C_TS4FI_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Financial Accounting Question and Answers

To achieve segment reporting in SAP S/4HANA, particularly when following IFRS accounting principles, the following elements are essential:

• Document Splitting:
• Segments:
• Profit Centers:

ReferencesSAP S/4HANA Configuration Guides and IFRS Reporting Best Practices​​​​​​.

Accounts Payable & Accounts Receivable

When an unplanned depreciation is posted to an asset in SAP S/4HANA, the system immediately updates both the Asset Accounting (FI-AA) and the General Ledger (FI-GL) in real time. This ensures that the financial statements reflect the most accurate and up-to-date information without waiting for any periodic posting programs.

• FI-AA Posting:
• FI-GL Posting:

ReferencesSAP S/4HANA Finance Documentation and Configuration Guides​​​​​​.

For structuring a Profit & Loss (P&L) statement according to cost-of-sales accounting in SAP S/4HANA, it is crucial to define the correct organizational unit. The appropriate unit is:

Functional area: The functional area allows for the categorization of expenses according to their function (e.g., production, sales, administration). This classification is essential forcost-of-sales accounting as it aligns costs with the corresponding revenue-generating activities, providing a clear view of the profitability of different functions within the organization.

Setting up functional areas ensures that the P&L statement accurately reflects the cost structure and supports detailed financial analysis and decision-making.

References

• [25:25†SAP 4_HANA FICO.pdf]

Organizational Assignments and Process Integration

• Foreign Currency Allowed: When defining payment methods at the company code level, it is crucial to specify whether foreign currencies are allowed for payments. This setting ensures that the system can handle transactions in different currencies, which is vital for businesses operating internationally.
• Minimum and Maximum Payment Amounts: This parameter allows you to set thresholds for the minimum and maximum amounts that can be paid using a particular payment method. This helps in controlling the payment process by preventing very small or excessively large payments that might not be desirable for operational efficiency or risk management.

References

• These configurations are part of the broader setup of payment methods within SAP, as detailed in the SAP FICO module's configuration guides and financial accounting manuals. They ensure that payment processes are tailored to meet specific business requirements and compliance standards​​​​.

In SAP S/4HANA, currency types are critical as they define the currencies in which transactions and reports are recorded. The default currency types in SAP S/4HANA include:

• 00 = Document currency: This is the currency in which the original transaction is recorded. It is essential for maintaining the accuracy and consistency of transactional data.
• 10 = Company code currency: Also known as the local currency, this is the currency used for the company's internal accounting and financial reporting. Each company code is assigned a specific local currency, ensuring that financial statements are prepared in a standardized manner.

These currency types are foundational in SAP S/4HANA and are automatically included in the system configuration to support various financial operations and reporting needs.

References

• [25:26†SAP 4_HANA FICO.pdf]
• [28:1†1709119988077.pdf]

Organizational Assignments and Process Integration

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In SAP S/4HANA, the account determination for FI-AA (Financial Accounting - Asset Accounting) is defined on multiple levels to ensure proper categorization and posting of asset transactions. The two primary levels where account determination is defined are:

• Chart of Depreciation:
• Chart of Accounts:

Steps to Define Account Determination:

• Maintain Chart of Depreciation:
• Maintain Chart of Accounts:

By configuring account determination at both the chart of depreciation and chart of accounts levels, SAP S/4HANA ensures accurate and systematic financial reporting and compliance with accounting standards.

References:

• SAP S/4HANA Configuration Document​​.
• Procedimiento Creacion nuevos elementos​​.

Accounts Payable & Accounts Receivable

To post depreciation costs to a different cost center than the one specified in the asset master data during the depreciation run, you can create a substitution rule in Financial Accounting. This allows the system to override the cost center specified in the asset master record with a different cost center at the time of posting.

• Creating a Substitution Rule:
• Implementing the Substitution:

This approach provides flexibility and control over cost center assignments without needing to alter the master data directly, ensuring accurate and intentional financial postings.

References:

• Business Processes in Management Accounting in SAP S/4HANA .
• SAP S/4HANA Configuration Document​​.

For a company based in France with a permanent establishment in Switzerland where financial statements are required by law, the necessary organizational unit to create is:

Company code: A company code represents an independent accounting unit within SAP. It is the smallest organizational unit for which a complete, self-contained set of accounts can be drawn up for purposes of external reporting. Creating a separate company code for the Swiss establishment ensures that financial transactions are recorded in compliance with local legal requirements and financial statements are generated accordingly.

By establishing a company code for the Swiss location, the organization ensures compliance with Swiss financial regulations and accurate financial reporting.

References

• [28:1†1709119988077.pdf]

drawn up for purposes of external reporting. This includes recording all relevant transactions and generating necessary financial statements.

Here are the steps to create a company code in SAP S/4HANA:

• Define Company Code:
• Assign Company Code to Company:
• Define Additional Settings:
• Open and Close Posting Periods:

When extending a G/L account to a new company code in SAP, it is essential to maintain certain mandatory fields even if all customizable fields are set to optional in the field status. These fields ensure that the account is properly configured for financial transactions.

• Account Currency:This field specifies the currency in which the account is maintained. It is crucial for financial reporting and transaction processing.
• Field Status Group:This field controls the input fields during document entry. It determines which fields are required, optional, or suppressed.

Without maintaining these fields, the G/L account setup will be incomplete, and you will encounter errors during transactions.

References:

• SAP FICO documentation: "Field status group and account currency must be maintained when extending a G/L account to a new company code to avoid errors for incomplete data"​​.

General Ledger Accounting