Sap Fscm Interview Questions

1). Why should we use SAP FSCM?

Ans)If you are using standard FI-AR to manage your credit collections process, SAP FSCM provides tools to enhance your process. The tools in isolation will not solve any problems or add any direct benefit. However, the various modules will improve control and visibility, and enable the team to process more customers with a common process.

2).What version of SAP to be on?

Ans)If you are using SAP ERP 6 then the core processes and functionality can be accessed. However, it should not be overlooked that new functionality has been released in the latest Enhancement Packages. Some customers can see the benefit of implementing SAP FSCM immediately and will work with their existing Enhancement Package version. Others will recognize some of the new functionality and wait until their ERP system is on the relevant Enhancement Package.

3).What module(s) should start with?

Ans) Collections Management is the most popular and most simple module to implement. However, to fully see the benefits of Collections Management the other 3 modules should be implemented as well.

When asked the question, I normally turn this around and try to align the customer’s strategic objectives from the implementation to decide the scope of the implementation. Customers who have high volumes of customer invoice disputes will obviously look towards Dispute Management – however aligning this with Collections Management joins the gaps between disputes and credit collections. Where a customer has bad debt issues and pays significant attention to Credit Limits and Credit Exposure, Credit Management will be more appealing – however the Credit Risk Class and Credit Exposure can be used to influence the Collections Work list.

4).What are the Major benefits of SAP FSCM?

The Collection work list ensures the correct customer is called at the right time within the Collection process. This will enable more customers to be called, as the volume of effort to record a customer contact is simplified into a single transaction.

Logging disputes removes manual offline processes, and reducing the time spent to log and process disputes will directly improve the cash collection process leading to more cash being received in a quicker time frame.

The new version of Credit Management provides more accurate credit data using internal and external data, reducing the potential risk for bad debts.

5). Where is reporting found for SAP FSCM?

Ans) As with most new SAP functionality, reporting in core ERP is limited within SAP FSCM. Implementing just the core SAP FSCM modules alone will leave a gap in terms of business reporting. Within SAP BW there is some good business content which is simple to implement. Reporting should be part of the initial build within the project. Some customers who do not use SAP BW will design their own ABAP reports which is must better than using the standard content. Any project that does not consider reporting will find it almost impossible to measure the performance of the various teams.

6). How do you implement SAP FSCM?

Ans)It is really important to note that a SAP FSCM project is 80% process re-design and 20% software implementation. It is therefore imperative that any business implementation of SAP FSCM aligns to these percentages. An implementation team cannot work in isolation from the business as the screens, terminology and processes are considerable different to core SAP FI-AR.

A business cannot input into any solution unless they understand the full capability of a system, otherwise they are over reliant on the implementation partner to make decisions for them. With this in mind, running business workshops on a proof of concept within the customer’s landscape enables the customer to make decisions with a better understanding. In turn this will reduce the subsequent phases including, build, test and training.

7). PI to use SAP FSCM Credit Management?

Ans)The simple answer here is no if you have Enhancement Package 5. However you need to implement WS-RM to replace the job PI does. If you have a PI server it does not make sense to look at the WS-RM option. If you do not have PI and want Credit Management it is worth considering WS-RM (if you have Enhancement Pack 5). To be fair this is more of technology question for your BASIS team to decide the landscape approach they plan to adopt.

8).How to design a global template for SAP FSCM?

Ans)Before designing the processes to support the Credit Collections team, the organizational units need to be defined. Collections and Credit Management have separate organizational units to represent the various levels within a Company. Where measure are to be common, organizational units can be shared, and where differences are required unique values are required. Breaking out the full implementation into smaller chunks enables the solution to be rolled out and enabling quick wins.

9).How would you deal with underpayments from customers in FSCM?

Ans)We deal with underpayments from customer we will prepare dispute case for underpayment. through dispute case we will handle customer underpayments.

10).What are the advantages that an organization can have through the effective financial supply chain management?

Ans) Well, it is basically an approach that is very essential for any business to consider in the present time. This is because it brings a diverse array of benefits for one and all. Those who go for it can simply make sure of a very large number of benefits some of which are listed below:

Financial Chain Supply Management simply make sure that the availability of finance at the right time
Better customer relationship management can also be assured
Timely delivery of products to the vendors and to the customers
A close eye can be kept on the production, as well as on the stock availability
The users can simply make sure of no loss occur due to any minor financial issues
It is also possible for the users to simply make sure of categorizing the products easily when one has to deal with a very large number of products.

11).What benefits an organization can have with In-house cash?

Ans)

Controlling the overall number of bank accounts requirement
Tax benefits
Quick payments of external transactions (but risks might be involved)

12). Name any one important financial Management component?

Ans)Cash Flow facility Structure

13).What are the major factors that can impact the financial progress of an organization according to you and how SAP FSCM can help in it?

Ans)Financial Progress in a continuous manner is actual a tough job for the business. There are certain factors that can have a direct impact on the same. Some of these factors are:

Sudden resignation of skilled employees engaged in handling major financial responsibilities
Delays caused due to improper financial handling
Shifting of department and their heads
Delays in the services affecting the production and the customer relations
Unexpected expenses arrive due to issues such as quality or the claims imposed by the customers

SAP Financial Supply Chain Management tool is powerful in deriving a lot of information about all above issues and with the help of the same, the concerned actions can easily be taken by the organizations to keep up the pace simply.

14).What do you mean by the term Disputes?

Ans)It is basically a situation when a customer, vendor, retailer, supplier, a wholesaler or anyone dealing with an organization fails to accept the policies of the company. The dispute can be due to the mistake or an organization or any other party. Generally, most disputes arrive due to the factors which are related with the financial transactions.

15).What do you know about the implementation of a SAP FSCM project and what are the pros and cons associated?

Ans) Implementation of such a project is a task that needs to have isolation at every stage. This is because the processes are very much different from one another and the users can divide them as per their need. The biggest thing about this technology is more than 80% of the tasks related to implantation is pre-designed. Rest can be done through the proper software implementation.

16).What are the benefits that the Treasury and Risk Management can bring for an organization dealing with Finance?

Ans) It simply let the organizations to make sure of managing the payments, liquidity, financial reporting as well as integration of facts in a reliable manner.

17).What is customer Credit management according to you?

Ans) It is basically a policy or a strategy with the help of which evaluation is done by an organization on the creditworthiness of a customer based on the data for the purpose of taking credit decisions that can affect the organization and the customer. It is not always necessary that the same credit management approach works for all the customers.

18).) What exactly SKU stands for?

Ans) It means Stock Keeping unit and is basically an approach that give information about a specific financial aspect.

19).What are the important tasks in collection Management according to you?

Ans)There are certain tasks that largely matters and the good thing is the users are free to keep up the pace in the right manner. There is not always a need for the users to get the things done through an approach that always support the receivables management. This generally includes:

Evaluation of the accounts
Improving or checking the credit history
Receivables processing

20). What according to you is the prime objective of the SAP Financial Supply Chain Management?

Ans) To make the entire inventory readily available and achieve efficiencies

21). What is Logistics in the FSCM?

It is nothing but the movement of finance at the desired destinations

22). Why Should We Use Sap Fscm?

Ans) If you are using standard FI-AR to manage your credit collections process, SAP FSCM provides tools to enhance your process. The tools in isolation will not solve any problems or add any direct benefit. However, the various modules will improve control and visibility, and enable the team to process more customers with a common process.

23). What Are The Major Benefits Of Sap Fscm?

Ans) The process improvement that can be achieved can be broken down into a number of different streams. Process efficiency and controls can be seen within the Credit Collection teams and other associated teams. The Collection work list ensures the correct customer is called at the right time within the Collection process. This will enable more customers to be called, as the volume of effort to record a customer contact is simplified into a single transaction.

The new version of Credit Management provides more accurate credit data using internal and external data, reducing the potential risk for bad debts.

24). Where Is Reporting Found For Sap Fscm?

Ans)As with most new SAP functionality, reporting in core ERP is limited within SAP FSCM. Implementing just the core SAP FSCM modules alone will leave a gap in terms of business reporting. Within SAP BW there is some good business content which is simple to implement. Reporting should be part of the initial build within the project. Some customers who do not use SAP BW (see SAP BW training overview) will design their own ABAP reports which is must better than using the standard content. Any project that does not consider reporting will find it almost impossible to measure the performance of the various teams.

25). How Do You Implement Sap Fscm?

Ans) It is really important to note that a SAP FSCM project is 80% process re-design and 20% software implementation. It is therefore imperative that any business implementation of SAP FSCM aligns to these percentages. An implementation team cannot work in isolation from the business as the screens, terminology and processes are considerable different to core SAP FI-AR.

26).How can SAP FSCM help you?

Ans)

Contacting your customers to chase for payments
Being able to record and track customer disputes
Ensuring that you provide significant mitigation for bad debt issues

27). What are the main components is fscm

Ans)The main components are Credit Management, Collections Management, Dispute Management, and Electronic Invoicing.

28). What is credit management?

Ans)It's different from traditional SAP credit management because it aims to become a central function in a distributed environment. The old system used SD and FI on the same R/3 system. FSCM Credit Management brings in CRM systems, external logistics systems (both distributed SD and non-SAP systems), and can present the results through a BI system and a Portal.

29).What are the features of credit management

Ans)

Credit limit for the customer (and order limit, risk class)
Credit Rules Engine, which takes information and automates credit scoring, credit decisions and calculations of credit limits
Credit score, determined from externally and internally-collected information. Both automated and manual updating of credit scores are possible. Each customer has a credit scoring procedure, and a mass recalculation can be run to re-evaluate scores.
Note function, for credit controller to record additional information
Document storage, to attach any external items (bank records, credit reports)
Automated credit decisions for most cases allow you to concentrate on the exceptions.
Communication with external rating agencies via XML

30). What are the analysis of credit management

Ans)

Credit decision support function, consolidates data from several systems, summarised on a customer credit fact sheet, which can be accessed through the credit manager cockpit in the Portal.
Credit scoring to identify risk from customers and their debt
Monitoring of customer payments, to identify problems quickly
Concentrate marketing effort on low-risk customer groups.

31). What is Dispute Management?

Ans)This module aims to reduce the time spent handling disputes between companies and their customers. Often, a credit control clerk can spend 50% of their time dealing with these cases. It also aims to speed up the time to collect the cash from the customer.

32).What are Features of dispute management?

Ans)

Create a new dispute case from the list of open items, or within a specific transaction (e.g. Process Incoming Payment, if it's been reduced below the invoice amount).
Assign roles to the dispute case, each role having different tasks. The case notes can hold questions for colleagues, or comments about the dispute, and add up to the complete case history.
Cases become classified, and managed according to processing status, and the reason for the dispute.
The important documents can be attached to the case, both SAP documents and external ones.
The case may be escalated to the next management level if an action isn't carried out.
The case may hold actions, which can be flagged for follow-up. The case may be escalated to the next management level if an action isn't carried out.

33).What is Electronic Invoicing ?

Ans) This module aims to reduce the eliminate inefficient techniques (and the costs) of packaging and mailing paper invoices to customers. It also provides vendors with online visibility of their invoices on the SAP system.

34).What is Collections Management?

Ans)The Collections Management module allows organisations to manage individual AR accounts, in cases where bulk dunning will not be effective. It's an efficiency tool for AR clerks, and aims to create prioritied work-lists of key customer accounts for action.

35). What are the features of Collections Management?

Ans)

Target "delinquent" accounts for action, offer discounts more intelligently, and retain the best payers.
Automatically selects the customer accounts needing action, and prepare work lists for action. The application is based on a collection strategy for customers, identifying how the priorities are set up. AR clerks are given information on why the contact is necessary, and what previous contacts have been made.
The AR clerk may log the customer's promise to pay, or a dispute case (for Dispute Management). If the clerk cannot make contact, or the customer wants calling back, the clerk enters a "resubmission".
Once a clerk has made contact with the customer, SAP Collections Management removes them from the worklist.
SAP Collections Management monitors whether the customer keeps their promise to pay, and if not, they get put back on the work list.

36). What are the analysis of collection management?

Ans)The AR Supervisor has functions to control and supervise the work of debt collection. The system provides statistics on how many work list items have been completed (successfully or unsuccessfully), and how many are still open. The supervisor has the ability to re-assign the work lists over the AR clerks.

37).What is SAP Treasury and Risk Management?

Ans) SAP FSCM provides Treasury and risk management module which is integrated with Financial, Banking, Information System, and Accounting for managing financial transactions and financial risk in the business.

38). What is Biller Direct module

Ans)SAP FSCM provides Biller Direct module; this is an important capability in web-based invoicing and payments. Through SAP Biller Direct, customers and suppliers can access invoicing and payment information via business portal of the company. SAP FSCM biller direct provides seamless integration with accounting system and lets you handle electronic payment and settlement processes with customers or suppliers.

39). What is cash management and Liquidity Management

Ans)In SAP FSCM, cash management and Liquidity Management is a tool which improves ability to forecast and react to cash and liquidity positions. All components are preconfigured for real-time reporting and analysis of your liquidity position.

40).What is in-house Cash?

Ans) Using SAP in-house Cash, you can see net accounts, group cash receipts and payments on a regional basis, and also reduce transaction costs for intercompany payments.

41).What are the various SAP solution grouped under SAP Treasury?

Ans)

SAP Cash and Liquidity Management
SAP In-House Cash Management
SAP Treasury and Risk Management
SAP Bank Communication Management

42). What is the role of risk management system in SAP treasury?

Ans)There is a comprehensive risk management system present in SAP Treasury which analyzes and measure the amount of risks and classify according to requirements of the organization.

43).What are the various components of SAP Treasury?

Ans) Various components of SAP Treasury are:

Business partner
Basic functions
Credit Risk analyzer
Market risk analyzer
Transaction manger
Portfolio Analyzer (FIN-FSCM-TRM-PA)

44).What is the role of SAP Treasury Consultant?

Ans)

SAP Treasury Consultant needs to identifiy the treasury strategy customers and their functional requirements
Translate the functional requirements of the customer into (new) SAP processes
SAP Treasury Consultant also needs to implement the functionality and configure the system
Provide guidance and training to the key users.

45).Can you please explain why authorization check in Treasury is missing for authenticated user?

Ans)SAP Treasury does not have the authorization to check an authenticated user's authorization to access some of their functions as this may cause some undesired system behavior.

46).what is Transaction Manager?

Ans) A core task in many finance departments is concluding financial transactions. Depending on the company policy, the emphasis can either be on providing an internal service for the affiliated group companies, or participating actively in the financial markets in order to invest liquid assets, finance planned investment, or hedge existing risks. The Transaction Manager provides the instruments for processing the related financial transactions, from deal capture through to transferring the relevant data to Financial Accounting. The system supports both traditional treasury departments that focus on trading as well as asset management departments. This enables you to use the same platform for various types of transaction - from short-term finance to longer-term strategic investments.

47).What is Market Risk Analyzer?

Ans) Alongside traditional finance management tasks, such as cash management and liquidity assurance, effective market risk management is a decisive factor in securing your company’s competitive position. In this field, the Market Risk Analyzer offers extensive position evaluations, such as mark-to-market valuations of financial transactions. It also includes tools for calculating risk and return figures, including exposure, future values, sensitivities and value at risk. When you run these reports, you can incorporate both contracted positions and fictitious financial transactions in the calculations. The valuations can be based on both real and simulated market prices. Together with a high degree of flexibility for creating reports, the Market Risk Analyzer provides a reliable evaluation basis for market risk controlling.

48).What is Credit Risk Analyzer?

Ans)The Credit Risk Analyzer focuses on measuring, analyzing and controlling counterparty default risk. The first phase aims to cover the specific risks associated with financial transactions in a company. The Credit Risk Analyzer enables you to control risks actively by setting limits. This is supported by flexible limit management functions with online monitoring, as well as extensive reporting options. As a result, managers are in a position to identify credit risks as they occur and act accordingly.

49). What is Portfolio Analyzer?

Ans)Given that the funds available for investment are usually limited, and that there are numerous investment options to choose from, the crucial question for investment policy decisions is how well the investments have actually performed. The economic success of an investment is therefore a critical factor when it comes to making investment policy decisions. The Portfolio Analyzer is designed to provide the answers to this question. It measures the exact return on investments, compares the results to prescribed targets, and breaks down the overall performance into its component parts by attributing the individual portfolio positions to the total result. The basis for these evaluations is the portfolio structure, which lets you group investments into different categories. You can run evaluations for portfolios at different levels in the portfolio hierarchy, or for an asset category across several portfolios.

50).What are the General Transaction Codes for TR module?

Ans)

FV11 Create condition
FV12 Change condition
FLQAD Assignment for invoices
TBDM Market Data File Interface INPUT
FLQC10 Regenerate flow data
TBEX Spread sheet of market data
FV13 Display condition

Sap Fscm Interview Questions

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