C_TS4FI Financial Accounting Practice Question
A financial accountant is creating a new G/L account in SAP S/4HANA. The account will be used for posting expenses in all company codes. The accountant wants to ensure that the account is available for posting immediately after creation. Which configuration step must be performed?
⚠ Common exam trap
The trap here is assuming that a chart of accounts entry alone makes the account postable; it must be extended to company codes, and options suggesting direct creation in company codes or unrelated indicators are distractors.
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
✓
Create the account in the chart of accounts and then extend it to each company code.
Creating a G/L account in SAP S/4HANA requires first defining it in the chart of accounts and then extending it to each relevant company code. This two-tier structure allows centralized master data management while enabling company code-specific settings. Only after the company code extension can the account be used for postings in that company code. Therefore, the correct step is to create and then extend the account.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Create the account in the chart of accounts and then extend it to each company code.
Why this is correct
In SAP S/4HANA, a G/L account must first be created at the chart of accounts level and then extended to each company code where it will be used. This two-step process ensures the account is available for posting in the required company codes. Without the company code extension, posting is not possible. This is the standard procedure for new G/L accounts.
- ✗
Create the account directly in each company code without a chart of accounts entry.
Why it's wrong here
G/L accounts are always defined at the chart of accounts level first. Creating them directly in company codes is not possible because the chart of accounts provides the master data structure. The company code segment is an extension of the chart of accounts account. Skipping the chart of accounts step would violate the data model.
- ✗
Create the account in the chart of accounts and assign it to a reconciliation account.
Why it's wrong here
Assigning a reconciliation account is only relevant for subledger accounts (such as vendors or customers). For a typical expense G/L account, a reconciliation account is not required. The key step is extending the account to company codes, not assigning a reconciliation account. Thus, this option does not ensure immediate posting availability.
- ✗
Create the account in the chart of accounts and set the 'Post Automatically Only' indicator.
Why it's wrong here
The 'Post Automatically Only' indicator restricts manual posting to the account, typically used for reconciliation accounts. It does not affect the availability of the account for posting in company codes. The account still needs to be extended to company codes to be usable. This indicator is not related to the initial setup for posting availability.
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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.