C_TS4FI Financial Accounting Practice Question
Which ledger is used for parallel accounting in S/4HANA when you need to report using different accounting standards?
⚠ Common exam trap
Candidates often confuse the 'Leading Ledger' with the 'Non-Leading Ledger', not realizing that parallel accounting specifically relies on the non-leading ledger for secondary reporting standards.
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
✓
Non-Leading Ledger
Parallel accounting allows an organization to report under multiple standards, such as IFRS and local GAAP, simultaneously. By using a non-leading ledger for the secondary standard, the system enables transparent, audit-compliant reporting. This ensures that the organization can satisfy both internal group management needs and external statutory requirements without the need for manual, error-prone adjustments outside of the main financial system.
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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Leading Ledger
Why it's wrong here
The leading ledger is the primary ledger used for the group-wide accounting standard. It is not used for parallel accounting, as it serves as the base for all other ledgers. Parallel accounting requires a separate, non-leading ledger or an extension ledger to handle different accounting principles.
- ✓
Non-Leading Ledger
Why this is correct
A non-leading ledger is the standard way to implement parallel accounting. It allows for the recording of adjustments that are specific to a particular accounting standard (e.g., local GAAP), providing a clear distinction between these entries and those recorded in the leading ledger for group-wide reporting.
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Extension Ledger
Why it's wrong here
While extension ledgers can contain manual adjustments, they are typically used for specific reporting scenarios like simulations or tax adjustments. A non-leading ledger is the standard choice for full-scale parallel accounting, offering more comprehensive capabilities for managing entire sets of books under different accounting standards.
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Sub-Ledger
Why it's wrong here
Sub-ledgers are designed for specific operational processes like AR and AP, not for managing parallel accounting principles. They provide the detail for the General Ledger but are not the appropriate organizational structure for representing different accounting standards, which must be handled at the ledger level.
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Last reviewed September 2026 · checked against the official SAP exam blueprint
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