C_TS4FI Financial Accounting Practice Question
A financial accountant is setting up a new document splitting configuration in SAP S/4HANA to enable segment reporting. Which two of the following steps are required to activate document splitting for a company code? (Choose two.)
⚠ Common exam trap
The trap here is thinking that document splitting requires a new ledger or a special document type, when in fact it is activated per company code and uses a splitting method.
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
✓
Define a splitting method and assign it to the company code.
To activate document splitting, you must first enable it in the company code settings and then assign a splitting method to that company code. The splitting method defines the dimensions and rules for splitting. Other steps like creating a new ledger or document type are not required. Assigning segments to profit centers is a master data task that supports segment derivation but is not part of the activation process.
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 a new ledger for document splitting.
Why it's wrong here
Document splitting is not ledger-specific; it applies to the general ledger and is activated per company code. You do not need to create a separate ledger for splitting. The existing ledger (e.g., leading ledger) will store the split line items. Creating a new ledger is unnecessary and would complicate the architecture.
- ✓
Define a splitting method and assign it to the company code.
Why this is correct
A splitting method determines which dimensions (e.g., segment, profit center) are used for splitting and how they are derived. You define splitting methods and assign one to the company code. Without a splitting method, the system does not know which fields to split by, so this is required.
- ✗
Define a document type for splitting postings.
Why it's wrong here
Document splitting uses the existing document types; you do not need a dedicated document type. Splitting is applied based on the splitting method and rules, regardless of the document type. A separate document type would not influence the splitting logic and is not required for activation.
- ✓
Activate document splitting in the company code settings.
Why this is correct
You must activate document splitting for the company code in Customizing under Financial Accounting > General Ledger Accounting > Business Transactions > Document Splitting > Activate Document Splitting. This step turns on the splitting functionality for that company code and is mandatory for segment reporting.
- ✗
Assign a segment to each profit center.
Why it's wrong here
While segment derivation often uses profit centers, assigning a segment to each profit center is part of master data setup and may be necessary for segment reporting, but it is not a step to activate document splitting itself. Activation requires the company code setting and a splitting method; segment assignment is a prerequisite for correct derivation but not for activation.
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Last reviewed September 2026 · checked against the official SAP exam blueprint
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