C_TS4FI Financial Accounting Practice Question
In a parallel accounting scenario, a company needs to produce financial statements according to both local GAAP and IFRS. The accounting principle for IFRS requires a specific ledger, while local GAAP uses the leading ledger. Which configuration element directly enables the system to automatically post values to the additional ledger for IFRS?
⚠ Common exam trap
The trap here is assuming that document types or substitutions control ledger postings, when actually the accounting principle assigned to the ledger group drives parallel accounting.
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 accounting principle to the ledger group that contains the IFRS ledger.
In SAP S/4HANA, parallel accounting is achieved by using multiple ledgers, each assigned to a ledger group. The accounting principle is linked to the ledger group, so when a posting is made, the system checks the principle and updates the corresponding ledger. Assigning the accounting principle to the ledger group containing the IFRS ledger ensures that all relevant transactions are automatically posted to that ledger, meeting IFRS reporting requirements without manual effort.
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 substitution rule that derives the accounting principle from the G/L account.
Why it's wrong here
Substitution rules can derive values for fields, but they do not automatically post to additional ledgers. The accounting principle must be assigned to the ledger group to direct postings. Substitution is used for field derivation, not for ledger selection in parallel accounting.
- ✗
Define a separate document type for IFRS postings and activate it in the leading ledger.
Why it's wrong here
Document types control number ranges and posting keys, not ledger selection. Creating a separate document type does not automatically direct postings to the IFRS ledger; it only affects document classification and numbering. The ledger determination is based on accounting principles and ledger groups, not document types.
- ✗
Activate the 'Parallel Accounting' checkbox in the company code settings.
Why it's wrong here
There is no 'Parallel Accounting' checkbox in company code settings. Parallel accounting is configured through ledgers, ledger groups, and accounting principles. Enabling a generic flag would not specify which ledger to update or how to apply the accounting principle.
- ✓
Assign the accounting principle to the ledger group that contains the IFRS ledger.
Why this is correct
Assigning the accounting principle to the ledger group that contains the IFRS ledger ensures that all postings relevant to that principle are automatically recorded in the IFRS ledger. The system uses the principle to determine which ledger group to update, enabling parallel accounting without manual intervention.
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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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