C_TS4FI Financial Accounting Practice Question
A financial accountant is analyzing a financial statement in SAP S/4HANA and notices that the balance of a reconciliation account does not match the sum of the balances of the assigned subledger accounts. The accountant checks the reconciliation account master record and sees that the 'Reconciliation account ready for input' indicator is set. What is the most likely cause of the discrepancy?
⚠ Common exam trap
The trap here is assuming that the reconciliation account is always automatically updated from the subledger, but the 'ready for input' indicator permits manual entries that break the reconciliation.
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
✓
Manual postings were made directly to the reconciliation account, bypassing the subledger.
The 'Reconciliation account ready for input' indicator allows direct postings to the reconciliation account in the general ledger. Such postings are not mirrored in the subledger, leading to a difference between the general ledger balance and the sum of the subledger balances. This is the most likely cause of the discrepancy observed by the accountant.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The 'Line Item Display' indicator is not set for the reconciliation account.
Why it's wrong here
The 'Line Item Display' indicator controls whether individual line items are stored for the account. It does not affect the account balance or cause a discrepancy between the general ledger and subledger. Even without line item display, the balance would still be updated correctly. Therefore, this indicator is unrelated to the balance mismatch described.
- ✓
Manual postings were made directly to the reconciliation account, bypassing the subledger.
Why this is correct
When the 'Reconciliation account ready for input' indicator is set, users can post directly to the reconciliation account in Financial Accounting. Such manual postings are not reflected in the subledger (e.g., customer or vendor accounts), causing a mismatch between the general ledger balance and the sum of subledger balances. This is the most likely cause because the indicator explicitly allows direct postings that would otherwise be blocked.
- ✗
The reconciliation account was not included in the chart of accounts.
Why it's wrong here
If the reconciliation account were not in the chart of accounts, it could not be used in the company code at all, and no postings would be possible. The scenario states that the accountant is analyzing the account, implying it exists and has a balance. Therefore, absence from the chart of accounts is not a plausible cause for the discrepancy.
- ✗
The subledger accounts are assigned to a different reconciliation account.
Why it's wrong here
If the subledger accounts were assigned to a different reconciliation account, the balances would not appear in the reconciliation account being analyzed. However, the scenario indicates that the reconciliation account does have a balance, suggesting that at least some subledger postings are included. A complete mismatch due to wrong assignment would likely result in zero balance in the analyzed account, not a partial discrepancy.
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Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official SAP exam blueprint
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