C_TS4FI Financial Accounting Practice Question
A financial accountant is analyzing a customer invoice that was posted with a payment term of 14 days with a 2% cash discount. The customer pays after 10 days. The accountant needs to verify that the cash discount was correctly calculated. Which SAP S/4HANA feature is used to automatically calculate the cash discount during payment?
⚠ Common exam trap
Watch out — candidates often confuse the Automatic Payment Program, which is for outgoing vendor payments, with the functionality for incoming customer payments and cash discount calculation.
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
✓
Payment Terms Configuration
The correct answer is the one that identifies payment terms configuration as the feature that calculates cash discounts. In SAP S/4HANA, payment terms are defined in Customizing and assigned to customer master records or individual invoices. They specify the discount percentage and the number of days within which the discount is available. During incoming payment processing, the system reads the payment terms and automatically calculates the discount, ensuring accurate posting to the discount expense account.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Payment Terms Configuration
Why this is correct
Payment terms in SAP S/4HANA define the conditions for payment, including the cash discount percentage and the days within which the discount can be taken. When a payment is posted, the system uses the payment terms from the customer master or the invoice to automatically calculate the discount. This ensures accurate and consistent application of discounts, as in this scenario where a 2% discount is applied after 10 days.
- ✗
Dunning Procedure
Why it's wrong here
Dunning procedures are used to remind customers of overdue payments. They do not calculate cash discounts. The dunning program sends letters and charges fees, but it does not affect the payment amount or discount calculation. Therefore, it is not relevant to verifying the cash discount in this scenario.
- ✗
Automatic Payment Program
Why it's wrong here
The Automatic Payment Program (APP) is used to process outgoing payments to vendors, not to calculate cash discounts for incoming customer payments. While APP can consider payment terms, its primary function is to select invoices for payment and create payment documents. It does not calculate discounts for customer payments; that is handled during incoming payment processing.
- ✗
Exchange Rate Difference
Why it's wrong here
Exchange rate differences arise when payments are made in a foreign currency and the exchange rate fluctuates between invoice and payment dates. They have no relation to cash discount calculation. The scenario involves a domestic currency payment with a discount, so exchange rate differences are not applicable here.
About these practice questions
One of 207 original C_TS4FI practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
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
This C_TS4FI practice question is part of Courseiva's free SAP certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the C_TS4FI exam.