2. General Ledger Accounting

Question 1

Your customer operates 20 company codes in 10 different countries and 3
continents. What is the minimum number of clients you must configure in
the SAP S/4HANA system to depict this scenario?

A.3

B. 10

C. 1

D. 20

Answer 1

C. 1

The key word in the question is minimum. You have to think then if there are
any restrictions to how many company codes, countries, or even continents. As
there are no restrictions on what kind of organizational units are mapped on
the client, the answer is that you can set everything up in a single client.

Question 2

What types of objects are maintained separately per client? (There are three
correct answers.)

A. Master data

B. ABAP programs

C. Organizational units

D. Transactional data

E. Function modules

Answer 2

A. Master data
C. Organizational units
D. Transactional data

If you understand the concept of client-dependent and client-independent
objects, this is an easy one. You can think of examples of objects for each category
to find the correct option:
• Organizational unit: Company code is only available in the client created.
• Master record: G/L account is only available within the chart of accounts of
a specific client.
• Transactional data: G/L posting is posted to a company code, so it’s only
available on the specific client.
ABAP code, whether programs or function modules, is always client independent.
If you change a program in a specific client, the change affects all the
objects in all clients.

Question 3

True or False: You can install as many best practice packages as needed in the
same client.

Answer 3

True

As each country has at least one best practice package, it’s obvious that there
has to be a way to support many country best practices on the same client. In
principle, you can install as many best practice packages as desired in a single
client.

Question 4

What can you manually select to copy when you copy a company code? (There
are three correct answers.)

A. Controlling area assignment

B. User profiles and roles

C. G/L account data

D. Company code currency

E. Document splitting rules

Answer 4

A. Controlling area assignment
C. G/L account data
D. Company code currency

The three correct options are detailed earlier in this chapter (the “Company
Code” section); however, it isn’t always easy to remember so many details. To
answer this then, one way of thinking is to consider which objects are defined
or assigned on the company code level. For example, this would directly eliminate
splitting rules because all splitting Customizing is on the client level.
Users, roles, and so on aren’t really discussed in the SAP S/4HANA FI academy
nor in this book. Remember, all correct answers have to be referenced directly
in the FI academy materials. The closest we come to discussing users, roles, and
authorizations are the tolerance profiles, and even those work across company
codes.

Question 5

What are the three basic steps required to define a new company code?

A. Adjust global parameters.

B. Copy existing company code.

C. Copy existing controlling area.

D. Define new segments.

E. Adjust basic and address data.

Answer 5

A. Adjust global parameters.
B. Copy existing company code.
E. Adjust basic and address data.

Following are the three steps in the correct order:
• Copy an existing company code, specifically the company code that looks
most like the want you want to create.
• Adjust basic and address data by changing the name and address details of
the new company code.
• Adjust global parameters. All the core settings for the company code need
to be checked, such as the chart of accounts, fiscal year, and so on.

Question 6

Which of the following assignments can be adjusted for the company code?
(There are three correct answers.)

A. Company

B. Fiscal year variant

C. Segment

D. Chart of accounts

E. Leading ledger

Answer 6

A. Company
B. Fiscal year variant
D. Chart of accounts

You need to be familiar with the core objects and their assignments. The leading
ledger is assigned to all company codes as there is only a single leading ledger
per client. The segments are defined on the client level and assigned to
profit centers. Yes, profit centers are assigned to company codes so you could
argue about this (this is an example of an answer that would probably be
rejected in a certification).

Question 7

True or False: You need to assign the workflow variant to a company code to
be able to perform standard workflow scenarios such as parked document
approvals.

Answer 7

True

This is basically the definition of the workflow variant. The variant itself is
where rules are defined. In the certification when an answer to a question
seems obvious, it usually is!

Question 8

Which of the following organizational units are part of the enterprise structure
of FI? (There are three correct answers.)

A. Functional area

B. Operating concern

C. Business area

D. Plant

E. Segment

Answer 8

A. Functional area
C. Business area
E. Segment

The functional area is used for cost-of-sales accounting in FI, the business area
depicts a separate business division, and the segment is used for segment
reporting. The operating concern is a management accounting (profitability
analysis) organizational unit, and the plant is the basic Logistics organizational
unit.

Question 9

Which of the following account assignments can you configure the system to
create complete balance sheet reports for? (There are three correct answers.)

A. Cost center

B. Profit center

C. Segment

D. Company code

E. Profitability segment

Answer 9

B. Profit center
C. Segment
D. Company code

The company code is the default level for balance sheet reports in Fl. The profit
center and segment are both definable in document splitting as splitting characteristics,
and thus the system can also be configured to produce balance
sheets at their level. The cost center can only be posted for P&L accounts that
are cost elements, and the same goes for the profitability segment.

Question 10

True or False: You assign the operating concern used for profitability analysis
directly to the company code.

Answer 10

False

The operating concern is assigned one to many to the controlling area. So the
company code is assigned to the operating concern indirectly.

Question 11

True or False: To integrate FI with Purchasing, you must assign the purchasing
organization to the company code.

Answer 11

False

\A/hen you don’t assign the company code to the purchasing organization, the
system uses the plant to derive the correct one.

Question 12

What types of chart of accounts are there? (There are three correct answers.)

A. Organizational chart of accounts

B. Country chart of accounts

C. Functional chart of accounts

D. Operational chart of accounts

E. Group chart of accounts

Answer 12

B. Country chart of accounts
D. Operational chart of accounts
E. Group chart of accounts

The operational chart of accounts and the country /local chart of accounts are
assigned to the company code. The group chart of accounts is assigned to the
operational chart of accounts. The other two types don’t exist. In the certification
exam, the exam writers can’t make up objects that aren’t actually in the
system (they can use objects that exist but aren’t taught in the courses as wrong
selections though), so this would be another rejected question from a certification
exam.

Question 13

Which objects can define the maximum length of a G/L account? (There are
two correct answers.)

A. Chart of accounts

B. Field status group

C. Account type

D. Account group

Answer 13

A. Chart of accounts
D. Account group

In the definition of the chart of accounts, you define the maximum length of
the accounts. In the account group, you define the number range; the number
range by default also controls the length of the field. "lhichever is shortest
takes priority for the account length definition.

Question 14

True or False: With the block indicator set on the chart of accounts, you can no
longer perform postings to the company codes assigned.

Answer 14

False

The indicator blocks the accounts in the chart of accounts from being assigned
to a company code. This won’t affect accounts already assigned before this indicator
was set and won’t stop you from posting to the accounts of the chart of
accounts.

Question 15

Which fields in the company code definition of a G/L account are always
required? (There are two correct answers.)

A. Sort Key

B. Account Currency

C. Field Status Group

D. Group Account

Answer 15

B. Account Currency
C. Field Status Group

The account currency and the field status group ahvays need to be defined to
create an account. These can’t be affected by the field status definition of the
account group. The group account is defined on the chart of accounts level, and
it’s indeed a required field when a group chart of account is assigned to the
operational chart of accounts. The sort key isn’t a required field, but it’s of course very useful, and filling it in is very much recommended to help with
reporting on line items.

Question 16

When creating a G/L account and there are conflicting field statuses, which
field status has the highest priority?

A. Display

B. Optional

C. Suppress

D. Requ ired

Answer 16

C. Suppress

Correct answer: C
The Suppress field status has highest priority in this case. The priority in detail
is Suppress, Disp lay, Required, Optional.

Question 17

What is the secondary cost G/L account type used for?

A. To post to two cost controlling account assignments at the same time

B. To post activities that aren’t from the main businesses of the company

C. To post internal cost allocations in management accounting

D. To post cost controlling account assignments statistically for fixed asset
and material accounts

Answer 17

C. To post internal cost allocations in management accounting

You use secondary cost accounts to post transfer postings in CO. Among all secondary
cost accounts, the balance is always zero for a company code because
you can only debit a secondary account by crediting a secondary G/L account.
Secondary cost G/L accounts are new with SAP S/4HANA. In the traditional SAP
ERP system, you defined secondary cost elements (the SAP S/4HANA system
does this is as well via tables in the background).

Question 18

True or False: If you maintain a single value for the retained earnings account,
then for any P&L G/L account you create, the P&L statement account type is
assigned automatically.

Answer 18

True

You only need to define the retained earnings account manually if you’ve
defined more than one retained earnings accounts. In this case, however, automatic
assignment is no longer possible, and you always have to input the correct
type manually.

Question 19

What is the relationship between accounts of the operating chart of accounts
and the local chart of accounts?

A. One operating account to many local accounts

B. Many operating accounts to one local account

C. Many operating accounts to many local accounts

D. One operating account to one local account

Answer 19

D. One operating account to one local account

In this case, the relationship is one to one. When you assign a local chart of
accounts in the company code, you can only assign a local account to a single
account of the operational chart of accounts.

Question 20

You have to map two accounting principles for accounting. Using the
accounts approach to parallel valuation in SAP S/4HANA, which ledger must
you use?

A. No ledger

B. Leading ledger

C. Extension ledger

D. Special Purpose ledger

Answer 20

B. Leading ledger

Note the “must” in the question. As \

Question 21

True or False: When you create a new standard ledger from scratch, it’s
assigned to all company codes by default.

Answer 21

False

A new standard ledger won’t be assigned to any company codes until you manually
make the assignment and configure the ledger settings. If you create the
ledger via copy, you can choose to copy the assignments and settings from the
original to the new one.

Question 22

You indicate that you’re posting to the ledger group of an extension ledger.
How many ledgers are updated?

A. Only the extension ledger

B. The extension ledger and the underlying ledger

C. The leading ledger and the extension ledger

D. It depends on the ledgers grouped in the ledger group

Answer 22

A. Only the extension ledger

The ledger group that contains the extension ledger is generated automatically
when you create the ledger group, and there is no way to assign an extension
ledger to any other ledger group. Thus, when posting to the ledger group of the
extension ledger, you can only be updating the extension ledger.

Question 23

True or False: When using the accounts approach to parallel valuation for
mapping to accounting principles, you’ll essentially double the G/L accounts
in the chart of accounts.

Answer 23

False

You only need to create two sets of accounts for those accounts where there can
be differences in valuation. This doesn’t mean all accounts need to be duplicated.
In most cases, independent of the valuation approach, the accounting
entries can only be valuated a single way for all accounting principles. For these,
you can have common accounts.

Question 24

True or False: You can use an extension ledger to depict a separate accounting
principle.

Answer 24

True

Although you have limitations as you can only perform manual postings, you
can assign an extension ledger group to an accounting principle, and so have a
complete separate valuation.

Question 25

True or False: SAP S/4HANA comes preconfigured with common accounting
principles and corresponding accounting rules and checks assigned.

Answer 25

False

Although a best practice package or client 000 might indeed have an accounting
principle predefined, the accounting principle object carries no valuation
rules or checks in and of itself.

Question 26

What is defined with the fiscal year variant? (There are two correct answers.)

A. Open and closed fiscal periods

B. Start and end dates of the calendar year

C. Start and end dates of the fiscal year

D. Number of fiscal periods in a year

Answer 26

C. Start and end dates of the fiscal year
D. Number of fiscal periods in a year

The open and closed periods are defined per period variant, and the start and
end dates of the calendar year are of course universally accepted and not
defined in the SAP system.

Question 27

How many custom currency types can you assign to a company code/ledger
combination?

A. 6

B. 8

C. 10

D. 12

Answer 27

B. 8

An SAP S/4HANA system supports 10 currency types in parallel per company
code/ledger combination, but two of these are always reserved. The company
code currency and the global currency (controlling area currency) aren’t
changeable. Thus, you can assign up to 8 custom currency types to fill the maximum
10.

Question 28

What does the posting key define? (There are two correct answers.)

A. Account type

B. Document type

C. Tax code

D. Debit or credit line

Answer 28

A. Account type
D. Debit or credit line

This one is straightforward; the posting key tells the system two things:
• What kind of account you’re posting to (G/L, AA, AP, AR)
• If the line is a debit or credit entry (for G/L postings, 40 means debit, 50
credit)

Question 29

What can you control with the tolerance group? (There are three correct
answers.)

A. Maximum amount per open item

B. Maximum amount per document

C. Maximum permitted payment differences

D. Maximum tax amount

E. Maximum exchange rate deviation

Answer 29

A. Maximum amount per open item
B. Maximum amount per document
C. Maximum permitted payment differences

The maximum exchange rate deviation is defined on the company code global
settings. The maximum tax amount isn’t a very plausible option here.

Question 30

What do you define for a tax code? (There are two correct answers.)

A. Tax percentage rates

B. Fixed tax amount

C. Tax relevant accounts

D. Valid tax types

Answer 30

A. Tax percentage rates
D. Valid tax types

In Transaction FTXP, where you define the tax codes, you define the valid tax
codes per country. Within the tax code definition, you assign the relevant tax
percentage rate to the tax types that are relevant. You define whether an account is relevant for tax in the G/L account maintenance on the company
code level.

Question 31

Which document splitting setting for the segment characteristic will ensure
that no document line will be posted without a segment?

A. Inheritance

B. Zero balance

C. Mandatory field

D. Passive split

Answer 31

C. Mandatory field

The only selection that will absolutely guarantee that no document can ever be
posted without the segment is to set the segment as required. The system will
always raise an error and not post the document if a line is missing the segment
assignment.

Question 32

Which date defines the period a document is posted?

A. Document date

B. Valuation date

C. Posting date

D. Entry date

Answer 32

C. Posting date

The posting date is the only date that defines the period the system will post the
document to. If a period is already closed, you need to select a posting date in
an open period.

Question 33

Which of the following fields can be configured as changeable in a document
header?

A. Document Type

B. Posting Date

C. Document Date

D. Document Reference

Answer 33

D. Document Reference

Only two fields can be defined as changeable in the document header segment
of an FI document: the document reference and the document header text.

Question 34

What fields do you have to enter to make a document reversal? (There are two
correct answers.)

A. Document Type

B. Document Date

C. Posting Date

D. Reversal Reason

Answer 34

C. Posting Date
D. Reversal Reason

When you select a single document or multiple documents to reverse. you
must define the posting date for the reversal document and the reversal reason.
The reversal document type depends on the original document’s document
type. The document date isn’t entered manually and is the same as the
document date of the original document.

Question 35

True or False: A negative posting reversal debits the credit line items and debits
the credit line items of the original document.

Answer 35

False

The statement describes a normal reversal. With a negative reversal, the system
posts a negative amount on the same debit/credit side as the original document
line items.

Question 36

True or False: A customer account can be defined as the clearing account for
cross-company code postings.

Answer 36

True

There is no requirement that the clearing account be a G/L account only. You
can define a customer or a vendor account to be posted to for the clearing line
items that balance intercompany postings for each company code. You must
define an appropriate posting key as well.