C_TS4FI Financial Accounting Practice Question
Which of the following is the correct definition of the 'Ledger Approach' in parallel accounting?
⚠ Common exam trap
Candidates confuse the 'Ledger Approach' with the 'Accounts Approach,' mistakenly thinking ledgers are used to store different accounts rather than different valuation views of the same data.
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
✓
Maintaining multiple ledgers to store different valuation views.
The ledger approach is a standard method in S/4HANA for handling multiple valuation requirements, such as local GAAP and IFRS. By utilizing separate ledgers, companies can maintain distinct sets of books simultaneously. This approach provides transparency and simplifies the reconciliation process, as each ledger represents a specific valuation view, ensuring accurate financial reporting and compliance with diverse regulatory requirements across the global enterprise.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Using additional accounts to record different valuation views.
Why it's wrong here
This describes the 'Account Approach', not the ledger approach. The account approach uses separate G/L accounts to distinguish between different valuations, whereas the ledger approach uses separate ledgers within the database to maintain distinct sets of books for the same company code entity.
- ✓
Maintaining multiple ledgers to store different valuation views.
Why this is correct
The ledger approach employs multiple ledgers, such as the leading ledger for group reporting and non-leading ledgers for local GAAP, to record valuations. This allows for clean separation of financial data, making it easier to generate compliant reports for different stakeholders and regulatory bodies simultaneously.
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Using special periods to post closing adjustments.
Why it's wrong here
Special periods are used for year-end adjustments and do not constitute a parallel accounting method. They are a time-based tool for closing the fiscal year, whereas parallel accounting methods are designed to hold different financial valuations throughout the entire period, not just during the final closing steps.
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Assigning multiple company codes to one controlling area.
Why it's wrong here
This refers to an organizational structure decision rather than an accounting method for parallel valuation. While it supports management reporting, it does not define how financial accounting handles different valuation rules like IFRS or tax-specific requirements, which are managed through ledger or account approaches.
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Last reviewed September 2026 · checked against the official SAP exam blueprint
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