C_TS4FI Financial Accounting Practice Test 12 — 15 Questions

Question 1

A financial accountant at a company using SAP S/4HANA Finance needs to configure document splitting to ensure that all journal entries are automatically balanced by profit center. The company requires that the profit center is inherited from the cost center during posting. Which two configuration steps are required to achieve this? (Choose two.)

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Activate the profit center standard account assignment for the relevant business transaction in the document splitting configuration.. To achieve automatic profit center balancing with inheritance from cost center, two steps are necessary: first, the profit center standard account assignment must be activated for the relevant business transactions so that the system enforces balancing by profit center. Second, a substitution rule must be defined to derive the profit center from the cost center when it is not explicitly provided. Together, these ensure that every line item gets a profit center and that the document balances by profit center.

Answer

Activate the cost center standard account assignment for the relevant business transaction in the document splitting configuration.

Answer

Activate the segment standard account assignment for the relevant business transaction in the document splitting configuration.

Answer

Define a validation rule that checks that the profit center is filled in every line item.

Question 2

A financial accountant is configuring a new document type for general ledger postings in SAP S/4HANA. The accountant wants to ensure that the document type can only be used for vendor invoices and that the vendor account is automatically proposed. Which configuration step achieves this?

Accepted Answer

Define the document type with an account type of 'Vendor' in the document type configuration.. To restrict a document type to vendor invoices and automatically propose the vendor account, you must set the account type to 'Vendor' in the document type configuration. This limits the document type to postings with vendor line items and ensures the vendor account field is ready for input and proposed.

Answer

Assign a number range to the document type that is reserved for vendor transactions.

Answer

Set the 'Vendor invoice' indicator in the document type's field status group.

Answer

Assign a posting key to the document type that requires a vendor account.

Question 3

A financial accountant at a company using SAP S/4HANA Finance needs to configure document splitting to ensure that all journal entries are automatically balanced by profit center. The company requires that the profit center is inherited from the cost center during posting. Which two configuration steps are required to achieve this? (Choose two.)

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Document splitting. Document splitting is the SAP S/4HANA Financial Accounting functionality that automatically derives and adds dimensions such as profit center and segment to all line items of a document, ensuring that the balance sheet can be reported by these characteristics. In the scenario, the expense line already has a profit center via cost center, and the system propagates it to the vendor line to balance the document by segment.

Answer

Substitution rule

Answer

Validation rule

Answer

Automatic payment program

Question 4

A financial accountant is configuring a new company code in SAP S/4HANA and needs to ensure that the fiscal year variant is correctly set up. The company operates on a calendar year but has a special period for year-end adjustments. The accountant wants to allow postings in special period 13 for adjustment entries. Which configuration setting must be activated to permit postings in special periods?

Accepted Answer

Assign the fiscal year variant to the company code and open special periods in the posting period variant. Special periods are defined in the fiscal year variant, and the ability to post to them is controlled by the posting period variant. The fiscal year variant must be assigned to the company code, and then the posting period variant must have the special periods opened for the desired account types. This two-step configuration ensures that only authorized users can post adjustments in special periods.

Answer

Set the 'Special periods' indicator in the fiscal year variant definition

Answer

Activate the 'Year-end closing' indicator in the company code global parameters

Answer

Define a special period in the chart of accounts and assign it to the company code

Question 5

A financial accountant is configuring the automatic payment program in SAP S/4HANA for a company code. The company wants to pay vendor invoices using bank transfer and needs to ensure that the payment run selects the correct invoices and bank accounts. Which two configuration steps are essential for the payment run to process vendor payments correctly? (Choose two.)

Accepted Answer

Maintain bank master data for the house bank and assign it to the payment method. To process vendor payments automatically, the payment program must know which payment methods are allowed in the company code and which house bank accounts to use. Defining payment methods per country and assigning them to the company code, along with maintaining house banks and assigning them to payment methods, are fundamental configuration steps. These ensure that the payment run can select invoices and execute payments using the correct bank accounts.

Answer

Activate the 'Payment run' indicator in the vendor master record

Answer

Configure the payment program to use the 'DME' (Data Medium Exchange) format for all payments

Answer

Define a payment block reason for all vendors to be paid

Question 6

A financial accountant is creating a new G/L account in SAP S/4HANA and needs to ensure that the account can be used for postings in multiple company codes. The accountant wants to minimize maintenance effort by defining the account only once for all company codes that share the same chart of accounts. Which type of G/L account should the accountant create?

Accepted Answer

A G/L account that is defined in the chart of accounts and activated for multiple company codes. To minimize maintenance, the accountant should create the G/L account in the chart of accounts and then activate it for each required company code. The chart of accounts definition is shared, but company code-specific settings like currency, tax category, and field status must be maintained per company code. This approach avoids redundant account creation while ensuring each company code has the necessary settings.

Answer

A company code-specific G/L account

Answer

A chart of accounts-specific G/L account

Answer

A reconciliation G/L account

Question 7

A financial accountant is analyzing a financial statement in SAP S/4HANA and notices that the balance sheet shows a negative balance for a liability account. The accountant wants to investigate the individual line items that contributed to this balance. Which SAP S/4HANA tool provides a drill-down from the financial statement to the underlying journal entries?

Accepted Answer

Financial Statement (transaction S_ALR_87012284) with drill-down to line items. The Financial Statement transaction (S_ALR_87012284) provides a direct drill-down from the financial statement to the G/L account line items and then to the journal entries. This allows the accountant to trace the negative liability balance to specific postings, identifying the transactions that caused it. Other tools like FS10N or FSE2 do not offer this seamless navigation from the statement level.

Answer

Financial Statement Version (transaction OBBH)

Answer

Display G/L Account Balances (transaction FS10N)

Answer

Financial Statement Analysis with drill-down to line items (transaction FSE2 or FAGLFLEXT)

Question 8

A financial accountant at a manufacturing company needs to post a vendor invoice for raw materials. The invoice amount is 12,000 EUR, but the purchase order was created for 10,000 EUR. The tolerance limit for price variance is set to 5%. The accountant attempts to post the invoice but receives an error. What is the most likely reason for this error?

Accepted Answer

The invoice amount exceeds the tolerance limit defined for the company code, so the system blocks the posting until the variance is approved or the tolerance is adjusted.. The correct answer is the one that identifies the invoice amount exceeding the tolerance limit as the cause. In SAP S/4HANA, tolerance limits for invoice verification are maintained in Customizing for Materials Management under Logistics Invoice Verification. When the invoice amount deviates from the purchase order by more than the allowed percentage, the system blocks the invoice. The accountant must resolve the variance by either adjusting the invoice, obtaining approval, or changing the tolerance limit.

Answer

The purchase order was not fully received, so the system cannot match the invoice quantity to a goods receipt, resulting in a quantity variance error.

Answer

The invoice date falls outside the allowed posting period for the current fiscal year, so the system rejects the posting until the period is opened.

Answer

The vendor master record is incomplete because the payment terms field is missing, which prevents the system from calculating the due date and blocks the posting.

Question 9

You are a financial accountant at a company that uses SAP S/4HANA Financial Accounting. Your organization wants to automatically post exchange rate differences that arise when clearing a vendor invoice in a foreign currency. The differences should be posted to a separate expense account. Which configuration step is required to achieve this?

Accepted Answer

Configure exchange rate difference accounts in Customizing under General Ledger Accounting (New) -> Business Transactions -> Adjust Exchange Rates.. To automatically post exchange rate differences when clearing foreign currency invoices, you must configure the relevant difference accounts in Customizing. The path is General Ledger Accounting (New) -> Business Transactions -> Adjust Exchange Rates. Here you assign accounts for realized and unrealized differences, ensuring the system posts them correctly. Other options do not provide the necessary account determination for clearing differences.

Answer

Define an exchange rate difference account in the vendor master record.

Answer

Activate the 'Foreign Currency Valuation' indicator in the company code settings.

Answer

Create a specific clearing account for foreign currency transactions in the chart of accounts.

Question 10

A financial accountant is creating a new G/L account in SAP S/4HANA. The account will be used for posting expenses related to office supplies. The accountant wants to ensure that postings to this account are automatically updated in the general ledger and that the account can be used in financial statements. Which account type should be selected?

Accepted Answer

Operating Expense Account. The correct answer is the one that specifies an operating expense account. In SAP S/4HANA, when creating a G/L account, the account type determines which transactions can be posted and how they are reported. For expenses like office supplies, the account type should be 'Operating Expense' to ensure proper classification in the income statement. This allows the account to be used in financial statements and ensures correct integration with the general ledger.

Answer

Primary Costs Account

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Nonoperating Expense Account

Answer

Balance Sheet Account

Question 11

You are configuring asset accounting in SAP S/4HANA Financial Accounting. Which two of the following settings are required to ensure that depreciation is posted automatically to the General Ledger? (Choose two.)

Accepted Answer

Assign a depreciation key to the asset class.. To ensure automatic depreciation posting to the General Ledger, you must assign a depreciation key to the asset class to calculate depreciation, and define a posting cycle in the company code to schedule the automatic posting. These two settings work together: the depreciation key determines the amount, and the posting cycle triggers the periodic posting to the G/L. Other settings like chart of depreciation and component activation are prerequisites but do not directly control automatic posting.

Answer

Set up a separate chart of depreciation for each company code.

Answer

Activate the 'Asset Accounting' component in the company code settings.

Answer

Define a number range for depreciation documents.

Question 12

During month-end closing, a financial accountant notices that a vendor invoice was posted with the wrong payment terms, affecting the due date. The invoice is already posted and cleared. What is the most appropriate action to correct the payment terms in SAP S/4HANA Financial Accounting?

Accepted Answer

Reverse the invoice and re-post it with the correct payment terms.. When a posted invoice requires correction of payment terms and is already cleared, the only proper method is to reverse the invoice and re-post it with the correct terms. This ensures the vendor account and due date are accurately reflected. Other options either do not affect the posted document or are not standard SAP procedures.

Answer

Create a new invoice with the correct payment terms and mark the old one as void.

Answer

Use transaction FB02 to change the payment terms field in the posted document.

Answer

Change the payment terms directly in the vendor master record.

Question 13

A financial accountant is configuring a new company code in SAP S/4HANA Financial Accounting. The company code will use a chart of accounts that is already used by another company code. Which of the following must be assigned to the new company code?

Accepted Answer

A company code-specific fiscal year variant. When creating a new company code, you must assign a fiscal year variant, which controls the posting periods and closing procedures. The chart of accounts can be shared with other company codes, and the currency is defined per company code but need not be unique. The fiscal year variant is a mandatory assignment specific to each company code.

Answer

A company code-specific currency

Answer

A country-specific chart of accounts

Answer

A unique chart of accounts

Question 14

A financial accountant is analyzing a financial statement using SAP S/4HANA Financial Accounting. The accountant needs to drill down from a financial statement version (FSV) to the underlying line items. Which two statements about the financial statement version are correct? (Choose two.)

Accepted Answer

The FSV can be assigned to a company code to generate financial statements.. The financial statement version (FSV) is a reporting tool that structures G/L accounts into a hierarchical format for financial statements. It can include both G/L accounts and functional areas, and it must be assigned to a company code for generating reports. It does not control posting periods or restrict account creation, and it can include both balance sheet and income statement accounts.

Answer

The FSV can only include balance sheet accounts, not income statement accounts.

Answer

The FSV must be created before any G/L accounts can be posted to.

Answer

The FSV is used to determine the posting period for a G/L account.

Question 15

A financial accountant is configuring the foreign currency valuation process in SAP S/4HANA Financial Accounting. The company needs to revalue open items in foreign currencies at month-end. Which TWO of the following settings are required to run the foreign currency valuation? (Choose two.)

Accepted Answer

Define valuation methods and assign them to currency types.. To run foreign currency valuation, you must define valuation methods and assign them to currency types, and you must maintain exchange rates for the relevant currencies. These two settings ensure that the system has the rules and the rates needed to revalue open items. Other options like company code checkboxes or special G/L indicators are not part of the standard configuration for this process.

Answer

Set up a valuation area for each currency.

Answer

Define a special G/L indicator for foreign currency valuation.

Answer

Activate the 'Foreign Currency Valuation' checkbox in the company code settings.