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• C_TS4FI_2020 - SAP Certified Application Associate - SAP S/4HANA for Financial Accounting Associates (SAP S/4HANA 2020)

C_TS4FI_2020 SAP Practice Test Questions and Exam Dumps

Question 1

Which of the following is considered a technical year-end closing activity in SAP S/4HANA?

A. Ledger balances must be carried forward.
B. Foreign currency valuation must be posted.
C. Balance sheet adjustments must be posted.
D. Accruals must be posted.

Correct Answer: A

Explanation:

Year-end closing in SAP S/4HANA consists of a variety of activities, which can be grouped into business-oriented and technical tasks. Business tasks include adjustments and corrections needed for financial accuracy, while technical tasks are system-driven and necessary for preparing the system for the next fiscal year. It’s important to distinguish between what constitutes a mandatory technical system step and what is more of an accounting procedure.

Option A, ledger balances must be carried forward, is a core technical activity. This step ensures that closing balances from the current fiscal year are transferred into the new fiscal year as opening balances. Without this process, the general ledger in the new fiscal year would not reflect the cumulative financial status of the organization. The system performs this task through specific SAP transactions like FAGLGVTR for General Ledger balance carryforward. This process updates retained earnings and ensures that financial statements in the new year begin from the correct position. It’s automated, system-reliant, and mandatory, which categorizes it clearly as a technical year-end activity.

Option B, foreign currency valuation must be posted, is an important financial activity for aligning account balances with current exchange rates. It ensures that balances in foreign currency accounts are adjusted to reflect year-end exchange rates. However, this is not classified as a technical closing activity. It is an accounting task governed by legal and financial standards, and while it is system-supported and often automated, it falls into the business-oriented category of closing tasks.

Option C, balance sheet adjustments must be posted, also refers to a financial activity. These adjustments can be made to align reported financial positions according to internal or external reporting standards. This is a manual, accounting-driven process typically performed by financial accountants or controllers. It does not represent a system-level technical requirement and is thus not considered a technical year-end closing activity.

Option D, accruals must be posted, is another financial process used to record revenues and expenses in the period in which they are incurred, not when cash transactions occur. This ensures accurate period-end reporting and compliance with accounting principles. Like foreign currency valuation, it is a crucial part of financial closing, but it is not a technical task. It is an accounting responsibility and handled through manual or automated postings, depending on system configuration.

In conclusion, the only option that qualifies as a strictly technical year-end closing activity in SAP S/4HANA is the ledger balance carryforward, as it is necessary for transitioning system records into the new fiscal year and is typically executed using SAP’s technical tools.

Question 2

Which of the following elements are used to define how asset acquisitions are integrated with the general ledger in SAP? (Choose two.)

A. Asset class
B. Depreciation keys
C. Valuation area
D. Depreciation area

Correct Answers: A and D

Explanation:
The integration between asset accounting and the general ledger in SAP is primarily determined by how asset values are recorded and posted to the financial accounting module. This integration ensures that any financial transactions involving fixed assets are accurately reflected in the general ledger accounts. The most critical elements that facilitate this integration are the asset class and the depreciation area.

Let’s explore Asset Class (A) first. The asset class is a fundamental configuration in Asset Accounting. It categorizes assets by type, such as buildings, machinery, vehicles, or intangible assets. Most importantly for integration purposes, the asset class defines the default general ledger accounts that will be used when an asset transaction occurs. When you acquire an asset, the system uses the account determination settings in the asset class to determine which balance sheet and other G/L accounts should be posted to. This makes the asset class an essential element for integrating asset transactions with the general ledger.

Now consider Depreciation Area (D). Depreciation areas in SAP represent different ways of valuing and reporting on assets. For instance, one depreciation area may represent book depreciation, another may represent tax depreciation. Each depreciation area can be linked to a specific ledger or a specific type of reporting requirement. When asset values are posted or updated (such as during acquisition or depreciation), each active depreciation area can post to a different ledger, if required. This ensures that values in the general ledger reflect appropriate accounting standards or regulatory frameworks, depending on the area. Thus, depreciation areas play a central role in how asset values are integrated and posted to the general ledger.

On the other hand, Depreciation Keys (B) define how an asset is depreciated over time—such as straight-line or declining balance methods. While important for calculating depreciation amounts, depreciation keys themselves do not directly control integration with the general ledger. They influence the calculation, but the actual posting is controlled via depreciation areas and account assignments.

Lastly, Valuation Area (C) is relevant in Materials Management (MM) for determining stock values and price controls, especially when using multiple valuation approaches across plants or company codes. It does not play a role in asset accounting or its integration with the general ledger. Therefore, it is not relevant for this question.

In summary, asset integration with the general ledger relies heavily on the configuration of the asset class, which defines the G/L account mapping, and the depreciation area, which determines which values are posted to which ledgers. These two elements work together to ensure that all asset transactions are reflected accurately in financial accounting.

Question 3:

You are working with a general ledger account that is set to use CAD as its foreign currency. The company code uses USD as its local currency, while the controlling area uses EUR. 

Which currencies are allowed when posting to this account?

A. You can post to the account in any currency and it will be converted into CAD.
B. You can only post to the account in CAD and USD.
C. You can only post to the account in CAD, USD, and EUR.
D. You can only post to the account in CAD.

Correct Answer: D

Explanation:

In SAP Financial Accounting, a general ledger (G/L) account can be configured to use a specific foreign currency. This is done in the master data of the account and is often used to manage accounts that always need to reflect values in one specific currency—such as bank accounts, loan accounts, or certain revenue or expense accounts.

In the scenario described, the G/L account has CAD (Canadian Dollar) specified as its foreign currency, and the company code currency is USD (US Dollar). This means that the account is restricted in terms of the currencies that can be used for posting.

When a G/L account is set with a specific currency—other than the company code currency—it becomes a foreign currency-only account. This setup enforces that all postings to the account must be made only in the specified foreign currency, which in this case is CAD. This ensures consistency and avoids the complexities that come from handling multiple currencies within a single account designed for a specific one.

Therefore, despite the fact that the company code currency is USD and the controlling area currency is EUR, you are not allowed to post in either of those currencies to this particular account. Also, the controlling area currency (EUR) is relevant only for controlling purposes, not for postings in Financial Accounting (FI), unless you are specifically using currency types for parallel valuation or CO-FI integration, which is not implied here.

Let’s analyze the options in this light:

Option A suggests that you can post in any currency and the system will convert it to CAD. This is incorrect. SAP requires that when an account is set to a fixed currency, you may only post directly in that currency. Currency conversion only occurs automatically when the account is not restricted to one specific currency.

Option B implies that you can post in both CAD and USD. This is also incorrect. USD is the company code currency, but because the account is restricted to CAD, you may not post in USD at all.

Option C includes CAD, USD, and EUR. This is also incorrect for the same reason—only CAD is allowed.

Option D states that postings are allowed only in CAD, which aligns exactly with SAP's behavior for G/L accounts that have a specific foreign currency defined. Once a foreign currency is set, that becomes the only allowed currency for posting.

Question 4

If a new general ledger account is not included in the financial statement version, how does this omission affect the net profit or net loss?

A. The balance of the new account is added to the notes in the financial statement item section and is excluded from the calculation.
B. The balance of the new account is added to the non-assigned section and is included in the calculation.
C. The balance of the new account is added to the non-assigned section and is excluded from the calculation.
D. The balance of the new account is added to the notes in the financial statement item section and is included in the calculation.

Correct Answer: C

Explanation:

In SAP S/4HANA, a financial statement version (FSV) is a tool used to structure financial reports, such as the balance sheet and income statement. It determines how general ledger (G/L) accounts are grouped and displayed in the financial reports. When setting up an FSV, each relevant G/L account must be assigned to a node (or item) so that its balance is included in the appropriate financial statement category.

If a new G/L account is created but not assigned to the financial statement version, it will appear in a section of the report typically labeled as "non-assigned." This section collects all accounts that exist in the company code but have not been mapped to any financial statement item. While the account and its balance are technically visible in the report output under this section, it is important to understand how the system handles it in the context of financial totals such as net profit or net loss.

Option A is incorrect because the balance of an unassigned G/L account is not added to any notes section, nor does SAP FSV assign unclassified balances to textual note areas. The notes section may contain references or commentary fields, but it’s unrelated to the system's calculation logic for net values.

Option B is also incorrect. While the balance does appear in the non-assigned section, it is not included in the net profit or net loss calculation. SAP only includes balances in its financial total calculations if they are explicitly mapped to an appropriate item in the financial statement version. This ensures that the totals reflect only those accounts that have been intentionally classified and reviewed.

Option C is the correct answer. The unassigned account appears in the non-assigned section and is excluded from the automatic calculations of the financial statement, including net profit and net loss. This behavior is by design to avoid inflating or distorting financial results with unintended or improperly classified accounts. Therefore, the financial statement report will reflect inaccurate profit/loss figures until the missing account is properly assigned.

Option D is incorrect because the notes section does not impact the calculation, and the account is not redirected there by default. Moreover, the system does not add unassigned accounts into the net figures unless they are part of a mapped item.

In summary, not including a general ledger account in the financial statement version leads to its balance being reported under the non-assigned section. However, the system deliberately excludes it from the key financial computations to maintain the integrity of the reported totals. This makes it essential for organizations to regularly review and update their FSVs whenever new G/L accounts are created.

Question 5

When creating a substitution in Financial Accounting (FI), which components must be defined for each substitution step? (Choose two.)

A. Substitution values
B. Prerequisite statement
C. Callup point
D. Check statement

Correct Answers: A and B

Explanation:
Substitutions in SAP Financial Accounting are part of the validation and substitution framework. They are used to automatically replace certain values in accounting documents based on specific conditions. These are often employed to ensure data consistency, enforce company policies, or automate data entry based on pre-defined logic. Each substitution rule consists of a structured format and must include key components for the system to process the rule correctly.

First, let’s discuss Substitution Values (A). This is one of the core parts of the substitution logic. The substitution value defines what new value should replace the existing value in the document if the conditions are met. For example, you might substitute a profit center or a cost center based on certain criteria like company code or account number. This is the action part of the substitution — telling the system what to do when the prerequisite conditions are satisfied.

Second, the Prerequisite Statement (B) is another required element of each substitution step. This is where the conditions or logic are defined. The prerequisite is a logical test that determines whether the substitution should occur. For instance, a condition could be: "If the company code is 1000 and the account number is in a specific range, then perform the substitution." Without defining a prerequisite, the system wouldn’t know when the substitution should be applied, so this element is essential.

Now consider Callup Point (C). While this is a critical part of the overall substitution setup, it is not something that is defined within each substitution step — it is defined at the rule level. The callup point determines when in the processing the substitution should be executed, such as at the line item level during document posting. However, once the callup point is assigned to the rule, it applies to the whole rule and not individually to each substitution step. Therefore, it is not one of the parts that need to be defined for each step.

Lastly, Check Statement (D) does not belong to substitution at all — it is a component of validations in SAP, not substitutions. In validations, a check statement evaluates whether certain conditions are met and can raise an error or warning if they are not. Substitutions do not use check statements; they use prerequisites instead.

To summarize, when creating a substitution step in Financial Accounting, you must define the prerequisite, which sets the condition for when the substitution will be executed, and the substitution value, which specifies what data should be substituted. These two components work together to ensure that substitution logic is applied consistently and correctly during financial processing. The callup point, while necessary for the overall rule, is not defined per step, and check statements are entirely unrelated to substitution logic.

Question 6:

You are configuring document splitting in your SAP system. Which of the following are essential configuration settings required for document splitting to function properly? (Choose two.)

A. Field status variant
B. Document number range
C. Business transaction variant
D. Document type

Correct Answers: C and D

Explanation:

Document splitting is a feature in SAP Financial Accounting (FI) that is used primarily to achieve detailed financial reporting at segment or profit center level. It ensures that line items in documents (such as invoices or journal entries) are broken down and balanced according to specific dimensions like segments or profit centers, even when those details aren’t explicitly present in every line item.

To successfully configure and use document splitting, certain key settings must be maintained. Let’s examine each option to determine whether it is critical for document splitting configuration.

Option A: Field status variant – This configuration determines which fields are required, optional, or suppressed when entering line items in financial documents. While it is important for ensuring that certain fields are entered correctly during data entry, it is not directly related to document splitting. It has no influence on how SAP automatically splits or balances document lines based on characteristics like segment or profit center. So, although important in FI configuration overall, it is not a key setting for document splitting.

Option B: Document number range – This determines the number ranges assigned to different types of financial documents (e.g., vendor invoices, customer payments). Like the field status variant, it is important for general document management, but it has no impact on the logic or configuration of document splitting. Document splitting works based on the content and type of transaction, not the assigned number range. Therefore, this is not a relevant setting for document splitting.

Option C: Business transaction variant – This is a core setting in document splitting. Business transaction variants define how SAP should interpret and process different types of transactions for the purpose of splitting. For example, it helps determine how vendor invoices, G/L postings, or customer payments are broken down. These variants are critical because they guide the system’s splitting logic for each type of transaction. Without this, SAP would not know how to properly split and balance postings. Thus, this is a key setting.

Option D: Document type – While not directly controlling the splitting rules themselves, document type plays a supporting role in document splitting configuration. Different document types (such as SA for general ledger, KR for vendor invoice) may be assigned different splitting behavior or be used to test the splitting logic during posting. In practice, document splitting configuration may be tested and validated using different document types, and certain types may be excluded or included in specific variants. Therefore, document type is considered a relevant configuration setting in this context.

So, the two correct answers are C and D because they are either directly part of document splitting logic (business transaction variant) or closely involved in applying and managing it (document type).

Question 7

Which date does the system use to determine when depreciation begins for an asset?

A. Posting date
B. Baseline date
C. Document date
D. Asset value date

Correct Answer: D

Explanation:

In SAP S/4HANA Asset Accounting, the start of depreciation for an asset is a critical piece of information because it determines when the system will begin calculating and posting depreciation expenses for that asset. Several different dates are entered when posting asset transactions, and each serves a specific purpose, but only one is directly responsible for controlling the depreciation start.

Option A, the posting date, refers to the date on which the accounting document is recorded in the system. While it determines the accounting period in which the transaction will affect financial reporting, it does not control the depreciation start date. This date is more relevant for general ledger entries and period management, but not for initiating depreciation.

Option B, the baseline date, is typically used in Accounts Payable and Accounts Receivable for determining due dates in payment terms. It has no direct role in Asset Accounting when it comes to managing depreciation schedules. Therefore, it is not relevant in this context.

Option C, the document date, is the date when the source document (such as an invoice or purchase order) was created. This date is useful for audit trails and reference purposes, but it does not influence financial calculations like depreciation. It simply represents the original transaction date and is often used for reporting or reconciliation.

Option D, the asset value date, is the correct answer. This date is specifically used within Asset Accounting to indicate when the asset begins contributing value, and thus when depreciation should start. It reflects the point in time when the asset is considered capitalized and ready for use. Based on this date and the configuration of the asset’s depreciation key and useful life, SAP begins calculating depreciation amounts from the appropriate period.

For example, if an asset is acquired with an asset value date of March 15 and monthly depreciation is set up, the system will begin calculating depreciation from March, even if the posting date or document date falls earlier or later. This ensures that depreciation aligns with the actual usage and capitalization of the asset rather than the accounting or document processing timelines.

In conclusion, the asset value date is the decisive field for determining the start of depreciation in SAP S/4HANA. It directly impacts financial reporting by initiating the asset’s depreciation lifecycle, and as such, must be carefully reviewed and correctly entered during asset transactions.

Question 8

In SAP customizing, at which levels can you assign the print program to a correspondence type? (Choose two.)

A. At client level
B. At system level
C. At business partner level
D. At company code level

Correct Answers: A and D

Explanation:
In SAP Financial Accounting, correspondence types are used to generate predefined letters and documents (such as account statements, payment notices, or dunning letters) that can be sent to business partners. These correspondence types rely on print programs, which are responsible for generating the required output in the form of printed documents or digital formats.

The configuration of how these correspondence types interact with print programs is managed in customizing, and the assignment of print programs to correspondence types can be made at different organizational levels to provide flexibility and specificity in output management.

Let’s start with Client Level (A). This is a valid assignment level in SAP. The client level represents the highest level in the SAP system hierarchy and applies to all company codes within the client. When a print program is assigned to a correspondence type at the client level, it becomes the default program for that correspondence type across the entire system, unless overridden at a more specific level. This is useful for standardizing correspondence behavior across the enterprise.

Next, Company Code Level (D) is also a valid level at which a print program can be assigned to a correspondence type. The company code represents a legal entity within the client and typically maintains its own financial records and correspondence practices. By allowing assignment at this level, SAP provides the flexibility to accommodate different correspondence handling procedures for different company codes. For example, a company code in Germany may use a different layout or language for customer account statements than a company code in the United States.

Now, examining System Level (B), this option is misleading. SAP customizing does not define a specific "system level" as a level of configuration for correspondence print programs. While SAP operates as a system, configuration points are structured around organizational units such as client, company code, or business area—not a generic "system" level. Therefore, this is not a valid option.

As for Business Partner Level (C), it is important to clarify its role. While business partners are the entities that receive correspondence, the print program itself is not assigned at the business partner level. Instead, the correspondence type can be triggered for a business partner, but the technical assignment of which print program generates the output is done at a higher organizational level, such as client or company code. Thus, business partner data may influence the content or necessity of correspondence, but not the assignment of the print program itself.

To conclude, in SAP customizing, the assignment of the print program to the correspondence type can be done at the client level, to serve as a general default for all company codes, and at the company code level, to allow for legal or operational customization of how correspondence is handled. These two levels provide the necessary structure for both standardization and local adaptation within a multinational enterprise.

Question 9:

In SAP Financial Accounting, document types are used to classify accounting documents. Which of the following aspects are directly controlled by the document type? (Choose two.)

A. Whether text is required on line item level
B. Which posting keys are allowed for postings
C. Which account types are allowed for postings
D. Whether negative postings are permitted

Correct Answers: B and C

Explanation:

In SAP, the document type is a fundamental configuration element used to categorize accounting documents. Each document type determines certain behaviors and controls that apply to the entire financial posting process. It serves as a classification tool and also defines processing rules.

Let’s go through each option to identify which features are genuinely controlled by the document type.

Option A: Whether text is required on line item level
This is not controlled by the document type. Whether text is required at the line item level is determined by the field status group, which is assigned to the general ledger (G/L) account master data. Field status controls define whether specific fields (like text, cost center, profit center, etc.) are optional, required, suppressed, or display-only during document entry. Document type does not have any influence over whether text is mandatory on the line item level. So, this option is incorrect.

Option B: Which posting keys are allowed for postings
This is correct. The document type limits which posting keys can be used in a particular document. Posting keys control whether an entry is a debit or credit, and they determine the field status of the line item (e.g., whether a customer or vendor number must be entered). By controlling which posting keys are allowed, the document type restricts the combinations of account types and field data that can be used within that type of document. This ensures consistency and helps enforce accounting controls during data entry.

Option C: Which account types are allowed for postings
This is also correct. Document types are explicitly configured to permit postings only to certain account types such as assets, vendors, customers, G/L accounts, materials, etc. For example, document type 'KR' (vendor invoice) is configured to allow vendor accounts, while 'DR' (customer invoice) allows customer accounts. This restricts users from using inappropriate account types for a given transaction type and ensures proper categorization of business events.

Option D: Whether negative postings are permitted
This is not directly controlled by the document type. While there is a configuration at the document type level that can allow negative postings, the actual permission to post negative amounts depends on a broader set of configuration and system settings. In SAP, negative postings are generally only allowed if the company code is configured to allow them, and if the document type is flagged to permit them. However, in standard practice and exams, when asked what a document type "controls," the focus is typically on posting keys and account types. Therefore, while document types can be configured to allow negative postings, it is not one of the core controlling functions commonly associated with document type in basic configuration contexts.

Thus, the most relevant and consistently controlled aspects are posting keys and account types, making B and C the correct answers.

Question 10

Which of the following statements accurately describe a profit center in SAP? (Select two.)

A. It is an object for which separate balance sheet and P&L statements are created only when used in conjunction with segments.
B. It is the only object that can be uniformly derived using segments.
C. It is an object for which separate balance sheet and P&L statements can be created, independently from segments being maintained or not.
D. It is the only object from which segments can be uniformly derived.

Correct Answers: C, D

Explanation:

In SAP S/4HANA, a profit center is a key organizational unit used for internal controlling purposes. It allows companies to monitor the performance of different areas or lines of business independently. Profit centers can be assigned to cost centers, internal orders, assets, and many other objects. They are vital in enabling profit and loss tracking by area of responsibility and help in decentralized decision-making.

Let’s examine each option in detail to identify which best reflect the functionality and behavior of profit centers.

Option A states that a profit center enables the creation of separate financial statements only when used together with segments. This statement is not accurate. While profit centers and segments can be related, profit centers independently support the creation of their own profit and loss (P&L) and balance sheet reports. SAP S/4HANA includes functionalities such as profit center accounting that allow companies to prepare separate financial statements for each profit center, regardless of whether segments are in use. Thus, this option is incorrect.

Option B claims that a profit center is the only object that can be uniformly derived using segments. This is misleading. Segments in SAP are independent organizational elements that represent parts of an organization from which financial data can be obtained for reporting under segment reporting standards such as IFRS 8. While profit centers can be derived from other master data, segments are not used to derive profit centers; rather, it’s usually the other way around. Hence, this statement is not accurate.

Option C is correct. One of the primary roles of a profit center is to allow the creation of separate financial statements—both balance sheet and profit and loss—independently of segment assignment. In SAP S/4HANA, you can activate profit center accounting to prepare such statements. This functionality is essential for internal reporting, enabling organizations to analyze the financial performance of different business areas without requiring segment configuration. Therefore, profit centers serve as autonomous accounting units suitable for internal reporting purposes.

Option D is also correct. In SAP, segments can be derived from profit centers. In fact, SAP recommends setting up a one-to-one relationship between profit centers and segments, so that segments can be automatically derived from the profit center assigned to the transaction or master data. This allows consistent reporting and simplifies configuration, especially when segment reporting is required under certain accounting standards. Thus, profit centers act as a bridge to uniform segment derivation in the system.

In conclusion, the statements that best describe a profit center are that it supports independent financial statement creation and that segments can be uniformly derived from it. This makes C and D the most accurate choices.