C_TS4FI Financial Accounting Practice Question
A financial accountant is configuring a new depreciation area for a company's asset accounting in SAP S/4HANA. The area is intended to calculate depreciation for a specific tax purpose and post depreciation to a separate G/L account. Which of the following settings must be defined for this depreciation area to ensure that depreciation is calculated and posted correctly?
⚠ Common exam trap
The trap here is assuming that a new depreciation area automatically posts to the G/L or that it must be derived from the book area, when in fact it requires explicit posting settings and separate account determination.
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
✓
The depreciation area must be flagged as 'Post to G/L' and assigned a separate G/L account for depreciation expense.
To post depreciation for a tax depreciation area, the area must be flagged as a posting area and have its own G/L account for depreciation expense. This allows separate tracking of tax depreciation in the Universal Journal. The settings are configured in the depreciation area definition and account determination, ensuring that tax postings are distinct from book depreciation.
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 depreciation area must be assigned to a separate company code to isolate tax postings.
Why it's wrong here
Depreciation areas are defined within a company code and do not require a separate company code. Creating a new company code would be unnecessary and would complicate consolidation and reporting. The tax depreciation area can coexist within the same company code, posting to different G/L accounts. Isolation is achieved via account determination, not separate company codes.
- ✗
The depreciation area must be defined as a derived area that references the book depreciation area to automatically copy values.
Why it's wrong here
A derived area copies values from a base area but does not calculate independently. For tax depreciation, which often has different rules, a derived area would not be appropriate unless the tax rules exactly match the book rules. Typically, tax areas are independent and calculate their own depreciation. Deriving would not allow separate tax-specific calculations or postings to distinct accounts.
- ✗
The depreciation area must use the same depreciation key as the book depreciation area to ensure consistency.
Why it's wrong here
Using the same depreciation key as the book area would defeat the purpose of a separate tax area, which typically requires different depreciation terms (e.g., different useful lives or methods). Each depreciation area can have its own depreciation key assigned to the asset class or asset. The tax area should have its own key reflecting tax regulations, not necessarily the same as book.
- ✓
The depreciation area must be flagged as 'Post to G/L' and assigned a separate G/L account for depreciation expense.
Why this is correct
For a depreciation area to post depreciation to the General Ledger, it must be marked as a posting area. Additionally, each depreciation area that posts must have a unique G/L account for depreciation expense, defined in the account determination. This ensures that the tax depreciation is recorded separately from book depreciation. Without these settings, the area would only calculate values without posting.
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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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