5. Financial Closing

Question 1

Why might you define options to have manually allocated item keys for the
financial statement version (FSV)?

A. To be able to assign the same key to two multiple objects

B. To be able to enter an explanatory text for the item key

C. To be able to define if you want to summarize at the item level

D. To be able to assign functional areas to the items

Answer 1

B. To be able to enter an explanatory text for the item key

Manually defining the item keys allows you to enter your own explanatory
texts for these.

Question 2

True or False: You can define the FSV without assigning a specific chart of
accounts to it.

Answer 2

True

You don’t need to assign a specific chart of accounts to an FSV; you must assign
a chart of accounts for accounts you define on the item level.

Question 3

Which of the following are default items assigned to every FSV? (There are
three correct answers.)

A. Liabilities and equity

B. P&L results

C. Liquid funds

D. Assets

E. Noted items

Answer 3

A. Liabilities and equity
B. P&L results
D. Assets

The complete list of default items includes the follo”llving:

• Assets
• Liabilities and Equity
• P&L Result
• Net Result: Loss
• Net Result: Profit
• Financial Statement Notes
• Not assigned

Question 4

True or False: You can assign G/L accounts to any item level in the FSV hierarchy.

Answer 4

False

You can only assign accounts to the lowest level within a hierarchy node.

Question 5

What kind of automated checks are available for the FSV?

A. Check for duplicate item keys

B. Check for accounts assigned to one side only

C. Check the financial statement notes for non-noted item accounts

D. Check for incorrectly assigned accounts

Answer 5

B. Check for accounts assigned to one side only
D. Check for incorrectly assigned accounts

The full list of checks is as follows:
- Accounts assigned to one side only
- Nonassigned accounts
- Incorrectly assigned accounts
The system doesn’t need to check for duplicate keys because you can’t create
duplicate keys; you get an error before being able to save. Noted items don’t go
to the financial statement notes, and they don’t show up at all on the financial
statement.

Question 6

In the trial balance report that is based on line items, how many fields can you
select to report on?

A. More than 100

B. Around SO

C. Fixed for 10

D. More than 500

Answer 6

A. More than 100

Around 130 possible line item fields are available to use for analysis in the standard
system.

Question 7

How many separate period intervals are there to control open posting periods?

A.I

B. 2

C. 3

D. 4

Answer 7

C. 3

There are three intervals: one for normal periods, one for valuations, and one
for CO postings.

Question 8

In SAP S/4HANA, on which levels can you maintain open posting periods?
(There are two correct answers.)

A. Controlling area

B. Segment

C. Posting period variant

D. Fiscal year variant

Answer 8

A. Controlling area
C. Posting period variant

You define the open periods per controlling area in the advanced period definition
of CO. In FI, you use the posting period variant to manage periods for the
company codes assigned to it.

Question 9

Maximum how many special/valuation periods can be open at the same
time?

A. I

B. 2

C.4

D. 16

Answer 9

C.4

You can have up to four special/valuation periods in the fiscal year variant, and
all can be open at the same time.

Question 10

Your company code is assigned to a leading ledger, two additional normal ledgers,
and one extension ledger. How many carryforwards must be executed?

A. I

B. 3

C.4

D.8

Answer 10

C.4

You perform carryforward separately for each ledger. This definition includes
the extension ledgers assigned to a company code.

Question 11

What checks can you perform from the Audit Journal report? (There are three
correct answers.)

A. Check gaps in journal entry numbering

B. Check nonbalancing accounts

C. Display journal entry changes

D. Check multireferenced invoices

E. Display journal entry warnings

Answer 11

A. Check gaps in journal entry numbering
C. Display journal entry changes
D. Check multireferenced invoices

The fu ll list of available checks includes the follo”ving:

• Check gaps in journal entry numbering
• Display journal entry changes
• Check multireferenced invoices
• Display update terminations

Question 12

What is the main differentiating factor of posting a manual accrual document
compared to other manual transactions?

A. Reference field

B. Reversal reason

C. Document type

D. Transaction type

Answer 12

B. Reversal reason

The fact that you preemptively assign a reversal reason and the date for reversal
in the document header is “vhat makes this posting unique.

Question 13

True or False: You can adjust a recurring entry before each run to account for
price updates on purchases.

Answer 13

False

Recurring entries are posted in the same way, meaning you can’t use different
account, amounts, or anything.

Question 14

To which object do you assign valuation methods?

A. \Taluation procedure

B. Account assignment

C. Accounting principle

D. Valuation area

Answer 14

D. Valuation area

You assign the valuation procedure to the valuation method. After defining the
valuation method, you assign it to the valuation area. You assign the valuation
area to the accounting principle.

Question 15

You use the lowest value valuation method with active delta logic. Your open
item was posted at 200 units of foreign currency, which originally translated
to 100 units of local currency, and the previous period it was 98 units. In the
preceding foreign currency valuation run, the program posted a value of -1
currency units. What \Vas the value in local currency units at the time ofvaluation?

A. 99

B. 97

C. 101

D. 98

Answer 15

B. 97

The valuation currently stands at 98 having a -2 amount from the initial valuation.
Because the delta logic is enabled, the entry isn’t reversed. When -1 is
posted, this is on top ofthe -2 already posted; therefore, in total, it’s 100- 3 = 97.

Question 16

True or False: You can post a simulation run for the leading ledger to analyze
the effects of the currency valuation on your P&L standings.

Answer 16

False

Simulations runs are executed not for standard ledgers but for extension
ledgers. The extension ledger then must be defined as a simulation extension
ledger.

Question 17

Flat-rate individual value adjustments are valid for which types of accounts?

A. Assets

B. Supplier

C. Customer

D. Materials

Answer 17

C. Customer

Only customers can be included in these valuations.

Question 18

vVhat are the reasons to perform regrouping of receivables and payables?
(There are three correct answers.)

A. To display receivables and payables separately

B. To group payables and receivables based on the due dates

C. To align amounts on accounts with changed reconciliation accounts

D. To simplify and speed up dunning selection processing

E. To prioritize balance confirmation printing by postal code

Answer 18

A. To display receivables and payables separately
B. To group payables and receivables based on the due dates
C. To align amounts on accounts with changed reconciliation accounts

Regrouping has nothing to do with dunning, nor with balance confirmations.

Question 19

vVhich type of stock is best suited to a moving average price (MAP) valuation?

A. Raw materials

B. Work in process (WIP)

C. Finished goods

D. Third party

Answer 19

A. Raw materials

Raw materials are usually brought in, so the MAP valuation is generally the best
fit for these materials.

Question 20

For which of the following tasks must you always indicate manual task completion?

A. Programs

B. Transactions

C. Notes

D. Flow definitions

Answer 20

C. Notes

The notes task type is essentially for setting reminders and providing information,
so there is no posting triggered automatically by the system for this kind
of task.

Question 21

True or False: Each task in the SAP Financial Closing cockpit can have exactly
one prerequisite task assigned to it.

Answer 21

False

You can assign multiple tasks as prerequisites, including an entire task folder.

Question 22

vVhen items aren’t automatically assigned for intercompany reconciliation
(!CR), how do you perform reconciliation?

A. Match items manually.

B. Use an automated assignment rule.

C. Export line item reports for each affiliate.

D. Use SAP Leonardo machine learning algorithms.

Answer 22

A. Match items manually.
B. Use an automated assignment rule.

After the system matches and assigns as many items as it can, it provides a list
of unmatched items. Here you either match the items completely manually or
use one of the automatic assignment rules available (based on document reference,
amount, and currency). You don’t have to go through endless lists of line
item reports because the items are displayed directly in the flexible matching
screen. SAP Leonardo and machine learning are ideal for performing matching
tasks like this; however, there is no such app developed currently for matching
TCR.