C_TS4CO_2023 - SAP S/4HANA Cloud Private Edition - Practice Questions PDF

SAP C_TS4CO_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Management Accounting  Total Questions: 80 Latest Version: 7.1 Question: 1 For which objects can you enter statistical key figures? Not...

SAP C_TS4CO_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Management Accounting  Total Questions: 80 Latest Version: 7.1 Question: 1 For which objects can you enter statistical key figures? Note: There are 3 correct answers to this question. A. Functional areas B. Cost elements C. WBS elements D. Cost centers E. Internal orders Answer: B, D, E Explanation: Statistical key figures can be entered for cost elements, cost centers, and internal orders in SAP S/4HANA, which serve as basis quantities in allocation cycles to distribute costs across various dimensions. Question: 2 What are some of the characteristics of SAP Core Data Services (CDS) views? Note: There are 3 correct answers to this question. A. CDS views duplicate data for reporting efficiencies. B. CDS views are considered system modifications. C. CDS views support authorizations. D. CDS views have ready-to-use content. E. CDS views have no latency. Answer: C, D, E Explanation: CDS views in SAP S/4HANA offer real-time access to data (no latency) and come with ready-to- use content. They also support authorizations, ensuring data security within reporting frameworks.  Question: 3 You are running an indirect activity allocation. What do you post to the sender and receiver? A. You post both quantity and cost to the sender, and cost only to the receiver. B. You post quantity and cost to both the sender and receiver. C. You post both quantity and cost to the receiver, and cost only to the sender. D. You post only cost to both the sender and receiver. Answer: B Explanation: In SAP S/4HANA, an indirect activity allocation posts both quantity and cost to both sender and receiver, allowing for accurate tracking and balancing of activity quantities and associated costs. Question: 4 How can you configure the transfer price solution in SAP S/4HANA? Note: There are 2 correct answers to this question. A. Use separate segments for each valuation. B. Use separate material ledgers for each valuation. C. Use separate ledgers for each valuation. D. Use separate currency types within the same ledger for each valuation. Answer: C, D Explanation: SAP S/4HANA supports transfer pricing configurations using separate ledgers or distinct currency types within the same ledger. This setup allows for multiple valuations within legal, group, and profit center reporting standards. Question: 5 Which statement best describes cost center standard hierarchy? A. It is a structure to which all the cost centers within a controlling area are assigned. B. It is a structure to which all cost centers of a client have to be assigned. C. It is a structure where all cost centers with the same currency are defined. D. It is a structure where all cost centers within the same operating concern are defined. Answer: A Explanation: The cost center standard hierarchy in SAP S/4HANA is a mandatory structure for each controlling area, encompassing all cost centers, providing a basis for consistent reporting and data aggregation. Question: 6 From which tables does SAP S/4HANA select line items in costing-based Profitability Analysis reports? Note: There are 2 correct answers to this question. A. CE2XXXX B. CE4XXXX_ACCT C. ACDOCA D. CE1XXXX Answer: A, D Explanation: In costing-based Profitability Analysis, line item tables CE2XXXX and CE1XXXX store relevant profitability data in SAP S/4HANA. These tables are used for reporting detailed cost and revenue allocations. Question: 7 You have implemented Product Cost by Sales Order in conjunction with revenue-based results analysis in your organization. For a particular sales order item, you have the following: Plan revenue = 3000 Plan costs = 2000 Actual revenue = 1200 Actual costs = 1000 What data does the system calculate during results analysis? A. Revenue = 1200; Cost of sales = 800; Reserve = 200 B. Revenue = 1200; Cost of sales = 1000; Reserve = 200 C. Revenue = 1200; Cost of sales = 800; WIP = 200 D. Revenue = 1200; Cost of sales = 1000; WIP = 200  Answer: C Explanation: For Product Cost by Sales Order, SAP S/4HANA calculates revenue, cost of sales, and WIP based on actual data. Given the actual revenue and cost data, the system computes a WIP value to align with results analysis requirements. Question: 8 How does the system derive the requirement type from the material master data? Note: There are 2 correct answers to this question. A. Strategy group -> planning strategy -> requirements class -> requirements type B. MRP group -> requirements class -> planning strategy -> requirements type C. MRP group -> strategy group -> planning strategy -> requirements type D. Strategy group -> planning strategy -> requirements type Answer: C, D Explanation: SAP S/4HANA derives the requirement type based on the MRP or strategy group settings, allowing the system to link planning strategies to requirement types that define demand processing in Material Requirements Planning. Question: 9 Where do you define which cost elements are used during internal order settlement? A. Derivation rule B. Source structure C. Settlement rule D. Allocation structure Answer: B Explanation: In SAP S/4HANA, the source structure determines which cost elements are utilized during internal order settlement. The source structure maps costs to specific categories for transfer to the assigned receiver.  Question: 10 How can you define the overhead rate in a costing sheet? Note: There are 2 correct answers to this question. A. As equivalence number B. As percentage rate C. As quantity-based surcharge D. As fixed value Answer: B, C Explanation: Overhead rates in a costing sheet can be defined as a percentage rate or a quantity-based surcharge. This flexibility allows companies to allocate overhead based on usage quantities or as a percentage of base costs. Question: 11 You are setting up costing-based Profitability Analysis for your organization. What are related configuration activities? Note: There are 3 correct answers to this question. A. Enable attributed profitability analysis B. Configure account determination for COGS split C. Define characteristics D. Assign value fields to conditions E. Configure summarization levels Answer: C, D, E Explanation: Setting up costing-based Profitability Analysis involves defining characteristics, assigning value fields to conditions, and configuring summarization levels. These steps enable detailed reporting and segmentation of profitability data in SAP S/4HANA. Question: 12 You post a billing document for a sales order with sales order controlling. What data flows to Profit Center Accounting? Note: There are 2 correct answers to this question. A. Order quantity B. Payment discount C. Revenues D. Sales deductions Answer: C, D Explanation: In SAP S/4HANA, revenues and sales deductions are transferred to Profit Center Accounting during billing document posting. This allows companies to assess profitability by profit center accurately. Question: 13 What do you need to set up in order to bring the values from incoming sales orders into account-based Profitability Analysis? A. An extension ledger of type "P: Line items with technical numbers / no deletion possible" B. A multi-valuation ledger C. A new standard G/L ledger with exclusive usage for "Prediction" D. An extension ledger of type "S: Line items with technical numbers / deletion possible" Answer: D Explanation: For integrating incoming sales orders in account-based Profitability Analysis, an extension ledger of type "S" is used in SAP S/4HANA, which enables the management of predictive entries with the option of deletion if required. Question: 14 Your enterprise has five company codes assigned to three separate operating charts of accounts. What is the optimal way of configuring the relationship between operating concerns and controlling area? A. Three operating concerns; three controlling areas B. One operating concern; three controlling areas C. One operating concern; five controlling areas D. One operating concern; one controlling area Answer: B Explanation: A single operating concern linked to multiple controlling areas is optimal for unified reporting across multiple charts of accounts, allowing each controlling area to map local requirements while sharing consolidated financial data. Question: 15 Which default values can you configure for the product cost collector? Note: There are 2 correct answers to this question. A. Variance variant B. Results Analysis (RA) key C. Costing variant for preliminary costing D. Results Analysis (RA) version Answer: B, C Explanation: For product cost collectors, you can set default values for the Results Analysis (RA) key and the costing variant for preliminary costing in SAP S/4HANA, streamlining the setup for consistent cost collection across production orders. Question: 16 You want to maintain a cost component structure. What can you determine for each cost component? Note: There are 3 correct answers to this question. A. Assignment of cost component to calculation base for overheads in costing sheet B. Relevance of cost component to goods manufactured C. Relevance of cost component to inventory valuation D. Assignment of cost component to cost component group E. Relevance of cost component to results analysis Answer: A, B, C Explanation: Cost components in SAP S/4HANA can be assigned to overhead calculation bases, goods manufactured, and inventory valuation, allowing for accurate cost breakdowns relevant to production and valuation. Question: 17 What can you manage via the account assignment category? Note: There are 2 correct answers to this question. A. Accounting via sales order B. Separate sales order stock C. Results analysis key D. Costing variant Answer: A, B Explanation: The account assignment category in SAP S/4HANA manages accounting via sales orders and separate sales order stock, allowing for specific tracking and valuation of sales order-related costs and inventory. Question: 18 You want to understand why costs are collected on the sales order item level. What do you need to check in the configuration? Note: There are 3 correct answers to this question. A. Requirement type B. Valuation variant C. Account assignment category D. Requirements class E. Costing type Answer: A, C, D Explanation: To ensure costs are collected at the sales order item level, you need to check settings for the requirement type, account assignment category, and requirements class in SAP S/4HANA, which determine how and where costs are tracked and assigned.  Question: 19 What are some of the unique attributes of an assessment cycle in Controlling? Note: There are 3 correct answers to this question. A. They use the original cost element during transfer. B. They use a secondary cost element during transfer. C. They can be processed in an iterative way. D. They transfer primary and secondary costs. E. They can be defined with an allocation structure. Answer: B, D, E Explanation: Assessment cycles in SAP S/4HANA Controlling use secondary cost elements for cost transfers, support primary and secondary cost transfers, and can be structured using allocation structures. This allows flexible and accurate distribution of costs across controlling objects. Question: 20 Which setting in the cost center master data do you use to assign the same attributes to similar cost centers? A. Cost center department B. Cost center category C. Standard hierarchy node D. Functional area Answer: B Explanation: The cost center category in SAP S/4HANA allows grouping of similar cost centers, enabling the assignment of consistent attributes and settings, thus streamlining configuration and reporting. Question: 21 At which level do you define the valuation method for results analysis? A. Valuation area B. Operating concern C. Client D. Controlling area Answer: D Explanation: In SAP S/4HANA, the valuation method for results analysis is defined at the controlling area level. This ensures that all relevant cost objects within the controlling area apply the same valuation logic. Question: 22 What are the prerequisites for automatic generation of the settlement rule to a market segment for a sales order item? Note: There are 2 correct answers to this question. A. Attributed profitability analysis is activated. B. Costing-based profitability analysis is activated. C. The sales order item is assigned to a project. D. The sales order item is a cost object. Answer: B, C Explanation: Automatic settlement rule generation for sales order items in SAP S/4HANA requires that costing-based profitability analysis is active and that the sales order item is assigned to a project to enable correct cost flow to profitability segments. Question: 23 How would you explain automatic account assignment in SAP S/4HANA? Note: There are 2 correct answers to this question. A. It can be defined for postings on general ledger accounts of primary costs type. B. It can be defined for postings on general ledger accounts of secondary costs type. C. Proposed values can be overwritten in the application. D. Proposed values take precedence over validation and substitution. Answer: A, C Explanation: Automatic account assignment in SAP S/4HANA allows defining default account assignments for primary cost postings, and these proposed values can be adjusted as needed, allowing flexible management of financial postings. Question: 24 You configure the commitment management solution for cost centers and projects in your SAP S/4HANA system. Which documents can create commitments against the budget? A. Purchase order for purchasing a car with direct capitalization B. Purchase requisition for purchasing office materials C. Goods receipt for production material stock D. Invoice for project-related travel expenses Answer: B Explanation: Purchase requisitions create commitments against budgeted amounts in SAP S/4HANA. This step allows tracking anticipated expenses, ensuring budgets are not exceeded when actual costs are incurred. Question: 25 In which module do you process profit center allocations in SAP S/4HANA? A. Account-based profitability analysis B. General ledger accounting C. Product cost accounting D. Cost center accounting Answer: A Explanation: Profit center allocations are managed within account-based profitability analysis in SAP S/4HANA, ensuring alignment of profitability and cost management with financial accounting. Question: 26 How do you maintain number range intervals for documents in Controlling? Note: There are 2 correct answers to this question. A. By client B. By business transactions C. By document type D. By controlling area Answer: B, D Explanation: Number range intervals in SAP S/4HANA are maintained by business transactions and controlling area, allowing document numbering to be systematically organized and controlled within specific areas and transaction types. Question: 27 Which type(s) of Profitability Analysis update(s) the cost of goods sold at the time of delivery only? A. Margin analysis B. Combined profitability analysis C. Costing-based D. Both margin analysis and costing-based Answer: A Explanation: Margin analysis in SAP S/4HANA updates the cost of goods sold (COGS) at delivery, aligning profitability reporting more closely with revenue recognition. This enables timely and accurate COGS updates tied to actual deliveries. Question: 28 Which statements are relevant to the cost of sales accounting method in profitability management? Note: There are 2 correct answers to this question. A. It presents the costs and revenues information in a format that is ideal for conducting margin analyses. B. It aims to match revenues for goods and services against sales-related expenses. C. It presents revenues, primary expenses, changes in stock, WIP, and capitalized activities. D. It aims to summarize activity and situational change for a given organizational unit over a period of time. Answer: A, B Explanation: The cost of sales accounting method in SAP S/4HANA is used to present revenues alongside sales-related expenses, facilitating margin analysis and providing a clear picture of profitability directly related to sales. Question: 29 What are some of the characteristics of planning for internal orders? Note: There are 2 correct answers to this question. A. Availability control can check against plan values. B. You can enter costs and revenues. C. You can plan multiple versions. D. You can define tolerance limits for plan overspend. Answer: B, D Explanation: In SAP S/4HANA Cloud, Private Edition, planning for internal orders allows users to enter both costs and revenues (option B) and set tolerance limits to control overspending (option D). This functionality is part of cost center and internal order management under SAP’s Management Accounting module, where cost planning and availability checks can help manage resource allocation for specific projects or internal activities. Question: 30 You want to enable WIP calculation in Product Cost by Period. What do you need to configure? A. Variance variant B. Settlement profile C. Profitability Analysis (PA) transfer structure D. Valuation variant Answer: D Explanation: The valuation variant (option D) is required to configure the work in process (WIP) calculation in Product Cost by Period. The valuation variant determines the costing strategy and defines which costs are included in the WIP calculation, essential for accurate inventory valuation and profitability analysis in SAP S/4HANA Management Accounting. Question: 31 What can you do with statistical internal orders? Note: There are 2 correct answers to this question. A. Perform budget availability control. B. Simultaneously post to a cost center. C. Settle to a CO-PA segment. D. Perform results analysis. Answer: B, D Explanation: Statistical internal orders in SAP S/4HANA are used mainly for reporting and monitoring purposes, allowing postings simultaneously to both the internal order and a cost center (option B). Additionally, they can be used to perform results analysis (option D) for budgeting and cost tracking in Management Accounting. Statistical orders cannot be settled, as they are primarily for information purposes. Question: 32 You have implemented Product Cost by Sales Order in conjunction with cost-based POC results analysis in your organization. For a particular sales order item, you have the following: Plan revenue = 3000, Plan costs = 2000, Actual revenue = 1200, Actual costs = 1000. What data does the system calculate during results analysis? A. Revenue = 1200; Cost of sales = 1000; Capitalized revenue (revenue in excess of billings) = 200 B. Revenue = 1200; Cost of sales = 1000; Revenue surplus = 200 C. Revenue = 1500; Cost of sales = 1000; Revenue surplus = 300 D. Revenue = 1500; Cost of sales = 1000; Capitalized revenue (revenue in excess of billings) = 300 Answer: D Explanation: In Product Cost by Sales Order, the results analysis calculates values based on actual performance and the cost-based percentage of completion. Given the parameters, the system would calculate capitalized revenue at 300 for unbilled sales (option D), in alignment with SAP's Management Accounting and Revenue Recognition principles. Question: 33 To which objects can you settle an internal order using cost elements with cost element category 21 (internal settlement)? Note: There are 3 correct answers to this question. A. General ledger account B. Network C. Sales order item D. WBS element E. Asset Answer: B, C, D Explanation: Internal orders in SAP can be settled to various cost objects, including networks (option B), sales order items (option C), and WBS elements (option D). These are key objects for cost management, allowing for detailed tracking and settlement in project and order management scenarios. Question: 34 In the material master record, there are three planned prices: "Planned price 1," "Planned price 2," and "Planned price 3." What do you use them for? Note: There are 2 correct answers to this question. A. To be used for reporting purposes B. To update the standard price at the release of a cost estimate C. To evaluate the materials in cost estimates D. To valuate future goods movements Answer: C, D Explanation: Planned prices in SAP are used for evaluating materials in cost estimates (option C) and for the valuation of goods movements (option D). This ensures accurate cost tracking and planning, especially critical in SAP S/4HANA Cloud Private Edition’s Management Accounting functionalities.  Question: 35 What parameters can you set up when defining order types? Note: There are 2 correct answers to this question. A. Define source structure B. Define document type C. Allow revenue postings D. Define default parameters for master record fields Answer: C, D Explanation: When defining order types in SAP, revenue posting permissions (option C) and default parameters for master record fields (option D) can be set. These configurations enable greater flexibility in internal order management and reporting. Question: 36 Which model can be used for ABAP cloud-native development? A. BAP RESTful Application Programming Model B. The SAP S/4HANA Cloud Extensibility Model C. The ABAP Cloud Development Model Answer: C Explanation: The ABAP Cloud Development Model (option C) is specifically designed for ABAP-native cloud development, supporting SAP S/4HANA Cloud environments. This model aligns with SAP's development strategies for cloud-native solutions, offering extensibility and integration capabilities. Question: 37 What are characteristics of SAP S/4HANA embedded analytics? Note: There are 2 correct answers to this question. A. It is hosted on the SAP Cloud Platform and integrates seamlessly with SAP S/4HANA on the Fiori Launchpad. B. It uses core data services (CDS) views to create virtual data models (VDMs) for reporting. C. It is part of the core SAP S/4HANA license and uses the same technical stack and user interface. D. It uses data summarized in SAP BW/4HANA. Answer: B, C Explanation: SAP S/4HANA embedded analytics leverages core data services (CDS) views for real-time reporting (option B) and is part of the standard S/4HANA license, using the same stack and interface (option C). This integration allows businesses to perform analytics directly within the S/4HANA environment. Question: 38 To which object do you assign a costing sheet? A. Cost component structure B. Valuation variant C. Costing type D. Costing variant Answer: B Explanation: In SAP S/4HANA, costing sheets are assigned to valuation variants (option B), which define the parameters for cost estimates, including indirect costs and overheads. This is essential for accurate cost analysis and financial reporting. Question: 39 In SAP S/4HANA, you have decided to activate only account-based profitability analysis for your organization. You want to settle costs and revenue of a sales order item to a profitability segment. What do you need to configure? A. Source structure B. Cost component structure C. A transfer structure D. Allocation structure  Answer: C Explanation: For settling costs and revenue to a profitability segment in account-based profitability analysis, a transfer structure (option C) is essential. This structure maps cost elements to profitability segments, which enables direct posting of costs and revenues for specific segments in SAP S/4HANA Management Accounting. Question: 40 Which processes split costs into their primary cost components? Note: There are 2 correct answers to this question. A. Top down distribution B. Business process price calculation C. Execution of the assessment cycles D. Cost center/activity type price calculation Answer: B, D Explanation: Business process price calculation (option B) and cost center/activity type price calculation (option D) split costs into primary cost components. These processes allow more detailed cost tracking by itemizing primary costs, aiding transparency in SAP S/4HANA Management Accounting. Question: 41 You would like to allocate primary and secondary costs from a cost center to another cost center. Which allocation method will you use? A. Assessment B. Periodic reposting C. Top down distribution D. Distribution Answer: A Explanation: The assessment method (option A) is used to allocate both primary and secondary costs between cost centers. This method consolidates costs and redistributes them based on predefined criteria, suitable for detailed internal cost allocations in SAP S/4HANA. Question: 42 For which of the following situations would you need to implement the transfer price solution in SAP S/4HANA? A. Parallel price calculation and invoicing are needed to facilitate intercompany reconciliation. B. Parallel valuation views of the same logistical flows are needed to differentiate between legal and profit center valuation. C. Parallel costing is needed to calculate separate costs of goods manufactured for different accounting principles. D. Parallel valuation views of the same logistical flows are needed to differentiate between legal and group valuation. Answer: D Explanation: The transfer price solution in SAP S/4HANA is used when parallel valuation views (option D) are required, especially to distinguish between legal and group valuations. This is critical for consolidated reporting and managing internal pricing within multiple organizational entities. Question: 43 Why would you use manual cost allocation in Controlling? Note: There are 2 correct answers to this question. A. To run simple allocations of plan data B. To run simple allocations of actual data C. To correct secondary postings D. To allocate costs using an allocation cycle Answer: B, C Explanation: Manual cost allocation allows for simple allocations of actual data (option B) and correction of secondary postings (option C). This functionality is helpful in making quick adjustments without running complex allocation cycles in SAP S/4HANA Management Accounting.  Question: 44 You want to determine which operations of the routing should be considered in a product cost calculation. How do you do this? Note: There are 2 correct answers to this question. A. By assigning a cost center to the work center in the operation B. By defining a usage key in the header of the routing C. By marking the cost indicator in the control key assigned to the operation D. By marking the Relevance to Costing indicator in the operation Answer: C, D Explanation: In product cost calculations, marking the cost indicator in the control key (option C) and the Relevance to Costing indicator in the operation (option D) ensures specific operations are included. This setup enables cost-effective routing management in SAP S/4HANA. Question: 45 At what level do you create the structure of the operating concern for margin analysis? A. Sales organization B. Controlling area C. Client D. Cross client Answer: B Explanation: The structure of the operating concern for margin analysis is created at the controlling area level (option B) to enable margin analysis at a granular level in SAP S/4HANA Management Accounting. Question: 46 You create a new cost estimate. Which of the following steps are required to update the standard price of the material? Note: There are 3 correct answers to this question. A. Activate the cost estimate. B. Release the cost estimate. C. Run the cost estimate. D. Mark the cost estimate. E. Simulate the cost estimate. Answer: B, C, D Explanation: Running the cost estimate (option C), marking it (option D), and releasing it (option B) are necessary steps to update a material's standard price. This ensures that accurate, current cost data is used in inventory valuation and financial reporting in SAP S/4HANA. Question: 47 You want to use a template to consider overhead during product costing. How do you assign the template to your material? A. Using a costing key and an overhead key B. Using an overhead group and an overhead key C. Using an origin group and an overhead group D. Using a cost component group and an overhead group Answer: B Explanation: An overhead group and an overhead key (option B) are assigned to include overhead costs in product costing. This assignment enables the application of pre-defined overhead rates in SAP S/4HANA, facilitating accurate product cost calculations. Question: 48 You are considering using commitment management with internal orders. Where do you need to activate commitment management? Note: There are 2 correct answers to this question. A. In the order type B. In the controlling area C. In individual internal order master data D. In the version  Answer: A, B Explanation: Commitment management is activated at the order type level (option A) and in the controlling area (option B). This configuration is essential for tracking commitments, such as open purchase requisitions and orders, within internal orders in SAP S/4HANA Management Accounting. Question: 49 You are working in the machinery industry, and you consider implementing cost center budget management. Which functions are available for cost center budget management? Note: There are 2 correct answers to this question. A. Budget values import with CSV file B. Availability control against monthly budget amount C. Unused budget carry-forward to next fiscal year D. Budget transfer from source cost center to multiple target cost centers Answer: A, D Explanation: In SAP S/4HANA, cost center budget management includes the ability to import budget values via CSV (option A) and transfer budgets from one cost center to multiple others (option D). These features support streamlined budget adjustments and allocations, crucial for managing costs in the machinery industry. Question: 50 Which scenarios can be covered by one single costing run? Note: There are 2 correct answers to this question. A. Standard cost estimate of all the materials in all controlling areas B. Inventory cost estimate of all the materials in one plant C. Current cost estimate of all the materials in one plant D. Standard cost estimate of all the materials in all company codes of a controlling area Answer: B, D Explanation: A single costing run can handle inventory cost estimates for materials in a single plant (option B) and standard cost estimates for all materials within a controlling area’s company codes (option D). This functionality optimizes cost estimations across production locations in SAP S/4HANA. Question: 51 Which of the following can you use to explore released APIs? A. SAP Application Interface Framework B. SAP Integration Suite C. SAP Business Accelerator Hub Answer: C Explanation: The SAP Business Accelerator Hub (option C) is the platform where users can explore released APIs for various SAP applications, including SAP S/4HANA, facilitating seamless integration and extensibility. Question: 52 What can you configure in the settlement profile? Note: There are 2 correct answers to this question. A. Determine whether settlement is required. B. Determine an overhead key. C. Define a number range for settlement documents. D. Define settlement document type. Answer: A, D Explanation: In the settlement profile, you can configure whether settlement is required (option A) and define the document type for settlement (option D). These settings are crucial in managing cost flows and ensuring accurate settlements in SAP S/4HANA. Question: 53 You are implementing SAP S/4HANA, and you want to run analytical reports off a single data model. How is data reported on in SAP S/4HANA? A. Reporting on data is available in near real-time for aggregated tables. B. Reporting on data is available in real-time at every level of detail. C. Reporting on data is available in real-time if in conjunction with SAP BW/4HANA. D. Reporting on data is available in real-time only for aggregated level of detail. Answer: B Explanation: SAP S/4HANA provides real-time reporting at every level of detail (option B) by leveraging the Universal Journal, which consolidates various data types, supporting comprehensive and timely data analysis without additional ETL processes. Question: 54 Which of the following statements best describe Product Cost by Period? Note: There are 2 correct answers to this question. A. It is used to analyze costs by individual production lots. B. It is used in conjunction with a product cost collector. C. It is used when the focus of controlling is on a stable and continuous production process. D. It is used to analyze work in process (WIP) based on actual costs. Answer: B, C Explanation: Product Cost by Period (PCP) is typically used with a product cost collector (option B) and is suitable for stable production processes (option C). This method supports continuous cost tracking in repetitive manufacturing scenarios in SAP S/4HANA. Question: 55 What are some of the characteristics of Profit Center Accounting in SAP S/4HANA? Note: There are 2 correct answers to this question. A. It requires the activation of margin analysis. B. It can be used with period and/or cost of sales accounting. C. It is integrated into the universal journal. D. It is possible to derive the profit center from the segment in configuration.  Answer: B, C Explanation: Profit Center Accounting in SAP S/4HANA is integrated into the Universal Journal (option C) and supports both period and cost of sales accounting (option B). This integration enables real-time analysis of profitability across different organizational units. Question: 56 You have activated budget availability control against the overall value for an internal order and entered an overall budget of 10000. Actuals of 10000 were posted in the previous year. You are surprised to realize that a purchase order of 1000 was created for this internal order in the current year. How is that possible? Note: There are 2 correct answers to this question. A. The purchase order has NOT generated a budget relevant document yet. B. The difference of 1000 is within the tolerance limits defined in the configuration. C. The purchase order was entered in a different year than the budget. D. The cost account is exempted from budget availability control. Answer: B, D Explanation: The budget availability control allows a purchase order if the amount falls within defined tolerance limits (option B), or if certain cost accounts are exempt (option D). These settings provide flexibility within budget controls for different fiscal years in SAP S/4HANA. Question: 57 What are some of the objectives of Profitability Analysis? Note: There are 2 correct answers to this question. A. Provide the company with information on the performance of its market segments. B. Provide the company with a detailed view of its financial statements by areas of responsibilities. C. Allow the company to determine if the sales force achieved their contribution margin goals. D. Allow the company to determine standard costs and revenues according to the period accounting method. Answer: A, C Explanation: Profitability Analysis (CO-PA) aims to assess the performance of market segments (option A) and monitor whether sales teams meet their margin targets (option C). This provides valuable insights into product and market profitability for strategic decision-making. Question: 58 You want to derive the profitability segment for a line item in the universal journal using SAP S/4HANA standard configuration. What requirements must be fulfilled? Note: There are 2 correct answers to this question. A. Account-based Profitability Analysis must be active. B. The type of the addressed ledger must be an extension ledger. C. Costing-based Profitability Analysis must be active. D. The type of the general ledger account must be primary cost/revenue or secondary cost. Answer: A, D Explanation: For deriving profitability segments in the Universal Journal, account-based Profitability Analysis must be activated (option A), and the G/L account should be either primary cost/revenue or secondary cost type (option D). This configuration enables detailed profitability tracking in SAP S/4HANA. Question: 59 You want to run an assessment cycle in Margin Analysis to allocate costs during period-end closing for your organization. Which of the following objects can be part of the assessment cycle? A. Tracing factor B. Profit center C. Source structure D. A transfer structure Answer: A Explanation: Tracing factors (option A) are used in assessment cycles to allocate costs to appropriate cost objects based on specific metrics. This is essential in SAP S/4HANA Margin Analysis, where costs need to be allocated accurately during period-end closing.  Question: 60 You define rules in a status profile and assign the profile to your internal order type. What do you use the status profile for? Note: There are 3 correct answers to this question. A. To define the user status B. To define users for the order C. To set the initial status as Created or Released D. To permit or forbid specific transactions E. To activate the CO partner update Answer: B, C, D Explanation: A status profile allows you to define initial statuses (option C) and control specific transactions (option D). Additionally, it helps set order-specific rules for users (option B). These functions enable better control over internal order processing in SAP S/4HANA. Question: 61 You want to create a new standard cost estimate based on the quantity structure of the existing standard cost estimate. Which object do you use? A. Reference variant B. Transfer control C. Costing type D. Costing version Answer: A Explanation: A reference variant (option A) allows you to create a new standard cost estimate using the quantity structure of an existing one. This enables consistency and efficiency in standard costing within SAP S/4HANA. Question: 62 You create alternative CO versions for your controlling area, in addition to version 0. What would you use additional CO versions for? Note: There are 2 correct answers to this question. A. To store different budget data B. To store data of parallel valuation C. To store different plan data D. To store data of alternative plan costing runs Answer: B, C Explanation: Additional CO versions can store data for parallel valuations (option B) and different planning scenarios (option C). This supports flexibility in budgeting and planning, especially for organizations with multiple reporting requirements. Question: 63 You want to use budget availability control for your projects and internal orders. What can you check using budget availability control? Note: There are 2 correct answers to this question. A. The availability of funds in object currency B. The availability of funds on a period level C. The availability of funds using overall plan value D. The availability of funds according to tolerance limits Answer: C, D Explanation: Budget availability control in SAP S/4HANA allows checking funds based on overall plan value (option C) and tolerance limits (option D). These checks ensure effective budget management across projects and internal orders. Question: 64 Which receiver must be allowed in the settlement profile of a product cost collector? A. Material B. Order C. Profitability segment D. Sales order item  Answer: B Explanation: For a product cost collector, "Order" (option B) must be an allowed receiver in the settlement profile. This is essential for proper cost accumulation and settlement to cost objects in SAP S/4HANA. Question: 65 How can you populate local variables in Profitability Analysis reports? A. By populating from user parameters B. By maintaining the configuration C. By defining derivation rules D. By user entry during report execution Answer: D Explanation: Local variables in Profitability Analysis reports can be populated through user entry during report execution (option D), allowing for flexible, real-time adjustments to analysis parameters within SAP S/4HANA. Question: 66 You create a new profit center. Which company code(s) is it assigned to by default? A. All company codes within the controlling area. B. The company codes reporting to the same segment. C. All company codes with document splitting activated. D. The company code of the assigned cost center. Answer: A Explanation: By default, a newly created profit center is assigned to all company codes within the controlling area (option A). This setup aligns with SAP’s universal journal structure, facilitating consistent reporting across company codes.  Question: 67 Which of the following statements best describe Product Cost by Order? Note: There are 2 correct answers to this question. A. It is recommended for products with a long production time. B. It is used when full cost traceability is needed. C. It is used when controlling by individual production lots or discrete quantities is needed. D. It is used when you perform repetitive manufacturing. Answer: B, C Explanation: Product Cost by Order is suitable for scenarios requiring full cost traceability (option B) and individual control of production lots (option C). This is especially useful in discrete manufacturing environments where specific lot costing is necessary. Question: 68 You are creating a new activity type and want to maintain plan prices for a cost center. Which attributes must you configure in the activity type master record? Note: There are 3 correct answers to this question. A. Output quantity B. CO version C. Valid cost center categories D. Activity type category E. Price indicator Answer: B, C, D Explanation: For maintaining plan prices of a cost center, the activity type master record should include the CO version (option B), valid cost center categories (option C), and the activity type category (option D). These attributes ensure accurate cost allocation and pricing within SAP S/4HANA. Question: 69 Which of the following API types does SAP recommend to use to achieve clean core Integrations? Note: There are 2 correct answers to this question. A. SOAP B. RFC C. IDoc D. OData Answer: A, D Explanation: SAP S/4HANA Cloud Private Edition encourages clean core integrations using modern API frameworks such as SOAP and OData. These APIs provide robust and standardized connectivity options that support extensibility and integration, without modifying the core SAP codebase. OData, in particular, aligns with SAP Fiori for easier integration across platforms, while SOAP offers strong support for more complex integrations and high-volume transactions. Question: 70 Which of the following objects can be selected in templates for activity-based costing? Note: There are 2 correct answers to this question. A. Business process B. WBS element C. Cost center/activity type D. Internal order Answer: A, C Explanation: In SAP S/4HANA, activity-based costing templates allow organizations to assign costs more accurately based on real activities and processes. Both business processes and cost center/activity type combinations are integral to this approach, ensuring precise allocation of overhead costs to activities directly involved in production or service processes. Question: 71 What are some SAP recommended guiding principles to achieve clean core operations? Note: There are 3 correct answers to this question. A. Establish regular housekeeping tasks and procedures B. Establish release management C. Integrate clean core practices in the end-to-end value process chain D. Establish an organizational structure, technical foundation, and transformation methodology for clean core E. Define roles and responsibilities as part of a process transformation office Answer: B, C, E Explanation: SAP’s clean core guiding principles involve reducing custom code modifications and using release management to maintain a manageable and upgradeable SAP environment. Integrating clean core practices throughout the process chain and defining roles for transformation are key to sustaining streamlined operations within SAP S/4HANA. Question: 72 What values flow from Sales and Distribution billing to costing-based Profitability Analysis? Note: There are 2 correct answers to this question. A. Value of conditions of the pricing procedure B. Value of "Gross Margin 2" C. Cost of goods sold split by cost components D. Production variances split by variance categories Answer: A, C Explanation: In SAP S/4HANA, values such as condition pricing and cost of goods sold (COGS) are transferred to costing-based Profitability Analysis. This enables profitability reports with detailed insights on revenue and costs at granular levels, helping businesses analyze performance more effectively. Question: 73 How does SAP S/4HANA capture costs? Note: There are 2 correct answers to this question. A. Only primary costs are captured in general ledger accounts. B. Secondary costs are captured in extension ledger CO that references the leading ledger. C. Primary and secondary costs are captured on cost elements. D. Primary and secondary costs are captured in general ledger accounts. Answer: C, D Explanation: SAP S/4HANA consolidates both primary and secondary costs within the universal journal in the general ledger, ensuring a streamlined and comprehensive approach to financial reporting. This unified approach enables transparent cost tracking and efficient integration between Financial Accounting (FI) and Management Accounting (CO). Question: 74 What master data objects can you set up using time-based fields? Note: There are 2 correct answers to this question. A. Activity types B. Cost centers C. Cost elements D. Statistical key figures Answer: A, B Explanation: Time-based fields in SAP S/4HANA are essential for configuring cost centers and activity types, allowing changes in validity periods and assignments. This enables better tracking and management of resource planning over time. Question: 75 Which parameters are controlled by the costing type in a costing variant? Note: There are 2 correct answers to this question. A. Costing sheet B. Save with date key C. Price updates D. Price for materials Answer: B, C Explanation: In SAP S/4HANA, the costing type in a costing variant specifies parameters like date key for saving costs and price updates, allowing businesses to manage cost calculations over different periods and adjust for price changes.  Question: 76 You are setting up a direct internal activity allocation in SAP S/4HANA. What are valid receivers for the activity? Note: There are 3 correct answers to this question. A. Sales order item B. Internal order C. Profit center D. General ledger account E. WBS element Answer: A, B, E Explanation: Direct internal activity allocation in SAP S/4HANA allows activities to be assigned to specific cost objects such as sales order items, internal orders, and WBS elements, enabling accurate tracking of resources and costs associated with these activities. Question: 77 Which field can you select for both reporting in costing-based and account-based Profitability Analysis? A. Record type B. Cost element C. Version D. Value in Controlling Area Currency Answer: B Explanation: The cost element is a versatile field used in both costing-based and account-based Profitability Analysis, providing detailed insights into cost flows across different dimensions in SAP S/4HANA. Question: 78 Which of the following values can be calculated using results analysis? Note: There are 3 correct answers to this question. A. Gross margin B. Reserves for unrealized costs C. Work in progress D. Cost of goods manufactured E. Cost of sales Answer: B, C, E Explanation: SAP S/4HANA’s results analysis functionality calculates values like reserves for unrealized costs, work in progress, and cost of sales, providing a comprehensive view of ongoing projects and inventory status. This helps businesses manage financial outcomes and profitability better. Question: 79 You want to set up integrated planning for your internal orders. Note: There are 2 correct answers to this question. A. Set the relevant indicator in the controlling area. B. Set the relevant indicator in the CO version. C. Set the relevant indicator in the planning profile of the order type. D. Set the relevant indicator in the internal order master record. Answer: B, D Explanation: To activate integrated planning for internal orders in SAP S/4HANA, you need to set indicators in both the CO version and the internal order master record. This setup allows for the integration of budget and actuals for better planning and tracking within Management Accounting. Question: 80 In the Product Cost by Order process, what does the system calculate depending on the order status? A. WIP at target costs or variances B. Both WIP and variances or only variances C. WIP at actual costs or variances D. WIP at percentage of completion (PoC) method or variances Answer: A Explanation: In the Product Cost by Order process, the system calculates Work In Process (WIP) at target costs or variances based on the order status, enabling precise cost tracking until the order is completed and settled.