C_TS4FI Financial Accounting Practice Question
During month-end closing, a financial accountant at a manufacturing company runs the foreign currency valuation (FAGL_FCV) for open vendor items in a company code that uses the local currency USD. The valuation is executed with the 'Strict Lowest Value Principle' deactivated. After the valuation run, the accountant notices that the valuation postings are missing for several vendor invoices. What is the most likely reason for the missing postings?
⚠ Common exam trap
The trap here is assuming that deactivating the strict lowest value principle means no gains are posted, when in fact it allows both gains and losses.
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 valuation area for the company code is not configured to include vendor open items.
The foreign currency valuation run relies on the valuation area configuration to determine which account types and items are valued. If vendor open items are not selected in the valuation area, no postings are generated for them. This is a common setup error. Checking the valuation area definition and its account type assignments resolves the missing postings.
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The exchange rate table used by the valuation run is outdated, so the system cannot calculate differences.
Why it's wrong here
An outdated exchange rate table would typically cause an error or use a fallback rate, but it would not selectively skip vendor items. The valuation run would still post differences if rates are available. The systematic omission of vendor items points to configuration rather than rate table issues.
- ✓
The valuation area for the company code is not configured to include vendor open items.
Why this is correct
In the foreign currency valuation configuration, you define valuation areas and specify which account types (e.g., customer, vendor, G/L) are valued. If vendor open items are not included in the valuation area used for the run, no postings are created for them. This is a common configuration oversight and directly explains the missing postings.
- ✗
The exchange rate difference for these items is positive (gain), and the lowest value principle is deactivated, so gains are not posted.
Why it's wrong here
Deactivating the strict lowest value principle allows both unrealized gains and losses to be posted, so a positive difference would still be posted. Therefore, missing postings cannot be attributed to a gain when the principle is deactivated. The issue lies elsewhere, such as account determination or valuation area settings.
- ✗
The vendor invoices are not yet due for payment, so they are excluded from valuation by default.
Why it's wrong here
Valuation of open items typically includes all open items regardless of due date, unless specific filters are set. Due date is not a standard exclusion criterion for foreign currency valuation. Thus, this does not explain missing postings. The accountant should check the valuation parameters and account determination instead.
Visual reference
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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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