Learn, Practice, and Improve with SAP C_TS4CO_2023 Practice Test Questions

Explanation:

A. Determine whether settlement is required
In the settlement profile, you can specify whether settlement is mandatory, optional, or not allowed for the sender object.
This ensures that costs are properly transferred to receivers at period-end or order completion.

D. Define settlement document type
The settlement profile allows you to define the document type used when settlement postings are created in Financial Accounting (FI).
This controls how settlement documents are categorized and tracked in FI.

❌ Incorrect Options:

B. Determine an overhead key
Overhead keys are used in costing sheets for overhead calculation, not in settlement profiles.
Settlement profiles do not control overhead application.

C. Define a number range for settlement documents
Number ranges for settlement documents are defined at the FI document level, not in the settlement profile.
The settlement profile only specifies the document type; the number range is tied to that document type in FI configuration.

Reference:
SAP Help Portal – Settlement Profile Configuration in CO
SAP S/4HANA Controlling documentation: Settlement profiles define rules such as settlement requirement and document type.

Explanation:

The system uses a "cascading" search logic to find a Requirement Type. The goal is to reach the Planning Strategy, which acts as the container that links a Requirement Type to its underlying control settings (the Requirement Class).

The Primary Path (Direct Assignment):
The system first checks the Strategy Group in the MRP 3 view of the material master. The Strategy Group contains one or more Planning Strategies. Each strategy then points to a specific Requirement Type (e.g., LSF for Make-to-Stock or KE for Make-to-Order).

The Fallback Path (Via MRP Group):
If the Strategy Group field is empty in the MRP 3 view, the system looks at the MRP Group in the MRP 1 view. In Customizing, an MRP Group can be assigned to a default Strategy Group. Once the system finds the Strategy Group via the MRP Group, it follows the same path as above to find the Requirement Type.

Why the other options are incorrect:

A & B (Requirements Class):
These options suggest that the Requirements Class is a step before determining the Requirement Type. This is technically reversed. In the SAP hierarchy, the Requirement Type is determined first, and it then points to a Requirement Class, which contains the actual configuration rules (like whether to allow an availability check or how to handle costs).

References
SAP Help Portal: Determination of the Requirements Type.
SAP Learning Journey (S4F20): Management Accounting Basics.

Explanation:

In SAP S/4HANA Cloud Private Edition, cost center budget management (via Fiori app "Manage Cost Center Budgets") enables planning, supplements, transfers, and annual availability control. Key functions include:

CSV import (A):
Allows mass upload of budget values (annual or periodic) via CSV files for efficient data entry, supported in the app's mass processing features. Budget transfers (D): Enables transferring budgets from one sender cost center to multiple receivers using budget documents, facilitating reallocation.
This feature, enhanced from S/4HANA 1909, focuses on cost centers without period-specific controls.

Why others are incorrect (briefly):

B: Availability control is annual, not monthly; no period-based checks.
C: No automatic carryforward of unused budgets; must replan annually.

References:
SAP Help Portal: "Cost Center Budget Management" (describes import and transfers). SAP Note 3048467: Confirms no monthly control or carryforward.

Explanation:

In SAP S/4HANA, Profitability Analysis (CO-PA) can be used in different forms. The timing of when Cost of Goods Sold (COGS) is updated depends on the type of CO-PA used.

Let’s review each option:

❌ A. Margin analysis
Margin Analysis is account-based CO-PA.
COGS is updated in real time at goods issue (delivery) via FI postings, not only at delivery in a CO-PA-specific way.
It follows financial accounting logic, not CO-PA-specific valuation logic.
Therefore, this option is not correct for the wording of the question.

❌ B. Combined profitability analysis
Combined CO-PA means both margin analysis and costing-based CO-PA are active.
Since margin analysis does not meet the “delivery only” criterion on its own, this option is incorrect.

✅ C. Costing-based
Costing-based CO-PA updates COGS only at the time of delivery.
The values are calculated using standard cost estimates, not actual FI postings.
This behavior is classic and specific to costing-based profitability analysis.

❌ D. Both margin analysis and costing-based
As explained above, only costing-based CO-PA fulfills the condition.
Margin analysis does not rely exclusively on delivery-based valuation in CO-PA.

Reference:
SAP Help Portal – Profitability Analysis (CO-PA) → Costing-Based vs Account-Based
SAP Learning Hub – S/4HANA Management Accounting → Margin Analysis

Explanation:

Direct internal activity allocation (also called activity allocation via KB21N, KB11N, or plan/actual assessments) transfers activity quantities (e.g., labor hours, machine hours) from a sender cost center (with activity type) to receiver objects that consume those activities. The receivers must be cost objects that can absorb primary or secondary costs for detailed tracking and settlement.

A. Sales order item
— In make-to-order production, activity costs (like production labor) can be allocated directly to a sales order item (via cost object: sales order item) for precise cost tracking and profitability analysis.

B. Internal order
— A primary receiver object for activity allocations (e.g., maintenance work performed by a cost center can be charged to an internal order).

E. WBS element
— In project accounting, activities from cost centers (e.g., engineering hours) are commonly allocated to WBS elements to accumulate project costs.

Why the others are incorrect:

C. Profit center
— A profit center is not a valid direct receiver for an activity allocation. Activity quantities flow to cost objects (like orders, projects), not to profit centers. Profit center accounting receives values via secondary postings or assessment, but you cannot charge activity hours directly to a profit center; you post costs.

D. General ledger account
— A G/L account is a cost element, not a cost object. Activity allocations post secondary costs, which require both a cost element and a cost object (like an order). You cannot send an activity to a standalone G/L account.

Reference:
Activity Allocation (Direct/Internal) – Transaction KB21N (Actual), KP26/KP06 (Planning) Activity allocation is a secondary cost posting from a sender cost center/activity type to a receiver cost object. Valid receivers include any object that can be debited with secondary costs:

Explanation:

C. Use separate ledgers for each valuation
In SAP S/4HANA, you can configure transfer pricing by maintaining parallel ledgers for different valuation approaches (e.g., group valuation vs. legal valuation).
Each ledger reflects a distinct valuation method, ensuring compliance with both local GAAP and group reporting requirements.

D. Use separate currency types within the same ledger for each valuation
Alternatively, SAP allows you to use different currency types (e.g., company code currency, group currency, profit center valuation currency) within the same ledger.
This enables multiple valuations without needing separate ledgers, reducing complexity while still supporting transfer pricing.

❌ Incorrect Options:

A. Use separate segments for each valuation
Segments are used for reporting purposes (e.g., segment reporting in FI), not for configuring transfer pricing.
They don’t control valuation methods.

B. Use separate material ledgers for each valuation
Material Ledger supports multiple currencies and valuations for inventory, but you don’t configure transfer pricing by creating separate material ledgers.
Instead, transfer pricing is handled via ledgers and currency types.

Reference:
SAP Help Portal – Transfer Pricing in SAP S/4HANA
SAP S/4HANA Finance Guide: Parallel Valuation Approaches using Ledgers and Currency Types

Explanation:

The primary goal of Results Analysis is to determine the value of work performed at the end of a period, regardless of whether it has been billed yet.

Work in Progress (C):
If the actual costs incurred exceed the calculated cost of sales (meaning you have spent money on work not yet reflected as an expense), the system calculates this surplus as Work in Progress (WIP) to be capitalized on the balance sheet.

Reserves for Unrealized Costs (B):
In some scenarios, if the calculated cost of sales is higher than the actual costs incurred so far (common in percentage-of-completion methods), the system creates a Reserve to account for future costs that have already been "earned" in terms of revenue recognition.

Cost of Sales (E):
In S/4HANA Management Accounting, especially when using non-valuated sales order stocks, the actual costs on the order do not automatically hit the P&L as "Cost of Goods Sold." Results Analysis calculates the Cost of Sales based on the Percentage of Completion (POC) to match the recognized revenue.

Why the other options are incorrect:

A. Gross Margin:
While Results Analysis provides the components (Revenue and Cost of Sales) to calculate a margin, the "Gross Margin" itself is a result seen in reporting (like CO-PA or Margin Analysis), not a specific value "calculated" and stored by the RA engine.

D. Cost of Goods Manufactured (COGM):
This value is typically the result of Product Cost Planning (Cost Estimates) or the final credit to a production order upon goods receipt. It is a standard production value rather than a specialized Results Analysis accrual.

References:
SAP Help Portal: Performing Results Analysis.
SAP Learning (S4F22): Cost Object Controlling in SAP S/4HANA.
SAP Library: Results Analysis Methods (Revenue-Based, Cost-Based, POC).