C_TS4FI Financial Accounting Practice Question

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

• ✗

  Bank determination settings in APP

  Why it's wrong here

  Bank determination settings are used to select the appropriate house bank and account for payment, based on ranking order and available amounts. They do not define discount terms. Discount terms are part of the payment terms and are independent of bank selection. Bank determination ensures that payments are made from the correct bank account.

• ✗

  Payment method configuration in APP

  Why it's wrong here

  Payment method configuration defines the technical aspects of payment execution, such as check, transfer, or wire, and the required settings for each method (e.g., bank determination, format). It does not control discount terms. Discount terms are based on payment terms in the vendor master. Payment methods determine how payment is made, not the discount conditions.

• ✗

  Payment block reasons in APP

  Why it's wrong here

  Payment block reasons are used to prevent payment for specific vendors or items, such as when there is a dispute. They do not define discount terms. Discount terms are determined by the payment terms in the vendor master. Payment blocks are for controlling exceptions, not for calculating discounts.

• ✓

  Payment terms defined in vendor master record

  Why this is correct

  Payment terms in the vendor master record (e.g., '0001' for immediate payment, '0002' for 14 days net) define the discount percentage and days for early payment. These terms are used by the APP to calculate the discount amount when a payment is made within the discount period. The terms are stored in the vendor master and are essential for determining payment behavior.