must be well accepted by the most employees of the organization. The leader also must be a person who can keep the motivation level of the implementation team at fairly high levels throughout the several months of implementation. The implementation team would consist of dozens of people. There will be a number of teams for each of the functional area with every team consisting of key users and IT personnel to provide technology support.

48).Is there a benchmarking tool to fine tune ERP performance?

Ans)Every ERP vendor provides performance guidelines that can be used by system administrators to fine tune performance. Some of them are very comprehensive and address fine-tuning at the application, database, operating system, processor and even the network level. Other ERP vendors provide tools that can leverage the leading edge database tuning, operating system tuning and network performance tuning tools.

49).ERP being integrated software does one benefit by implementing only specific modules?

Ans)Yes. The full benefit of ERP would accrue if all the ERP modules are implemented. However many organizations implement ERP only in those functions, which are, considered to be of strategic importance. Some of the modules, though they appear to be limited to specific functions, in fact integrate with many other functions indirectly. For example finance module primarily targets the accounting and finance functions. However the accounts payable module address all the material purchases and in turn impacts the entire materials management functions. Many more examples can be quoted to reinforce our viewpoint. The process orientation of ERP software definitely contributes to a better management of the organization. Even partial implementation of the ERP therefore leads to significant benefits.

50).What is the role of process-modeling tools ERP implementation?

Ans)Process Modelling provides a means to map the organization processes and visualize it in a graphical manner. This helps in communication, clarification and documentation of the “AS IS” and “TO BE” processes. Process modelling can be used to reinforce the central theme of ERP, namely, a shift from function orientation to process orientation.

Sap Erp Interview Questions

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