SAP FSCD Interview Questions And Answers for experienced professionals from Codingcompiler. These SAP FSCD interview questions were asked in various interviews conducted by top multinational companies across the globe. We hope that these interview questions on SAP FSCD will help you in cracking your job interview. All the best and happy learning.
In this SAP FSCD Interview Questions Blog, You Will Learn
- SAP FSCD Interview Questions
- SAP FSCD Interview Questions and Answers
- Most Frequently asked SAP FSCD Interview Questions and Answers
SAP FSCD Interview Questions
- What is SAP FS-CD?
- What are the main concepts in SAP FS-CD?
- What is the Purpose of SAP FS-CD?
- How will the Integration work in SAP FS-CD?
- What is the use of Contract Accounts Receivable and Payable in SAP FS-CD?
- What are the services SAP Biller Direct provides?
- How do I design a global template for SAP FSCM?
- List the Tcodes in Collection Management?
- What is Clearing Control?
- What is SAP Credit Management?
- What are the keys steps which are involved in defining a collection strategy?
- What are the Major benefits of SAP FSCM?
- Which ways can the Interest be Calculated?
- What is the Scope and Opportunity of a Career in SAP FS-CD?
- What are the basic qualifications required to learn SAP FSCD?
- What is Company Codes?
- How CD makes the Insurance processes easier to manage?
- What module(s) should start with?
- List the phases of Collection Management?
- What is Collections Management?
SAP FSCD Interview Questions and Answers
Q. What is SAP FS-CD?
Answer: In the insurance sector, SAP has made its presence felt in quite a large way. All the processes that are present in this sector, such as policies, claims as well as calculations, are now being dealt with SAP. Earlier, these systems had no way of communicating directly with those who were availing them; but things have changed with the integration of important SAP modules like FS-CD. What SAP FS-CD (Collection and Disbursement) does is that it communicates with the users availing these services and provides an invoice regarding these systems.
Q. What are the main concepts in SAP FS-CD?
The main concepts of FS-CD are;
- Display of consolidated account balance to process requests for policyholders and agents
- Direct integration with SAP Business Partner (BP)
- Invoicing of agencies (brokers) and maintenance of the customer hierarchy
- Premium invoicing of customers with customized payment plans
- Payment engine to process payment including bank transfer or check
- Payment engine to process recurring monthly customer payments for outstanding premiums
- Automatic reminders and passing to collection agencies for overdue accounts
- Direct interface to SAP FI-GL for posting premium revenue, claims and liabilities
- Check management to void, reissue or cash checks
- Automated returns processing functionality for rejected customer payments
- Automated depreciation functionality for items within an adjustable tolerance
- External interfaces to banks for processing incoming and outgoing ACH transactions, credit card transactions, payment transactions, check cashing, returns and positive payments
- External interfaces enabling policy management systems to create billing data for clients and maintain policies
- Flexible reporting solutions enable seamless access to customer activities
- Integrated web portal for customers who pay bills online (Biller Direct)
Q. What is the Purpose of SAP FS-CD?
The basic purpose of Collections and Disbursements for the insurance industry is that it acts as a sub-ledger for the main calculating systems so that the main ledger is not over-burdened with extra responsibilities and data is sent into it through different interfaces. It also allows one to map invoicing by using brokers and other coinsurance business and performs all tasks on a cross-LoB basis, which includes open item accounting, payment processing, incoming payment processing, correspondence as well as dunning. This provides all sorts of functions that are required for subledger accounting in the insurance sector.
The functions and workings of the SAP FS-CD are all part of the Business Function Set provided by SAP. As you already know, SAP FS-CD is a settling system and it must be provided with the data required by the administrative systems. The administrative systems include Commission Management, Claims Management, Reinsurance Management and Policy Management. This effectively means that every system that is somewhat involved with the entire process of calculation of claims, as well as settlements, must provide the information in this sub-ledger for better performance.
Q. How will the Integration work in SAP FS-CD?
Answer: SAP for Insurance is an integral component within the SAP solutions, and can be combined with them to deal with more business-related tasks.
Collections/Disbursements form the integrated interface to the SAP R/3 General Ledger and SAP R/3 Controlling. An open interface allows the inclusion of administrative systems such as Commission Management, Claims Management, Reinsurance Management, and Policy Management.
Q. What is the use of Contract Accounts Receivable and Payable in SAP FS-CD?
Answer: It is a sub-ledger developed for industries with a large customer base and a correspondingly high volume of documents to post. These include insurance, utilities, and telecommunications companies. This component provides standard accounts receivable and accounts payable functions including posting, payments, and dunning.
Q. What are the services SAP Biller Direct provides?
- SAP Biller Direct provides the following services to the Customers:
- Allows customers to review their account status.
- Allows customers to review Billing Information (Invoices, Credits, Payments, etc)
- Allows customers to download the Invoices, Credits copies for references.
- Allows customers to make payment using Credit Cards, Debit cards or Online Banking.
- Allow customers to view their transaction information online as soon as data reach to R3 system.
Q. What is SAP Biller Direct and how it works?
Answer: Biller Direct provides an online view of a customer’s account. This is aimed at two markets. A client who has lots of small customers, like utility clients or telecommunication sector clients. This offers the customer an online view of their account, the ability to make payments, update master data and dispute open items.
Clients with large and difficult customers. By providing large and difficult customers with an online view of their account, they can raise their own disputes, removing the need for the client to do this as well as pull off copy invoices. Certain customers may make large requests, and rather than ask the clients cash collectors they can do this all themselves.
Most Frequently asked SAP FSCD Interview Questions and Answers
Q. How do I design a global template for SAP FSCM?
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 measures 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.
Q. List the Tcodes in Collection Management?
The Tcodes i Collection Management are;
- UDM_SPECIALIST – My Worklist.
- UDM_SUPERVISOR – All Worklists.
- UDM_BP – Business Partner Master Data – to create and maintain business partners.
- UDM_STRATEGY – Strategies.
- UDM_GROUP – Groups.
- UDM_GROUP2SGMT – Assign Groups to Segments.
- UDM_GENWL – Creation of Worklists.
- UDM_RSM_DELETE – Deletion of Resubmissions.
- UDM_BP_PROF – Assignment of Profiles.
- UDM_BP_GRP – Change to Segment Data.
- UDM_BP_SPEC – Assignment of Collection Specialists.
- FDM_COLL_SEND01 – Distribution of Data to Collections Management.
- FDM_JUDGE – Evaluation of Promise to Pay.
- FDM_P2P_CONFIRM – Confirmation of Promise to Pay.
- FDM_COLL01 – Edit Receivables (Old).
Q. What is Clearing Control?
Answer: Open Item Management is used to clear open items belonging to a contract account either partially or in full. With clearing control, the company’s automatic assignment and clearing strategy can be defined. It can be displayed differently depending on the contract account or the business transaction.
Q. What is SAP Credit Management?
Credit Management is a process in which the Company sells a product/service to customers on a credit basis. The company collects payments from the customer at a later time, after the sale of the product. The amount of credit fixed by a company for a customer is called a credit limit.
Q. What are the keys steps which are involved in defining a collection strategy?
The keys steps which are involved in defining a collection strategy are as under:
• Define Basic Rules
• Define Collection Rules
• Process Priorities
• Defining derivation of priorities
Q. What are the Major benefits of SAP FSCM?
Answer: 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 worklist 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 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.
Q. Which ways can the Interest be Calculated?
Answer: To determine the way in which interest is calculated, you can:
• Choose interest calculation methods by which the system determines the number of days on which interest is to be calculated for a given interest period.
• Define interest rates based on the date and amount in the system.
Q. What is the Scope and Opportunity of a Career in SAP FS-CD?
Answer: A career in SAP FS-CD provides plentiful opportunities to managers and consultants alike and encompasses the processes of:
- Business Transactions: SAP FS-CD helps you post and process business transactions in an easy and automatic manner. The required definitions for controlling the general procedures involved with customizing need to be set for optimum performance.
- Posting: The basic functions of this module can be used in the actual master data for posting/ processing relevant documents. Not only that, it also creates the master data, posts manually, and processes documents for future correspondence purposes.
- Broker Collections: This component allows insurance companies to initiate the payment process for brokers and communicates with their customer base via brokers if the need arises. The broker can be an individual agent or a small company.
- Payment: SAP FS-CD is highly advanced when it comes to dealing with payments of premiums as well as claims. It is extremely malleable and can be customized to suit all needs.
- Coinsurance: This component is required if the company shares risks with other companies in the insurance industry and coinsurance business are the leading insurer. A co-insurer needs to have two contracts, one for premium shares and one for claim shares. Premiums and claims from policyholders are posted to their contracts. Depending on the agreed proportion, the amount is distributed for the leading company and its participating co-insurer.
Q. What are the basic qualifications required to learn SAP FSCD?
Answer: Along with the basic knowledge of SAP-based components is required to have good communication skills are an important requisite for this course.
Q. What is Company Codes?
Answer: The company code is the central organizational unit of external accounting within the SAP System. You must define at least one company code before implementing the Financial Accounting component.
Q. How CD makes the Insurance processes easier to manage?
The basic processes of the CD system include;
- Posting and Documents
- Clearing and Payment lots
- Payment Program
- Installment Plans
- Broker Collections
Q. What module(s) should start with?
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.
Q. List the phases of Collection Management?
Collection Management can be divided into four phases.
- Selection of Customer (All customers should be business partners then only they can be assigned in collection management) – one of the key steps is to create all customers as collections management business partners.
- Prioritization of Customer based on Collection Strategies.
- Preparation of Customer Contacts
- Processing of receivables.
Q. What is Collections Management?
The cash collection against due and overdue items has become a very important function in increasingly competitive global marketplace for most organizations. The collections management function within SAP FSCM supports in active receivable management and helps to prioritize the customer receivables function based on defined rules. These priorities which are set up can then be used to set up distribution of collection work to collection specialists who can than record a history of collection related contacts with the customers.
Q. Which ways the Interest can be Calculated?
To determine the way in which interest is calculated, you can:
- Choose interest calculation methods by which the system determines the number of days on which interest is to be calculated for a given interest period.
- Define interest rates based on date and amount in the system.
Q. What is SAP Business Partner Master Data?
SAP Business Partner Master Data is essential from a business or legal perspective as well as from a technical point of view in FS-CD. All Business Partner data, which are utilized in any context of Collections and Disbursements, have to be persisted in the SAP component named SAP Business Partner. SAP Business Partner is a basic software application that is seamlessly integrated into all SAP for Insurance software components. SAP Business Partner must be installed as a software application, configured and used operationally within one and the same SAP System where SAP Collections and Disbursements (FS-CD) is also running.
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