C_TS4FI Financial Accounting Practice Question
In SAP S/4HANA, how are secondary cost elements handled in the General Ledger?
⚠ Common exam trap
Candidates often assume secondary cost elements remain separate from the General Ledger, failing to acknowledge that S/4HANA integrates them directly into the Chart of Accounts.
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
✓
They are created as G/L accounts with the category 'Secondary Cost'.
In S/4HANA, secondary cost elements are integrated into the Chart of Accounts as G/L accounts with a specific type (Secondary). This unification simplifies the master data maintenance by consolidating both primary and secondary costs into the GL space. It allows for a unified reporting structure where all financial and management accounting entries are treated as account postings in the Universal Journal.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
They remain separate from G/L accounts.
Why it's wrong here
This was the case in the legacy SAP ERP system. In S/4HANA, the architectural shift towards the Universal Journal brought these elements into the General Ledger. Treating them as separate would defeat the purpose of the single source of truth, as it would require redundant reconciliation between modules.
- ✓
They are created as G/L accounts with the category 'Secondary Cost'.
Why this is correct
By creating these as GL accounts with the 'Secondary Cost' category, S/4HANA ensures that they are stored in the ACDOCA table alongside primary accounts. This integration is key to the unified reporting strategy, allowing management accounting data to be reported directly through standard financial accounting reporting tools.
- ✗
They must be created for every company code.
Why it's wrong here
Secondary cost elements are created at the chart of accounts level, not the company code level. This design ensures that management accounting structures are consistent across the entire organization, reducing maintenance overhead and ensuring uniform allocation rules for all business units regardless of their specific local company code settings.
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They can only be used in the Controlling module.
Why it's wrong here
Because they are now G/L accounts, they can be utilized in various financial reporting contexts. While their primary use case is internal allocations within CO, their presence in the GL allows them to be accessed by reporting tools that read directly from the Universal Journal, providing greater visibility into cost flows.
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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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