C_TS4FI Financial Accounting Practice Question
A financial accountant at a manufacturing company needs to post a vendor invoice for raw materials in SAP S/4HANA. The invoice amount is 11,900 EUR including 19% input tax. The accountant wants the system to automatically calculate and post the tax amount based on the tax code. Which configuration element directly determines the tax rate and tax account for this posting?
⚠ Common exam trap
The trap here is assuming that the tax calculation procedure or vendor master tax code directly sets the tax rate and account, when in fact the tax code configuration is the authoritative source for those details.
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
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Tax code defined in Customizing for Financial Accounting
The tax code is the configuration object that holds the tax rate and the tax accounts for input and output tax. When a user enters a tax code on an invoice line, the system calculates the tax and posts it to the designated tax accounts. The tax calculation procedure and vendor master defaults are secondary and do not override the tax code's definition.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Tax code defined in Customizing for Financial Accounting
Why this is correct
The tax code is the central configuration that specifies the tax percentage rate and the tax accounts for input and output tax. When the accountant enters a tax code on the invoice, the system uses that code to calculate the tax amount and determine the correct G/L account for posting the tax.
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Tax code maintained in the vendor master record
Why it's wrong here
The vendor master record can store a default tax code, but it does not determine the tax rate or tax account for a specific posting. The tax code used in the invoice line item overrides any default, and the tax code configuration is what actually defines the rate and account.
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Tax calculation procedure assigned to the company code
Why it's wrong here
The tax calculation procedure defines the sequence of tax conditions and is assigned to the country, not directly to the company code. While it influences how tax is calculated, the specific tax rate and tax account for a given tax code are determined by the tax code configuration itself, not by the procedure alone.
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Posting key used for the vendor line item
Why it's wrong here
The posting key controls the account type, debit/credit indicator, and field status for the line item, but it does not define tax rates or tax accounts. The posting key affects how the line is processed, but tax determination is driven by the tax code, not by the posting key.
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Last reviewed September 2026 · checked against the official SAP exam blueprint
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