C_TS4FI Financial Accounting Practice Question
A financial accountant is executing the foreign currency valuation run in SAP S/4HANA Financial Accounting. The run is configured to use the 'Always Valuate' indicator for a specific G/L account. After the run, the accountant notices that the valuation difference was posted even though the exchange rate did not change from the previous valuation. What is the effect of the 'Always Valuate' indicator in the valuation run?
⚠ Common exam trap
The trap here is assuming that valuation only occurs when the exchange rate changes, but the 'Always Valuate' indicator overrides that default behavior.
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
✓
It forces valuation regardless of whether the exchange rate has changed.
The 'Always Valuate' indicator in the foreign currency valuation run forces the system to valuate selected accounts even if the exchange rate has not changed since the last valuation. This results in a valuation difference being posted, as seen in the scenario. Without this indicator, the system would skip valuation for accounts with unchanged rates.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
It reverses previous valuation postings before revaluing.
Why it's wrong here
The 'Always Valuate' indicator does not automatically reverse previous postings. Reversal of previous valuation postings is controlled by separate settings in the valuation run, such as the 'Reverse Postings' indicator. The 'Always Valuate' indicator only forces valuation when the rate is unchanged, but it does not handle reversal.
- ✓
It forces valuation regardless of whether the exchange rate has changed.
Why this is correct
The 'Always Valuate' indicator ensures that the system performs valuation for the selected accounts even if the exchange rate has not changed since the last valuation. This is useful for accounts where you want to revalue based on a new rate or when you need to reverse and re-post valuation differences. In this scenario, the indicator caused the valuation difference to be posted despite no rate change.
- ✗
It only valuates accounts with a changed exchange rate.
Why it's wrong here
This describes the default behavior without the 'Always Valuate' indicator. By default, the system only valuates accounts if the exchange rate has changed. The 'Always Valuate' indicator overrides this default and forces valuation even when the rate is unchanged, which is the opposite of what this option states.
- ✗
It skips valuation for accounts with no balance.
Why it's wrong here
The 'Always Valuate' indicator does not affect whether accounts with zero balances are valuated. It controls whether valuation occurs when the exchange rate has not changed. Accounts with no balance are typically not valuated regardless of this indicator, as there is no amount to revalue.
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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
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