SAP S/4 HANA

SAP Implementation Project:

 Co wants to implement SAP module (FICO/MM/SD) for the 1st time.
 Consultants do configuration acc to co requirements (configuration is a part of the
implementation of a system that allows you to specify information like currency,
language, organizational structure, function, and processes)
 Consultant roles
i) Configuration
ii) Integration of modules
iii) Data migration
iv) Unit test
v) Doc prep
vi) End user training
SAP Support Project:
 Post-implementation support needed for D2D biz ops using SAP
 End user raises concerns, issues thru ticket handling tool which is must for support
projects and tracking tickets
 Consultant roles
i) Accept/ acknowledge ticket
ii) Analyze issue
iii) Document and solve
iv) Provide solution to client
v) Get confirmation from client
vi) Close ticket
SAP Roll Out Project:
 SAP already implemented and co wants to roll out in country specific changes for diff
countries
SAP Upgradation/ Migration Project:
 SAP upgrade to latest version

ASAP METHODOLOGY: 5 STAGES

1) Project preparation:(Project Objectives)
Initial planning and implementation for the project
a) Consultants: No. of consultants needed for project
 b) Budget: Budget needed for consultants
c) Time: Time needed to complete project
d) Sign off sheet (agreement btw both parties)
2) Business Blue Print:(Scope of Implementation)
Business blue print has the foll stages
a) AS IS: Existing biz process
b) TO BE: Biz blue print doc will be prepared on basis of AS IS
c) KDS: Key data structure. Naming convention and number range is decided
d) GAP: Enhancements re with ABAPER to cover what is not available in std SAP
e) Sign off sheet
3) Realization Stage:(SAP Configuration)
Configuration and unit testing; Sign off sheet
4) Final Preparation:(Testing and training)
a) User manuals: posting related parameters for documentation
b) User training: Provide training to user based on user manuals
c) User acceptance: Acceptance from user
d) SIT (system integration training): Integration between modules
5) Cutover Activity: Transfer of legacy data to SAP system
6) Sign Off Sheet
7) Go Live & Support:
Handover system to client. Will provide user support based on agreement
8) Sign Off Sheet

Graphical User Interface (GUI)- universal client where you can connect multiple SAP
applications like SAP ERP, SAP BI, SAP business and other SAP applications

Landscape (Server)
Golden client
Data can be edited and changed. Data will be recorded and customizing requests generated
Sand box
Any testing can be done but data will not be recorded
ABAPER client
Generates workbench request. Changes made by ABAPER in server will reflect in golden
client and sandbox
ASAP Methodology has been succeeded by SAP Activate for SAP S/4 HANA implementation
projects
Introduction
 SAP S/4 HANA is a biz suite developed by SAP SE (A company that develops
enterprise software apps w/ s/w support for businesses of all sizes globally)
 S/4- 4th generation and HANA- HANA database
 Before S/4 HANA
 SAP R/2 (1979)- used to run on Mainframe
 SAP R/3 (1992)- intro of 3 tier architecture (client, app and database)
 SAP ERP (2004)- becomes part of larger ERP family (SAP Business Suite)
 SAP S/4 HANA (2015)- Backend app layer runs on SAP HANA database while front
end runs on SAP Fiori developed with SAP UI5 (a JavaScript app framework
designed to build cross platform responsive enterprise ready apps)
SAP HANA- in-memory, columnar platform
Trad database model built for either OLAP (online analytical processing) or OLTP (online
transaction processing). So, 3 diff copies of data in diff data models- transaction, analysis and
acceleration- complexity and data latency. SAP HANA built on both
SAP HANA has foll. Choice of deployment:
 On-Premise
 Cloud
 Hybrid

SAP Fiori
 Latest cloud-based interface developed for S/4 HANA
 New User Experience (UX) to process/ analyse day to day business
 SAP Fiori launch pad is entry point for all apps
 Apps in tile format which can be deleted/ renamed
Click edit homepage>>create/ add group
SAP GUI
 Graphical user interface client in SAP ERP’s 3-tier architecture of database, app layer
and client or presentation layer
 Software that runs on Windows, Mac or Unix and allows users to access SAP
functionality in SAP applications such as SAP ERP and SAP Business Intelligence
 Used for remote access to SAP server on company network
 Current Windows version- 7.60 and current Mac version- 7.50
 3 ways to navigate- User/SAP Menu, Favorites, Fast Path/ Transaction Code

SAP Easy Access vs Display IMG

  Easy Access
1. All activities related to End User, Super User and top Management are
executed thru this screen
 Display IMG
2. Activities related to configuration, implementation and enhancement are
done through this screen
3. Transaction code: SPRO; Menu Path: SAP Easy Access >Tools> Customizing>
IMG>Execute Project
SAP Fiori Design Principles
 Simple: Relevant tools and info displayed in order to reduce distraction and time
spent searching. Example: one use case can see relevant info in 3 different screens on
dashboard (side bar, main screen and bottom action buttons to approve/ decline
task)
 Responsive: Accessible via mobile, tablet, desktop. Interface size adjustable as per
device
 Coherent: Apps speak same language with familial resemblance. Users can learn
purpose of different apps quickly as element of app coherence/ design ensures that
tasks, language and controls have the same meaning within each app and from one
app to another
 Role-based: Each user is assigned to a role as per job functions (AP, AR, accountant)
and gets permissions to a specific set of apps that can be used for day-to-day
functions. >400 role-based SAP Fiori and no. keeps increase with each new S/4 HANA
release
 Instant Value: Low adoption barrier and can be personalized as per requirement
SAP S/4 HANA Fiori App Types
 Transactional Apps
 Enable Users to perform transactional activities such as create/ change/ approve/
reject a GL document, Purchase order, Sales order, Fill time sheet etc.
 Can be created and extended
 Analytical Apps
 Enable Users to analyse and monitor fin data, op data and other biz-related data
thru KPIs to control and manage the enterprise
 Also known as SAP Smart Business
 Run only on SAP HANA database and use virtual data models
 Can be created and extended
 Factsheet Apps
 Quick view and immediate info such as related objects if you search and explore
transactional data or master data
 Displays essential info about objects and contextual navigation between objects
 Allow exploration from 1 fact sheet to another like Analytical Apps using 1 app to
another app navigation in Fiori Launchpad
 Can be created and extended
SAP Activate
 Successor to ASAP Methodology which was used for SAP ERP implementation
projects
 Used for SAP S/4 HANA implementation
 Combination of SAP Best Practices, Guided configuration and methodology delivered
with reference solution and optimized specifically for SAP S/4 HANA projects
 Key improvements
o Agile project delivery
o Reduced product lifecycle to 4 stages (Prepare, Explore, Realize, Deploy)
o Blueprint documentation replaced with solution fit/ gap workshops

Universal Journal
 Business transactions are documented by journal entries in Financial Accounting and
Management Accounting.
 The general term Journal Entry for FI and CO transactions can be derived from the
data structure in SAP S/4HANA.
 In SAP S/4HANA, the so-called universal journal (table ACDOCA) forms the basis of an
integrated accounting system in which the actual financial accounting and controlling
data is recorded in a common item table.

What is company?
Main org unit used for group and console reporting. Can be assigned to 1 or more co codes
Path: /nspro- SAP reference IMG- Enterprise structure- Definitions- Financial accounting-
Define company
/NOX15

What is client?
 Org and legal entity at top of org unit hierarchy.
 Org, master and transactional data are maintained at client level
 Objective: keep data isolated from other clients
 Base client: 000, 001, 066 (reserved for SAP)
 Only admins have access to 000 and 001 is safety copy
 CoA is maintained at client level and assigned to multiple co codes
 When doc splitting in a client, CoA is activated for whole client by default
 Client configuration
o Production
 o Test
o Customizing
o Demo
o Training/ Education
o SAP Reference
o Changes and Transports for Client- Specific Objects: determines whether
admin controls changes made to system configuration and if these settings
are packaged automatically in transport requests to transfer to other systems
o Cross-client Object Changes: determines whether you can perform cross-
client customizing from client
o Client Copy and Comparison Tool Protection: determines whether client can
be copied over or used as reference for copies
SAP Best Practices package contain basic configuration settings and are provided by country

What is company code?

Smallest org unit as per biz requirement. 1 or more co codes can be created for grp and
console reporting
Path: /nspro- SAP reference IMG- Enterprise structure- Definitions- Financial acconunting-
Edit copy delete check company code
/NOX02
Create new company code
 Copy existing co code
o Optionally
 GL a/c and a/c determinations
 Assignment to controlling area
 Defined local currency
 Adjust basic data
 Adjust global parameters
What is credit control area?
Maintains credit limit against org customers. 1 credit control area for 1 co code and for same
credit control area 1 or more co codes
Path: /nspro- SAP reference IMG- Enterprise structure- Definitions- Financial accounting-
Define credit control area
/NOB45
Profit Center
 Represents an area of responsibility within a corporation for making profit
calculations
 Represent org withing co (plant), separate LoB, geographical location or combo

Integration with Controlling

 On org level, controlling area can be assigned to single co code or multiple co codes
 Conditions:
o Fiscal year variant must be identical
 Variants must have same no. of normal periods and exact same code
 In case of migration, align fiscal year variant to the one with special
periods
o Op CoA must be identical
 P&L GL a/c relevant for mgt a/c (primary cost/ revenue GL a/c) are
used in controlling and named primary cost elements
 Secondary cost elements which are used for allocation btw controlling
objects are created as secondary cost GL a/c
 Cross-company-code cost of a/c is used to perform reporting across co codes and
using internal allocations across co code boundaries

Integration with Logistics

 A plant is an org unit that divides an enterprise acc to production, procurement,
maintenance and material planning
 Either materials are produced or services are provided
 Plant assignment to co code is main requirement for integration of fin a/c with
logistics components such as material mgt, sales and distribution, warehouse mgt,
plant maintenance etc
 In logistic assignment you link co code to sales org (responsible for selling materials
and services)
 Assignment establishes link btw sales and distribution functionality and fic a/c
 Sales org is assigned to a single co code

Business area: Internal reporting will use biz area for capturing cost. An org unit that
corresponds to a specific business segment or area of responsibility in a company.
Path: /nspro- SAP reference IMG- Enterprise structure- Definitions- Financial acconunting-
Define business area
/NOX03
Functional area: An org unit used to classify overhead expenses by departments- sales,
production, marketing and admin.
 0100 - Manufacturing
 0110 - Direct Production Cost
 0120 - Overhead Production Cost
 0300 - Sales and Marketing
 0400 - Administration
 0600 - Other operating income

Chart of Accounts
 Highest level of hierarchy for all GL accounts
 Created by following 3-method variant principle
 Create COA
 Define properties to COA
 Assign company code to COA
 Menu path: Display IMG > Fin A/C > General Ledger Accounting > Master Data > G/L
A/C > Preparations >Edit COA List
 Table SKA1 can be viewed through T-code SE16N to display relevant info
 List of GL a/c. Controls creation of GL a/c. 3 types of CoA
o Operational CoA: day to day transactions
o Group CoA: for console reporting. Many op. a/c can be assigned to 1 group
a/c
o Country CoA: As per country legal requirement
 /NSPRO -- Financial Acc New -- General Ledger A/C -- Master data -- GL Accounts --
Preparations -- Edit Chart of Accounts List /NOB13
Create a Chart of A/c
 Chart of a/c/ description: 4-digit alphanumeric code and text description
 Maint. Language: a/c must be maintained in defined maintenance language.
 Length of G/L a/c no.: Max length allowed for GL a/c. Further refined in a/c grp
definition
 Grp CoA
 Blocked: When active checkbox blocks a/c in CoA from being assigned to co code.
Used when you are still building up coa and aren’t sure of final a/c in it

A/c Grp
 Common a/c grp for GL a/c are
o Fixed asset a/c
 o Material a/c
o Cash a/c
o Bank a/c
o Customer and vendor GL a/c
o Misc. GL a/c
o P&L a/c
 A/c currency and Field Status Group fields are always marked as required
Maintaining GL A/c
 Maintain on GL a/c data on 3 levels: general CoA level, co code level and controlling
area level
 GL A/c types:
o Balance sheet a/c
o Primary costs/ revenue
o Secondary costs
o Nonoperating expense/ income: gains/ losses not from main co biz (profit
from asset sale, capital gains for consulting firm). Not integrated with
controlling
o Cash a/c: specify foll. GL subtypes (B- bank reconciliation statement, P- petty
cash and S- bank suba/c)
 Critical fields req maintenance on co code level
o A/c currency: when a/c currency = co code currency we can post to a/c in any
currency. When different currency is specified for a/c (foreign currency bank
a/c) we can only post to a/c in that specific currency
o Tax category: Indicates tax codes valid for use when posting to a/c. You can
select input tax, output tax, a specific tax code, allow any kind of tax or leave
the field blank to allow no tax to post at all. Posting Without Tax Allowed
checkbox means you can post to an a/c without tax code
o Alternative a/c no.: Relative a/c from local CoA
o Reconciliation a/c for a/c type: provide GL view of subledger a/c system. GL
a/c can’t be posted to directly. Reconciliation of subledger and GL is always
guaranteed. Used to indicate if a/c is reconciliation a/c for assets, customers,
vendors or contract AR
o Open item mgt: activated to track offsetting postings for a/c. Items posted to
a/c are then open items or cleared items. Balance of a/c with open item mgt
is always balance of open items. Can be changed only for 0-balance a/c. In
SAP S/4 HANA open items/ ledger can be managed using Ledger Group
Specific Clearing checkbox
o Sort Key: determines what system will automatically propose in Allocation
field of document line item. Field can be changed manually. System can
transfer value or combined values from document header and line into
Allocation field thru Sort Key. Sort Key values are posting date, document
number, vendor number and so on
 o Field Status Group: defines field status on various a/c assignments you make
during postings to a/c

Primary Cost and Revenue Accounts and Secondary Cost Accounts

 For primary cost and revenue a/c and 2ndary cost a/c you must maintain controlling
data
 Assignment to controlling area is provided thru co codes a/c is assigned to
 Cost element category must be maintained

Profit Centers
 Object used to derive and fulfill requirement for segment reporting
 Segments should always be derived from profit center
 Step 1 to design profit center is to design their hierarchy- all profit center in the client
are assigned to profit center hierarchy and the profit center hierarchy is assigned to
controlling area in Customizing
 Step 2- assign profit centers to hierarchy

Assign Company Code to Chart of Account

/NSPRO -- Financial Acc New -- General Ledger A/C -- Master data -- GL Accounts --
Preparations -- Assign Company Code to Chart of Account /NOB62

A/c grp: Indicates whether P&L or balance sheet. Controls number ranges and master data
fields. At least 2 a/c grps required- one for balance sheet a/c and one for P&L a/c
Financial Accounting New -- GL Accounting new -- Master Data -- G/L Account --Preparations
-- Define A/c Group /NOBD4

Retained earning a/c: At end of fiscal year, balance of P&L a/c is carried forward to retained
earning a/c
Financial Accounting New--GL Accounts--Master Data--Preparations--Define Retained
Earnings A/c /NOB53

Financial Closing Cockpit

 A monitoring tool delivered as an add-on that lists the steps to be performed as part
of the close as a template
  Creates a schedule of the tasks to be performed as part of a particular close (the task
list), and then monitors the execution of the tasks in that close.
 Optimizes the financial close process by controlling each step of the close cycle,
processing posting, and producing reports through five core capabilities:
o Highly automated, standardized functionality to manage accounting and
reconciliation activities (including event-driven and remote task execution)
o Scheduling tools that help you sequence, monitor, and control workflows
across your organization, so the entire close process moves along efficiently
(including interpreting jobs from SAP Central Process Scheduling and other
job schedulers)
o Closing templates
o Support for multiple factory calendars
o Full monitoring of the entire closing process, including flexible notifications

In SAP S/4 HANA, your system is integrated with controlling, and need to perform cost of
sales accounting to report profit and loss per profit center. When posting a supplier invoice
to a primary cost account, which field is mandatory by standard procedures?
If you are purchasing any service or expense related items, then you can post them to Cost
center and Functional Area. Functional area will be assigned either in the G/L Account or
Cost center. Based on this assignment, it gets posted when you use those G/L Accounts or
Cost centers. If you are procuring Materials and Goods, it will be posted to Profit center. In
the context of cost accounting within SAP S/4HANA, which is integrated with controlling, a
key element of cost of sales accounting and profit and loss reporting by profit center is the
allocation of costs. When posting a supplier invoice to a primary cost account, certain fields
are required to ensure proper allocation and reporting. By standard procedures, the
mandatory field when posting such an invoice is the Cost Center. The Cost Center is crucial as
it allows for tracking the costs associated with specific departments or functional areas
within an organization, contributing to an efficient cost management practice by sharing
fixed costs across product and service lines to minimize the total fixed costs. This accounting
practice aligns with the overarching goal of optimizing coordination between divisions in a
multiple-division company.
Fiscal year variant: 2 types:
 Calendar fiscal year (Jan- Dec)- year dependent
 Non-calendar fiscal year (Apr- Mar)- year independent
Year Shift: Converts 2 calendar periods into 1 fiscal year. +1: next CY period; -1: previous CY
period
We have 12 posting periods and 4 special Periods in sap. Special periods are used for
adjustment purpose.
Fiscal year variant corresponds to the calendar year
If your fiscal year variant corresponds to the calendar year, the following applies:
 The fiscal year starts on January 1.
 12 posting periods are available.
 The periods match the calendar months. You do not have to define the individual
periods. The system adopts the calendar months automatically.

Non-calendar fiscal year

If your fiscal year variant differs from the calendar year, you must define the following:
  How many posting periods you require
 How the system determines the posting periods and the fiscal year when posting
from the posting date:
Posting Periods
To enable the system to determine the posting periods, specify month limits and day limits
for the period end of each period. For February, enter the day limit 29. In this way, you
ensure that the system can determine the posting period correctly, even in a leap year. If you
enter February 28 as the day limit, the transactions figures posted on February 29 are
written to the next period. If the next period is not yet open, an error message is issued.

Fiscal Year
As your fiscal year is not the same as the calendar year, you must specify the year shift for
each posting period. Entries -1 , 0, and +1 are available.

Example
Your fiscal year starts on April 1 and ends on March 31. Start and end of a calendar month
match the dates of your periods. As the fiscal year does not match the calendar year, you
use the year shift to specify how the system determines the fiscal year. If you post, for
example, with the posting date 02/03/1999, the system determines the posting period 11 in
fiscal year 1998 based on your definition of the fiscal year variant.

Short term fiscal year

 FY with <12 periods
  If you define a shortened fiscal year, you must define the following:
o A shortened fiscal year must always be flagged as year-specific as it is only
ever allowed to be valid for a specific year and must then be replaced with a
complete fiscal year.
o You define a shortened fiscal year and the following or previous complete
fiscal years in one fiscal year variant.
 Financial Accounting New -- Fin. A/c Global Setting new -- Ledgers -- Fiscal Year and
posting periods -- Maintain Fiscal Year Variant /NOB29
 Your options for defining a shortened fiscal year depend on whether you are using
Financial Accounting with or without Asset Accounting:
o If you have Financial Accounting without Asset Accounting, every fiscal year
can start with a user-defined period.
o If you use Financial Accounting with Asset Accounting, every fiscal year must
start with period 001 so that the depreciation can be calculated correctly.

Assign Company Code to Fiscal Year Variant

 Fiscal year variant will be different for operating ledger and fiscal year variant will be
different for non-leading ledger.
 Entries should be posted only on leading ledger and it will be replicated in the
leading ledger.
 Assign the same fiscal year variant to the controlling area and the leading ledger for
all company codes that are assigned to this controlling area.
 An extension ledger has to be assigned to the same fiscal year variant as the
underlying ledger.

Financial Accounting new--Fin. A/c Global Setting new--Ledgers --Fiscal Year and posting
periods--Assigning Company Code to Fiscal Year Variant /NOB37
Assign General Ledger to Fiscal Year Variant

Variant: Variant is a key for maintaining settings relevant to certain configurations.

Maintained at client level and assigned to company code
Posting Period Variant: Contains posting periods both normal and special. Independent of
fiscal year. Possible to have different posting period variant for each company code in the
organization. The posting period is independent of the fiscal year variant.
Financial Accounting(new) -- Financial Accounting Global Settings (New) -- Ledger--Fiscal
Year and Posting Periods -- Posting Periods - - Define Variants for Open Posting Period
/NOBBO
Assign Posting Period Variant to Company Code
Financial Accounting(new) -- Financial Accounting Global Settings (New) -- Ledger-Fiscal Year
and Posting Periods -- Posting Periods -- Assign Company Code to a Posting Period Variant
/NOBBP
Open and Close Posting Periods
Financial Accounting (New) -- Fin A/c Global Settings new -- Ledgers -- Fiscal year and posting
periods -- Posting Periods -- Open and Close Posting Periods /NOB52
Baseline date is posting date

Posting Key:
 2-digit alphanumeric code used to determine the type of accounting transaction
being posted.
 Made up of two digits, with the first digit indicating the type of transaction being
posted and the second digit indicating the method.
 Indicates debit and credit and field status of transaction
 Financial Accounting (New) -- Financial Accounting Global Settings (New) --
Document--Define Posting Keys /NOB41

Posting Key Type 1st Digit Description

Revenue 4 Revenue postings
Expense 5 Expense postings
Vendor 2 Vendor postings
Customer 1 Customer postings
Asset 1 Asset postings
Liability 2 Liability postings

 The second digit specifies the posting method. For example, it is of 40 indicates a
debit posting to a revenue account, while a posting key of 50 indicates a credit
posting to an expense account.
 If you were to use of 50, which indicates a credit posting to an expense account, the
transaction would be recorded in the wrong account, which could result in inaccurate
financial statements.
Field Status Group: Controls fields in 3 levels
 Transaction Level OBC4
 Group Level OBD4
 Posting Key Level OB41
Financial Accounting New -- Financial A/c. Global Settings new -- Ledgers -- Fields --Define
Field Status Variants /NOBC4
When We select Suppress --------- Field will not be visible on Screen at the time of Posting
When We select Required --------- Field will appear with √ Mark. Without entering data in the
field, we cannot go to next field
When We select Optional --------- Field will appear on Screen, but it is our choice to enter the
data or not
Access Levels
The status with the highest priority is the suppressed field, followed by display, required, and
optional entry fields.
Document Type: Identifier for different transactions. The document type controls things like
type of the account that can be posted. The document types controls number ranges and
header fields (Reference Number and Header Text)
 SA is for G/L Document
 AA is for Asset document
 KR is for vendor invoice
 DR is for Customer invoice
DOCUMENT TYPES FOR VENDOR
 KZ - Vendor Down Payment
 KR - Vendor Invoice
 KA - Vendor Down Payment Transfer
 KG - Vendor Credit Memo
Document types for customer?
 DR - Customer invoice.
 DZ - Customer down payment
 DA - Customer down payment transfer

Financial Accounting New - Financial Accounting Global Settings (New) -- Document --

Document Types -- Define Document Types for Entry View /NOBA7
A general journal entry in SAP S/4HANA consists of the following two areas:
 Document Header:
o Contains general information about doc that is valid for all document items.
o Typical document header fields are:
 Posting date
 Document date
 Document type
 Original document reference information
 Ledger group
 Currency
 Document Items
o The info of a line item includes in particular
 Amt
 A/c number
 Assignment of debit or credit, and other additional information that
depends on the business transaction (for example, a/c assignments
relevant to cost accounting for a primary cost a/c).

Document Number Range Creation: defined at the specific interval with in which
documents should be created in sap and document number ranges depends upon company
code and valid for the defined year. We can assign one or more document types to each
number range. The number range becomes effective by the document type specified in
document entry and Posting. We have two types of Number range Intervals
 External: We need to maintain number ranges Manually
 Internal: System will pick the number range automatically
Financial Accounting New--Financial Accounting Global settings new -Documents-Document
number range-Document in Entry View-Define Document Number Ranges for Entry View
/NFBN1
Profit center: Evaluates success of independent areas responsible for costs and revenue in
company. Profit center invoice provides internal analysis of profits
Segment: division where FS can be created for external reporting. USGAAP (SFAS 131) and
IFRS (IFRS 8) require segment reporting. Mgmt approach requires segment info

Exchange Rate
 Relationship between two currencies.
 Exchange rates are used to translate an amount into another currency.
 Defined in the system for the following purposes
 o Posting and clearing: Translate amts posted or cleared in forex or manually
check exchange rate posted or cleared
o Determine gain/ losses from exchange rate diff
o Valuate open items in foreign currency and foreign currency balance sheet a/c
as part of closing ops
 Structure
o For each foreign currency, specify the exchange rate in the local currency in
the system.
o In addition, the following specifications apply for each exchange rate:
 You must specify an exchange rate type.
 You can set time restrictions for the exchange rate, in order to take
exchange rate fluctuations into account, for example.
o Use the validity date to specify the date from which the exchange rate should
apply. The system then refers to either the posting date or the translation
date and uses the current exchange rate from the system.
 You can use either direct or indirect quotation to specify exchange
rates. For more information, see Direct and Indirect Quotation of
Exchange Rates .
 You must specify the relationship of the exchange rate, for example,
USD/EUR exchange rates are normally specified 1:1, ITL/EUR exchange
rates in the relationship 1000:1.
Document Splitting
You can use document splitting to automatically split line items for selected dimensions
(such as receivable lines by profit center) or to effect a zero balance setting in the document
for selected dimensions. In document splitting, the system creates additional clearing lines.

Document splitting enables you to draw up complete financial statements for the following
dimensions at any time:
 Segments
 Profit centers
 Business areas
 Funds
 Receivables
 Customer-defined dimension (customer field)

Document Splitting Process

Document splitting runs as follows:
 When making a posting, the system determines from the document type the
underlying business transaction, assigns the item category to the individual items
 within the document, and checks whether the item categories are permitted for that
business transaction.
 The system creates a reference to preceding documents (such as clearing and invoice
reference). The system applies the account assignments that you have defined as
document splitting characteristics for General Ledger Accounting. (Passive document
splitting comprises all document splitting processes, for example, clearing processes
that are determined program-internal and that you cannot control with settings in
Customizing.)
 Depending on the classification of the document, the system applies the related
document splitting rule for the document in which it is specified how the document
is split and for which line items. (Active document splitting comprises all processes
used to split documents without reference to a different (preceding) document. You
control active document splitting using settings in Customizing.)
 If the system cannot determine the account assignments of the document splitting
characteristics for individual line items, it can determine the account assignments
either by inheritance or by using a standard account assignment. This can be
necessary if the required information is not yet available when the posting occurs.
You can use account assignment inheritance or standard account assignment to
simplify document splitting.
 For individual document splitting characteristics for General Ledger Accounting, you
can define that the line items for these document splitting characteristics must be
assigned to an account (required entry field). The system then checks whether the
line items for these document splitting characteristics have an account assignment. If
not, the system rejects the posting and issues an error message.

SAP S/4 HANA Deployment Q&A

1. Which SAP technological products provide the platform required for SAP to support the
digital transformation of an organization? (There are two correct answers.)
 SAP HANA, SAP Business Technology Platform. SAP HANA is SAP’s default platform
to support the digital transformation for businesses. In addition, the SAP Business
Technology Platform provides the infrastructure and tools for developing next-
generation applications.
2. You want to develop a substantial enhancement for the purchase-to-pay process in your
SAP S/4HANA system. Where does SAP recommend you perform this enhancement?
 SAP Business Technology Platform. Traditionally, such enhancements are made
directly in the core SAP ERP component. This will indeed still work today in your SAP
S/4HANA system; however, SAP wants to shift such development to the SAP Business
Technology Platform. This is part of a strategy to keep the core running lean and as
close to standard as possible. The other answers are wrong because SAP Analytics
Cloud is a product for planning and reporting that uses intelligent technologies; and
 SAP Fiori represents the UI level, so you would incorporate SAP Fiori as the default UI
of your enhancement, but it’s not where the enhancement is developed.
3. SAP S/4HANA (on premise) can be deployed on a cloud infrastructure.
 True. There is no limitation on the location of the hardware that the on-premise
version of SAP S/4HANA is deployed on. A customer can choose compatible third-
party cloud vendors other than SAP. If a customer chooses to go with SAP as the
cloud infrastructure vendor for an SAP S/4HANA on-premise deployment, the
product is called SAP S/4HANA Cloud, private edition; with other vendor
infrastructures, it’s just SAP S/4HANA.
4. The SAP HANA database relies on which of the following technologies for storing data?
(There are three correct answers.)
 In-memory, columnar store, compression. In-memory is the most obvious answer
here; columnar store is the preferred SAP HANA data storage technique; and through
compression, SAP HANA manages to cut down on the infrastructure costs and
support larger customers. On the other hand, aggregates are supported but should
be avoided as the idea is to have all the data at the highest granularity to provide
flexible reporting. The same is true for the indices because, with SAP HANA, they
offer little speed improvement and sacrifice too much in the way of flexibility as they
must be predefined, and adding reporting characteristics is difficult.
5. Data in the SAP HANA database is stored in which two ways? (There are two correct
answers.)
 Column, row. Column store is the preferred method for SAP HANA as discussed
because it’s better for reading data. Row storage is preferred by classic databases and
is supported fully by SAP HANA.
6. True or False: In an environment of systems using SAP HANA, you can perform both OLAP
and OLTP processing without duplication of the data for the SAP BW and SAP ERP systems.
 True. SAP HANA was designed to fulfill the goal of combining optimal OLTP and OLAP
processing in one database. This simplifies the process of answering questions such
as “How did I come up with this number?” and saves on IT resources by requiring
fewer systems to support.
7. SAP HANA makes extensive use of which high-speed hardware technology to offer more
speed?
 Multicore CPUs. With many streams of data to process and large requirements for
communication between memory and the CPU cache, you can use a lot of CPU cores
at the same time. Even though GPUs might seem the most out of place here, they
offer tremendous calculation power and are developing faster than CPUs. Although
many companies are considering using some of their special characteristics in the
business application world, and we might be hearing of more of these exploits in the
future, for now, they aren’t used by SAP HANA. SSDs offer a big boost to traditional
 databases, and because SAP HANA uses disk drives for many non-speed-critical
processes (e.g., backup and aged data), they can be used with SAP HANA.
Unfortunately, they don’t offer much in the way of improved speed due to the
architecture. Read-only memory is irrelevant.
8. True or False: SAP S/4HANA replaces SAP ERP, and development and support are shifted
completely to it.
 False. SAP S/4HANA is the successor to SAP ERP, but it doesn’t replace it. There is still
a huge customer base that relies on SAP ERP, and SAP has promised support until
2027 (at the time of publication) for these customers.
9. Which of the following product lines does the SAP S/4HANA system rely on for
procurement functions?
 SAP Ariba. SAP Ariba is the product that supports the SAP S/4HANA digital core with
procurement. SAP SuccessFactors is for human resources, SAP Concur is for travel
management, and SAP C/4HANA supports everything around the customer
experience.
10. What technology did SAP leverage to eliminate aggregate tables from the SAP S/4HANA
system while maintaining compatibility with many legacy programs?
 Compatibility Views. Compatibility views can be materialized on demand for data in
line-item tables of the SAP HANA database to support programs that read old
aggregate and index tables that are no longer in the system.
11. True or False: Choosing between SAP S/4HANA and SAP S/4HANA Cloud, public edition,
is also a matter of required scope and Customizing flexibility.
 True. The product scopes still vary, with SAP S/4HANA being the more complete
solution currently and offering more customizing possibilities. The SAP S/4HANA
Cloud solution is a better fit for new subsidiaries of large enterprises or companies
interested in a lean digital core solution that is always up to date with the latest
features and functions and that can live with the (decreasing) limitations of the
public cloud solution. Note that the private edition option is basically equivalent to
the any-premise edition and differs mostly in the licensing model (perpetual versus
subscription licensing).
12. True or False: The only version of the SAP S/4HANA Cloud, public edition, a customer can
be on is the latest released version.
 True. Quarterly updates in the realm of the multitenant public cloud solution are
always required. A customer can’t choose to skip a product release cycle because the
system is upgraded for all at the same time. All other editions give customers more
flexibility when selecting their upgrade path and frequency.
13. A user wants to add an app to his SAP Fiori homepage but can’t find it in the app finder.
What does the admin have to do?
  Assign corresponding SAP Fiori tile catalog to user. Quarterly updates in the realm
of the multitenant public cloud solution are always required. A customer can’t
choose to skip a product release cycle because the system is upgraded for all at the
same time. All other editions give customers more flexibility when selecting their
upgrade path and frequency.
14. Where can an SAP Fiori end user change the theme of his SAP Fiori launchpad?
 In the User Menu of SAP Fiori Launchpad. An end user will only typically have access
to the SAP Fiori launchpad; other SAP Fiori tools are for administrators. The user
menu is where users control all changeable settings for their SAP Fiori launchpads,
including theme selection.
15. True or False: Anyone with an appropriate user name and password can log on to the
SAP Fiori launchpad through a web browser.
 True
16. What kind of customizations can users make to their SAP Fiori launchpads? (There are
two correct answers.)
 Change the name of Tile groups, Create their own Tile groups. Changing the name
and look of tiles can only be done in the catalog view of the SAP Fiori launchpad
designer. End users can only access the SAP Fiori launchpad where they can manage
their tile groups.
17. Which of the following are SAP Fiori design principles? (There are two correct answers.)
 Role-based, Responsive. SAP Fiori principles mandate that applications should be
role-based, catering to specific tasks performed by specific users. SAP Fiori apps
should also be responsive, adjusting their interface to work optimally for different
devices.
18. You use the search in your SAP Fiori launchpad to loop up information for a cost center.
What kind of app is used for the information shown in the search results?
 Factsheet. The result will be displayed with a factsheet app, which will provide key
facts for the object you searched for. You’ll have the option to navigate to a
transactional app, such as Manage Cost Centers, or an analytical app, such as a cost
center report. The List answer option isn’t an official app type in the SAP Fiori design
language.
19. Which of the following statements describe the function of Financial Accounting?
 It provides Balance Sheets and Profit & Loss Statements based on various accounting
standards; it records all financial accounting relevant transactions.
20. Which of the following statements describe the function of Management Accounting?
 CO focuses on internal stakeholders to provide data for management decisions; CO
planning data enables you to better perform business processes
21. Which of the following statements about organizational units is correct?
 A sales organization must always be uniquely assigned to a company code.
22. To access the SAP Fiori Launchpad, you must download and install the SAP GUI client on
your computer.
 False
23. Which of the following statements describe the function of Treasury Management?
 With SAP Treasury solutions, you can take advantage of a single source of truth for
all financial information, planning, forecasting, and simulation capabilities; The SAP
Treasury solutions are fully integrated with SAP’s digital core and with SAP S/4HANA.

24. You want to configure the tax calculation procedures. What are the main elements you
need to define? There are 3 correct answers to the question
 A/c key, condition type, sequence of steps. SAP S/4 HANA comes with preconfigured
tax procedures for every country which can be copied and modified as required.
Settings maintained in tax procedure define sequence of calculations for condition
types (tax types). Another important field is A/c key for which a/c determination is
maintained so system knows which a/c need to be posted to
25. What do you define for tax code?
 Tax %age rates, valid tax types. In transaction FTXP, in which tax code is defined, valid
tax codes per country are defined. Within tax code definition, you assign relevant
tax %age rate to tax types that are relevant. You define whether a/c is relevant for
tax in GL a/c maintenance on co code level
26. "You are creating an asset master record by copying another asset, and you notice that
the inventory number is copied over. Which setting do you make on the screen layout
maintenance page to ensure the inventory number is NOT copied over when you create new
asset master via copy?"
 Remove reference indicator
27. Which requirements do you need to fulfill to use data aging for finance in the SAP
S/4HANA system?
 To use data aging, you must activate it in SAP HANA database and in SAP S/4 HANA
system. To activate data aging, enter business function switch framework in
Customizing and activate DAAG_DATA_AGING business function. You mark Planned
Status checkbox and select Activate Changes. Business function is reversible,
meaning you can choose to turn off data aging without impacting system’s usability.
You also need to have user with appropriate authorizations assigned (authorization
objects S_DAAG and S_DAGPTM are required) There are 2 std roles provided
o SAP _DAAG_ADMIN- assigned to system admins
o SAP_DAAG_EXPERT- assigned to users responsible for scheduling aging runs
28. You want to define a validation for the combination of general ledger account and cost
center. For which call-up point do you define this validation?
 Document line. Document line-item fields are validated/ substituted at this call-up
point. You can evaluate fields and entries from the header, system fields, and other
line-item fields (table BSEG)
29. What do you define when configuring asset classes? There are 3 correct answers to the
question
 A/c determ. (controls GL a/c posted for various asset transactions), number range
(controls no. asset will receive when you save master record), screen layout rule
(controls fields that are ready for input during asset master record maintenance)
30. What items are not cleared by the automatic clearing program?
 The following items are not cleared:
o Noted items
o Statistical postings and special G/L transactions of the type bill of exchange
o Items with withholding tax postings
o Down payments, unless down payment clearing for the same amount has
been posted
31. You want to create a substitution in Financial Accounting. Which parts do you have to
define for each step of the substitution? Note: There are 2 correct answers to this question.
 Prerequisite: This is what system checks to define whether it needs to check
validation
 When defining new step for substitution, the first thing you maintain is the field that
you want to substitute (replacement)
32. Which of the following steps do you typically perform during a payment run with the
automatic payment program? Note: There are 2 correct answers to this question
 The automatic payment program 1st generates a payment proposal based on the
parameters you set
 You can modify the payment proposal (e.g., manually block or unblock items for
payment) as required and then process the payment
 Depending on the payments made and payment methods used, system will print
checks and prepare electronic bank transfer files or lists of payments for manual
execution
 You define selection parameters for open item selection.
 App 1st generates payment proposal
 After proposal is reviewed and revised, you execute the payment run and system
generates payment docs and clears relevant open items
 System will put items in Exceptions list for various reasons and for each item, you’ll
receive a message detailing those reasons. Foll. Are a few examples of messages you
might receive
 o Item is blocked for payment
o A/c is blocked for payment
o Unconfirmed change to master record
o Alt payee blocked for payment
o Unconfirmed change to payee master record
o No valid payment method found
o Payment method in doc should not be considered in this run
o Payment methods for this run are not specified in master record or in item
o Min. amt for payment has not been reached

33. What are key reasons for preferring a new implementation of SAP S/4HANA rather than
a system conversion from SAP ERP? Note: There are 2 correct answers to this question
 You want to deploy SAP S/4 HANA Cloud, you want to clean up your system and use
SAP Best Practices
34. Which statements best describe extension ledgers in SAP S/4HANA? Note: There are 2
correct answers to this question
 Extension ledger is an add-on delta logic ledger that is assigned on top of an
underlying ledger
 Multiple extension ledgers can point to same underlying ledger, extension ledgers
can be assigned their own posting period variant
35. What dunning -related data do you maintain on the business partner master record?
 Dunning details are entered in the business partner master record. You maintain
fields such as Dunning Procedure, Dunning Level and Grouping Key. You can also
enter the Dunning Key or a Dunning Block directly on document business partner
line item
36. Which fields of a financial accounting document influence the automatic payment
program? Note: There are 3 correct answers to this question.
 Payment method, Payment transaction, terms of payment
37. Which of the options are types of user fields? (There are 2 correct answers)
 Evaluation group, asset super number. The evaluation groups and asset super
numbers can be maintained in Customizing and assigned to assets to cover customer
requirements for extra fields and groupings. The grp asset is a depreciation
characteristic; the serial no. is a standard field that often ties in with equipment from
plant maintenance
38. Which business partner characteristic is mapped to the customer and supplier account
groups?
 Business partner is connected to a/c grp (customer and supplier) through the
business partner grouping
39. You are configuring asset-related postings of depreciation areas in Asset Accounting.
Which of the following settings is "NOT" permitted?
 Area posts revaluation only. For each depreciation area, you can access details
screen to configure settings further. Main settings are:
o Real Depreciation Area: Values are normally committed to database. When
checkbox is not selected, depreciation area is derived area (values are based
on values of other areas).
o Area Posts in Real Time: while using ledger approach to parallel valuation, this
is the std setting for depreciation areas that post both acquisition and
production costs (APC) and depreciation to GL. With a/c approach, only 1
area has real time setting.
o Area Posts Depreciation Only: For areas that don’t post APC values but only
post depreciation. Most common such area is 1 that is used for cost-
controlling valuations.
o Area Posts APC Immediately, Depreciation Periodically: Used when using a/c
approach for all areas that post both types of values to GL, minus 1 that is to
set to post in real time
o Value Maintenance: Contains various rules that define what kind of values are
allowed for various valuations
40. Besides using the profit center, which options does General Ledger Accounting with
document splitting provide to assign a segment to the posting line? Note: There are 2
correct answers to this question
 Configuration of derivation logic with derivation sequence and steps, BAdI
implementation (FAGL_DERIVE_SEGMENT)
41. What does the document splitting functionality do?
 Enriches all relevant balance sheet a/c lines with defined splitting characteristics, it
enriches all customer and vendor line items with the defined splitting
characteristics in the relevant subledgers. Document splitting allows you to display
documents using a differentiated representation. In the representation, line items
are split according to selected dimensions. In this way, you can draw up complete
financial statements for the selected dimensions at any time.
 Using the document splitting procedure, you can also create a segmented display of a
(partial) balance sheet according to a set of legal requirements (for example, IAS) or
according to areas of responsibility.
 In addition, you can allocate at the time of posting additional costs (such as realized
or valuated exchange rate differences) to the CO account assignment objects to
which the costs relate. Assets can also be subsequently capitalized at the time of
posting.
42. Which elements define the integration of asset acquisitions to the general ledger?
 Chart of Depreciation with the below configuration is the key.
 o Depreciation Area (OADB)
o Asset Class (OAOA)
o Enabling Depreciation Areas for Asset Classes (OAYZ)
o Account Determination (AO90)

43. What is shared between all deployment options for SAP S/4HANA (Cloud, On-Premise)?
There are 3 correct answers to this question."
 All SAP S/4HANA deployment options, either cloud or on-premise, share the same
code line, simplified data model, and consistent user experience. Both options run
on a faster HANA in-memory database, bring new business capabilities, and offer to
adopt innovation along with simplification of the IT landscape
44. To use the SAP Financial Closing cockpit, which steps are required? There are 3 correct
answers to this question
 Create task template, create task grps, define task dependencies

45. You have been asked to set up house banks as part of the implementation. What
information do you need? There are 3 correct answers to this question
 GL A/c, bank key, co code
46. Which of the following statements best describe a noted item? There are 2 correct
answers to this question
  It can be used to remind user about due payments, can be accessed by payment
program. A noted item can be accessed by the payment program, meaning that it
can be used as a reference for payment processing. Additionally, it can be used to
remind the user about due payments, suggesting that it serves as a reminder for
outstanding payment obligations.
47. On which levels can you maintain field status controls for business partners (BP)? There
are 2 correct answers to this question
 Configure field attributes per BP role: define fields ready for entry for specific roles.
This means on 1st level and with default delivery all customers share same field
status. This is the same for all suppliers as well
 Configure field attributes per BP type: define fields ready for entry for specific bp
types. Optional and used only if addl. Reporting element/ separate field status
control level needed
 Configure field attributes per client: define field status for bp generically
 Configure field attributes per activity: assign different field statuses depending on
activity performed (create/ change). Often used to protect fields from changing after
a master record has been created/ posted to. Most common example is
reconciliation a/c, which is usually set to required status during creation and set to
display-only status in change activity
48. You post a purchase order. For which expenses does the system calculate accruals? There
are 2 correct answers to this question
 Insurance, consulting
49. You perform foreign currency valuation for open items of your supplier accounts. The
valuations will be used only for period end reporting and should then be reversed. What
account does the system use to post the valuation differences?
 The total difference from all the open items in an account is posted to a financial
statement adjustment account. The account therefore retains its original balance.
 The exchange rate profit or loss from the valuation is posted as an offsetting posting
to a separate expense or revenue account for exchange rate differences.
50. In customizing, at which levels can you assign the program to the correspondence type?
There are 2 correct answers to this question.
 Co code level, business partner level. For each correspondence type, print program
and variant to enter are defined
 System comes with default assignments and std forms for each delivered payment
method
 You can select diff combos of programs and variants per co code or use the same for
all
 Each variant is assigned a form which is customizable (job performed by tech
consultants)
  Many fields in business partner master are used to create correspondence such as
address, tax and bank details
 A/c details, payment definitions, correspondence and withholding tax details are
used per co code
 Assign correspondence type to tolerance grp. Maintaining tolerance grp for business
partner makes correspondence type default type for partner
51. How does the system perform the normal reversal of a journal entry?
 Normal reversal posting generates an inverse posting by increasing the debit/credit
accounts balances. Normal reversal posting causes SAP S/4HANA to post the
incorrect debit as a credit and the incorrect credit as a debit. This type of posting
causes an increase in the account balance figures
52. What can you control with the reason code in Accounts Receivable? Note: There are 3
correct answers to this question.
 The account where a residual item is posted, the exclusion of disputed residual
items from credit limit checks, the type of payment notice sent to a customer
 To be able to use the clearing document to identify the reason for a difference, you
can specify a reason code in the line items. Reason codes are identified by keys,
which you can define freely in Customizing. You can specify reason codes for the
following processing steps:
o You enter a partial payment for an open item.
o You create residual items for an open item. Here you can assign one or more
reason codes. In the latter case, the difference amount is to be divided into a
corresponding number of partial amounts.
o You want to post the difference on account without reference to an open
item.
o During clearing, you enter the line item manually and the field for the
relevant account is ready for input.
 When processing residual items, the reason code controls the type of posting. The
remaining amount is posted as follows:
o To a G/L account assigned to the reason code, if a reason code flagged
accordingly has been entered
o As a new open item to the customer or supplier, if no reason code has been
entered or the reason code entered is not flagged as described.
 Characteristics of Reason Codes
o For incoming payments, you can send a payment notice to the customer.
This process can run automatically if differences occur during clearing. For the
tolerance group of the customer, you define which type of notification is to be
created when partial payments, residual items, or postings on account occur.
o The type of notification can also be derived from the reason code, as long as
only one reason code occurs in the entire clearing transaction.
 o For the check of the credit limit of a customer, the total of his or her open
items is taken into account, among other things. If you want to ignore certain
disputed items, you can assign these items a reason code that is intended for
disputed items.
 Reason codes therefore control the following:
o The type of difference posting (new open item or posting to a preset G/L
account)
o The type of payment notices to be sent
o Whether or not an item is to be taken into account when the credit limit is
checked
53. You are getting ready to post your first simple general ledger document using the SAP
Fiori app for posting in a test environment. What configuration items do you need to set up
to post a simple document? There are 2 correct answers to this question
 The posting period variant must be created and assigned, no. range and document
types must be maintained
54. You assign currency type 40 to your company code in ledger 0L. Which source currency
type can you select?
 Controlling area. Currency type has been assigned based on the Controlling Area
through "OKKP"
 Hard Currency (40) - This currency is used for external reporting for some countries
with high inflation.
 Company Code Currency (10) - This currency of the company code usually coincides
with the currency of the country that the company code resides in. The company
code currency is part of the company code settings in Transaction OX02.
55. You define custom currency type Z1 for your company code. Which currency types must
be stored in the Data Entry view? There are 2 correct answers to this question.
 Doc currency, co code currency
56. In your SAP S/4HANA system, you want to archive the G/L account that are not used by
the business in any company code. What are prerequisites to archiving all data of a G/L
account? There are 3 correct answers to this question
 The blocked for posting indicator is set for the GL Account, transaction figures are
older than customizable no. of years, set the deletion flag in the company code
data of the G/L Account.
 Master data is only eligible for archiving if you have set the deletion flag in the
master record in each area.
 When you archive Chart of Accounts data for G/L account master data, the system
automatically checks whether the following conditions have been met:
o The deletion flag is set.
o Dependent data of the following types no longer exists in the system:
  Company code-specific data
 Dependent cost elements
 When you archive Company Code data for G/L account master data, the system
automatically checks whether the following conditions have been met:
o The deletion flag is set.
o Dependent data of the following types no longer exists in the system:
 Transaction figures
 Open items
 Cleared items
 The following conditions concern the document header:
o Document life must be exceeded.
o You specify document life based on the type of document (for example,
customer payment) and company code.
o The document must have been in the system for at least the minimum period.
o In addition to exceeding the document life and account life, documents
must also exceed the minimum retention period. This means that the
number of days between the date the document was entered or changed
and the archiving key date must exceed the minimum retention period
before documents can be archived.
o Documents with withholding tax must meet country-specific retention
requirements.
o Sample, recurring and parked documents are not included.
 The following conditions concern the line items:
o The document must not contain any open items. The system can only archive
documents containing cleared items or those not managed on an open item
basis.
o The account life must have expired.
o You specify the account life based on the account type (customer, vendor, G/L
account).
57. Which statements best describe a profit center? There are 2 correct answers to this
question
 Profit center is used to derive and fulfill the requirement for segment reporting, it
is an object for which separate balance sheet and P&L statements can be created,
independently from segments being maintained or not.
58. How does the system determine the correspondence type of a payment notice?
 According to the reason code, as long as all the reason codes carry the same
correspondence type. The system can use the specified reason code to determine
the type of notice to create as long as only one reason code is specified in the entire
clearing transaction.
59. Which of the following is a technical year-end closing activity is SAP S/4HANA?
  Ledger balances must be carried forward. Balance carryforward is executed with
Carry Forward Balances app and new fiscal year, co code and ledger to be carried
forward are defined. You need to execute carryforward for all ledgers, including any
defined extension ledgers
60. What checks can you perform from the Audit Journal app? There are 3 correct answers.
 Check gaps in journal entry numbering, display journal entry changes, check multi-
referenced invoices. The full list of available checks includes the foll:
o Check gaps in journal entry numbering: displays per no. range interval from
which no. to which no. there are gaps in posted docs.
o Display journal entry changes: lists line items of any changed doc and shows
old and new values per changed field
o Check multi-referenced invoices: looks for doc posted with same reference to
help ID if same invoice was posted 2x and so on.
o Display update terminations: displays system terminations that happened for
given date range.
61. In your system, you currently perform manual outgoing payments and you want to use
the automatic payment program. Which settings must you maintain as part of the
configuration of the automatic payment program? There are 2 correct answers to this
question.
 Bank determination, paying co code. Steps for Configuring APP are:
o Setup payment method per country
o Setup payment method per company code
o Setup all company codes
o Setup paying company code
o Bank determination
o Assign payment method to vendor account

62. When creating a bank as a business partner, what roles are assigned to the business
partner by default? There are 3 correct answers.
 General, fin services, bank. Gen role is always assigned; you can’t create business
partner without it. When creating a bank, you don’t assign customer or supplier
reconciliation a/c at any point, so system wouldn’t be able to create customer or
supplier role in business partner record.
63. What are the maintenance levels of a screen layout rule for asset master data? There are
3 correct answers to this question.
 Asset class, main asset number, asset sub-number. You configure different sets of
keys for the master data section of an asset and depreciation details. You define
screen layout rules for master record section flexibly and assign them to the asset
classes. The same screen layout can be valid for many asset classes. The logical field
 grps are predefined, as are the fields inside these field grps. In addition to defining
the field status, you can select addl. Checkboxes for the foll.:
o Class (asset class): Defines that you can set a default value for this field on
asset class level
o MnNo. (main asset no.): Defines that the field can be changed on main asset
master level.
o Sbno. (asset sub-number): Defines that the field can be changed for the asset
sub-number. If this option isn’t selected, the value is inherited from the main
asset and can’t be changed.
o Copy: Defines whether the field value is copied over from an asset used as a
reference for creating another asset.
64. What is the difference between the ledger approach and the accounts approach to
parallel calculation in Asset Accounting?
 In a/c approach you assign separate set of a/c for each a/c principle unlike ledger
approach
65. Which of the foll org units are part of the enterprise structure of fin a/c?
 Functional area, business area, segment. Functional area is used for cost of sales a/c
in fin a/c, the business area depicts a separate business division, and the segment is
used for segment reporting. The operating concern is a mgt a/c (profitability analysis)
org unit, and the plant is basic logistic org unit
66. For which of the foll a/c assignments can you configure system to create complete
balance sheet reports?
 Profit center, segment, co code. Co code is default level for balance sheet reports in
fin a/c.
 Profit center and segment are both definable in doc splitting as splitting
characteristics and thus system also can be configured to produce balance sheets at
their level.
 The cost center can only be posted for P&L a/c that are cost elements and same goes
for profitability segment.
67. Which date is used to determine the depreciation start date?
 Asset value date. In Asset accounting, the asset value date is very important value
field solely because it is the main criteria for calculating the depreciation value for
the asset. Along with this, the capitalization date, First Acquisition date fields too play
important roles.
 

68. You are responsible for configuring document splitting. What are some of the key
settings? There are 2 correct answers to this question.
 Document type, business transaction variant. Diff biz transactions and a/c can be
handled differently by system regarding doc splitting. You configure grouping of a/c
and mapping of these to item categories in Customizing. You assign doc types to
business transactions and can further specify business transaction variants to refine
splitting rules
69. Which documents are needed to complete the 3-way match in the procurement
transaction? 3 correct answers
 Invoice receipt posted in reference to the purchase order, goods receipt posted in
reference to the purchase order. The std way to procure materials and assets in SAP
 S/4 HANA is with 3-step reconciliation procedure: purchase order, goods receipt and
invoice receipt
 When there is an inconsistency between quantities delivered (from goods receipt)
and quantities invoiced, these are posted to the goods receipt/ invoice receipt
clearing a/c
 Inconsistencies can be caused, for example, by having different amts on the goods
receipt and invoice receipt documents, wrong pricing info when entering a purchase
order or just not having yet received the goods receipt although the invoice has
already been posted (or the opposite, having posted the goods receipt and still
waiting on an invoice)
 As part of your a/c processes, you clear the goods receipt/ invoice receipt a/c by
transferring the values separately to the invoiced but not received a/c and the
received but not invoiced a/c
 To do this, you use the Reconcile GR/ IR A/c app. With this app, you create a worklist
for items to process, check the items and match open items to reduce the open
amts.
 In SAP S/4 HANA, you use the Monitor GR/ IR A/c Reconciliation app to monitor the
status and health of the goods receipt/ invoice receipt clearing process and to see if
the processors responsible for manually clearing the items are keeping up with the
workload.
 You can quickly identity which plants, co codes, and supplier a/c cause the most
reconciliation issues, helping you investigate root causes for these open items.
70. Which of the following should you consider when defining asset number ranges 2 correct
answers
 Each asset class can have either an internal or external number range, asset
number ranges are defined for assets classes and are company code specific. When
defining asset number ranges, it is important to consider that asset number ranges
are defined for asset classes and are company code specific.
 This means that different asset classes within the same company code can have
different number ranges.
 Additionally, each asset class can have either an internal or external number range,
allowing for flexibility in how assets are numbered and tracked.
71. How can you perform transfers of assets between company codes with different charts
of depreciation?
 Configure the cross- company depreciation areas in customizing
72. After you collect data in the intercompany reconciliation tool, what are the next steps of
the reconciliation process?
 Stored the data
 Present reconciled and non - reconciled
 Post correction documents
 Communicate differences
73. Which of the following statements best describe how customers down payments are
integrated with sales & Distribution (SD)?
 A down payments request is created as an SD sales order, which is automatically
posted in F1 as a noted item
74. How do you identify an asset master record as an asset under construction?
 The asset belongs to a specific asset class. AUCs require a separate asset class
because they must be displayed in separate a/c for fin statement.
75. Which of the following parameters can you define within a dunning procedure? There
are 2 correct answers to this question.
 Dunning Procedure major parameters:
o Dunning Interval
o Number of Dunning Levels
o Grace Period

76. Which types of stock is best suited to a moving average price (MAP) valuation? Please
choose the correct answer
 The moving average is used for raw material as we need to procure material from
external vendors and price is not same for material from all vendors, it is
recommended to use moving average price for raw materials.
77. You have an invoice for transport expenses for your assets under construction. These
expenses can be capitalized per IFRS but not in the local GAAP. What is the best way to
handle this? Please choose the correct answer.
 Post invoice to AUCs and manage settlement per depreciation area. You collect prod-
related expenses on single item, and then you settle amts. In SAP S/4 HANA,
settlement is defined on depreciation area, so you can manage the capitalization
separately per a/c principle.
78. Which of the following parameters can be changed on a time-dependent basis? There
are 3 correct answers to this question.
 You can make time-dependent changes to asset’s depreciation terms, meaning you
can define a new period interval from which date the new depreciation settings are
effective. The definitions you can make with time dependency are as follows:
o Depreciation key
o Useful life (year/ period)
o Variable depreciation portion
o Absolute/ %age scrap value
 When using time dependency, system won’t catch up or smooth values over
remaining periods/ years
 In depreciation area, allowed values are maintained and any change to depreciation
terms must always comply with value rule definitions of affected depreciation area.
79. How many custom currency types can you assign to a co code/ ledger combo?
 8. An SAP S/4 HANA system supports 10 currency types in parallel per co code/
ledger combo, but 2 of these are always reserved. Co 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 max. 10.
80. What can you control with the tolerance grp?
 The most basic setting for a/c in fin a/c with SAP S/4 HANA is the tolerance grp. The
tolerance grp assigned to a user defines 4 basic amt-related posting limits a user can
have:
o Max. amt per doc (incl. all debit and credit items)
o Max. amt per open item (limit doesn’t apply for automatically created line
items, such as those of payment program)
o Max cash discount %age per line item
o Max permitted payment diff allowed, with amts. Defined separately for
overpayments and underpayments
81. When you create multiple similar asset master records, which of the following fields
allow you to make separate entries for each individual asset? There are 3 correct answers to
this question
 Cost center, description of asset, inventory no.
82. Which system components are directly integrated with asset a/c?
 Investment management, purchasing, plant maintenance. Investment mgt is tightly
integrated, especially with AUCs. Purchasing is integrated with asset a/c already from
the purchase requisition phase, and the asset is a required field on the purchase
order for asset acquisition. Plant maintenance integrates through the equipment
master record connection to fixed asset master. Bank a/c mgt isn’t directly integrated
with fixed asset, and the same is true with quality mgt, which integrates with
materials mgt.
83. What is true for assigning charts of depreciation to co codes?
 Each co code can be assigned to a different chart of depreciation. There is no
limitation on the nos. of charts of depreciation created for a country.
 You assign a chart a depreciation to each co code, and again there is no rule to assign
the same 1 to co codes belonging to the same country.
 You can use a std CoD as delivered by SAP, but if you want to make modifications, it’s
advised that you copy it and then modify the new chart, Asset a/c has very diff a/c
rules in diff countries, so you wouldn’t use the same CoD across country borders.
 Even if things look the same to begin with, laws and regulations change all the time,
and you never know when a country will impose a rule incompatible with other
countries
84. Your customer operates 20 co codes in 10 diff countries and 3 continents. What is the
min no. of clients you must configure in the SAP S/4 HANA system to depict this scenario?
 1. There are no restrictions on what kind of org units are mapped on the client
85. What types of objects are maintained separately per client?
 Org unit: co code is only available in client created
 Master data: GL a/c is only available in the client created
 Transactional data: GL posting is posted to co code, so it’s only available on specific
client
 ABAP code, whether programs/ function modules, is always client-independent. If
you change a program in a specific client, the change affects all the object in all
client.
86. What can you manually select to copy when you copy a co code?
 Controlling area assignment, GL a/c data, co code currency. All splitting customizing
is on client level.
87. Which of foll assignment can be adjusted for co code?
 Company, fiscal year variant, chart of a/c. The leading ledger is assigned to all co
codes because there is only a single leading per client
 The segments are defined on client level and assigned to profit centers
88. You are asked to explain the assets under construction functionality in SAP S/4HANA.
What should you highlight? There are 2 correct answers to this question.
 It is possible to post special tax depreciation and investment support for assets under
construction, it is possible to post credit memos, even after assets under
construction are fully capitalized. For some assets under construction, it is possible
to perform special tax depreciation. In this case you also enter corresponding keys in
the asset class, to be used as mandatory default values. For posting down payments,
allow the posting of the transaction type group "Down payments" (transaction type
groups 15 and 16) in these asset classes. In addition, enter the necessary general
ledger account in the account allocation. Also set the indicator for negative APC in
the depreciation areas of the assets under construction. This allows subsequent
credit memos on already capitalized assets.
89. What is the maximum number of steps possible in validation?
 In a validation you can create up to 999 steps.
90. How can you define a matching method for intercompany reconciliation? Please choose
the correct answer.
 It can be either defined as master data or as configuration. In the Attributes section,
Master Data is selected as the storage type and is unchangeable. Master data can
 only be defined directly in the production system or replicated between systems via
file export and import.
91. Which configuration can you use to define separate payment terms for the same terms
of payment key?
 Payt Terms: This field contains four characters alphanumeric identifier for payment
term key.
 Sales text: Maintain the short text for explanation. The explanation can be
maintained up to 30 characters. This field validates the account type “Customer”. If
you maintain the text here and account type “Customer” is not “Selected” system
will give you an error as below.
 Day limit: This field is used to specify the particular term of payment is valid from
which particular date. Day limit together with terms of payment are the key fields in
the relevant definition, which means you can differentiate either field to have an
additional payment term. You can have multiple term of payments with the same key
otherwise would be the client because the terms of payment are client-dependent.
Example as below –
o Example 1 – Payment Term T001
o Day Limit – 20
o Discount – 5 %
o As per above details system will consider this payment terms for the invoices
posted in system ON or BEFORE 20th date in every month and applies 5%
cash discount. The discount won’t be applicable for invoices posted after 20th
in month.
o Example 2 – Payment Term T001
o Day Limit – 31
o Discount – 2 %
o As per above details system will consider the invoices for 21st to 31st and
applies the 2% discount.
92. Which of the following are the month-end closing activities for external purposes? There
are 3 correct answers to this question.
 Close the old period, perform foreign currency valuations, create external and
internal reports
 Preparatory Tasks for Closing
o Close Accounting Period for Operational Postings
o Data Flow Verification for Journal Entries / Technical Consistency Check
o Closing-Relevant Tasks
o Advance Returns for VAT and Annual Tax Returns
o EC Sales Lists
o Sales and Use Tax Returns (US)
o Withholding Tax Returns (US)
o Balance Confirmation for Payables
 o Balance Confirmation for Receivables
o Reconciliation
o Adjusting Entries
 Closing Activities
o Prepaid Expenses
o Deferred Income
o Recurring Journal Entry Vouchers
o Reserves for Bad Debt
o Allowance for Doubtful Accounts
o Reclassification (Receivables)
o Reclassification (Payables)
o Foreign Currency Remeasurement (Receivables)
o Foreign Currency Remeasurement (Payables)
o Foreign Currency Remeasurement (Cash)
o GR/IR Clearing
o Posting Assets Under Construction
o Automatic Fixed Asset Depreciation
o Overhead Absorption by Projects
o Overhead Absorption by Service Order Items
o Overhead Absorption by Production Lots
o Work-in-Process Clearing
o Posting Inventory Valuation and Valuation Difference
o Reserves (Using the Example of Leave Reserves)
o Revenue Deferral and Revenue Recognition for Sales Order Items
o Overhead Distribution
 Periodic Transfer to Nature of Expense
 Close Accounting Periods for Closing Entries
 Balance Carryforward
 Close Accounting Period and Fiscal Year
o Close Last Accounting Period of Fiscal Year
o Close Fiscal Year
 Central Bank Reporting (Austria, Denmark, France, Germany, and the Netherlands)
 Documenting
o Journal
o Financial Statements

93. Where is the billing document created? Please choose the correct answer.
 Sales and Distribution
94. When should fiscal year close for asset accounting be carried out? Please choose the
correct answer.
  When the previous fiscal year is closed. If you open a new fiscal year with balance
carryforward, and you close the previous fiscal year when previous year is closed for
any a/c transactions.
 To close a fiscal year, you execute the year-end closing program or use SAP GUI app:
Display Settings for Company Code in Asset Accounting.
 The program checks that depreciation is posted fully and there are no assets that
contain errors.
 If the year-end closing program finds no errors, it blocks posting in asset a/c for
closed fiscal year.
 If for some reason you need to post in a closed year, you can reopen a fiscal year (per
ledger/ depreciation area).
 You’ll need to close the year again through the year-end closing program.
95. Which of the following lists support the dunning clerk’s work? There are 3 correct
answers to this question
 The blocked accounts list
 The dunning history list
 The dunning list
96. Which of the following are the characteristics included in general ledger drilldown
reports? There are 3 correct answers to this question.
 Co code, business area, segment. Examples of characteristics in the G/L account
information system:
 SAP hierarchical terms such as company code, account number, company, business
area, and so on
 Time-dependent characteristics such as fiscal year, posting period, and so on
 The following terms are of importance in relation to characteristics:
 Simple characteristic: When creating a form or report, you only define the
characteristics that are valid for the columns and rows of the report. Afterwards, you
restrict the desired characteristics by entering values for them.
 Drilldown characteristics: When creating a report, you can select the characteristics
that are needed for your evaluation from a list. These characteristics are drilldown
characteristics that are used to navigate in the report. They include, for example,
company, company code, and business area.
 Characteristic hierarchies: with characteristic hierarchies, characters are arranged in
a hierarchy. In the G/L account information system, the characteristic financial
statement version is the hierarchy for the characteristic account number. In the
financial statement version, the account numbers are displayed in a hierarchical
order.
97. How many posting period intervals in SAP S/4HANA are used for postings of Financial
Accounting (FI) and Controlling (CO)? Please choose the correct answer.
 2. You have 2 time intervals (time period 1 and time period 2). In each interval,
specify a period lower limit, a period upper limit, and the fiscal year.
98. It is common for companies to receive invoices for the previous fiscal year at the
beginning of the new fiscal year. Which dates must have the same fiscal year in the
document entry? Please choose the correct answer.
 Posting date and asset value date
99. Which of the following options can you use to change the G/L account master data using
collective processing? There are 3 correct answers to this question.
 Change chart of accounts data, change account descriptions, change co code data
100. What does the document type control? There are 2 correct answers to this question.
 Which account types are allowed for postings, whether negative postings are
permitted
 A/c types allowed: You select one or more a/c types that can be used with the doc
type. This helps limit the use of the doc type to the specific business cases it was
designed for and protects from erroneous postings to a certain extent.
 -ve postings permitted
101. On what level do you assign dunning areas? Please choose the correct answer.
 Co code. Dunning area subdivides co code into areas of responsibility for dunning.
This allows you to configure different rules and criteria for dunning in diff biz areas
102. The variant principle is used in SAP S/4HANA to assign particular properties to one or
more objects. How many steps does the variant principle have?
 Variant Principle is a 3-step method in SAP system to assign particular properties to
one or more objects. There are 3 Steps in Variant Principle:
o Define
o Determine Values
o Assign to Company Code

103. When adding a bank to a bank directory, which field is required?

 Country. You must define the country, bank code and bank name when defining a
new bank. The details for co code are maintained on house bank level and bank a/c
level. Opening date and currency are maintained per bank a/c.
104. On which level do you maintain the bank directory?
 Client. Banks are defined on the client level and are assigned to a country. Because
you may have co codes, customers and suppliers using the same banks, it makes
sense that these are defined at the highest level
105. What is defined in the bank a/c connectivity path settings?
 House bank a/c ID details. The connectivity path is where you define the connection
between a bank a/c and house bank. The business partner is defined in the bank
 details, the payment approvers are defined in the bank a/c signatory details, and
profit center and segment can be assigned in a/c addl, details
106. What are the relevant stages of life for AuC?
 An asset that you produce in-house has two stages in its life that are relevant for
accounting from the point of view of your company:
o Under construction phase
o Useful life (on commissioning of the asset)
 Balance sheet should disclose the different phases of the asset. Therefore, it is
necessary to manage the asset as a separate object or asset master record during the
construction phase.
 The activity that records the change from phase 1 to phase 2 is called "capitalization
of the asset under construction".
 The asset under construction (AuC) can be managed in the system in two different
ways, depending on the types of functions that you need. The AuC can be either a
normal asset record, or a master record with line-item management.
107. What are the differences between holding and parking docs?
 Held doc doesn’t have doc no. assigned, parked doc can trigger workflow processes.
Held docs don’t receive doc no. (thought the user assigns an identifier to be able to
retrieve them). Only doc parking is integrated with SAP Business Workflow.
 On the other hand, both parked and held docs can be saved incomplete, and neither
held nor parked docs are included in fin statements
108. On which level is doc parking workflow assigned?
 Co code
109. What is the correct order of steps when configuring the payment programs? Please
choose the correct answer.
 All company codes, paying company codes, payment methods in country, payment
methods in company code, bank determination
 All co codes, where you assign paying co codes to the ones that don’t perform
payments
 Paying co codes, where you configure the co codes that do perform payments
 Payment methods per country, where you define usable payment methods for
different countries
 Payment methods per co code, were you setup the ones valid for each co code, out
of the ones available for the country
110. What do you define in payment terms? There are 2 correct answers to this question.
 Cash discount, due date specification. Payment terms specify the time period in
which a supplier requests payment and offers any discounts that they choose to
make available for early payment.
  For example, payment terms of PT30 might mean that a payment is due within 30
days, but with a 3 percent discount available if payment is made within 15 days.
111. You'd like to set up low value asset (LVA) management. What do you need to do? Please
choose the correct answer.
 Define two Separate asset classes to manager LVA using individual or collective
management. In Customizing, you configure the max value an asset can have to be
considered an LVA
 This is done on country level but can be specified on lower level as well and
specifically per co code and depreciation area (Customizing: Valuation > Determine
Depreciation Areas in the Asset Class)
 Individual check (individual management): When the acquisition is posted, the entire
acquisition and production costs of the asset are compared with the LVA maximum
amount.
 Quantity check (collective management): When the acquisition is posted, the entire
acquisition and production costs of the asset, divided by the total quantity, are
checked against the LVA maximum amount. When you make your first posting, you
must also post the quantity.
112. The cross-company code depreciation area is required in which of the following
intercompany transfers? Please choose the correct answer.
 For transfers with nonmatching depreciation areas. Cross-system depreciation areas
need to be configured when two company codes use different charts of depreciation
and if they want to use the standard process of intercompany asset transfer. Below
are the possible scenarios.
o If depreciation areas in these two charts of depreciation areas have the same
functions, but they have different codes.
o The depreciation areas in these two charts of depreciation have the same
code but different functions.
o The other possibility could be the number of depreciation areas in these two
charts of depreciation may not be the same.
o If values of any depreciation area that you do not want to transfer. Then do
not assign that area to a cross-system depreciation area.

113. Which of the following are valid settlement receivers when you perform settlement for
an asset under construction on a line item basis? There are 2 correct answers to this
question.
 Fixed asset and cost center. Specified in Cat column while defining settlement rule
114. For general ledger account posting, which one of the following standard posting keys is
for debit? Please choose the correct answer.
 40
115. Identify the fields that cannot be changed while changing parked documents. There are
3 correct answers to this question.
 Document type or document number, currency, co code. Not all fields can be
changed after parking. A doc no. is assigned so it makes sense that some fields are
protected. The foll. Fields cannot be changed
o Co code
o Currency
o Ledger grp
o Doc type
o Doc no.

116. A vendor is also a customer. The payment program has to clear open items. Which
setting has to be maintained in both master records?
 The a/c link
117. Which of the foll. Parameters are defined in the payment program to select appropriate
items?
 Exchange rate type, program identification
118. Which 2 data sections are part of every asset? There are 2 correct answers.
 Depreciation data section, master data section
119. Which of the foll business scenarios can be handled with accrual and deferral postings?
 1-time payment for 1-year cloud service
120. What is the benefit of a drilldown report?
 Navigation area
121. You are asked to set up a/c structure to facilitate segment reporting based on SAP std
segmentation scenario. Which org unit can be used to derive the segment?
 Profit center
122. Which options are available to define the no. range of doc.?
 For every fiscal year, continuous
123. When items aren’t automatically assigned for intercompany reconciliation (ICR), how
do you perform reconciliation? There are 2 correct answers to this question.
 Use an automated assignment rule, match items manually
124. For reporting purposes, your client would like to present information about customer
postings that are NOT reflected in the G/L. Which special G/L type do you recommend?
Please choose the correct answer.
  Noted items. Noted items are treated as special GL Items in SAP. they do not have
any a/c effect in SAP as they do not post to any account. An example of such an item
is the down payment request. They are not displayed in the a/c books but act as
reminders for payments of advances. They can be used by the dunning and payment
programs. In some countries, they are also used to process the bills of exchange.
125. Which items can you clear with the automatic clearing program? Please choose the
correct answer.
 Bank transaction items
126. A customer payment was received. An open item does NOT exist for the payment. How
can you post the payment? Please choose the correct answer.
 Post payment on account
127. At which levels can validations and substitutions for financial accounting be defined?
There are 3 correct answers to this question.
 Line item, complete document, header. Each validation and substitution is defined
for a specific callup point. The same validation/ substitution can’t be used in 2 diff
callup point. For fin a/c you define them at the level of Document Header, Line Item
or Complete Document.
128. How many separate period intervals are there to control open posting periods? Please
choose the correct answer.
 3. There are 3 intervals: 1 for normal periods, 1 for valuation and 1 for controlling
postings.
129. What settings can you define specifically for an asset class? There are 3 correct answers
to this question.
 A/c determination: Controls GL a/c posted for various asset transactions
 Screen Layout Rule: Controls fields that are ready for input during asset master
record maintenance
 Status of AuC: Controls whether asset class is used to create AUCs
130. Which business partner objects can you define field statuses for? There are 2 correct
answers to this question.
 Role, type.
 Configure Field Attributes per BP Role: Define fields ready for entry for specific roles.
This means on a first level and with default delivery, all customers share the same
field status. This is the same for all suppliers as well.
 Configure Field Attributes per BP Type: Define fields ready for entry for specific BP
types. This means on a first level and with default delivery, all customers share the
same field status. This is the same for all suppliers as well.
131. You execute a report based on the location and are missing an asset. What might have
happened (There are 2 correct answers).
 The asset was sold to a customer, the equipment assigned to the asset was moved.
 When an asset is integrated with the equipment, changes in the equipment can be
configured to update the asset.
 An asset sold will no longer show up in the co code reports. Fully depreciated assets
show up in reports because they are still active in the co, and partial scrapping would
not deactivate the asset either.
132. When you post a payment for an invoice, how does the system derive the splitting
characteristics? Please choose the correct answer.
 Passive document splitting: This type of splitting mostly occurs when the payment
transaction is posted for a vendor invoice. Now system splits the payment document
bases on how the vendor invoice was split in place already.
133. Identify the application areas where validations and substitutions can be used. There
are 3 correct answers to this question.
 Financial Accounting (FI), Cost Accounting (CO), and Asset Accounting (AM)
134. How does SAP S/4HANA support the treatment of taxes? There are 3 correct answers to
this question.
 It posts the tax amount to tax accounts, It checks the tax amount entered and
automatically calculates the tax, It performs tax adjustments for cash discounts and
other forms of deductions
135. In the payment method settings for the company code, what options do you have for
payment optimization? There are 2 correct answers to this question.
 In FBZP - Pmnt methods in company code, you can choose to optimize by bank
group or (ii) postal code or (iii) no optimization.
 In bank master data you can specify bank group. System optimizes the payment
process by selecting the optimal pair of banks (yours and the customer's / vendor's),
i.e., the payment program will always attempt to select two banks that belong to the
same group.
 When you choose the radio button optimize by postal code, another button appears
where you can specify house bank for a range of postal codes in a country. The
payment program then picks up the house bank assigned to the range in which the
postal code of your vendor falls.
 This optimization is only for bank selection. Payment media doesn't get affected.

136. Your customer wants to convert their SAP ERP classic general ledger to SAP S/4HANA.
What system configuration options are available for the customer within the convened
system? There are 2 correct answers to this question.
  Implementation of document splitting, Implementation of additional ledgers for
parallel accounting
137. What do you define in Customizing for the payment program? There are 3 correct
answers to this question.
 Bank determination, allowed currencies, forms for the payment media
138. You've mistakenly created your business partner with the wrong business partner
category. You've saved the data but haven't made any postings. What can you do to correct
this? Please choose the correct answer.
 Create a new business partner using the correct category. The only way to correct
this is to create a new business partner and mark the erroneous one for deletion.
Changing this isn’t a matter of authorization, nor does it make any difference if
you’ve posted on the business partner nor assigned it to a co code. However, if
you’ve posted, the best option is to reverse the documents and repost on the correct
business partner.
139. In Asset Accounting, which object do you use to handle separate valuation for parallel
accounting? Please choose the correct answer.
 In new Asset Accounting, you can handle parallel accounting using depreciation
areas. You have to define the necessary depreciation areas for each of the
accounting principles involved. You specify that a depreciation area is for a certain
accounting principle or type of valuation by assigning a ledger group to it.
140. What is the secondary cost general ledger account type used for? Please choose the
correct answer.
 To post internal cost allocations in management accounting. You use secondary cost
a/c to post transfer postings in controlling. Among all secondary cost a/c, the balance
is always zero for a co code because you can only debit a secondary a/c by crediting
secondary GL a/c. In the traditional SAP ERP system, you defined secondary cost
elements (the SAP S/4HANA system does this as well via tables in the background)
141. What is the main differentiating factor of posting a manual accrual document compared
to other manual transactions? Please choose the correct answer.
 The main differentiating factor between posting a manual accrual document and
other manual transactions is the reversal reason and date. In the document header,
you preemptively assign a reversal reason and the date for reversal.
142. What can you achieve by using the head office/branch scenario? Please choose the
correct answer.
 Invoices posted to the branch become open items for the head office. The
definition of the head office/ branch scenario is to have centralized open item and
payment mgmt.
 There is no kind of automatic master data sync with a head office.
  You pay the head office because that is where the open item is, and correspondence
can be sent either to the head office or to the branch depending on the setting in the
BP master data.
143. What is required to enable the payment approval process in cash operations? There are
3 correct answers to this question.
 Define signature methods for approvals, define a grouping method for the rule you
defined, Create a rule for approvals
144. You are posting an incoming payment against an invoice. Which document values does
the user tolerance group control? There are 2 correct answers to this question.
 The total amount (sum of all line items) allowed to be posted, the cash discount
amount (absolute value) allowed for a line item. Tolerance group assigned to a user
defines 4 basic, amt-related posting limits a user can have:
o Max. amt per document (the amt includes all the debit and credit items)
o Max. amt per open item (limit doesn’t apply for automatically created line
items, such as those of the payment program)
o Max. cash discount %age per line item
o Max. permitted payment difference allowed, with amts defined separately for
overpayments and underpayments
145. What archiving step must precede archiving a supplier invoice posted directly to FI?
 Archive FI transaction figures
146. What are the steps in Customizing of data archiving?
 Define archiving storage locations, perform cross-object Customising, perform
object-specific Customising. The sequence of Customising steps is to define archiving
storage locations, perform cross-object Customising, and finally customize the object-
specific settings. The table partitioning and aging object activation steps are part of
the activation process for data aging.
147. The country that your company code operates in has defined a new VAT tax rate
percentage of 15%, which will become effective at the start of the next fiscal year. You create
the new VAT codes O5 and 15 to cover this requirement. How can you ensure that users use
the new tax codes when entering tax relevant documents starting next year?
 Create a substitution that changes the depreciated VAT code to the relevant new one
when entering documents with a posting date in the new year.
148. You forgot to add a new general ledger account to the financial statement version.
What impact does this have on the net profit and net loss?
 The balance of the new account is added to the non - assignment section and is
excluded from the calculation
149. Which steps are required to create a substitution in Financial Accounting?
  Define the substitution ruler with its different steps using the formula editor, Select
the correct call up point, Select activation level 2
150. What is a reason for performing data archiving?
 To control hardware requirements. By performing data archiving, you can maintain
stable hardware requirements because the database is kept at a constant size.
 With data archiving, you can have shorter downtime cycles, but not fewer ones.
 Data is never lost, data archiving has no effect on this, and data archiving isn’t a data
backup process
 Benefits of data archiving
o Reduce the cost of memory, disk, and administration costs.
o Improved system performance and response time.
o Reduce the cost of maintenance and run of growing application
infrastructure.
151. You want to specify the financial statement version for asset reports in Customizing.
Where do you need to assign the financial statement version? Please choose the correct
answer.
 To each depreciation area. In this step, you determine, per depreciation area, which
financial statement version the system is to use as a default. This default applies
when the financial statement version is contained in the sort version used for a given
report.
152. What is the main motivation for creating rules for substitutions and validations?
 Reuse in multiple steps. You can use rules in multiple steps of a validation or
substitution, so you can speed up the time required to create them by reusing them.
The tools, fields and logic used are the same as those available when maintaining
prerequisite and check data.
153. You want to post journal entries in a special period. Which conditions must be met?
 Posting on Special period on last normal period of fiscal year, the special period must
be open for posting in the period control. To post journal entries in a special period,
two conditions must be met.
 Firstly, the special period must be open for posting in the period control. This means
that the system must allow postings to be made in that specific period.
 Secondly, the user must enter a posting date in the last posting period. This ensures
that the journal entries are recorded in the correct period.
154. On which levels can you maintain useful life for documents of a c code in the context of
data aging? (There are 2 correct answers)
 Document type, a/c type. The aging Customizing allows you to control the useful life
per co code and a/c type, so you can define a different retention period for general
a/c documents compared to, for example, asset a/c documents. You can also
configure the useful life per co code and document type, so again, document type SA
 for GL postings can have a different retention period for real-time analysis than the
AA document type for assets.
155. Why would you choose to implement the document parking workflow for journal entry
verification, compared to the general journal entry verification process?
 You do not use SAP Fiori. The general journal entry verification functionality requires
SAP Fiori. Although you should never have to work on an SAP S/4HANA system
without SAP Fiori, there are a no of customers who have chosen this path. The
delivered workflow process is a single step, but you can create your own processes
with 2 verification levels.
156. Why might you define options to have manually allocated item keys for the financial
statement version?
 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.
157. Which of the foll are default items assigned to every financial statement version?
(There are 3 correct answers)
 Liabilities and equity, P&L results, assets. The complete list of default items includes
the following:
o Assets
o Liabilities and equity
o P&L result
o Net result: profit/ loss
o Financial statement notes
o Not assigned

158. Which object hierarchies can you maintain with the Manage Global Accounting
Hierarchy app? (There are 3 correct answers)
 Cost center, profit center, functional area.
159. A maximum of how many special/ valuation periods can be open at the same time?
 4. You can have upto 4 special/ valuation periods in the fiscal year variant and all can
be open at the same time.
160. How can you select to post accrual amts when customizing the accrual engine?
 Post delta a/c, post full amts. You can select between full amts, for which the system
inverts the posted amt and reposts the complete amt, and delta posting, in which the
system only posts the diff calculated for the period. You can never post to a closed
period, and foreign currencies will be updated acc to the ledger configurations, not
accrual mgmt. configurations
161. 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 in the previous period it was 98 units. In the preceding foreign currency
valuation run, the program posted a value of -1 currency units. What was the value in local
currency units at the time of valuation?
 97. The valuation currently stands at 98, having a -2 amt from the initial valuation.
Because the delta logic is enabled, the entry isn’t reversed. When -1 is posted this is
on top of the -2 already posted; therefore, in total, it’s 100-3=97.
162. For which of the foll tasks must you always indicate manual task completion?
 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.
163. What are the reasons to perform regrouping of receivables and payables?
 To display receivables and payables separately, to group payables and receivables
based on the due dates, to align amts on a/c with changed reconciliation a/c.
Regrouping has nothing to do with dunning, nor with balance confirmations.
 You regroup your payables/receivables before you can create financial statements,
you have to group your receivables and payables according to remaining life so that
they are correctly displayed in the financial statements
 If you have changed the reconciliation account for a customer or vendor, and the
payables and receivables posted to the old reconciliation account are to be assigned
to the new account before they are displayed in the financial statements.
164. Which process is automated with purchase order accruals, compared to manual
accruals with the accrual engine?
 Create accrual object. Creation of accrual object is automated; specifically, an
additional accrual object is created for each (relevant) purchase order. You must
schedule or start the accrual run for both purchase order and manual accruals.
Purchase order accruals have no opening posting; only periodic postings are
required. The accrual amt is broken down automatically irrespective of the type of
accrual.
165. To which object do you assign valuation methods?
 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 a/c principle.
166. Flat-rate individual value adjustments are valid for which types of a/c?
 Customer. Only customers can be included in these valuations.
167. In the trial balance report that is based on line items, how many fields can you select to
report on?
  More than 100. Around 130 possible line item fields are available to use for analysis
in the std system
168. Your co code is assigned to a leading ledger, 2 additional normal ledgers and one
extension ledger. How many carryforwards must be executed?
 4. You perform carryforward separately for each ledger. This definition includes the
extension ledgers assigned to a co code
169. What kind of automated checks are available for the financial statement version?
(There are 2 correct answers)
 Check for a/c assigned to one side only, check for incorrectly assigned a/c. The full
list of checks is as follows:
o A/c assigned to 1 side only
o Nonassigned a/c
o Incorrectly assigned a/c
 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
170. An online test run for depreciation is limited to how many assets?
 1000.
171. When you post an amt to an asset in the LVA class that is above the threshold for the
max value, how does the system respond?
 The system produces an error message; for you to post, you must split the asset or
post to another asset class.
 When you try to post above the max value for an asset created in the LVA class, the
system produces an error.
 You can only post up to max amt for assets in this class. In this case, you would check
if you can split the posting or more likely create the asset in a “normal” asset class.
 The other options have 1 thing in common: the system is making a lot of decision and
automations. As a rule, the default system keeps things simple.
 Too much automation runs into problem when dealing with processes and
transactions that might be done very differently depending on the co.
172. Which transactions lead to asset capitalization? (There are 3 correct answers)
 Valuated goods receipt, assets under construction (AUCs) settlement, intracompany
transfer. An asset is capitalized when processing a valuated goods receipt. The invoice
is used for confirmation/ adjustment of the amt. In contrast, with a nonvaluated
goods receipts, the asset will be capitalized from the invoice entry. When you settle
the line items posted to an AUC to the final assets, those are capitalized. When you
post an intracompany asset transfer, the asset is capitalized on the asset value date.
 The purchase order doesn’t capitalize an asset; that happens either on goods receipt
(for a valuated goods receipt) or during invoicing
173. For which kind of asset is the asset main text always prefilled?
 Asset subnumbers. The asset subnumbers inherit the asset main text from the main
asset number and this can’t be changed
174. When you copy an asset, the asset text is copied as well. How can you avoid this?
 By changing the assigned screen layout. You define which fields get carried over
when an asset is used for reference in the screen layout. This isn’t maintained in the
tab layout or the asset class. The dummy reference asset isn’t a good solution; it’s
more of a hack workaround.
175. What is true for real depreciation areas?
 You can post transactions to them independently. In asset a/c transactions that
aren’t integrated with a/c payable/ a/c receivable, you can choose to post them to
specific depreciation areas. In addition, if a depreciation area isn’t valid for an
individual asset, you can deactivate it. The asset values then won’t be updated for
the deactivated area even for external transaction (an expense or loss a/c is debited
to balance the technical clearing a/c in such cases). A real depreciation area doesn’t
have to post to the GL; each area is assigned a specific currency type. Calculating
values from other areas is the exact reason for having derived (not real) depreciation
areas
176. How can you default a value for the cost center in the entire asset class for buildings?
 By changing assigned screen layout. In the screen layout, you can define that a field
can be set on the asset class level. You can do the same for the subnumbers, but
another main asset in the asset class wouldn’t be limited. The tab layout only affects
the positioning of the tabs. The cost center assigned to the asset can’t be affected by
a rule in the default a/c assignments.
177. Which business partner categories does the system support? (There are 3 correct
answers)
 Group, organization, person. The partner categories are person, org, group. These
are fixed categories; you can’t change or add any. Agency and public sector fall into
the org category
 Person (i.e., a pvt individual): Maintain a first and last name, and details such as
gender and academic title
 Org (e.g., a co): Enter details such as the name, legal form and entity, and industry
 Grp (e.g., a married couple): Enter 2 names and grp type
178. In the payment method settings for the co code, what options do you have for payment
optimization? (There are 2 correct answers)
  Optimization by bank group, optimization by postal code. You can select to optimize
per bank group, meaning the system will give priority to paying from bank a/c that
are in the same bank group as the business partners. You can also optimize by postal
code, meaning the preferred bank will be the closest (according to postal codes) to
the business partner.
179. Which KPIs can you find on a/c payable overview page? (There are 2 correct answers.)
 Cash discount utilization, aging analysis. You want to track cash discounts to make
sure you’re taking advantage of all discounts offered, so that is one. The other correct
answer is the aging analysis.
180. At which point is the down payment request created in the integrated down payment
process with purchasing?
 Purchase order. You enter that a down payment is expected in the purchase order,
and this generates the down payment request in financial a/c.
181. When assigning dunning charges to a dunning procedure, what options do you have?
(There are 2 correct answers.)
 Assign a fixed amt without assigning a dunning charge %age, assign a dunning
charge %age without assigning a fixed amt. You can assign either an absolute value
for the dunning charge or %age (which is calculated off the total amt of the overdue
items). You can’t select both. You enter the charges per level and per outstanding
amt, so that is where you can differentiate the charges assigned.
182. What can you change for items that are in the exceptions list of the payment proposal?
(There are 3 correct answers.)
 Payment block, payment method, bank selection. You can remove the blocking
reason (if it’s allowed by the definitions in Customizing), you can enter or change the
payment method, and you can enter or change the selected house bank a/c. In
addition, although not one of the answer options, you could also alter the discount
amt (per the tolerances allowed).
183. You’ve negotiated payment terms that include 3 installment payments with your
customer. How many terms of payment must you define?
 4. To configure installments, you need a base payment term and then an additional
payment term per no. of installments. In Customizing, you assign each installment
payment term to the base payment term.
184. What does assigning a screen variant during document entry do?
 It changes the fields that are ready for entry in the line items. The screen variant is
an entry that simplifies the line-item section of the screen by displaying only those
items that are required to be entered or at least a much smaller selection of a/c
assignments than what is on the std line items. The screen variant has no effect on
the header section, and it has no predefined values attached to it.
185. When setting up the system, you want to maintain default values for users of a co code.
Which application do you use?
 User Maintenance. As a consultant, you would use the User Maintenance apps
(Transaction SU01/ SU10). With these transactions, you can change users other than
your own. Both the user profile and the default values in the SAP Fiori launchpad are
limited to defaulting values only for the logged-on user
186. Your customer doesn’t want to implement profitability analysis, not even a/c-based,
because the co doesn’t understand its value. Which argument would you use to persuade
the customer?
 P&L statements can be analyzed by sales-specific characteristics. Many fields
coming from sales and distribution are transferred to the Universal Journal as values
of CO-PA characteristics
 Anything that finds itself as information on the line item in the Universal Journal can
be analyzed in reports, including the P&L statement
187. You’re configuring a new SAP S/4 HANA system. What are your options for defining the
no. range assignments for business partners?
 The BP drives the no. range used. In a new SAP S/4 HANA system, the business
partner is defined first and is assigned a no. The customer and supplier created for
the BP inherit the BP a/c no.
188. A BP is both a customer and a supplier. The customer has a sizable open amt unpaid.
You want to make sure that the payment program posts no outgoing payments to the BP
until he has paid part of the o/s amt. How can you do this?
 Assign a payment block in the supplier BP role details. An overall payment block
would block incoming payments as well as outgoing, which is the same as assigning
the block on the customer
 A purchasing block would mean you wouldn’t be able to use the supplier to order
goods, which isn’t mentioned as a desired outcome in the scenario.
 Blocking the supplier for payment ensures that you won’t pay for any open items, at
least not without a manual supervision of the payment
189. Which field in the BP master can you configure so that the document reference is
transferred to the line item?
 Sort Key. The Sort Key defines what is transferred to the assignment field on the line
item. Here, you shouldn’t be confused by the field names and remember where
everything belongs.
 The assignment is the actual field where such information is transferred; the
reference is a document header field.
 The line-item text can the information (not automatically, except maybe with a
substitution) but, more importantly, it’s a document-level field and not maintained in
the BP
190. What can you enter in the header section of the Post Outgoing Payments app? (There
are 3 correct answers.)
 Value date, bank fees, customer. Discount amt is a line-item setting because it might
be different from the items you clear. The same is true for the Payment Terms field
(which would be weird to change during the payment entry).
191. Which field cannot be changed during document posting for the one-time customer?
 Customer Number. The customer no. can’t be changed. The customer no. isn’t an
identifying characteristic for one-time customers because more than one will share
it. You can enter the customer name, industry, country, and other address and bank
details during the posting transaction in the special popup window.
192. Which objects can define the max. length of a GL a/c? (There are 2 correct answers)
 Chart of a/c, a/c group. In the definition of the COA, you define the maximum
length of the a/c. In the a/c group, you define the no. range; the no. range by
default also controls the length of the field. Whichever is shortest takes priority for
the a/c length definition
193. What fields do you have to enter to make a document reversal? (There are 2 correct
answers)
 Posting Date, 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.
194. Your co code is assigned to 2 std ledgers and 1 extension ledger. You post an invoice
with 1 expense line item with a 10% VAT (sales) tax. How many line items are posted in the
document entry view (table BSEG)?
 3. The entry view is the document posted before taking into consideration document
splitting and ledger- specific line items. So, it’s a pretty straightforward calculation:
o 1 line for the supplier
o 1 line for the expense
o 1 line for the tax
 3 lines total are posted in the entry view (updated in line-item table BESG)
195. Your co code is assigned to 2 std ledgers and 1 extension ledger. You post an invoice
with 1 expense line item with a 10% VAT (sales) tax. How many line items are posted in the
Universal Journal (table ACDOCA)?
 6. The Universal Journal line items (updated in table ACDOCA) depict the document
after taking into consideration document splitting and ledger-specific line items.
  Document splitting with 1 expense line won’t create new line items; inheritance
would add the relevant a/c assignments (typically profit center and segment) to the
tax and supplier line items.
 The std ledger are both updated: not by posting lines specific to the extension ledger,
but through the underlying ledger the extension ledger is assigned to. So,
analytically, you’ll have the foll.
o 1 line for the supplier for each std ledger
o 1 line for the expense for each std ledger
o 1 line for the tax for each std ledger
 6 lines total are posted in the Universal Journal
196. Which date defines the period a document can be posted to?
 Posting date. The posting date is the only date that defines the period in which the
system will post the document. If a period is already closed, you need to select a
posting date in an open period. An exception here is defined for the special posting
periods: in case of posting to a special period (period 13, 14, 15 or 16 in a 12-period
fiscal year), you need to choose a posting date in the last period of the fiscal year.
197. Which of the following fields can be configured as changeable in a document header?
 Document Reference. Only 2 fields can be defined as changeable in the document
header segment of a financial accounting document: the document reference and
the document header text. The only way to correct any other wrong fields in the
header is to reverse and repost the document.
198. You indicate that you’re posting to the ledger group of an extension ledger. How many
ledgers are updated?
 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 update the extension ledger.
199. Which fields in the co code definition of a GL a/c are always required? (There are 2
correct answers.)
 A/c currency, field status group. The a/c currency and the field status group always
need to be defined to create an a/c. These can’t be affected by the field status
definition of the a/c group. The group a/c is defined on the COA level and it’s indeed
a required field when a grp COA is assigned to the operational COA. The sort key isn’t
a required field, but it’s very useful, and filling it in is very much recommended to
help with reporting on line item
200. What is defined with the fiscal year variant? (There are 2 correct answers)
 Start and end dates of the fiscal year, no. 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 universally accepted and not defined in the SAP system
201. What can you control with the tolerance group? (There are 3 correct answers)
 Maximum amt per open item, maximum amt per document, maximum permitted
payment difference. The maximum exchange rate deviation is defined in the co code
global settings. The maximum tax amt isn’t a very plausible option here.
202. What does the posting key define? (There are 2 correct answers)
 A/c type, debit/ credit line. Posting key tells to system 2 things:
o What kind of a/c you’re posting to (GL, asset a/c, AP, AR)
o If the line is a debit or credit entry (for GL postings, 40- debit and 50- credit)

203. What is the relationship between a/c of operating COA and local COA?
 1 operating a/c to 1 local a/c. When you assign a local COA in co code, you can only
assign a local a/c to a single a/c of operational COA
204. What options does a processor have for a general journal entry submitted for
verification? (There are 3 correct answers)
 Approve, reject, suspend. As a processor, you can approve or reject the document
entry. “Suspend” is the term used by SAP to put out a journal entry “in waiting”.
Delete is a very rare function in SAP S/4 HANA when it comes to documents by
design.
205. Which values can you define as prerequisites for triggering the general journal entry
verification workflow? (There are 3 correct answers)
 A/c grp, cost center, source co code. In addition, you can also use the threshold
value.
206. When is it possible to set the open item management indicator in a general ledger
account? There are 2 correct answers.
 When an account has a zero balance, when an account is set up as balance sheet
a/c. G/L accounts that can't be managed on an open item basis include, for example:
o Bank accounts
o Tax accounts (except for deferred tax)
o Raw material accounts
o Reconciliation accounts, which are managed implicitly using the subledger
open item function
o Material stock accounts

207. You are responsible for implementing assets accounting, you are provided with the
legacy data of various assets and their grouping information based on classifications, useful
life, and depreciation terms What configuration step would you initiate to maintain these
categories in SAP S/4 HANA?
 Define classes and maintain their attributes
208. What are some features of SAP HANA? There are 2 correct answers to this question
 SAP HANA allows transactional and analytical processing from the same tables; SAP
HANA is optimised to organise data using column stores
209. Which closing activities are performed for external reporting as per SAP best practices?
There are 2 correct answers to this question
 Regroup receivables and payables on the balance sheet, perform valuations of
open items in foreign currency. In external reporting, it is important to accurately
classify and report receivables and payables to provide a clear picture of the
financial position.
 Additionally, performing valuations of open items in foreign currency is necessary
to account for any fluctuations in exchange rates and accurately report the financial
results.
210. How can you define a matching method for intercompany reconciliation?
 It must be defined as master data. With the Define Matching Methods app, you can
create, display, change, or delete matching methods. In the Attributes section of
Create, Master Data is selected as the storage type and is unchangeable. Master
data can only be defined directly in the production system or replicated between
systems via file export and import.
211. Which information is part of the Bank Master Data?
 Data Medium Exchange (DME) details, control data. You can also maintain details for
communications, data medium exchange (DME), bank charges and Electronic Data
Interchange (EDI).
212. In your SAP S/4 HANA system, you report financial values for three separate accounting
principles, you post an acquisition for an asset that is capitalized in a single accounting
principle. If you use the application to post integrated asset acquisitions, how many
documents will the system post?
 3
213. In your SAP S4/HANA system, you report financial values for two separate accounting
principles. You post an acquisition for an asset that is capitalized in a single accounting
principle. If you use the application to post integrated asset acquisitions, how many
documents will the system post?
 2
214. Which of the following statuses indicates a confirmed costing run in SAP S/4HANA?
 Released
215. Which activity type in SAP S/4HANA measures the consumption of overhead
resources?
  Secondary cost element. Secondary Cost Elements measure the consumption of
overhead resources in SAP S/4HANA, representing internal cost allocation between
cost centers and cost objects.
216. What is the main objective of liquidity item hierarchies in SAP S/4HANA Financial
Accounting Associates?
 Categorising cash flows
217. What is the impact of real-time integration on Profit Center Accounting?
 Immediate updating of the profit centers after posting a transaction
218. Which of these modules of SAP S/4HANA is not impacted by Account Determination?
 HR
219. Which master record maintains tax-exempt customer information?
 Business Partner Master Data. The tax classification indicator, which is maintained in
the customer master records, normally specifies whether this business partner is
liable for or exempt from taxes.
220. Which of the following is a prerequisite for creating a new asset master?
 Create asset class
221. Which of the following is not a standard G/L Account Type in SAP S/4HANA?
 Accumulated Depreciation. Accumulated Depreciation is not a standard G/L Account
Type in SAP S/4HANA. G/L Account Types include Balance Sheet Account, Revenue,
Expense, Non-Operating Expense, and Non-Operating Revenue.
222. Which of the following is a primary cost component in the cost of goods manufactured
statement?
 Raw material cost
223. Which of the following tasks can be performed using the Fiori Display Financial
Statement app?
 Display fin statements. Using the Fiori "Display Financial Statement" app, you can
primarily view a full balance sheet, profit and loss statement, specific nodes within
the financial statements, compare key periods with comparison periods, search for
specific G/L accounts or line items within the financial statements, and access
detailed G/L account balances and line items depending on your user role and access
permissions
224. What are the features of the Accrual Engine in SAP S/4 HANA?
 All currencies of General Ledger are supported, the fiscal year variant of the G/L
ledgers are supported.
225. Your customer wants to use data aging for the universal journal. Which criteria can you
use to decide which data is moved to the historical partition? There are 2 correct answers to
this question.
 Co code, ledger. Data aging for the universal journal allows you to move data to a
historical partition based on certain criteria.
 The two correct criteria for deciding which data is moved are Company Code and
Ledger.
 By using the Company Code, you can segregate data based on different
organizational units within the company.
 The Ledger criterion allows you to separate data based on different accounting
principles or reporting requirements. These criteria help in efficiently managing and
organizing data in the historical partition, ensuring that only relevant and necessary
data is stored there.
226. Identify the steps performed during the general ledger closing operations for the fiscal
year. There are 3 correct answers to this question.
 Accruals are carried out, the balance carry forward program is run, foreign currency
documents are valuated.
227. Identify the criteria that usually differentiate between document change rules. There
are 2 correct answers to this question
 A/c type, co code. Account Type-> A: Asset or D: Customers or K: Vendors or M:
Material or S: G/L accounts or leave it as blank (blank means for all account type)
 Field name, Company code (same with account type, if company code is defined as
blank, it means this change rule defined is for all company code)
228. Which of the following methods does the depreciation key define? There are 3 correct
answers to this question.
 Calculation of depreciation is based on depreciation keys assigned to the asset per
depreciation area
 Depreciation key calculation is controlled through calculation methods assigned to
the key
 The depreciation key defines the foll. types of calculation methods:
o Base method
o Declining balance method
o Maximum amount method
o Multilevel method
o Period control method

229. In your SAP S/4HANA system, you report financial values for three separate accounting
principles. You post an acquisition for an asset that is capitalized in a single accounting
principle. If you use the application to post integrated asset acquisitions, how many
documents will the system post?
  2. When posting an integrated asset acquisition in SAP S/4HANA system, the system
will post two documents. One document will be posted for the acquisition itself,
and another document will be posted for the capitalization of the asset in the
accounting principle.
 This ensures that the financial values are recorded correctly for both the acquisition
and the accounting principle.
230. Identify some of the fields related to the depreciation area in the asset master record.
There are 3 correct answers to this question.
 Depreciation key, useful life, scrap value. The depreciation area in the asset master
record includes fields such as the depreciation key, which determines the
calculation method for depreciation, the useful life of the asset, which indicates
how long the asset is expected to be used before it is fully depreciated, and the
scrap value, which is the estimated residual value of the asset at the end of its
useful life.
 These fields are important for accurately calculating and recording depreciation
expenses for the asset.
231. You want to post a reversal for a document posted in a closed posting period. Which
object do you configure to allow you to enter the reversal with a date different from the
original document?
 Reversal reason. To post a reversal for a document posted in a closed posting period,
you need to configure the reversal reason. This configuration allows you to enter the
reversal with a different date than the original document. The reversal reason must
be set up with specific parameters that permit posting in a different period, thus
enabling the reversal even if the original period is closed.
o Access Transaction Code (FB08): Open the transaction for document reversal.
o Enter Document Details: Provide the document number, company code, fiscal
year, and specify the reversal reason.
o Select Posting Date: Ensure that the posting date for the reversal is different
from the original posting date and falls within an open period.
o Execute Reversal: Confirm the details and execute the reversal process.
 By configuring the reversal reason with appropriate settings, SAP allows you to
manage document reversals flexibly, even when dealing with closed periods
232. The dunning run is made up of three main steps that happen in a particular sequence.
What is the correct sequence of steps? Please choose the correct answer.
 Account selection -- > Dun line items -- > Dun account
233. What correctly describes a chart of depreciation in SAP S/4HANA? There are 2 correct
answers to this question.
 A chart of depreciation contains multiple depreciation areas with a provision for
addition and deletion of depreciation areas, a chart of depreciation is a country-
 specific object that is delivered with SAP S/4HANA. Charts of depreciation are used
to manage various legal requirements for the depreciation and valuation of assets.
 These charts of depreciation are usually country-specific and are defined
independently of the other organizational units. You can use one chart of
depreciation for all company codes in a country
234. Which entries do you define when maintaining a G/L account? There are 3 correct
answers to this question.
 A/c group, a/c Type, Field status group
235. How can you create an asset under construction? There are 2 correct answers to this
question.
 Automatically, when settling capex costs from a WBS element, automatically, when
creating an investment measure. The asset under construction is generated by
assigning an investment profile to the project or work breakdown structure (WBS)
element and upon releasing the project or WBS element.
 All, or part, of the costs must be settled to the asset under construction.
 If it is not possible to activate parts of the costs incurred on the WBS element,
maintain a settlement rule. If a settlement rule is not set, everything is automatically
settled to the assigned AuC.
 When the asset under construction is complete, master records are created. The
settlement rule is maintained. Full settlement credits the AuC and debits the new
assets.
236. What can you achieve with the legacy data transfer in Asset Accounting via transaction
AS91?
 Posting of take over values, creation of master data. In ECC system the Transaction
code AS91 is used to create asset master and also post asset values in asset
accounting through ‘Takeover values’.
237. Your system uses parallel currencies. What is the posting indicator of the depreciation
area for the parallel currency?
 Posts to GL in real time. In Financial accounting apart from the local currency we can
define two additional currencies for the company code. The main purpose of using
parallel currencies is to maintain the GL a/c in different currencies.
 The companies which have subsidiaries in different countries use parallel currencies
to update the foreign business transactions in different foreign currencies (parallel
currencies).
 We can use various currency types for the parallel currencies such as Group currency,
Global Company currency, Index based currency and Hard currency.
 The purpose of using parallel currencies in Asset accounting is to maintain the fixed
asset values such as APC and Depreciation in different currencies.
  Depending on whether a depreciation area posts in real time or periodically to
General Ledger Accounting, the system translates the values historically or for a key
date:
o Historical management of values: Set up an additional depreciation area for
each posting depreciation area and for each accounting principle that
manages this parallel currency. In Customizing for Asset Accounting,
choose Valuation >> Depreciation Areas >> Define Depreciation Areas.
Valuation in the parallel currency is entered on the assigned G/L accounts and
in Asset Accounting, using the historical currency exchange rates of the
original posting (for example, the invoice receipt).
o Management of values related to a key date (only relevant for the special
case where APC is posted periodically for the depreciation area): The values
of the posting depreciation area are translated into all parallel currencies of
the company code for this area on the key date of the periodic document
creation for this depreciation area. If General Ledger Accounting manages
fewer currencies than the company code, then only the currencies managed
in General Ledger Accounting are considered.

238. Which of the following objects is only a statistical account assignment for cost postings
to an asset?
 Profit center. WBS element/Cost Center/Internal Order is a real CO object whereas
Profit Center is a Statistical Object.
 All the posting you make to the real object are real postings, in parallel to that
statistical posting will be flown to your profit center.
239. You have activated the WBS Element (not related to Investment Management) as an
account assignment for asset accounting “balance sheet" and "identical" active. What are
the consequences? There are 2 correct answers to this question.
 The WBS Element is available for input in the asset master record, the WBS
Element can no longer be changed in the asset master record once the asset is
capitalized.
240. You perform the depreciation run for your assets. For a specific asset, you would like to
post the depreciation specified in the asset master data. How do you achieve this?
 By changing the corresponding error into a warning via configuration
241. At which levels do you choose between direct and indirect quotation? Note: There are
2 correct answers to this question.
 Exchange rate type, client. You can manage exchange rates for each currency pair
using direct or indirect quotation. The type of quotation used is dependent on the
market standard. You can define the type of quotation per client and currency pair
(business transaction)
242. Which of the following organizational elements can be shared by several company
codes? There are 3 correct answers to this question.
 Segment, business area, profit centre. One or more sales organisation is assigned to
a company code but the number of sales orgs should be kept to a minimum i.e. one
per company code.
 A plant is an organizational unit under logistics general, it cannot be assigned to more
than one company code, but there could be several plants under a single company
code
 A business area is an organizational unit within accounting that corresponds to the
highest level in costing structure of an org. and is basically used for reporting
purposes such a profitability analysis and frame suitable business policies for that
area. Business area is organized on the following criteria – functional lines, plant and
division i.e. product lines or on regional responsibility areas i.e. sales areas.
243. SAP S/4HANA has introduced the Universal Journal (table ACDOCA) which represents
the single source of truth. Which line items are recorded in the table ACDOCA? Note: There
are 3 correct answers to this question.
 Primary costs from distribution, intercompany postings (2ndary cost coming from
assessment). The ACDOCA table stores all actual line items, including
multidimensional GL, CO, COPA, AA, and ML dimensions, providing a comprehensive
source of financial data.

244. Your company follows IFRS accounting principles and needs to issue a full financial
statement for its two main divisions "Consumer Products" & "Professional Products". What
do you need to achieve segment reporting in this scenario? Note: There are 3 correct
answers to this question.
 Business areas, segments, profit centres
245. What is the recommended organizational unit for cost of sales accounting?
 Functional Area. Functional area is an org unit in a/c that classifies the expenses of
an organization by functions such as:
o Administration
o Sales and distribution
o Marketing
o Production
o Research and development
 Classification takes place to meet the needs of cost-of-sales accounting
 Typical functional areas are Sales, Production, Marketing, Administration and
Research & Development.
246. What type of architecture does SAP Business Workflow use? Choose the correct
answer.
  3-tier. Following are the three layers in SAP Workflow architecture −
o Business Object
o Business Process
o Organization Model

247. Identify the fields that cannot be changed while changing parked documents. Choose
the correct answers. (3)
 Currency, co code, doc type/ no. You can make changes to:
o Individual documents
o Individual items
o Several documents simultaneously using a list
o Other values via the line items
 However, you cannot change the currency and company code.
 The document type or document number uniquely identifies the document and
cannot be altered.
 Similarly, the currency and company code are essential for financial transactions and
cannot be modified during the process of changing parked documents
248. Which of the following steps are parts of the process of configuring the payment
program?
 Configure the paying co codes, configure the payment methods for each co code,
configure the house banks. SAP provides one centralized T. Code FBZP for this
configuration. There are 6 steps in this configuration:
o Configuration for company code.
o Configuration for paying company code.
o Configuration for payment method in country.
o Configuration for payment method in company code.
o Configuration for bank determination.
o Configuration for House bank.

249. How many intervals are defined for the foreign currency valuation run ID per client?
 1. You can only perform a valuation run once for each valuation area for a specific key
date
250. What do you configure to allow cross-company-code transactions? Note- There are 2
correct answers to this question.
 Posting keys, clearing a/c. To allow cross-company-code transactions, you need to
configure clearing accounts and posting keys.
 Clearing accounts are used to offset open items between different company codes,
ensuring accurate reconciliation.
 Posting keys determine the type of transaction and the relevant general ledger
accounts to be affected.
  By configuring both clearing accounts and posting keys, you enable the system to
process cross-company-code transactions correctly and efficiently.
251. How does the system behave when an invoice is processed as a residual payment?
 Original doc and payment are cleared. Residual payment clears original invoice with
incoming amount and create new line item for remaining outstanding amount.
252. Which parameters can you specify directly when you create a new correspondence
type? Note: There are 3 correct answers to this question
 A/c required, document no. required, no. of date fields required

253. For which account can you perform a/c clearing in SAP S/4HANA?
 For any account that is managed on an open item basis
254. What are the basic definitions you make for validations? There are 3 correct answers to
this question.
 Prerequisite, check, message. Every Step follow this 3-step process: Prerequisite >
Check > Message
o Prerequisite: defines the conditions that must be met for the validation to be
executed
o Check: If the check evaluates to true, the condition is met, the validation is
successful.
o Message: notification generated based on the outcome of the checks.

255. How should errors be handled during an SAP S/4HANA migration? There are 2 correct
answers to this question
  All errors must be corrected during migration to complete it, critical errors must be
resolved in the production system before Go Live
256. Which of the following methods can be used to transfer Asset Accounting (FI-AA) legacy
data? There are 3 correct answers to this question.
 Use BAPI or IDoc interfaces for large quantities of legacy data, use batch input or
legacy data transfer workbench for medium to large quantities of data, use AS91 for
manual input of manageable quantities of asset master records.
257. The usage of which of the following depreciation types can be activated per
depreciation area? There are 3 correct answers to this question.
 Ordinary Depreciation, Special Depreciation, Unplanned Depreciation
 Ordinary Depreciation: Ordinary depreciation is the planned deduction for wear and
tear during normal use of an asset.
 Special Depreciation: Special depreciation represents deduction for wear and tear on
an asset from a purely tax-based point of view. This form of depreciation allows
percentage depreciation, possibly staggered within a period allowed by the tax
authority, without taking into account the actual wear and tear on the asset.
 Unplanned Depreciation: Ordinary depreciation reflects the deduction for wear and
tear during the normal use of the asset. Unusual influences, such as damage which
leads to a permanent decrease in the value of the asset, are covered by unplanned
depreciation.
258. For which types of accrual postings is account determination necessary? There are 2
correct answers to this question
 Opening and Closing Posting only, periodic posting. You can assign all postings
defined to an accrual type, or only individual postings:
 Opening Entry: With an opening entry, the entire amount to be accrued is posted as
a balance posting. Account determination is usually set up in such a way that the
entire amount to be accrued is posted to an accruals account.
 Periodic Postings: The total amount to be accrued is split over the individual periods
according to the accrual method concerned. When you perform an accrual run in a
period, the accrual amount for that period is posted. Account determination is
normally set so that the periodic postings are from the accruals account to a profit
and loss account.
 Closing Entry: A closing posting only occurs when you deactivate an accrual object
prematurely. The amount that has not been accrued by the time of the premature
deactivation is posted as the deactivation amount.

Transaction Description
I Opening entry
P Periodic posting
F Closing entry
259. Cleared items contain which of the following pieces of information? There are 2 correct
answers to this question.
 Clearing date, clearing doc no
260. Identify the callup points that have been provided for Financial Accounting (FI). There
are 3 correct answers to this question.
 Document Header, document line, complete document. The call-up points that have
been provided for Financial Accounting (FI) are Document Header, Document Line,
and Complete Document.
 These call-up points refer to specific areas within the FI module where information
can be entered or retrieved.
 The Document Header is where general information about the document is
recorded, such as the document number and posting date.
 The Document Line is where individual line items are entered, such as the accounts
being debited or credited. The
 Complete Document refers to the entire document, including both the header and
line items.
261. Which standard currency types are essential when configuring currency settings for
company codes? There are 2 correct answers to this question.
 Co code currency, grp currency. In FI, we have to specify at least one currency for the
ledgers to be managed. As this cover local legal reporting requirements, this currency
is the local currency (or company code currency).
262. Which of the following can you use for multiple programs with variants that are to be
processed automatically? Please choose the correct answer.
 Flow definition
263. For which activities can you use an extension ledger? There are 2 correct answers to
this question.
 Simulation of foreign currency valuation, adjustments for consolidation purposes.
Besides preparing GAAP financial statements, many companies have fairly rich
management reporting requirements.
 Most of the information needed comes from standard ledgers but usually, data must
be regrouped, enhanced, or refined. In the past, in SAP ERP you could use a special
Ledger, a second parallel Ledger, or just add cost objects to address this kind of
requirement. However, none of these solutions was optimal and each came with its
problems and limitations. Now, in S4HANA we have a better solution - the extension
ledger.
o You can set up an extension ledger, for example, to record:
o Internal Management reporting adjustments
o Adjusting entries after books are closed.
o Topside adjustments
 o Adjustments for tax purposes to reach a tax-adjusted profit or loss
 An example of a simulation is a closing activity with Foreign Currency Valuations.
Imagine that you would like to see an impact of foreign currency revaluation on your
financial statement before actually running it.
 Since SAP S/4HANA 1610, you can run the Foreign Currency valuation in simulation
mode. The simulation run generates valuation posting documents that are posted
into an S-type extension ledger.
 Reporting on the simulation ledger combines simulation data with actual data of the
underlying ledger. You can see the simulated data on all reports for which you can
specify a ledger. The simulated data are deleted automatically once you run the
foreign currency valuation in productive mode. This way you can run financial
statements and see the impact of currency changes any time before actually posting
them.
264. What is the purpose of period interval 3 when you define open and closed periods?
Please choose the correct answer.
 It is used for posting from CO to FI
265. Identify the three types of tolerances in accounting. There are 3 correct answers to this
question.
 Customer/vendor tolerance groups, employee tolerance groups, GL a/c tolerance
groups
266. What are the three basic steps required to define a new company code? There are 3
correct answers to this question.
 Adjust global parameters, copy existing company code, adjust basic and address data
267. For which type of account is the line item display generally active? Please choose the
correct answer.
 Reconciliation a/c
268. A document has several line items, with different reason codes entered. For the
automatic payment, which correspondence type does the system choose?
 The one assigned to tolerance grp
269. Which dates can you use for tax calculation? There are 2 correct answers to this
question.
 Doc date, posting date
270. On what level can you assign a fiscal year variant in SAP S/4HANA? Please choose the
correct answer.
 Client
271. How can you set up multiple valuations for transfer pricing in your SAP S/4HANA
system? There are 2 correct answers to this question.
 You can assign each valuation to a separate ledger; you can assign profit centre,
group, and legal valuations to the same ledger. All valuation approaches you
manage in accounting must also be managed correspondingly in the material ledger.
Currently 3 valuation views are available:
o Legal valuation focuses on inter-company pricing agreements and legal tax
requirements. Allows you to represent profits optimally in the financial
statements of the company code for tax purposes and according to GAAP
Standards.
o Group valuation focuses on eliminating intercompany profits (mark-up) and
acting as “1 company". Allows strategic decision making by viewing data as if
the group acts as a single company code by eliminating internal profits
throughout the financial transaction flow.
o Profit Center valuation focuses on management prices agreed e.g., between
divisions (optional) or could be also market prices. Allows you to view the
profit of individual areas of responsibility as if they were selling entities not
part of the larger group.
272. There are four dunning program steps that can be performed during the automatic
dunning procedure as follows: Arrange these steps into the correct sequence. There are 3
correct answers to this question

273. What are the necessary configurations in SAP S/4HANA for migrating account values for
a customer transitioning from classic general ledger? There are 3 correct answers to this
question.
 A/c principles, ledger grps, valuation area
274. Which of the following retirement types is referred to as scrapping? Please choose the
correct answer.
 Partial retirement without revenue and without customer
275. When you post a manual incoming payment, which parameters are valid for all
payment documents? There are 2 correct answers to this question
 Bank a/c, journal entry type
276. Which prerequisite must be met by the technical clearing account for integrated asset
acquisition? Please choose the correct answer.
 The account is a reconciliation balance sheet account for fixed assets.
277. For which of the following can you park documents? There are 2 correct answers to this
question.
 General ledger accounts, customer accounts
278. You have to map 2 a/c principles for accounting. Using the a/c approach to parallel
valuation in SAP S/4HANA, which ledger must you use? Please choose the correct answer.
 Leading ledger. SAP provides two options - parallel accounts and parallel ledgers
 A/c principles are used for both scenarios
 Ledger (0L) is always used
 If an a/c-based approach is used, then several a/c principles are assigned to the
leading ledger
 If a ledger-based approach is used then the ratio between ledger and a/c principle is
1: 1
279. You have a debit amount of 50 and credit amount of 80 as balance on an account. This
account is assigned to the assets side in a financial statement version, with the debit
indicator and the credit. How is this shown on the balance sheet? Please choose the correct
answer.
 The balance is shown on the assets side
280. Which activities are supported by the regrouping program of receivables and payables?
There are 2 correct answers to this question.
 Grouping receivables and payables by their remaining life, regrouping open items
based on changed reconciliation accounts
281. In a valuation method, which of the following is not a valuation approach for foreign
currency valuation? Please choose the correct answer.
 High rate of interest principle. Those are different ways of valuating your Foreign
Currency Operations depending or the country regulations:
o Lowest value principle means that the Valuation will be posted only if it is
giving a negative result.
o Strict lowest value principle will post valuation only in two conditions:
 The valuation is negative
 The new valuation has a greater devaluation and/or a greater
revaluation for credit entries than the previous valuation
o Always Valuate: No matter if it is positive or negative, the valuation will be
posted.
o Revalue only: The opposite of the first one, valuation is only posted when
positive.
 o Reset Valuation Run: In this case open items are valuated at the acquisition
price. This way the valuation difference is set to zero. This is useful to reset
previous valuations
282. Which of the following is an example of an automatic offsetting entry? Please choose
the correct answer.
 Posting of a guarantee of payment. Automatic offsetting entries are transactions
that are always posted to the same offsetting account. They are typically part of the
balance sheet appendix. Example: Posting a guarantee.
283. Which data can you edit in the payment proposal? Please select all the correct answers
that apply.
 House bank, cash discount, payment block, payee, invoice. A payment proposal list
contains all open items (for example, invoices or credit memos) that the system
proposes for payment within a single execution of a payment run.
 You can change the payment method and related data (such as the bank account),
change the payment amount, select other customer/supplier bank details, enter or
change a cash discount amount, or delete open items (which will exclude them from
the payment).
284. What can you control with the tolerance group? There are 3 correct answers to this
question.
 Maximum amount per open item, maximum amount per document, 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.
285. What currency types should be included in the Data Entry view when defining a custom
currency type for your company code? There are 2 correct answers to this question.
 Doc currency, co code currency
287. For reporting purposes, your client would like to present information about customer
postings that are NOT reflected in the G/L. Which special G/L type do you recommend?
Please choose the correct answer
 Noted items
288. What personalization options are available in SAP Fiori for a group cash manager
focusing on the North American market? There are 2 correct answers to this question.
 You can create access to relevant apps for the North American accounts payable
group that reports to you, you can create an app to take you directly to the cash
position of the North American business market.
289. Your customer uses a posting period variant with special periods, and you need to allow
specific users to post in these special periods. What do you assign in the posting period
variant? Please choose the correct answer.
 An authorization group to period intervals 1 and 2
290. From which dates can you derive the baseline date for payment terms in an incoming
invoice? There are 3 correct answers to this question
 Doc date, entry date, posting date


291. On which level are asset classes created? Please choose the correct answer.
 Client. Asset classes are created at client level.
292. Which of the following are the different history sheet groups that each version of asset
history sheets can contain? There are 3 correct answers to this question
 Acquisition, reposting, book values at end of fiscal year. The asset history sheet
enables you to document and explain the balances on fixed assets for every
accounting principle, any local regulation, and for management purposes.
 SAP provides preconfigured key figure groups that you can use for your reporting.
These key figure groups bundle key figure codes, such as acquisitions, retirements,
transfers, and depreciation.
 You can customize the report as required by the client. For Ex - Opening balance,
Acquisitions/additions during the year, depreciation for the year etc.
293. How can you post accruals? There are 3 correct answers to this question.
  Post manually at the end of a period, quarter, or year, use the recurring entry
program, execute the periodic accrual run. You can post accruals by manually
posting them at the end of a period, quarter, or year.
 Additionally, you can use the recurring entry program to automate the posting of
accruals.
 Another option is to execute the periodic accrual run, which will automatically
generate and post accrual entries.
294. Why might you define options to have manually allocated item keys for the financial
statement version? Please choose the correct answer.
 To be able to enter an explanatory text for the item key
295. In which object do you define which SAP Fiori apps a user can use? Please choose the
correct answer.
 Fiori tile catalog
296. What functionalities are available in the SAP Asset Explorer? There are 3 correct
answers to this question
 Drill down to Financial Accounting (FI) document, drill down to reports, display
depreciation calculation
297. Which of the following statements are correct regarding workflow management in SAP
S/4HANA? There are 2 correct answers to this question.
 The same workflow variant can be assigned to several company codes, it is possible
to design multilevel workflow sequences
298. At which level do you define functional areas?
 Client. Functional area is defined at the client level
299. Which currency types are defaulted in SAP S/4HANA? There are 2 correct answers to
this question.
 00 = Document currency, 10 = Company code currency. You cannot change the
following SAP standard currency types: Document Currency (00) and Company Code
Currency (10).
300. You want to implement purchase order accruals in SAP S/4HANA. Which of the
following use cases are relevant? There are 2 correct answers to this question.
 Purchase of services, Purchase of consumable materials

Use cases Basis of accrual

Purchase Order Item (non-valuated  Use delivery schedule or linear
items), for example, consumables, spread over start and end date
services  Use the qty received or recorded
 Without goods receipts
  With good receipts
Purchase Order Item with Valuated GR  Use planned delivery schedule
(goods receipt) occurring in future
 With good receipts
Purchase Order for Services  Linear spread over start and end
 With Service Entry sheet date
 Accruals are usually not relevant for the purchasing of the following:
o Products that are put into stock, as no costs are associated to such purchase
order items. For example, raw material that will later be used for producing
other products.
o Products that represent a fixed asset, for example a laptop. Their value is
posted to a balance sheet account. The costs will occur later during
depreciation postings.
o Purchase orders that represent an inter-company stock transfer: they are not
related to an external supplier, so no accruals are needed
301. You want to assign your 3 newly created company codes to the same controlling area.
Which settings must be common to all the company codes? There are 2 correct answers to
this question.
 Fiscal year, operating COA. All the co codes under controlling area must share the
same Fiscal year and Chart of Accounts
302. Your company based in France has a permanent establishment in Switzerland where
financial statements are required by law. Which organizational unit do you need to create for
the permanent establishment in Switzerland?
 Co code. 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 the company code.
 A co 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 co code for the Swiss establishment ensures that financial
transactions are recorded in compliance with local legal requirements and financial
statements are generated accordingly and the org ensures compliance with Swiss
financial regulations and accurate financial reporting.
303. Which object is used to directly support the preparation for consolidation?
 Co/ trading partner. In preparation for consolidation, you have to make sure that the
partner information is correctly updated for business processes in which several
partner companies are involved.
 For the following business transactions, it is essential that you update the partner
information correctly.
o Sale of goods and services between partner companies
 o Expenses and revenues from business transactions made with partner
companies
o Financing transactions between partner companies
o Internal sales of assets between partner companies
o Closing activities concerning partner companies

304. Which of the following currency types can be defined for a specific ledger? There are 3
correct answers to this question.
 10= co code currency, 30= grp currency, 00= document co currency
305. In which scenarios is the technical clearing account posted? There are 2 correct answers
to this question.
 Direct asset acquisition posting with a vendor invoice (not linked to a purchase
order), valuated goods receipt on a purchase order with an asset as a/c
assignment.
 A technical clearing account is posted in SAP systems specifically during the process
of acquiring a new fixed asset, where it acts as a temporary holding account to
record the initial cost of the asset before the final posting to the appropriate asset
account, ensuring that the technical clearing account always maintains a zero
balance by automatically transferring the amounts to the correct asset account once
all necessary details are verified; essentially, it is used to manage the accounting
process for asset acquisition while maintaining accuracy and reconciliation
306. You post an unplanned depreciation to an asset. What is the effect on FI-AA and FI-GL?
 Posting is done in FI-AA in real time and in FI-GL once the depreciation posting
program has run. Any unplanned depreciation (ABAA) or write up transaction (ABZU)
will be stored firstly in FI-AA only. Once you ran the planned dep run for that month,
these will be picked up and posted to FI-GL.
307. What are characteristics of depreciation area 01? There are 2 correct answers to this
question.
 It cannot take over values from other areas, it must always post in real time. The
following applies to depreciation area 01:
o Asset accounting transactions posted to depreciation area 1 are posted to the
general ledger in real time.
o You may have to post asset impairment. Therefore, you can post Revaluation
and Revaluation on Ordinary Depreciation.
o The values in depreciation area 1 are used in the Annex 16 report.
o The following applies to depreciation area 01:
o Asset accounting transactions posted to depreciation area 1 are posted to the
general ledger in real time.
o You may have to post asset impairment. Therefore, you can post Revaluation
and Revaluation on Ordinary Depreciation.
 o The values in depreciation area 1 are used in the Annex 16 report.

308. On which levels can you define the technical clearing account for Integrated Asset
Acquisition in Customizing? There are 2 correct answers to this question.
 A/c determination, chart of a/c
309. You want to post depreciation costs of one asset to two cost centers. How do you do
this?
 You assign a real internal order in the asset master data which you settle periodically
to two cost centers.
 For the first 9 months post depreciation for Asset by maintaining cost center of dept
A in time dependent tab of Asset master data and post depreciation with it and when
10th month starts change the cost center in AS02 by adding interval in time
dependent tab of AS02.
 There will be a button more interval through which you will new interval for cost
center. Post the depreciation with new cost center for remaining three months
310. You run the balance carry forward for your company code. When looking at the log you
see there is an error with regards to. What is the cause of the error?
 You have not posted depreciation completely. In SAP S/4HANA, when running the
balance carry forward for a company code, it is crucial that all the necessary year-end
activities have been completed to ensure a smooth transition to the new fiscal year.
 One common cause of errors related to Asset Accounting during this process is the
incomplete posting of depreciation.
 Depreciation must be fully posted for all assets to ensure that the asset values are
correctly carried forward.
o Check Depreciation Run
o Review Depreciation Posting
o Complete Depreciation Posting
o Verify Year-End Closing Activities
 By ensuring that depreciation is fully posted, the balance carry forward process can
correctly include the depreciation values, thus avoiding errors.
311. You define the technical clearing a/c for Integrated Asset Acquisition in Customizing.
Which prerequisites must be met? There are 2 correct answers to this question.
 The a/c is defined as a reconciliation account for fixed assets, the a/c is balance
sheet a/c. The technical clearing account needs to be defined as Reconciliation for
Asset and due to the operational and valuating part of the posting, for each
accounting principle in the Chart of Depreciation the balance in this account would
be zero
 So that the system can ensure the zero balance, manual postings cannot be made to
the account. The account does not appear in the balance sheet, but in the notes to
the financial statement (since it has a zero balance).
  In the Central Finance system, you have defined the ACI account (technical clearing
account for the integrated asset acquisitions) as asset reconciliation account. You can
do this in transaction SPRO under Financial Accounting>> Asset Accounting>>
Integration with the General Ledger Accounting>> Technical Clearing Account for
Integrated Asset Acquisition>> Define Technical Clearing Account for Integrated
Asset Acquisition.
 In the source system, you have defined a clearing account with open item
management. And the clearing account has been set as technically cleared in the
source system. To do so, maintain the account in the Customizing activity in
transaction CFINIMG under Central Finance: Source System Settings>> Settings for
Central Management of Open Items in General Ledger>> Define G/L Accounts for
Technical Clearing
312. On which levels do you define FI-AA a/c determination? There are 2 correct answers to
this question.
 CoD, CoA. A/c determination is assigned to the asset class at the CoA and
depreciation area level. We can maintain a different A/c Determination for Asset
classes specific to our Chart of Depreciation using transaction code ANK1.
 Steps to Define Account Determination:
o Maintain Chart of Depreciation
o 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.
313. Your system uses parallel currencies. What is the posting indicator of the depreciation
area for the parallel currency?
 Posts APC real time and depreciation periodically. For each valuation, there is
always just one depreciation area that posts to the general ledger in real time and
manages acquisition costs (APC). The following applies for these posting depreciation
areas:
o For the leading valuation, choose the posting option Area Posts in Realtime.
o For the parallel valuations, choose the posting option Area Posts APC
Immediately, Depreciation Periodically.
314. You post a vendor invoice for asset acquisition without reference to a purchase order.
Which a/c documents are generated?
 One document per a/c principle and 1 doc for all a/c principles. For the operational
part (vendor invoice), the system makes a posting to all a/c principles against the
technical clearing account for integrated asset acquisitions
315. Your company structures its Profit & Loss (P&L) statement according to cost-of-sales
accounting. Which organizational unit do you need to define?
  Functional area. A functional area is an account assignment characteristic that sorts
operating expenses according to their function. For example:
o Manufacturing
o Administration
o Sales and distribution
o Research and development
 If you use cost of sales accounting, you have to sort your operating expenses by
functional area.
316. What are the consequences of the activation of segment reporting in asset a/c? There
are 2 correct answers to this question.
 The segment is automatically updated in existing asset master data, the segment
appears in the screen layout for asset master data. The Profit Center and Segment
fields are included in the asset master record. (In the asset master record, you find
these fields on the Time-Dependent tab page).
 Maintain the Profit Center and Segment fields in the screen layout rules of the asset
master records in Customizing for Asset Accounting under Master Data Screen
Layout Define Screen Layout for Asset Master Data (Logical Field Groups Time-
Dependent Data).
 You have to deselect the Segment check box in "Activate account assignment
objects" if you dont want to activate segment. If you do this it will not come in
Screen layout, so that there are no need to enter segment field.
317. You try to assign an alternative account to a G/L account but receive an error message.
What can be the reason?
 The alternative account is already assigned to another G/L account for the co code.
318. You notice that in the entry view of a document you have fewer items than in the
general ledger view. What is the reason for this?
 Doc splitting has been activated
319. What does the fiscal year variant define? There are 2 correct answers to this question.
 The number of posting periods, the start and end date of posting periods. Fiscal Year
Variant defines how many normal periods and special periods for the financial year
and start date and end date of each period.
320. You want to prepare a consolidated financial report for your corporate group consisting
of 15 legal entities. You have 10 company codes defined in your S S/4HANA system in a
single client. The others use separate legacy systems. How many companies should you
define in your SAP S/4HANA system to accommodate the consolidation scenario?
 5
321. Where do you assign group COA?
 Operating COA
322. From which G/L account types are values shown in the profit and loss (P&L) statement?
There are 3 correct answers to this question.
 Non-operating Expense or Income, secondary costs, primary Costs or Revenue
323. What is the prerequisite for a G/L account to switch off open item management for it?
 It has zero balance. If you want to switch off the open item management function
retroactively for an account, you must first clear all the postings currently on this
account. Even if there are no open items, it's good practice to verify that the account
has a zero balance before deactivating open item management.
324. Where do you assign the currency type?
 Ledger. Assign the new currency types to the ledger, where you want to use it.
325. On which level do you maintain the currency translation ratio between 2 currencies?
 Exchange rate type. When you create an exchange rate, the ratio will apply after you
input the exchange rate type, from and to currencies, and validate from date.
326. You try to create a G/L a/c but you get an error because the account number is not in
the accepted range. Which object do you need to customize to extend the number range?
 A/c group. When you define an a/c group, you also specify the number range that is
allowed for the a/cs of that group. When creating a G/L account, you cannot select
an a/c number that lies outside that range.
327. What separates the leading ledger from other parallel standard ledgers?
 It doesn't derive values from other ledgers. By default, the leading ledger is used to
manage the data required according to the accounting principles for the local close,
while the non-leading ledgers are used for the data required for financial statements
on group level
328. You are posting a general journal entry for your company code. After posting the entry,
you notice the document number is in the wrong number range. After reversing the
document, what do you need to change when reposting the document?
 Document type
329. When defining a new standard ledger, which action must you take to manually post a
general journal entry to it?
 Assign COA to ledger
331. You are trying to extend a G/L a/c to a new co code but are getting an error for
incomplete data. All customizable fields have been set to option in the field status. Which
fields must you always maintain when extending a G/L account? There are 2 correct answers
to this question.
 A/c currency, field status grp
332. Which fields are maintained on the COA level of a G/L a/c? There are 3 correct answers
to this question.
 Grp a/c number, short text, a/c grp. The following are some of the important fields
defined at the Chart of Accounts level:
o Account Number, usually numeric with a fixed number of digits, in our
example eight numbers.
o G/L Account Type, e.g. Primary Costs or Revenue, Secondary Costs, Cash
account, Balance Sheet, Non-operating Income or Expense.
o Account Group, used to organize and manage groups of similar G/L Accounts.
o Short and Long Text, the description of the G/L Account.

333. You notice that the GR/IR account does not have a zero balance. What could be the
cause? There are 2 correct answers to this question.
 A purchase order has a partial goods receipt for which we have not yet received an
invoice, a purchase order has a partial invoice receipt but not yet a goods receipt.
Before you create a balance sheet, you analyze the GR/IR clearing account using a
program that enables you to correctly display all business transactions that have
been posted to this account and not cleared.
 The program used for this analysis creates an item balance for each reconciliation
account and each assignment number If the account has a credit balance, goods
have been received but not invoiced; if the account has a debit balance, goods have
been invoiced but not yet received.
334. You are implementing the Cockpit for your organization. What are the advantages of
defining task groups? There are 2 correct answers to this question
 It allows cross template maintenance, it cover multiple cos with same/ similar tasks
335. Which items are taken into account during foreign currency valuation? There are 2
correct answers to this question.
 Line item valuation for balance sheet accounts defined with ledger group specific
open item management, balance valuation on items for balance sheet accounts not
defined as open item management. During foreign currency valuation in SAP
S/4HANA, specific items are taken into account to ensure accurate financial
reporting. These include:
o Balance Valuation on Items for Balance Sheet Accounts Defined with Ledger
Group Specific Open Item Management
o Line Item Valuation for Balance Sheet Accounts Defined as Open Item
Management
 These items ensure that the foreign currency valuation is comprehensive and aligns
with the financial reporting standards.
336. What is the role of valuation method in the foreign currency valuation? There are 3
correct answers to this question.
  Define the valuation procedure, determine the exchange rate type, define the
document type for the valuation posting. In a valuation method, you make the
following specifications for the foreign currency valuation:
o The valuation procedure to be used, for example, lowest value principle
o How the exchange rate differences determined should be posted, for
example, which document type should be used
o The basis on which the exchange rate should be determined, for example,
which exchange rate type should be used.
337. Where can you see the matching results from the Intercompany Matching and
Reconciliation tool?
 In an application specific table (ICADOCM). In a matching run, the system rolls in
from the data source that data that meets the filter conditions set in the matching
method and data source, matches the data based on your input period and the
matching rules, and saves the items and results in the table ICADOCM.
338. Which physical inventory methods are available in SAP S/4HANA? There are 3 correct
answers to this question.
 Continuous inventory method, periodic inventory method, cycle counting method.
The SAP System supports the following physical inventory procedures:
o Periodic inventory: In a periodic inventory, all stocks of the company are
physically counted on the balance sheet key date. In this case, every material
must be counted. During counting, the entire warehouse must be blocked for
material movements.
o Continuous inventory: In the continuous physical inventory procedure, stocks
are counted continuously during the entire fiscal year. In this case, it is
important to ensure that every material is physically counted at least once
during the year.
o Cycle counting: Cycle counting is a method of physical inventory where
inventory is counted at regular intervals within a fiscal year. These intervals
(or cycles) depend on the cycle counting indicator set for the materials.
The Cycle Counting Method of Physical Inventory allows fast-moving items to
be counted more frequently than slow-moving items.
o Inventory sampling: In MM – Inventory Sampling, randomly selected stocks of
the company are physically counted on the balance sheet key date. If the
variances between the result of the count and the book inventory balance are
small enough, it is presumed that the book inventory balances for the other
stocks are correct.
339. Your organization has heard about SAP Intercompany Matching and Reconciliation
(ICMR) and is wondering whether it could address their needs. For which purposes can ICMR
be useful? There are 2 correct answers to this question.
  To generate automatic posting to correct intercompany discrepancy, to highlight
and solve intercompany data discrepancy triggering a workflow. Intercompany
Matching and Reconciliation (ICMR) is introduced to speed up your intercompany
reconciliation process from company close to corporate close. As a built-in solution
in SAP S/4HANA Cloud, it matches transactions without any ETL (extract, transform,
load) processes and reconciles your financial data in real time. You can attach
workflow and auto-adjustment logic to an assignment so that discrepancies can be
automatically resolved in an controllable and traceable way..
340. You run a financial statement report and notice the net profit calculated is different
than what you expect. What could cause the issue? There are 2 correct answers to this
question.
 You have accounts that you have not assigned in the financial statement version, you
added a/c to wrong node and it is included in asset section
341. How does the system determine the relevant accounting principle when performing
foreign currency valuation?
 Via the valuation area. You have made the required configuration settings for foreign
currency valuation using the following configuration activities:
o Define Valuation Method: You have defined a valuation method here.
o Define Valuation Area: Here, you have defined a valuation area and assigned
a valuation method to it. Valuation areas are used in Financial Accounting for
closing operations. You use them to depict different valuation
approaches/accounting principles.
o Assign Valuation Area to Accounting Principles: You have assigned to the
valuation area an accounting principle that is also assigned to a ledger group.
342. As a pre-closing activity, selected suppliers are to confirm their balances. Which
confirmation procedure do you use when a response is expected only in case of
discrepancies?
 Balance notification. You let the supplier know which amounts you need
confirmation for, but they only need to reply if they disagree with the balance.
 Balance Confirmation: You let the supplier know which amounts you need
confirmation for and ask for a reply, even if the amounts are correct.
 Balance Request: You ask the supplier to tell you about the amount on your account
according to their records.
343. On what level can you restrict postings using the posting period variant? There are 2
correct answers to this question.
 GL a/c, supplier a/c. The posting period variant enables you to control the
open/closed posting periods differently for each account interval in relation with the
following account types:
o + (Valid for all account types)
 o A (Assets)
o D (Customer)
o K (Suppliers)
o M (Materials)
o V (Contract accounts)
o S (G/L accounts)

344. You perform foreign currency valuation for open items of your supplier accounts. The
valuations will be used only for period end reporting and should then be reversed. What
account does the system use to post the valuation differences?
 Adjustment G/L account for foreign currency. The exchange rate profit or loss from
the valuation is posted as an offsetting posting to a separate expense or revenue
account for exchange rate differences. As a result of the valuation, a difference arises
in your local currency. However, only postings in the foreign currency specified in the
master record (account currency) are permitted to foreign currency balance sheet
accounts. The exchange rate difference is therefore posted with a foreign currency
amount of zero, and a local currency amount equal to the exchange rate difference.
345. How would you define Intercompany Matching and Reconciliation (ICMR)? There are 2
correct answers to this question.
 It is a solution that facilitates transaction matching between systems in Central
Finance, it is a solution that can be integrated with Group Reporting. Intercompany
Matching and Reconciliation (ICMR) is introduced to speed up your intercompany
reconciliation process from company close to corporate close.
 As a built-in solution in SAP S/4HANA Cloud, it matches transactions without any ETL
(extract, transform, load) processes and reconciles your financial data in real time.
 Intercompany elimination is integrated with Group Reporting which leverages all 3
modules (Matching, Reconciliation, and Automatic Posting) to run interunit
elimination tasks.
346. The SAP Business Network helps customers digitalize cross-company business
processes. On which solutions does the network build? There are 3 correct answers to this
question.
 Contingent workforce, travel, procurement. SAP Business Network will help a
customer to digitize cross-company business processes. It builds on current
procurement, travel, and contingent workforce solutions to help intelligent
enterprises work together to create flexible value chains.
347. Which component of the Intelligent Enterprise allows customers to discover and deploy
vertical solutions from SAP and partners?
 Industry Cloud. SAP's industry cloud enables companies to discover and deploy
vertical solutions from SAP and partners. These help a customer by providing
 leading-edge industry best practices and extend a customer's current business
processes.
348. Which SAP Fiori apps can be run on any database? There are 2 correct answers to this
question.
 Manage CoA, make bank transfers
349. How are pages assigned to users on the SAP Fiori Launchpad?
 Via spaces assigned to business roles which are assigned to users. Pages are not
directly assigned to a role, they are assigned via the Space they are associated with.
350. What are some features of SAP Business Technology Platform? There are 2 correct
answers to this question.
 It supports application development and integration, it provides data management
and analytics. SAP Business Technology Platform (SAP BTP) brings
together application development and automation, data and
analytics, integration, and AI capabilities in one unified environment.
351. What are the 3 mandatory steps of the dunning process in the SAP S/4HANA system?
There are 3 correct answers to this question.
 Maintain the parameters of the dunning program, start the dunning printout,
schedule the dunning run
 

352. You need to explain the concept of noted items in SAP S/4HANA. Which characteristics
are specific to noted items? There are 3 correct answers to this question.
 They are managed as open items on customer and vendor accounts, they generate
statistical postings, they can be accessed by payment program and dunning program.
353. You have made an agreement with a customer to guarantee an amount of EUR 10000.
What is the result of recording this guarantee in SAP S/4HANA?
 2 statistical line item
354. You want to include multiple company codes in a single payment run. What are the
prerequisites for the company codes?
 They must all be located in the same country. All company codes should be in same
country since the payment method created at country level and also if the payment
is not controlled any specific currency, you can use the different currencies in F110
for payment method currencies, check the settings for payment method at country
level.
355. You have cleared a customer open item but want to undo this action. What are the
available options? There are 2 correct answers to this question.
  Reset the clearing document, reset and reverse the clearing document. When you
reverse a clearing document using FBRA, you reset the items to uncleared. This goes
back to their original status, and affects reports run in the past. The only way you can
remove the item from uncleared items is to clear the item again.
356. The 3-way match is the standard procedure used to post procurement transactions in
SAP S/4HANA. How does it work?
 The invoice needs to be created in reference to the goods receipt. Your Purchase
Order must to equal to your Goods Receipts and your Invoice must be equal to your
GR.
 If goods-receipt-based Invoice Verification has been defined for an order item, an
invoice for the order item can be entered with reference to a goods receipt
document or a delivery note number entered at the time of goods receipt.
 In the process, a separate invoice item is created for each goods receipt. Checking of
price and formal accuracy of the invoice is performed at this item level.
357. At which levels can the print program and its variant be assigned to the correspondence
type? There are 2 correct answers to this question.
 Co code, client. You can select different combinations of programs and variants per
company code or use the same for all. Therefore, the 2 levels where you can assign
the print program to the correspondence type are at company code level and at
client level.
358. You are entering a credit memo in Financial Accounting and are wondering why the
entered payment terms are being ignored. What are the reasons? There are 2 correct
answers to this question.
 The credit memo was created without reference to an invoice, the due date
determined based on the entered payment terms is in the past. A credit Memo
without an Invoice Reference is always due on the Baseline Date
359. What do you configure for regrouping receivables and payables?
 Sort method. Sort Method defines the remaining terms for payables (+ receivables
and G/L accounts) and determines the account types for which transfer postings are
to be made.
360. Which parameters can you configure on the dunning level? There are 2 correct answers
to this question.
 Days in arrears, payment deadline. For each dunning level, you define the foll.
 Days in arrears/ Interest: Minimum number of days in arrears, referring to the due
date for net payment, which an item must show in order to reach a certain dunning
level. No grace periods are taken into consideration for calculating the days in
arrears.
 Always Dun? : Indicates that a dunning notice is still printed even if no change has
been made to the dunning proposal since the last dunning run.
  Calculate Interest? : Indicates whether interest on the due amount is to be calculated
and charged
 Print All Items: All open items are printed in the dunning letter to the customer
(meaning those not yet overdue as well). This gives customer a view of complete
open balance in detail
 Payment deadline: The days you enter here are added to the issue date of the
dunning run and create the payment deadline

361. You post an incoming payment from a customer with a residual item for a payment
difference. What are the consequences? There are 2 correct answers to this question.
 The residual item becomes a new receivable, the original document and the
payment are cleared. If you post a residual item, on the other hand, the invoice and
the payment are cleared, and the system creates a new open item for the
outstanding payment.
362. You define payment methods. Which parameters do you define on the level of the
company code? There are 2 correct answers to this question.
 Foreign currency allowed, minimum and maximum payment amounts. The
conditions under which each payment method is used must be defined for each
company code that makes payments.
 To do this, enter a minimum and a maximum amount for a payment. This tells the
program the value range within which the payment method can be selected by the
payment program. Note that unless you specify a maximum amount, the payment
method cannot be used at all. This value range does not apply if the payment
method is specified in the open item.
 You also specify whether the payment method can be used for foreign payment
transactions. You specify whether payment is made if:
o The customer or supplier is based abroad.
o The bank to which the payment is made is based abroad.
  You specify whether it is possible to use the payment method in question to pay in
foreign currency in which case any currency can be used.
 You can also specify particular currencies per payment method and country/region. If
this payment method is selected, payments are only processed in one of the
currencies specified.
 If you wish to define particular currencies, choose the function Currencies in the
country/region-specific details for each payment method
363. In the standard sales process, when is the COGS posting generated in Financial
Accounting?
 PGI (Post Goods Issue). COGS are posted in financial accounting and margin
analysis when the goods issue to a delivery is posted
364. Which date must the system determine when you enter an invoice that needs to be
paid?
 Baseline date. The baseline date can be either the document date or posting date
and it depends on the configuration for the payment term defined in T Code OBB8.
You can define in the configuration to determine how system determines the
baseline date. However, you can also enter the baseline date manually and system
will take that date as baseline date. However, in many of my projects this is not
allowed to be entered by end user and is determined based on OBB8 configuration.
365. Which of the following API types does SAP recommend to use to achieve clean core
integrations? There are 2 correct answers to this question.
 OData and SOAP. SAP Cloud ALM helps you to make integration clean core
compliant. SAP Cloud ALM uses standard APIs (OData and SOAP) and avoid
traditional APIs (RFC and IDoc)
 Cloud Integration, a capability within SAP Integration Suite, is a service that runs on
SAP BTP, and is specifically designed to be used in these types of scenarios. Both an
OData and a SOAP adapter are provided so that developers can utilize OData and
SOAP services respectively.
366. Which of the following can you use to explore released APIs?
 SAP Business Accelerator Hub. Both local and remote public APIs, as well as local
extension points for SAP S/4HANA Cloud, are visible using SAP Business Accelerator
Hub, and it can continue to be used for discovery purposes.
367. What are some SAP recommended guiding principles to achieve clean core operations?
There are 3 correct answers to this question.
 Establish regular housekeeping tasks and procedures, define roles and
responsibilities as part of a process transformation office, integrate clean core
practices in the end-to-end value process chain
368. Which model can be used for ABAP cloud-native development?
  ABAP RESTful Application Programming Model. The ABAP RESTful Application
Programming Model (RAP) allows developers to efficiently build cloud-ready,
transactional business apps, services, and extensions on SAP BTP ABAP Environment,
SAP S/4HANA Cloud Public Edition, SAP S/4HANA Cloud Private Edition, and SAP
S/4HANA 1909 and higher. It is at the heart of the ABAP Cloud development model
for transactional development scenarios
369. What does the year-end closing program in Asset Accounting do? There are 3 correct
answers to this question
 It indicates if any of the created asset master records contain errors or are
incomplete, it checks whether the depreciation is posted completely for the fiscal
year, it blocks all postings to Asset Accounting for the closed fiscal years.
 Incomplete assets prevent the year-end closing from being made. The system lists
these assets in an error log, with the request for them to be processed.
 Incomplete assets can be created, for example, when the user lacks authorization for
master data fields that are required entry fields, but these are not so critical that the
asset cannot be created at all.
 The system sets an indicator showing that assets are incomplete. Another reason
could be that the screen layout rule of the asset is changed, and a field that has no
entry is now designated as a required entry field.
 When changes are made to assets so that they are no longer incomplete, the system
does not automatically reset this indicator. However, the indicator can be removed by
the report.
 For assets that are still incomplete when the report is run, you can go directly from
the report to their asset master records and correct them, as long as this is allowed
by your authorization profile.
370. Which logistic processes in materials management (MM) are typically involved in asset
acquisition?
 Purchase requisition, purchase order, goods receipt. Unlike most other business
transactions, external acquisition using a purchase order requires a sequence of
steps to be performed at separate times:
o Creating the purchase requisition
o Creating the purchase order
o Posting the goods receipt
o Posting the invoice receipt
 When you use this integrated ordering process, you first have to create an asset
master record. You can then post the purchase order or the purchase requisition with
account assignment to the asset.
 It is also possible to create fixed assets from within the transaction for creating the
purchase order. This means that you can carry out both steps, "create asset” and
“create purchase order or purchase requisition” within 1 transaction.
 You enter the most important asset master data information in a dialog box. From
this dialog box, you can go directly to the actual asset master data transaction.
371. Which data do you define on the bank master record?
 Address data and control data, corresponding business area, a unique bank
country, payment and dunning information. A bank master data record contains the
following data:
o Record ID
o Name of the financial institution (maximum four lines)
o Bank identifier code (BIC)
o BIC associated with the routing account national ID and its expiry date
o Identification or account number of the US Clearing House Interbank
Payments System (CHIPS)
o Nonformatted address of the financial institution (maximum four lines)
o Address of the financial institution (street, house number, country, postal
code, city, post office box information)
o Telephone number
o Fax number
o E-mail address
o Web site URL
o Head office record ID
o Date on which the record was last updated
o Activation date and deactivation date
 The record indicates whether the data has been manually changed.
372.You have to run the foreign currency valuation for both US GAAP and IFRS, which leads
to different values for the two different accounting principles. How can you set this up in the
system?
 Define two valuation methods and assign the accounting principles to the new
valuation methods.
373. What must be defined in Customizing for foreign currency valuation in the ledger
solution?
 A/c determinations, Valuation areas, a/c principles. You have made the following
settings in Customizing:
o You have defined exchange rates.
o For more information, see Exchange Rates.
o You have made the settings in Customizing for new General Ledger
Accounting under Financial Accounting (New) >> General Ledger Accounting
(New) >> Periodic Processing >> Valuate >>
 Define Valuation Methods: you have defined a valuation method here.
 Define Valuation Areas: you have defined a valuation area and
assigned a valuation method to it.
 Assign Accounting Principle to Valuation Area: if you are using parallel
ledgers, you have assigned to the valuation area an accounting
principle that is also assigned to a ledger group.
374. Which of the following statements are valid for financial document number ranges?
There are 3 correct answers to this question.
 The same financial document number range can be assigned to several document
types, financial document number ranges are defined at company code level, all
financial document number ranges can contain numbers and/or letters. Number
range is defined on company code level and potentially a fiscal year and is linked to a
company code and document type. Number Range can be used for more than one
document type.
375. What do you need to do to configure a new exchange rate type in SAP S/4HANA?
 Set up the relationship between currencies using translation ratios, specify a purpose
for the exchange rate type
376. What are the results when you post an outgoing partial payment? There are 2 correct
answers to this question
 The initial invoice remains open, a payment is created with reference to the invoice.
A partial payment happens when we post a payment on account and no clearing
occurs. This means both invoice and payment will remain as open items till we
cleared them.
 Let’s take an example where we issue a customer invoice with the amount of 100.
We later receive the amount of 60 and we know this is related to the open item with
value 100. In the Fiori app Post Incoming Payment you select the item to be cleared
and in the column “Allocated amount” you put the amount 60
 In the report Manage Customer Line Items you can see that both items are open and
linked through the field “Invoice Reference”. Keeping with the same example, later
on we receive a second payment of 40. So we repeat the steps described above. And
checking the open items of this customer we see 3 open items related to the same invoice.

377. On which levels do you maintain data for an integrated customer account? There are 3
correct answers to this question.
 General data at the client level, sales area, company code.
378. Which of the following components make up an archiving object? There are 3 correct
answers to this question.
 Customizing settings, data declaration part, programs. Enter the required programs
for the archiving object and the control parameters to run these programs:
o Write Program: name of the program that the archive file writes
o Interruption Possible: you need to select this checkbox for each new archiving
object. The write program must be able to process an interruption request.
For more information, see Interrupting and Continuing Archiving Sessions.
o Delete Program: name of the program that deletes the data from the
database after the write program has finished
 o Preprocessing program (optional): name of the program that prepares the
data for destruction
379. Which dates can you use for tax calculation? There are 2 correct answers to this
question.
 Document date, posting date. For calculating the tax on document date, use the
configuration:
 Financial Accounting (New)->Financial Accounting Global Settings (New)->Tax on
Sales/Purchases->Calculation-> Assign company code to document date for tax
determination.
380. Flat-rate individual value adjustments are valid for which types of accounts?
 Customer. During financial statement preparation, open customer items are
valuated.
 In addition to the foreign currency valuation, you can also calculate a discount for
long-term receivables and a flat-rate individual value adjustment for unsecured or
overdue receivables.
 Valuations are only possible for customer items. Vendor and G/L accounts cannot be
valuated.
381. When creating a new G/L account in SAP S/4HANA, which account types can you
assign? There are 2 correct answers to this question.
 Secondary costs, primary costs or revenue. GL Account Type:
o X – Balance Sheet Account
o N- Non-operating Expenses or Income (Profit & Loss account used only in FI
(Without CO))
o P- Primary Costs or Revenue (Profit & Loss account used both in FI & CO)
o S- Secondary Costs (Profit & Loss account used for allocations in CO)

382. You need to enter a percentage rate in the terms of payment to calculate
 Cash discount
383. You are responsible for implementing Asset Accounting. You are provided with the
legacy data of various assets and their grouping information based on category, life, and
depreciation terms. What configuration step would you initiate to maintain these categories
in SAP S/4HANA?
 Copy the chart of depreciation and maintain depreciation areas
384. What currency types should be included in the Data Entry view when defining a custom
currency type for your company code?
 Company code currency, document currency
385. In which of the following segments of a customer or vendor master record can you
enter the terms of payment?
  Purchasing org segment, company code segment, sales area segment. Payment
terms can be entered into the company code segment, sales area segment, and
purchasing segments of a customer / vendor master record.
 Which payment terms are set as default while posting an invoice depends on where
the invoice is created: If invoice created in FI (such as fb70 invoice in fi) then payment
terms from company code are set as default
 If invoice created in SD, then payment terms from Sales area segment are set as
default
 If a vendor invoice is created in MM then payment terms from purchasing segment
are set as default.
 You should ensure that entries in the sales area, company code segment and
purchasing segment are identical
 Not every vendor master needs to have purchasing org data, some vendors are only
created for finance (e.g. a restaurant, or customs office - you will never place a SAP
purchase order at a restaurant or with customs). If such a vendor sends an invoice,
then the payment terms from company code level are taken.
386. What types of entries can be specifically posted to a ledger in SAP S/4HANA? There are
3 correct answers to this question.
 Depreciation, accruals, currency valuation
387. What are the necessary steps to create a substitution in Financial Accounting? There
are 3 correct answers to this question
 Activate the substitution rule, select the correct call-up point, define the substitution
rule with its different steps using the formula editor.
388. Which of the following fields can be configured as changeable in a document header?
There are 3 correct answers to this question.
 Document Reference, posting date, Document Date
389. In a mid-year legacy system migration for assets, which data is essential to migrate?
There are 3 correct answers to this question.
 Current year posted depreciation, closed year asset sale transactions, current year
asset acquisition transactions.
390. You’ve agreed to terms of payment with a business partner that is a customer and a
supplier. The same terms are to be used both ways (incoming and outgoing). You’ve defined
a new terms of payment key, but when trying to update the supplier business partner role,
you don’t find the payment term available to select. What must you do?
 Maintain the a/c type in the terms of payment. Creating additional records when you
could use what is there just adds noise to an already complex system. You want to
always try and simplify for the end users.
391. What should you check if the balance of the GR/IR account is not zero at the purchase
order item level on the balance sheet key date? There are 2 correct answers to this question
 Check to see if the goods were delivered by the key date, but have not yet been
invoiced, check to see if the goods were invoiced by the key date, but have not yet
been delivered
392. What kind of customization can users do on their launchpad? There are 2 correct
answers to this question
 Sequence of steps, a/c or transaction key, condition type
393. In which application areas can you use validation? There are 2 correct answers to this
question
 Cost a/c, asset a/c. Validations can be created for several modules like Financial
Accounting, Asset accounting, Cost Accounting, etc.
394. Which of the following are the steps of Intercompany reconciliation? There are 3
correct answers to this question
 Document selection and data storage, automatic assignment of documents,
manual reconciliation and communication. For all three processes, you reconcile
accounting documents in the following order:
o Data selection: You select documents across SAP systems and clients and
transfer the data to the reconciliation database. For more information, see
Data Selection.
o Data assignment: The system automatically assigns data records according to
the rules you have defined. For more information, see Data Assignment.
o Data reconciliation: You reconcile data records manually. ICR suggests
assignments for you according to the rules you have defined. For more
information, see Data Reconciliation.
o Communication: You communicate with the responsible accountants for any
outstanding issues. For more information, see Communication.
o Correction posting: The accountants make correction posting.

395. What is the purpose of the chart of depreciation?

 The chart of depreciation facilitates country-specific legal valuation of fixed assets.
Charts of depreciation are used to manage various legal requirements for the
depreciation and valuation of assets. These charts of depreciation are usually
country-specific and are defined independently of the other organizational units.
396. What checks does the year-end closing program perform for Asset Accounting in SAP
S/4HANA? There are 2 correct answers to this question.
 Assets are complete and error free, depreciation is posted in full.
397. You want to edit a dunning proposal. Which actions can you perform to edit a dunning
proposal? There are 3 correct answers to this question.
 Block a line item, lower the dunning level of an item, block an account. You can
view or edit dunning proposals. You can:
o Raise or reduce the dunning level of an item
o Set a dunning block for an item
o Block an account for the current dunning run or remove the block
o Block an account for dunning or remove the block in the master record.
o Block a document for dunning or remove the block

398. Which fields can you edit before posting a parked document? There are 3 correct
answers to this question.
 Posting date, amt, a/c. You cannot change the currency and company code.
399. What are the necessary configurations in SAP S/4HANA for migrating account values for
a customer transitioning from classic general ledger? There are 3 correct answers to this
question.
 Ledger groups, valuation areas, a/c principles
400. What do you need to do to configure a new exchange rate type in SAP S/4HANA? There
are 2 correct answers to this question
 Specify a purpose for the exchange rate type, set up the relationship between
currencies using translation ratios
401. You are responsible for implementing Asset Accounting. You are provided with the
legacy data of various assets and their grouping information based on category, life, and
depreciation terms. What configuration step would you initiate to maintain these categories
in SAP S/4HANA?
 Copy the chart of depreciation and maintain depreciation areas
402. Which of the following parameters are controlled by the screen layout? There are 3
correct answers to this question.
 Maintenance level, reference, field selection. In each screen layout control, you can
make specifications for the individual field groups. The corresponding maintenance
fields are assigned to every field group.
 Screen layout control > Field groups > Individual fields
 The field groups and their respective fields are defined in system tables. When you
define the screen layout, the system proposes all existing field groups, and you
maintain each one individually.
 You define specifications for the screen layout and for the maintenance level of the
field groups, and you specify whether the field contents can be copied as a reference.
  For each field group of the asset master record, you can specify one maintenance
level. The maintenance level determines the asset classification level at which a field
group can be maintained.
 The maintenance levels in the system are:
o Asset class
o Main number
o Sub-number
 You can create an asset using another asset as a reference. You use the screen layout
to control whether certain field groups in the target asset can be completed with
values from the source reference asset.
403. Your customer uses the ledger approach to multiple valuation. During conversion to
SAP S/4HANA, which configurations will be required?
 Assign accounting principles to all real and derived depreciation areas, convert
accounts of parallel valuations to asset reconciliation accounts
404. What is the purpose of the group account number in General Ledger account master
data maintenance? Please choose the correct answer.
 It is used for cross-company-code reporting if the company codes use different charts
of account
405. What types of data are maintained for a house bank? There are 2 correct answers to
this question
 General Ledger a/c, Data medium exchange (DME) details
406. What is the purpose of the reorganization of segments? There are 2 correct answers to
this question.
 Enables segment reassignments, enables merge of segments. A change to the
segment structure is triggered by management and necessitates a change to the
assignment of segments to objects (such as profit centers, receivables, payables, and
fixed assets). Segment reorganization allows you to split, merge, and change
segments.
 You can use this procedure to change the segment assignment on a particular date in
the future. You can perform segment reporting in new General Ledger Accounting
both before and after making changes to segment assignments.
407. What conditions must be met to post journal entries in a special period? There are 2
correct answers to this question
 The special period must be open for posting in the period control, you must enter a
posting date in the last posting period. When posting to special periods, you must
take the following into consideration:
o The posting date must fall within the last regular posting period.
 o You have to enter the special periods in the document header in the Period
field, since the special periods cannot be determined automatically by the
system.
408. What are key configuration objects in the SAP dunning program? There are 3 correct
answers to this question
 Dunning levels, expenses or charges, minimum amounts. We can create Dunning
text, Dunning level, Dunning Charges and Company code assignment in the dunning
procedure.
409. Your customer wants the document numbers for two separate document types to share
the same number range. How can you achieve this? Please choose the correct answer
 Enter the same document number range in the customizing definition of both
document types.
410. What can you do with asset accounting in SAP S/4HANA Finance? There are 3 correct
answers to this question
 Assign separate settlement rules for depreciation areas, post revenue for
retirements by acquisition and production cost, simultaneously post separate
values by depreciation area.
411. What functionalities are available in the SAP Asset Explorer? There are 3 correct
answers to this question
 Drill down to reports, display depreciation calculation, drill down to Financial
Accounting (FI) document.
412. When items aren’t automatically assigned for intercompany reconciliation (ICR), how
do you perform reconciliation? There are 2 correct answers to this question.
 Use an automated assignment rule, match items manually. In the Manage
assignments by reconciliation case, there are two main options to assign leading and
partner unit transactions:
o Manual matching
o Auto-Match is used to assign the leading and partner items automatically.
 For any items, matched or unmatched, you can take the following actions (non-
workflow related):
o Assign: This is a manual match in case the matching rules don't apply. If you
think certain unmatched items should be exempted from matching rule
validation and matched manually, you can select the items and choose Assign
to match them manually. The assigned items are then moved to the list in the
lower area of the table called Assignments.
413. A general ledger account is defined with the account type "Nonoperating Expense or
Income". Where can this account be used? Please choose the correct answer.
 Profit and loss account that is used in profit center accounting.
414. In SAP S/4HANA, on which levels can you maintain open posting periods? There are 2
correct answers to this question
 Posting period variant, controlling area. The posting period variant enables you to
control the open/closed posting periods differently for each account interval
415. Which tasks are essential in the execution of dunning? There are 2 correct answers to
this question
 Maintain dunning parameters, schedule dunning run.

416. Which of the following types of tasks are available in the Financial Closing Cockpit
application?
 Remote tasks, flow definition, online transaction. Remote tasks allow users to
perform tasks remotely, without having to physically access the system.
 Flow definition refers to the ability to define and manage workflows within the
application.
 Online transactions enable users to perform financial transactions directly within the
application.
417. Your customer- performs pre-closing activities on the last day of the month. Which
activities are typically executed during pre-closing? There are 2 correct answers to this
question
 Process bad debt expenses for accounts receivable, post recurring entries for the
general ledger.
418. A document has several line items, with different reason codes entered. For the
automatic payment, which correspondence type does the system choose?
 The one assigned to the tolerance group. If a document has several line items, some
of the line items may have different reason codes and associated correspondence
types.
 In this case, the automatic payment notice cannot be sent according to the reason
code because the system does not know which correspondence type to choose. As a
result, the system uses the payment notice assigned to the tolerance group,
independent of the reason codes.
419.

Why Do We Need Clean Core?

 Business Change: In today’s fast-paced and ever-changing business environment,
disruption across global supply chains, customer preferences, and the workforce has
become a common occurrence. Businesses must quickly adapt to these changing
requirements in order to remain relevant and thrive
 New Tech: To succeed in the digital age, orgs need to embrace new capabilities. This
includes accelerating innovation, optimizing and automating processes, and fostering
ability in order to gain a competitive edge
 Landscape Complexity: Cos must have a flexible infrastructure that allows them to
quickly adapt their business models as needed. This means being able to rapidly
adjust key applications to meet changing market demands and customer needs.
 ERP software is the backbone of a company's ability to manage and implement
business processes.
 SAP has traditionally had SAP ERP, a version of ERP software that customers installed
in their own data centres.
 However, with the emergence and proliferation of cloud-based technology a cloud-
based ERP solution was needed for companies.
 Designed as a cloud-native solution SAP S/4HANA Cloud offers the best of both
worlds for a customer. An ERP system, complete with the latest industry best
practices, along with continuous innovation.
 Traditionally, SAP's ERP system was installed and maintained in a company's data
center.
 However, a cloud-based ERP system such as SAP S/4HANA Cloud receives updates on
a continuous basis.
 This system requires a slightly different approach for customers when managing
things such as extensions or integrations than what is applicable in an on premise-
based environment.
 To facilitate this approach SAP has developed the "clean core" concept that
customers can follow. In doing so, the effectiveness of SAP S/4HANA Cloud can be
maximized.
SAP ERP, Clean Core, and Technological Innovation
 SAP S/4HANA Cloud provides a foundation for customers to apply and benefit from
technological innovation.
 As a cloud-based ERP, SAP manages all updates so customers don't need extensive IT
resources or face disruptions to the business.
 Security, compliance, and scalability are built into SAP S/4HANA Cloud.
  Important operations such as backup and disaster recovery, system maintenance,
and data protection are also handled automatically so customers have peace of
mind.

Chart of Depreciation
 Directory of depreciation areas arranged according to business requirements
 Used to organize legal requirements for depreciation and valuation of assets
 Each COD contains rules for evaluation of assets valid in a specific country (or
economic area)
 Usually, you would create 1 COD for all co codes of a country
 You determine the types of valuation for which you need different depreciation areas
in accordance to the needs of your customer before you implement asset a/c
 To define COD:
o Copy a template COD delivered thru SAP Best Practice package or from std
templates defined per country in client 000
o You can modify or delete any depreciation areas copied over from the std
COD that aren’t needed
 After you copy the COD, you need to update the Description because the description
of the chart you copied is probably not the one you want
 The COD essentially becomes active when it’s assigned to a co code
 Each co code that uses asset a/c is assigned to a COD and each asset created is
assigned to the co code and inherits the valuation settings configured in the COD
through the co code.

Depreciation Areas
 Used to calculate the value of fixed assets according to different a/c principles or for
other separate valuation purposes
 You manage the depreciation terms and values necessary for the valuation in the
depreciation areas assigned to each asset
 A depreciation area can serve to update the GL through posting in a/c or to calculate
statistical values for reporting purposes
 A COD can have up to 99 depreciation areas
 In an SAP S/4 HANA system, you create a depreciation area for each additional
currency type maintained on the ledger/ co code level so that values are available in
all relevant currencies
 The depreciation areas are identified by 2-digit numeric keys. You should assign a
meaningful description to the area. Each depreciation area must be assigned to an
a/c principle and- through the a/c principle- to a ledger group
Configuration
 Real depreciation area: For a real depreciation area values are normally committed to
the database. When you don’t select this checkbox, the depreciation area is a
derived area, meaning its values are based on values of other areas.
 Area does not post: For areas created purely for reporting purposes, such as areas for
other currencies.
 Area posts in real time: When using the ledger approach to parallel valuation, this is
the std setting for depreciation areas that post both acquisition and production costs
(APC) and depreciation to the GL
 Area posts depreciation only: For areas that don’t post APC values but only post
depreciation. The most common such area is one that is used for cost-controlling
valuations
 Area posts APC immediately, depreciation periodically: Used when using the a/c
approach for all areas that post both types of values to the GL, minus the one that is
set to post in real time.
 Value maintenance: contains various rules that define what kind of values are
allowed for various valuations
 Depreciation is always posted periodically; there is no such thing as real-time
depreciation posting because it’s a periodic activity. On the other hand, the
calculation of depreciation is always a real-time activity and is performed with any
change that affects the value or useful life of an asset
Derived depreciation areas
 Areas for which values are calculated from combining values of 2 or more other areas
(adding or subtracting values from each)
 Commonly delta areas, which give an immediate view of the difference between 2
valuations
Asset Class
 Main structuring element for fixed assets. You can define any no. of asset classes in
the system and the definition is on the client level
 Used to structure your fixed assets according to various criteria, such as type of
asset, default valuation settings, and others
 All assets are assigned to an asset class when they created
 SAP S/4 HANA system has common asset class categories preconfigured with SAP
Best Practices packages
 When you create an asset class, you define the 4-digit code (Class), long text (Asset
Class Description), and Short Text
 New asset classes by simply copying an existing asset class. The default values of the
depreciation area section are also copied automatically. In details of asset class, you
define the following:
o A/c determination: controls GL a/c posted for various asset transactions
 o Screen layout rule: controls fields ready for input during asset master record
maintenance
o No range: Controls no. asset will receive when you save the master record
o Status of AuC: controls whether asset class is used to create AuCs
 In a separate Customizing transaction, you can store default values for fields per
asset class
 You can define defaults in the master data section of the asset master and in the
depreciation section, where you define entries per depreciation area.
 These values are proposed and are changeable. If you want to ensure that specific
fields are filled with specific values, you can define and use a substitution rule

Account Determination
 You can post both asset balance sheet values and the depreciation values from the
individual depreciation areas to separate balance sheet a/c or income statement a/c
in GL
 Specify a/c per COA and depreciation area individually in a/c determination key
 Define a/c determination keys in asset a/c Customizing and assign key in particular
asset class after configuration
 A/c determination keys usually have a similar codification and name as their relevant
asset classes
 Same a/c determination key can be assigned to many asset classes, although some
customers might prefer the maximum flexibility offered by assigning a different a/c
determination to each asset class
 Because the a/c determination details are maintained per chart of depreciation and
COA, you can use the same a/c determination keys to support the specific reporting
needs of any co code in any country.
 On the detailed level, you maintain the specific balance sheet and profit and loss
(P&L) a/c for any asset transaction relevant for the assets of the supported asset
classes
 When using the ledger approach to parallel a/c, all depreciation areas can have the
same a/c definitions per depreciation area.
 The posting is differentiated on the level of the ledger group assigned
 When using the a/c approach, you need to maintain a separate set of a/c per
depreciation area, so you don’t have the same value posted to the same a/c per
depreciation area, so you don’t have the same value posted to the same a/c
 All balance sheet a/c defined in the a/c determination are asset reconciliation a/c

Screen Layouts
 The screen layout for the asset determines which fields in the asset master records
are used
  You specify for each possible field within the asset master record whether it’s
required, optional, display- only, or suppressed (hidden).
 Configure different sets of keys for the master data section of an asset and the
depreciation details.
 You define screen layout rules for master record section flexibly and assign them to
asset classes
 The logical field groups are predefined as are the fields inside these field groups.

Role Grouping
 By using the role grouping functionality, you can define which roles are maintained
simultaneously
 This is used as a job aid to speed up master data creation. Of course, this also means
that a single individual or department knows how to maintain all the relevant data
fields correctly
 If the co works with central master data maintenance, it might make sense to group
roles in this way to make sure for eg, that a customer is always maintained for
distribution as well as fin a/c or that a supplier is maintained for materials mgt in SAP
ERP and fin a/c
 Central maintenance like this will mean BP is completely ready to use after data is
saved

No. Range Definition

 No. range for suppliers and customers in an SAP S/4 HANA system should generally
be driven by the BP
 In the delivered SAP Best Practices system, the customer and suppliers inherit the
same no. as the BP for which they are created
 For BP to take lead in no. assignment for customers and suppliers, the customer/
supplier a/c grps are assigned to no. range intervals with external numbering
 The BP usually has an internal no. range assigned. When created, no. is assigned to
BP
 When BP is also assigned supplier role, for example, system will create supplier
master record with same no. (same thing happens if BP is also extended with
customer role)
 This way, BP, independent of its role has a single recognizable no. throughout

Customer and Supplier a/c grps

 In fin a/c component you create and maintain a/c groups for customer and suppliers
 These group different customers and suppliers by various criteria, such as location,
size or affiliation
  Usually a separate a/c grp is configured for domestic and foreign customers/
suppliers. You can define your own a/c grps in Customizing (and with the A/c Grps
Customer app and A/c Grps Supplier app)
A/C Grp Details
 The foll are the basic settings you maintain for the a/c grp which fall under 3 screen
areas
o General Data: You can enter the Name of the a/c grp, enter a Number Range
(should be external and driven by BP grp) and select whether this is a One-
Time a/c
o Field Status: Field status in AP/ AR settings controls which fields are ready for
entry in BP maintenance (for AP/ AR- specific fields)Because of the overlap in
field status controls, it’s advisable to keep these optional (lowest priority) so
that you drive all field definitions from BP
o PartnerDetermProce.- These partner functions define business roles a partner
plays in sales and distribution (for customers) and purchasing (for material
mgt) processes. To make it clearer, the foll are some examples of partner
functions (for suppliers):
 AZ: Alternative payee
 OA: Ordering Address
 VN: Suuplier
 CR: Carrier
 CA: Contract address
 GS: Goods supplier
 DP: Delivering site
 As mentioned earlier BP is connected to a/c grp (customer and supplier) thru BP
grouping. By selecting same no., you ensure BP drives no. assignment for customer/
supplier master record
Physical Inventory
 Business process in which the actual physical stock is compared and matched with
the stock in your books
 Legal requirement to carry out an inventory at least once a year. Perform the
inventory for your own stock and special stock (e.g., items held for 3rd parties)
 Types of physical inventory
o Periodic physical inventory: All stocks of the co are physically counted on
balance sheet key date and entire warehouse is blocked for material
movements while inventory is ongoing
o Continuous physical inventory: Stocks are counted continuously during the
fiscal year. Here, it’s important for every material to be counted physically at
least once during the year
 o Cycle counting: Stocks are counted at regular intervals within a fiscal year.
These cycles are configurable through the cycle counting inventory in the
material master records. This method is best for fast-moving items
 You update your books as per the quantities counted in the physical inventory and
delta is stored in material mgt

Stock Valuation
 Raw materials, supplies and consumables (RSC): Materials commonly bought from
suppliers and are often managed by moving avg price (MAP) method
 Work-in-process (WIP) materials (aka semifinished goods): Usually produced by the
co and often valuated at a std price. WIP can be broken down and shown analytically
on the balance sheet if this has been customized. Mgt a/c consultants often carry out
this configuration
 Finished goods (FG): Products produced in house and generally valuated at std price
 You can update the balance sheet based on the calculated material prices and
quantities using the Balance Sheet Values by Account app
 The app enters the values on the balance sheet in accordance with the inventory in
the books and prices calculated for the material
SAP S/4 HANA Financial Closing Cockpit
 Component that supports planning, executing, monitoring and analyzing all the fin
closing tasks for the SAP S/4 HANA system and thru integration, other tasks as well
 The main use cases for the SAP S/4 HANA Financial Closing cockpit are as follows:
o Activities that recur periodically
o Multiple responsible people
o Processes with structured sequences and task dependencies
 Advantages of using SAP S/4 HANA Financial Closing cockpit add-on
o Common, accessible, stable app is provided for all involved
o Activity execution is tracked closely, making the status transparent
o Closing tasks are documented for verification and checks
o You can set manual statuses for tasks executed outside the system or without
automatically trackable outcomes
o Manual confirmation and documentation are allowed for checks performed

Task Templates
 1st step in using the cockpit is to create a task template by copying an existing std
template
 Select the org unit level you require for the closing (e.g., controlling area or co code),
and the system proposes templates for month-end and year-end closing
 After selecting the template to copy from, you save it, and the system provides a
popup screen in which you enter the name of the template, a description, the entity
responsible and the language (at min)
  A template represents the complete closing process (not only from an app
perspective) for your enterprise
 After copying the template, you maintain the specific org units the template is valid
for (controlling areas, co codes)
 Tasks are structured and organized into folders. You can reassign and add as many
folders as needed
 The foll tasks are supported:
o Programs with program variants can be defined and executed through the
SAP S/4 HANA Financial Closing cockpit
o Transactions can be assigned and opened through the SAP S/4 HANA
Financial Closing cockpit, so you can use it as a transaction launchpad
o Notes are info-only items, usually manual tasks performed outside the
system/ reminders
o Flow definitions string together programs to allow automatic execution of the
tasks in a sequence
o SAP Business Process Automation by Redwood tasks are used to control task
execution in external systems.
o External job reporting is used to retrieve info for task execution for jobs
created or scheduled in other system apps or in external systems
 When you add a new task, you provide a description, responsible and processor
entities (e.g., User), the task type and definitions for the task types, and task
assignments
 You can assign the task to a task folder, grouping together similar tasks and
structuring the closing hierarchy display
Task List
 After assigning the tasks to the template, you can create a task list. The system
creates a task list of the same name as the template. Enter values for the key date,
fiscal year and posting period
 Depending on the closing type you selected (month-end or year—end), the system
transfers the activities permitted from the template to the task list.
 When finalized, you release the task list so that you can use it to execute and monitor
closing

Dependency Configuration
 After releasing the task list, you can define relationship between programs and
transactions
 The relationship is checked to ensure that the correct execution sequence is
performed
 An activity can have multiple prerequisites. You can assign task folders as
prerequisites when defining dependencies
  You can pre-delivered KPI reports to monitor the status and progress of the closing
process

Methods for Intercompany Matching and Reconciliation

 Embedded in SAP S/4 HANA since the 1909 release.
 The solution helps group entities reconcile intercompany transactions between the
corporate entities, a process becoming more and more complex with the increased
no. of mergers and acquisition these days
 ICMR works with system data directly and doesn’t require usual extraction,
transformation and load (ETL) process found in traditional non-real-time-solutions
 This means you can perform reconciliation and matching during the fiscal period and
not delay the closing process
 When posting intercompany transactions, differences often occur in the reported
values.
 These can be due to, for example, timing of posting, currency translations, user error,
and so on
 Intercompany transactions usually involve the business partner entity, so generally
ICMR focuses on AP/ AR processes.
 The goal of ICMR is to automatically match documents posted and identify possible
discrepancies present in the data
 The high-level process to perform intercompany reconciliation includes the foll steps
o Collect data: Data collection happens within SAP S/4 HANA, directly from the
Universal Journals of a/c and consolidation (table ACDOCA and table
ACDOCU, respectively). External files, data from interfaces, and data
replicated into the system are in scope, but in an ideal system, all co codes are
in the same SAP S/4 HANA client
o Match document: Using flexible rules, the system runs matching algorithms
on the items relevant for reconciliation. Matching runs can be triggered
manually or set up to run periodically on their own
o Solve discrepancies: The system displays the items that are perfectly matched
as well as those with differences that seem to otherwise match. For any items
relevant for reconciliation, you can select to assign them manually (including
reassigning items matched automatically), add a note (with optional due
date), send a notification (to a user/ group of users, again with optional due
date), and set notification to done (removes any due date alarms previously
set). Discrepancies can be solved in various ways, for example, by correcting
the source documents, by triggering automatic write-off (in which case you
can request for the system to perform auto-adjustments), and so on
o Check reconciliation results: You can check the reconciliation status and
results on the aggregate levels of the reconciled objects (e.g., a group of cos)
and also drill down to the secure documents
Bank A/c Management
 Concerns centralized bank a/c mgt. Processes control the lifecycle processes of banks
and bank a/c, such as opening, changing, reviewing and closing bank a/c
Bank Directory
 A list with details of all the banks you and your business partners do business with
 Maintained via Manage Banks app which provides overview of all banks in the
system
 You can add new banks and display and change existing banks
 Banks, at least for the country where the co code is located are commonly created by
uploading a fil to SAP S/4 HANA with SAP GUI transaction BAUP (Country-Specific
Transfer of Bank Data) or Transaction BIC2 (Takeover BIC Data)
House Bank
 Banks your co does business with, meaning the co has its own bank a/c to make and
receive payments. For a house bank, you maintain the foll fields
 Co code: Co code the house bank belongs to (a bank can be house bank for multiple
co codes)
 House bank: 5-digit unique identifier within each co code
 You can also maintain details for communications, data medium exchange (DME),
bank charges and Electronic Data Interchange (EDI)
Bank A/c Creation
 Used to create new bank a/c and maintain existing bank a/c. To create a new bank
a/c enter foll details
o Opening date: date from which you can use the bank a/c for transactions
o Co code: responsible co code
o A/c holder: owner to bank a/c (person or legal entity)
o Bank country: country where the bank is located
o Bank key: identification key of the bank. The SWIFT/ BIC key and Bank No. will
be displayed if maintained
o Currency: a/c currency key
o IBAN (International Bank A/c No.): Std numbering system to identify
international banks. The system will propose this from the entered bank key
and bank a/c. You should validate it with the one the bank provided; use the
bank’s version if there is a mismatch
o A/c no.: bank a/c no. as provided by bank
o Description: A text field for identifying the bank a/c. You can maintain this in
multiple languages
o A/c type: The purpose of the a/c. A/c types include current, deposit, loan,
investment, checking and so on.
  There are more fields to maintain, such as contact details and data for the bank
statements. You can also directly enter a Profit Center and segment (in the Additional
Data tab)
 After saving the bank a/c as Active, you can enter additional details as well, such as
payment signatories that are responsible for approving payments, overdraft limits as
agreed upon with the bank, and the connectivity path.
 On the Connectivity Path tab, you link the bank a/c to the corresponding house bank
a/c
 On this tab, you must enter an identification code for the house bank (up to 5 digits)
in the House Bank A/c ID field
 Each house bank a/c must have a main bank GL a/c assigned, and the same GL a/c
can be used for multiple house bank a/c. You create bank a/c before updating the
connectivity path
 The bank GL a/c uses a special type of balance sheet a/c which is a reconciliation a/c
for bank a/c, represented by Cash a/c in GL a/c type field
 Main bank a/c and suba/c as well should be of same type. This allows you to
minimize no. of GL a/c required to manage bank a/c You might have just a couple
sets of GL a/c to manage all bank a/c
Document Parking
 You can post temporary, incomplete docs in SAP S/4 HANA with doc parking
 Add and change info, perform addl checks and post complete do after verification

Overview of Document Parking

 SAP S/A HANA offers 2 basic options for saving an incomplete document:
o Holding a document
 Held docs feature is usually reserved for shorter interruptions when
posting multiline docs.
 For example, if you get distracted by something urgent in your mailbox
while entering a document or need to ask someone something about
the posting, you can save the document as a held document
 This ensures that you don’t lose the data entered up to this point from
a browser tie-out or unexpected power or network loss
 In general, only the user that created the held document will find and
retrieve the document to continue working on it or delete it.
 No doc no. is generated when you hold a doc, and no values can be
evaluated in reports
 No std workflow takes advantage of the held document’s functionality
o Parking a document
 You can use document parking to store (park) an incomplete
document in the system
  The SAP S/4 HANA system doesn’t perform extensive entry checks,
such as for tolerance limits; however, it does check that entries made
in the document, such as the tax code, GL a/c, cost center, and so on,
are created in the system.
 The system assigns a doc no. to parked documents, and the doc no.
doesn’t change when you finalize the journal entry
 You should keep in mind some special considerations for doc parking
 Substitution isn’t performed for parked documents; it will take place
when converting the parked document to a complete journal entry
 You can park a cross-co code document. In this case, only the posting
in the originating co code receives a document no. When parked doc
is posted as final journal entry, all relevant documents are generated
for all co codes
 Parked documents can be used for certain business evaluations in the
system. For example, you can evaluate them in the advance return for
tax on sales and purchases reporting. You can also use payment
request that reference parked invoices so you can take advantage of
payment discounts
 If you delete the parked document, the no. assignment is lost and
can’t be reused (these show up as deleted parked docs in audit
journal reports so that doc no. gaps can be explained)

Document Parking Workflow Customizing

 SAP Business Workflow in the SAP S/4 HANA system can be configured to help
automate the coordination and communication between components in the SAP S/4
HANA system
 Many std workflows are delivered with SAP S/4 HANA system
 Workflow begins with a triggering event such as creating a master record, posting a
purchasing document, or parking a journal entry
 Workflow mgr assigns a work item (an activity) to the org objects
 Org object essentially defines the users allowed to perform the workflow action
 When a user picks up the task from the workflow inbox, it’s removed from the inbox
of the other users
 After accepting or rejecting the item, the workflow manager defines the next step of
the workflow manager defines the next step of the workflow.
 1st step in defining Customizing for doc parking workflow is to define the workflow
variant. Here, you select Posting Release to use that feature, select the amt from
which a release is triggered (Release From), and choose the Subworkflow scenario
 The workflow variant is assigned to one or more co codes. This assignment also
defines the currency of the min amt previously set in the variant
  You can define release grps if you want to assign varying release procedures for your
business partners. There are no underlying settings, you just assign a key and
description to define the groups initially
 After selecting the Customer or Vendor role for fin a/c you maintain release grp in
the co code settings under the A/C Mgt area
 The release approval path is the object for which you define who processes the
release approval. You create the release approval path object by defining a key and
description
 The release approval path is determined by the workflow variant together with the
document type and release grp
 You can assign different subworkflows in accordance with the release approval path
and the amt. This allows you to define, for example, more release levels or different
approvers for larger posting amts.
 In the final Customizing step, you define who is responsible for performing the
release approval per workflow variant, release approval path, release level, and amt
 For each combination, you assign the relevant org object. The system identifies the
users responsible for releasing the parked docs based on assignments of org objects
Document Parking with Workflow
 With the Park General Journal Entries app, the user default action (at the bottom-
right of the screen) is to save the parked doc
 In other apps, such as the Post Incoming Invoices app, the option to park docs is in
the top menu bar, and the default option is to post the document
 After you’ve saved the parked document, you can retrieve it for editing. However, not
all fields can be changed after parking; remember, a document no. is aligned, so it
makes sense that some fields are protected. You can’t change the foll. Fields:
o Co Code
o Currency
o Ledger Grp
o Document Type
o Doc No.
 There are no limitations for changing the line items of the doc, so you can remove
lines completely and add new ones as needed. The system keeps a log of changes
made to parked documents
 After verifying the doc, you can post it. They system will create a journal entry with
the same no. The document is subject to the normal posting checks, and substitution
will take place.
 The change history is retained and is logged in the journal entry
 User posting the doc is assigned as the user who entered the document, irrespective
of user who parked the doc originally
 If a workflow variant is assigned, and the parked doc is relevant for workflow you can
see the relevant approval path and release level in Workflow tab of parked doc
  In Workflow control section of screen, you can determine whether the document
release is required (Release Req.) marked as complete (Doc Complete) or completed
successfully (Released)
 In the top bar of the screen, you can see the options a processor has- namely to
release or reject the doc.
 If a doc is released, the document can be posted. If it’s rejected, it can be changed
and sent back. The processor can write a note to explain a rejection decision
 The workflow items that require processing are delivered to the inbox of the relevant
users as determined by the system. A user can select to forward the work item to be
processed by another user. After releasing an item, it gets put in the processed
workflows folder in the inbox and you can retrieve it
 You can check the log for the workflow item at any time during processing. The
system keeps a very detailed log of all steps and processors, as you can see on the
Workflow Log screens
 Here, you can see the steps performed and the details for each one. There are also
different views for the info, such as View Workflow Agents, which concentrates all
action per workflow agent (processor) and View: Workflow Objects
Journal Entry Verification
 An additional, simpler verification process for setting up and executing a workflow for
reviewing and approving general journal entries is also available in SAP S/4 HANA.
 The general journal entry verification process was offered as of SAP S/4 HANA 1709
and is available only through SAP Fiori.
 You use 3 apps, one for the requester to submit entries for verification and 2 for the
reviewer to manage pending and submitted entries.
 Based on this functionality, SAP delivers a predefined, single-step approval workflow
for verifying GL journal entries, but you can adjust it to your specific requirements
 On a high level, you submit a general journal entry for review. The system reads the
doc details (co code, amt, a/c assignments) and if the workflow prerequisites are
met, assigns a processor
 The processor then reviews the submitted journal entry and either accepts it in
which case the journal entry is posted or rejects it, in which case, you must correct
the document and resubmit it.

Verification Process
 A requester will create and submit a journal entry with the Verify General Journal
Entries- For Requester app
 This app is like the Post General Journal Entries app: you can create manual journal
entries or upload them from a Microsoft Excel sheet
 The system will check the journal entry against a set of preconfigured criteria (e.g.,
the amt) and determine the proper workflow processors (if any) to assign to the
journal entry.
  The requester has access to view the status of the submitted journal entry as it’s
being processed
 The request processor uses the Verify Journal Entries – For Processor app to review
the requests and select an action for each
o 0: Journal entry will be posted (if the entry is complete and correct)
o Reject: The requester must edit and resubmit the entry
o Suspend: The document is put on hold for later processing at a time indicated
by the processor
 The processor has 2 separate verification apps: an inbox and an outbox. You use
these to process journal entries depending on their status
Workflow Configuration
 There are 2 configuration apps for setting up workflow for general journal entry
verification
o Manage Workflows for General Journal Entry Verification: This configuration
app is used to set up the workflows that are active and the prerequisites that
trigger the workflows
o Define Responsibilities: This app is used to assign users or grps of users to the
defined workflows
 With the Manage Workflows for General Journal Entry Verification app, you define
header info such as the description, validity period, and preconditions for the
application of the workflow
 The workflow is only activated when the preconditions are met. The preconditions
you can define are based on a combination of values for the following elements:
o A/c group
o Threshold amt (in co code currency)
o Cost center
o Source co code
 Then, you define the step sequence settings for the Verify and Post steps of the
process. Here, you assign rules for approvers and preconditions, as well as control
the exception handling
 You can define multilevel workflows and different processors per various
preconditions
 With the Define Responsibilities app, you define the responsibility specifications by
setting a Priority (01 to 99) and assigning the amt ranges and co codes the
responsibility is valid for
 Then, in the same app, you assign the users or grps of users that are recipients and
processors for the verification workflow
Validations and Substitutions
 Validations are used to perform checks on data entered by a user to protect and
prevent erroneous postings for those cases in which you can create a std check for
data entered
  Substitutions are meant to either fill fields that are left blank or change the entries in
fields filled with values different from those defined in substitution rules
Overview of Validations and Substitutions
 Validations and substitutions can be defined for multiple application areas. The most
relevant areas for a fin a/c consultant are the foll
o Fin a/c
o Asset a/c
o Cost a/c
 Validations and substitution are valid for specific callup points. The important ones to
remember are the foll
o Doc header: At this level, the fields checked or substituted all belong to the
doc header. In addition, the check and substitution logic is also based on
fields known just from a completed header section. This includes header
table fields (table BKPF) and system fields (SYST) such as system date
o Line item: The line-item fields are validated or substituted at this callup point.
You can evaluate fields and entries from the header, system fields and other
line-item fields (table BSEG)
o Complete doc: With this callup point, you can check and substitute fields
either in the header or line item. Usually reserved for cases in which you need
to have the line items entered to check/ change header details or in which
you want to check/ change fields for automatically generated line items (e.g.,
tax items) or for multiple line items together (e.g., total posted amt)
 To use a validation or substitution that you defined, you assign it to the co code in
Customizing.
 You can assign a single validation/ substitution per co code and callup point. For each
validation/ substitution defined you also define the activation level:
 0: Inactive- System won’t perform any validation/ substitution. This is equal to not
having line in maintenance table
 1: Active- System will always perform validation/ substitution for each journal entry
 2: Active, no batch input- System will perform validation/ substitution for each
journal entry entered manually, but not for batch processes, for example, when
uploading entries for data migration
 When defining the validation and substitution, you can define multiple steps. The
system runs through each step at the callup point sequentially and raises the 1 st
message for validation
 For substitutions, the system will perform all changes and updates to fields (per
callup points) without the user taking any action
 Validation step is made up of the foll. Components
o Prerequisite: What system checks to define whether it need to check
validation.
 o Check: System makes this check. For steps to “activate” check must not be
fulfilled. If doc type is indeed different, validation doesn’t generate any
message
o Message: If the check isn’t fulfilled system generates error message. (Errors
are indicated by an encircled, red exclamation mark)
Substitution Definition
 Substitution uses a rule to change the value of a field whether already filled or empty
 Stronger even than a manual entry or default value; substitution will always be
performed if prerequisite is met
 A substitution will always be performed if prerequisite is met and will work for fields
even if they’re hidden in the screen definitions; The value will be written in the
Document Header or Line Item field define when the prerequisite is met
 When doc type is SA, the document reference field will be filled with the system date
 To define such a step, you create a new step within the substitution assigned to the
relevant co code at Document Header callup point
 When creating a new step, the 1st thing you maintain is the field that you want to
substitute.
 The system provides a popup screen in which you mark the field or fields you want to
substitute
 The list for selection depends on the callup point; for example, you would have a
different selection of fields to choose from for the Line Item callup point. You then
select the method with which the field value will be filled by the substitution. You can
select from the foll options:
 Constant value: Simplest method. You enter a single constant value for the field value
 Exit: With a user exit, you have the flexibility to write ABAP code to define whatever
rule you want
 Field- Field assignment: You select a field to use as reference for the value of the field
you’re substituting. You can’t combine field values with this rule
 The formula builder allows you to “write” code in a guided and protected manner.
The formula builder only allows you to select the functions that make your
prerequisite syntactically correct, so from a code level, at least, the syntax will be
correct
 In the top section of the screen, you enter the prerequisite code. You use the field
selection at the bottom left of the screen, which proposes fields that are valid for the
callup point, to select fields
 You can add the operator from the list of operators at the right of the screen (=, >, <,
<> etc). You can define values by selecting the operands at bottom right of screen
 Constant: Enter fixed value
 FldCOMP (field companion): Specify a range of characters for a table field. For
instance, specifying from character 1 to 3 of GL A/c would allow you to compare via
value of 1st 3 character of a GL a/c to say, for example, “if the GL a/c start with 123,
then fill cost center with XYZ”
 Comments: Add comments for information and maintenance purposes
  Set Directory: Select a set, which is like a grp of values for a field.
 When entering a constant value if there is a list of values for selection for the field
the system will make you select from the list of valid values
 The final step is to assign the substitution value per selected method. If prerequisite
is met, system will fill field reference in document header from current date field
Accrual Mgt
 Accrual postings to the period-end closing activities, since the amt of the necessary
accruals is not usually known until the end of the period.
 From a technical point of view, the Accruals Mgt functions build on the Accrual
Engine, which calculates the accruals that are posted in Fin a/c.
 Accruals do not need any separate journal entries but are saved as line items in the
Universal Journal with REFERENCE KEY = ‘ACES4’.
S4 Hana Accruals supported by Accrual Engine:
 Manual Accruals: You enter the data of the business transaction to be accrued or
load into Excel the corresponding data to the Accrual Engine. The system calculates
the amounts to be accrued.
 Purchase Order Accruals: The required data is taken from the Materials Management
module, transferred to the Accrual Engine, and automatically/Manually converted to
accrual items based on the configuration. The system calculates the amounts to be
accrued.
Advantages of S4 HANA Accrual Engine
 Is optimized for S/4HANA
o It is fully integrated into the General Ledger.
o The functions in Manual Accruals support the use of parallel valuation
methods. This means that you can calculate and post accruals according to
different accounting principles simultaneously.
o All currencies of General Ledger are supported.
o The Accrual Engine postings are stored only as line items of the universal
journal entry, in table ACDOCA.
o The fiscal year variant of the G/L ledgers are supported.
o Standard FI reversal, e.g. using transaction FB08 or F.80 is supported.
o There is no redundant storage of the postings as original document.
o No reconciliation effort any more with G/L: Transaction ACACTRANSFER
‘Transfer of ACE Docs to Accounting’ is obsolete.
 There are no summary records in the Accrual Engine:
o No limitation of the number of fields in reporting.
o No separate balance carryforward run required. The G/L balance carry
forward is sufficient. Transaction ACACCARRYFORWARD is obsolete.
o Enables Complex Postings – More than 2 line items are possible by customer-
defined of posting schemas.
 o Allows optional review and/or approval of periodic accruals at period end.
 Mass Upload of Accrual Objects is possible.
o Create or Update accrual objects with the total amount – For creating or
update accrual objects. The total accrual amount is a required field.
o Create or update accrual objects with periodic amount – For creating or
updating accrual objects. The periodic accrual amount is a required field.
o Update periodic amounts only (Quick mode) – For updating existing period
periodic accrual objects.
 Steps to set up the periodic accrual engine flow
o Step1: Set Application Component to be Customized.
o Step 2: Assign company code to the S4 HANA accrual engine
 Assign the company code for which accrual engine must be activated.
o Step 3. Close fiscal year for changes to Accrual objects
 Mention the year for which accrual objects is not required to be
change.
o Step 4: Define Accrual Line item type.

Minor differences between the Invoice amount and the amt received from the
customers/amount paid to the vendors are a very common occurrence. In such scenario, the
following options can be adopted:
 Post receipts/ payments by partially clearing invoices and creating a residual item for
the difference, if difference is beyond a certain limit and is hence material
 Post receipts/ payments by clearing invoices and creating separate entry for the
difference amount, if difference is within a certain limit and is hence immaterial
Steps for using the concept of Tolerance in SAP is:
 Analyzing the requirement for creating tolerance group
o If as per the business requirement there is a need to provide for tolerance in
case of payment differences, then tolerance groups would have to be created
as required
o Grouping together customers/vendors who should be assigned same
tolerance limits
o Creating as many Tolerance Groups as there is a need to classify customers
into different groups entitled to different tolerance limits
o If there is no need to classify the customers/vendors into different groups,
who are entitled to different tolerance limits, the requirement to assign
tolerance group to customers/vendors can be met by creating blank tolerance
group
 Define Tolerance Group
o The tolerance limits would have to be defined by way of tolerance groups.
 o Tolerance Groups contain the details that control the way the system
processes the cash discount and payment differences.
o Further, the tolerance limits can be defined (whichever is lower):
 Either as an absolute amount
 Or as a percentage of the amount received/paid
o Tolerance Group would have to be created for Customers/Vendors and Users.
 Assigning Tolerance Group
 Automatic Determination of G/L Accounts to be posted to
o The payment differences irrespective of, whether it exceeds or is within the
permitted payment difference as per the tolerance groups, would have to be
posted to G/L Accounts.
o Account to be posted to in case of payment differences beyond defined cash
discounts: OBXL
o Account to be posted to in case of payment differences within defined cash
discounts: OBXU
o Account to be posted to in case the payment difference loss is within defined
Maximum Discount Adjustment Amount for Loss from Payment Differences:
OBXI
 Specification of User Tolerance Group
 Assignment of Tolerance Group to Customer

 In SAP S/4HANA Cloud, public edition the exchange rates are used for posting and
clearing, exchange rate differences and foreign currency valuation.
 The defined exchange rates apply for all company codes.
 You can use the Currency Exchange Rates app to monitor, create, and change
currency exchange rates, and/or you can use the Import Foreign Exchange Rates app
to import foreign exchange rates.
 To set up exchange rates, you can use the following configuration options in the
system:
o Check Exchange Rate Types
o Define Translation Ratios for Currency Translation
o Define Standard Quotation for Exchange Rates
o Define Currency Settings for Ledgers and Company Codes

Configuration before dunning can be carried out

 Defining Dunning Area
 Define Dunning Keys
 Define Dunning Block Reasons
 Dunning Procedure
Define Dunning Procedure (T. Code u2013 FBMP)
To set up a Dunning Procedure, the following must be specified:
 No. of Dunning Levels (1-9)
 Dunning Texts- Std Text can also be included in the Dunning Texts
Dunning Procedure major parameters:
 Dunning Interval
 Number of Dunning Levels
 Grace Period

Type 1: Open item management

G/L accounts that can be managed on an open item basis include, for example, the following
clearing accounts:
 Bank clearing accounts
 Payroll clearing accounts
 Cash discount clearing accounts
 GR/IR clearing accounts
Journal entries that are managed using this type of open item management can have no
more than 999 line items.
Type 2: Open item management by ledger group
 Open item management by ledger group is relevant if you perform parallel
accounting using the ledger approach.
 If the indicator for this function is set for a G/L account, this account is then managed
on an open item basis and you can post ledger group-specific entries to this account.
 Clearing is also performed for specific ledger groups.
 Items that are posted to specific ledger groups can only be cleared within the same
ledger group.
 Items that are posted with an initial ledger group can only be cleared within that
initial ledger group.
 G/L accounts for which you cannot use open item management by ledger group
include, for example:
o Cash discount clearing accounts
o Tax-relevant accounts
o GR/IR clearing accounts

Type 3: Extended open item management

Extended open item management is allowed for goods receipt/invoice receipt (GR/IR)
clearing accounts.
Accounts for which open item management isn't possible
G/L accounts that can't be managed on an open item basis include, for example:
  Bank accounts
 Tax accounts (except for deferred tax)
 Raw material accounts
 Reconciliation accounts, which are managed implicitly using the subledger open item
function
 Material stock accounts

Configuring Ledgers
Setting defined at client level
 Ledger Code
 Ledger Name
 Whether ledger is leading ledger
 Ledger type (std or extension)
 Extension ledger type
 Underlying ledger (for extension ledgers)
 Valuation view (controls currency types assigned to co code/ ledger combo)
 Subtype of valuation view, which is only used for transfer prices
 Whether manual postings are allowed or ledger is used only for automatic postings
 A/c principle for ledger
Settings for ledger per co code
 Fiscal Year Variant
 Posting Period variant
 A/c principle
 Functional Currency
 Currency Type
 Parallel A/c using GL A/c

Deactivating Ledgers
 If ledger has been activated for co code and postings have been made with ledger
assigned but assignment is no longer valid, ledger for specific co code can be
activated
 Enter year from which deactivation is valid (usually future year but any year can be
activated)
 Ledger deactivation is irreversible. New ledger must be defined and assigned to co
code as required
 Roles for deactivating ledger
o All docs that have posting date before/ during fiscal year specified in To Fiscal
Year field remain on ledger
 o Docs with posting date after fiscal year specified are no longer posted to
ledger
o Any existing posting info for deactivated years is retained and can be reported
on. Data will be incomplete if deactivation occurs mid-year

Ledger Group Definition

 When ledger is created, system automatically generated ledger grp with same name
as ledger
 Only name can be changed, more ledgers can’t be added
 Ledger grp is defined in Customizing with 4-character alphanumeric code and
description
 Custom-defined ledger grp can include more ledgers

 To post to special period, you enter the last day of the fiscal year as the posting date
and manually set the period
 System supports up to 4 special periods to provide flexibility to handle diff phases of
closing

Integration of Controlling with the General Ledger

 Controlling postings require a document type, usually defined as one or more
separate controlling-specific doc types
 Each controlling biz transaction is mapped to a doc type and they can all be mapped
to the same doc type
 When posting manual controlling transactions, you can enter the doc type and the
ledger grp. For transaction for which you don’t have the option to enter these, the
system uses whatever assignments were defined in Customizing

Currencies
 The system uses exchange rate types so you can enter a different exchange rate ratio
depending on the biz case
 Exchange rate type to currency type in Customizing
 In productive system, translation ratios for currencies must be maintained
periodically (often daily)
 System offers reports to upload files with exchange rate ratios and reports that can
read real time exchange rate feeds
 To help with maintenance because of hundreds of currency combinations, you can
define base currency that is then used as basis for translating rates among other
currencies
  Direct quotation: 1 unit of foreign currency is translated to local currency
 Indirect quotation: 1 unit of local currency is translated to foreign currency
 SAP S/4 HANA system allows for currency maintenance using worklists assigned to
separate users for when maintenance task is shared btw employees
 Using worklists allows multiple users to work on exchange rates at same time &
allows for better authorization control because specific worklists with specific
currencies can be assigned to user
 System uses currency types to record different value amounts in the line-item tables
 All co codes record values in co code currency that is defined based on legal
requirements (the local currency where the company operates)
 In addition to co code currency, system will record doc currency as well because this
is also required for auditing and legal reasons
 The other fixed currency type assignment per co code is the global currency which is
assigned to controlling area
 Additional 8 currencies/ ledger can be assigned that system can update and record
during transaction processing
 SAP S/4 HANA system comes preconfigured with foll. Currency types
o 00: Document Currency
o 10: Company Code Currency
o 20: Controlling Area Currency
o 30: Group Currency
o 40: Hard Currency
o 50: Index-Based Currency
o 60: Global Company Currency
o 70: Controlling Object Currency

Archived data can’t be enriched with the new currency

Document Types and Number Ranges
 Doc type is used to grp and categorise biz transactions
 Entered in document header and controls which a/c can be posted to
Foreign Currency Valuation
 Process od ID and posting profit/ loss occurring from fluctuation in currency
exchange rates when transacting with foreign business partners
 Depending on local and global