C_TS4FI Financial Accounting Practice Question
When configuring the Bank Accounting module, what is the significance of the 'House Bank'?
⚠ Common exam trap
Candidates often confuse the House Bank with the Bank Account or the Company Code, failing to realize the House Bank acts as the internal identifier for external bank branches.
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
✓
It is required to identify the bank accounts for payments.
The House Bank represents a bank branch where the company maintains one or more bank accounts. It is linked to the General Ledger via bank accounts, enabling the integration of payments and bank statements. This structure is essential for accurate cash management and reconciliation, as it provides the bridge between the company's internal accounting and the external banking institutions.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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It acts as a master record for the bank's internal ledger.
Why it's wrong here
The bank's internal ledger is not something SAP maintains. The House Bank is an organizational unit in SAP used to represent a real-world bank account for the company. It serves as a master data reference for payments and cash position reporting, not as a ledger for the external bank.
- ✓
It is required to identify the bank accounts for payments.
Why this is correct
In the payment program, the system needs to know which specific bank account to use for a payment. The House Bank, combined with the Account ID, provides the necessary unique identification for the system to link the payment transaction to the correct bank account and update the G/L accordingly.
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It replaces the need for a general ledger account for cash.
Why it's wrong here
The House Bank does not replace the G/L account; it complements it. The House Bank identifies the financial institution, while the G/L account records the monetary value in the company's books. They are linked, but they serve entirely different purposes in the financial accounting process.
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It automatically reconciles all daily bank statements.
Why it's wrong here
While the House Bank is used to associate incoming bank statements with internal records, the reconciliation process itself requires additional configuration such as bank clearing rules and the Electronic Bank Statement (EBS) setup. The House Bank is a prerequisite for these, but it does not perform the reconciliation logic.
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JA
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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