C_TS4FI Financial Accounting Practice Question
A financial accountant is creating a new G/L account in SAP S/4HANA. The accountant needs to ensure that the account can be used for postings in all company codes of the group. Which of the following settings must be configured?
⚠ Common exam trap
The trap here is thinking that a single setting can make an account available to all company codes, when in fact each company code must be explicitly extended.
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 account must be created in the chart of accounts and then extended to each company code that requires it.
G/L accounts in SAP S/4HANA are created at the chart of accounts level and then extended to company codes. The chart of accounts is shared by all company codes that use it. To make an account available in multiple company codes, you must create the chart of accounts data and then create company code data for each company code. This two-step process is mandatory. The other options are incorrect because the chart of accounts is required, the company code field is not left blank, and reconciliation account designation is unrelated to cross-company code usage.
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 'Chart of Accounts' field must be left blank to allow cross-company code usage.
Why it's wrong here
The chart of accounts is a mandatory field when creating a G/L account. It defines the group of accounts and is required for the account to be created. Leaving it blank is not possible. To use the account in multiple company codes, the company codes must use the same chart of accounts, and the account must be created in that chart of accounts.
- ✓
The account must be created in the chart of accounts and then extended to each company code that requires it.
Why this is correct
In SAP S/4HANA, G/L accounts are created at the chart of accounts level, which is shared across company codes. To use the account in multiple company codes, you must create the chart of accounts data and then extend the account to each company code by creating company code-specific data. This two-step process ensures the account is available in all desired company codes. Thus, this is the correct approach.
- ✗
The 'Company Code' field must be left blank to indicate that the account is valid for all company codes.
Why it's wrong here
When creating a G/L account, you first create it at the chart of accounts level, and then you extend it to company codes. The company code field is not part of the initial creation; you create the chart of accounts data, and then separately create company code data for each company code. Leaving it blank is not an option; you must explicitly extend the account to each company code.
- ✗
The account must be defined as a 'Reconciliation account' to be used across company codes.
Why it's wrong here
Reconciliation accounts are used for subledger integration (e.g., customers, vendors, assets) and are created as G/L accounts. However, being a reconciliation account does not automatically make an account usable across company codes; it still must be extended to each company code. Therefore, this setting is not sufficient and is not the primary requirement for cross-company code usage.
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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.