C_TS4FI Financial Accounting Practice Question
A financial accountant is configuring the payment terms for a new customer in SAP S/4HANA. The customer is offered a 3% discount if payment is made within 10 days, and the net payment is due within 30 days. The accountant needs to ensure that the system correctly calculates the discount and due date. Which two of the following settings are required in the payment terms configuration? (Choose two.)
⚠ Common exam trap
The trap here is selecting payment method or dunning settings as part of payment terms, when they are configured separately and do not affect discount or due date 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
✓
A baseline date for due date calculation, such as the document date or posting date.
The correct answers are the discount percentage and discount period, and the baseline date for due date calculation. These two settings are essential in payment terms configuration to define the cash discount and the due date. The discount percentage and period specify the terms of the discount, while the baseline date determines from which date the periods are counted. Together, they enable the system to automatically calculate the discount and net due date during invoice posting and payment processing.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
A baseline date for due date calculation, such as the document date or posting date.
Why this is correct
The baseline date determines the starting point for calculating due dates and discount periods. Common options include the document date, posting date, or entry date. Without a baseline date, the system cannot compute the due date or discount deadline. In this scenario, the baseline date must be set to ensure the 10-day discount period and 30-day net due date are calculated correctly from the invoice date.
- ✗
A dunning level and dunning frequency to manage overdue payments.
Why it's wrong here
Dunning levels and frequencies are configured in the dunning procedure, not in payment terms. They are used to send reminders for overdue invoices. While they are related to payment behavior, they do not influence the calculation of discounts or due dates. The scenario focuses on discount and due date calculation, so dunning settings are not required here.
- ✓
A discount percentage of 3% and a discount period of 10 days.
Why this is correct
The discount percentage and discount days are the core components of a payment term that define the cash discount. In this scenario, the customer receives a 3% discount if payment is made within 10 days. These values must be entered in the payment terms configuration to enable the system to automatically calculate the discount during incoming payment processing. Without them, the discount would not be applied.
- ✗
A tolerance group for the customer to allow payment differences.
Why it's wrong here
Tolerance groups define acceptable payment differences for customers or vendors, such as overpayments or underpayments. They are not part of the payment terms configuration and do not affect the calculation of cash discounts or due dates. While tolerance groups are important for payment processing, they are separate from payment terms and not required to fulfill the scenario.
- ✗
A payment method indicator, such as 'C' for check or 'T' for bank transfer.
Why it's wrong here
Payment method indicators are used in the Automatic Payment Program to determine how payments are made. They are not part of the payment terms configuration. While payment methods are important for outgoing payments, they do not affect the calculation of cash discounts or due dates for customer invoices. Therefore, this setting is not required to meet the scenario's requirements.
About these practice questions
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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.