C_TS4FI Financial Accounting Practice Question
A financial accountant is configuring the payment terms for a new vendor in SAP S/4HANA. The vendor should receive a 2% discount if the invoice is paid within 10 days, otherwise the full amount is due within 30 days. Which configuration object is used to define these payment terms?
⚠ Common exam trap
A common mix-up: candidates confuse payment terms with payment methods, which define the payment medium rather than the timing and discount conditions.
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
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Payment terms
Payment terms are used to define the conditions of payment, including cash discount periods and percentages, as well as the net due date. They are assigned to vendor master records and are used in invoice posting to calculate the due date and any applicable discount. In this scenario, the payment terms would specify a 2% discount if paid within 10 days, and the net amount due within 30 days.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Payment terms
Why this is correct
Payment terms define the conditions under which a customer or vendor must pay an invoice, including discount percentages and due dates. They are configured in Customizing and assigned to vendor master records. The payment terms specify the cash discount period, discount percentage, and net payment period. Therefore, payment terms are the correct object to configure the 2% discount within 10 days and net due in 30 days.
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Dunning procedure
Why it's wrong here
A dunning procedure is used for accounts receivable to remind customers of overdue payments. It defines the dunning levels, charges, and intervals. Dunning procedures are not used for vendor payment terms. They are relevant for customer collections, not for defining discounts or payment due dates for vendors. Therefore, dunning procedures are not the correct object for this scenario.
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House bank
Why it's wrong here
A house bank represents the company's own bank accounts used for outgoing and incoming payments. It is configured in Bank Accounting and linked to payment methods. House banks do not define payment terms or discount conditions. They are used to specify the bank account from which payments are made or to which they are received. Therefore, house banks are not the correct object for configuring payment terms.
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Payment method
Why it's wrong here
Payment methods define how payments are made, such as check, bank transfer, or direct debit. They are used in automatic payment programs to determine the payment medium. Payment methods do not define discount terms or due dates. They are separate from payment terms and are assigned to vendor master records in addition to payment terms. Therefore, payment methods are not the correct object for defining discount and due date conditions.
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.