C_TS4FI Financial Accounting Practice Question
A company requires that asset depreciation be posted to different accounts based on the accounting principle. How is this achieved in Asset Accounting?
⚠ Common exam trap
Candidates often think separate depreciation posting runs must be manually managed for each accounting principle, overlooking the automated role of ledger-specific depreciation areas assigned to ledgers.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Assign ledger-specific depreciation areas to the relevant ledgers.
In S/4HANA, Asset Accounting is fully integrated with the Universal Journal and supports parallel accounting through ledger-specific depreciation areas. By assigning these areas to specific ledgers, the system ensures that depreciation is calculated and posted according to the corresponding accounting principles. This setup is crucial for meeting local and international reporting requirements without manual adjustments during the period-end closing process.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create separate asset classes for every accounting principle.
Why it's wrong here
Creating separate asset classes for different accounting principles leads to unnecessary maintenance and complexity. Depreciation areas, not asset classes, are the standard mechanism in SAP S/4HANA for handling parallel valuation requirements, allowing for clean master data management while still supporting the required financial reporting variations.
- ✓
Assign ledger-specific depreciation areas to the relevant ledgers.
Why this is correct
Assigning depreciation areas to specific ledgers enables the system to post depreciation to the correct accounts based on the accounting principle of that ledger. This is the standard, compliant way to handle parallel accounting in Asset Accounting within the S/4HANA framework, ensuring accuracy and auditability.
- ✗
Use manual journal entries at the end of each period.
Why it's wrong here
Manual entries are error-prone and inefficient. S/4HANA is designed to automate the depreciation process. Relying on manual intervention contradicts the purpose of implementing a modern ERP system, which aims to reduce manual workload and human error during critical accounting processes like period-end depreciation runs.
- ✗
Configure the system to ignore depreciation in the non-leading ledger.
Why it's wrong here
Ignoring depreciation in a non-leading ledger would result in incomplete financial statements for that accounting principle. This would violate statutory requirements in most jurisdictions. Every ledger must accurately reflect the depreciation expenses according to its assigned accounting principle, necessitating proper depreciation area configuration.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official SAP exam blueprint
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