C_TS4FI Financial Accounting Practice Question
A user is creating a G/L account master record in SAP S/4HANA. They want to ensure that the account can be used for postings in multiple company codes while maintaining different control parameters per company code. Which of the following is a mandatory step during the creation of a G/L account?
⚠ Common exam trap
It's easy for candidates to confuse optional settings like reconciliation account or cost element with the mandatory step of extending the account to company codes.
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
✓
Assign the account to a chart of accounts and extend it to each required company code.
Creating a G/L account in SAP S/4HANA requires first defining it in a chart of accounts, then extending it to each company code where it will be used. This ensures that company-code-specific control parameters, such as currency and tax settings, can be maintained. Without extending the account to a company code, postings cannot be made in that company code, so this step is mandatory for multi-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.
- ✗
Set the account as a cost element in Controlling.
Why it's wrong here
While many G/L accounts are also cost elements in SAP S/4HANA, not all accounts require this designation. Only accounts that need to be used in cost accounting (such as primary and secondary cost elements) must be marked as cost elements. For a general G/L account that is not used in Controlling, this setting is not mandatory, and the question does not specify that the account must be a cost element.
- ✗
Enter a default tax code for the account.
Why it's wrong here
A default tax code can be specified for a G/L account to simplify data entry, but it is not a mandatory field during account creation. The tax code is optional and can be left blank; the system will then require the user to enter a tax code during posting if necessary. Since the scenario does not mention tax requirements, this step is not mandatory for creating a G/L account that can be used across company codes.
- ✗
Define the account as a reconciliation account for asset accounting.
Why it's wrong here
Defining a reconciliation account is only necessary for accounts that will be used in subledgers like Asset Accounting or Accounts Payable/Receivable. Not every G/L account needs to be a reconciliation account; for example, an expense account or a bank account would not require this setting. The scenario does not specify that the account is a reconciliation account, so this step is not mandatory for all G/L accounts.
- ✓
Assign the account to a chart of accounts and extend it to each required company code.
Why this is correct
In SAP S/4HANA, a G/L account is first created at the chart of accounts level, which defines the account number and description. To use the account in a specific company code, it must be extended to that company code, where company-code-specific settings such as currency, tax category, and reconciliation account type are maintained. This two-step process is mandatory to enable postings in multiple company codes with different control parameters.
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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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