Formative 3 (Module 5-6)

Credit Control Area

Credit Control Area

It can include one or more company codes.

Accounts Payable Sub-Ledger

Purchase and goods receipt activities in materials management generate financial accounting journal entries.

Credit Control Area

An organizational entity which grants and monitors a credit limit for customers.

False

A classification scheme consisting of a group of general ledger (G/L) accounts.

True

Company Code represent an independent legal accounting unit?

True

Credit Control Area is an organizational entity which grants and monitors a credit  limit for customers?

False

Company Code is an independent environment in the system?

True

Client is an independent environment in the system?

False

Business Area provides a framework for the recording of values to ensure an orderly rendering of accounting data?

False

Credit Control Area provides a framework for the recording of values to ensure an orderly rendering of accounting data?

Accounts Receivable Sub-Ledger

Billings in sales and distribution generate financial journal entries for sales activity.

False

In general, the financial accounting reports are secondarily, but exclusively, directed at external parties?

True

The goal of financial accounting is to collect the transactional data that provides a foundation for preparing the standard portfolio of reports?

General Ledger Master Data

It is utilized in the preparation of financial accounting statements.

False

The goal of financial accounting is to collect the organizational data that provides a foundation for preparing the standard portfolio of reports?

False

Chart  of Account is an organizational entity which grants and monitors a credit limit for customers?

True

Traditional Financial reporting are as follows:  FI or CO or CO-PA?

True

Cost Center is responsible for cost containment, not responsible for revenue generation?

True

Profit Center is evaluated on profit or return on investment?

False

General Ledger in S/4HANA is based in the general Journal?

Operating Concern

An operating profit for the individual market segments can be calculated.

Liability

It refers to what the company owes.

True

Run one report (e.g. P&L) and drill-down to any dimension available in the financial documents?

False

Business Area is an organizational entity which grants and monitors a credit limit for customers?

Accounts Receivable Sub-Ledger

Information with respect to customers who purchases the enterprise’s  goods and services such as sales and payments made.

Charts of Accounts

The general ledger accounts that contains are used by one or more company codes.

Business Area

An organizational unit that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial accounting can be allocated.

True

In general, the financial accounting reports are primarily, but not exclusively, directed at external parties?

True

A client may have more than one company codes?

False

All the Aggregate and Index tables are updated and are calculated on the fly?

True

All the Aggregate and Index tables are removed and are calculated on the fly?

True / False

Run several reports (e.g. P&L) and drill-up to any dimension available in the financial documents?

Revenues

These are inflows of cash as a result of selling activities or the disposal of company assets.

Accounts Payable Sub-Ledger

Information with respect to Vendors from whom the enterprise purchases goods and services such as purchases and payments made.

Company Code

It represents an independent legal accounting unit.

Accounts Receivable Sub-Ledger

It is a substantive and important integration between materials management and financial accounting.

Charts of Accounts

It provides  a framework for the recording of value to ensure an orderly rendering of accounting data.

Charts of Accounts

A classification scheme consisting of a group of general ledger (G/L) accounts.

General Ledger Master Data

This account contains a listing of the transaction effecting each account I the chart of accounts and the respective account balance.

False

FI internal postings are now visible in General Ledger as well?

True

The SAP document principle provides a solid and important framework for a strong internal control system –a requirement of law for companies that operate in most countries in the world?

True

The universal journal also contains all cost elements, including secondary cost elements, which are also in SAP S/4HANA G/L accounts?

False

Using the real time SAP HANA database means that reporting from many different finance areas is unified into a multi repository?

Audit Trails

It enables an auditor to trace individual transactions to the effected account balance(s) on a financial statement.

False

The document number can be used to recall the transaction at an earlier date?

True

No need for CO real-time integration for transfer of secondary CO postings to New GL or the Reconciliation Ledger of Classic GL?

False

It needs for CO real-time integration for transfer of primary CO postings to New GL or the Reconciliation Ledger of Classic GL?

True

SAP S/4 HANA financial are as follows: FI +/and CO +/and CO-PA?

True

Using the real time SAP HANA database means that reporting from many different finance areas is unified into a single repository?

True

Internal Order is temporary cost collector responsible for cost containment, not responsible for revenue generation?

Cost Element

Expense account = cost element –just different words depending on whether FI object or CO object.

Assets

It refers to what the company owns.

False

Cost Center is responsible for revenue generation, not responsible for cost containment?

Internal Order

It is used to plan, collect, and monitor the costs associated with a distinct short-term event, activity, or project.

True

Profit Center is Responsible for revenue generation and cost containment?

Income Statement

The presentation of an organization’s revenues and expenses for a given period of time (e.g. monthly, quarterly, or yearly).

Cost Element

A one-to-one linkage (mapping) between General Ledger expense accounts and CO cost elements is established to permit the transfer of FI expense information to CO.

False

Internal Order is a one-to-one linkage (mapping) between General Ledger revenue accounts and CO revenue elements is established to permit the transfer of FI revenue information to CO?

False

With separate cost element master data maintenance anymore in one of the innovations in S/4 HANA?

Managerial Accounting

It is designed to collect transactional data that provides a foundation for preparing internal reports that support decision-making within the enterprise.

Profit Center

It is responsible for revenue generation and cost containment.

Statistical Key Figures

Provide the foundation for accurate and effective cost allocations between cost objects.

Secondary Cost Element

Used exclusively in CO for allocations and settlements between and amongst cost centers.

True

CO Organization Structure supports the development and presentation of relevant information in order to enable and support business decisions?

False

Flexible, multi-dimensional real-time analyses can be executed directly from the Standard Journal -with simplification of the data into the BI?

True

In Distribution the sender and receiver cost centers are fully documented in a unique Controlling (CO) document?

True

Universal Journal combines account assignment of Controlling (cost center, WBS element), Profitability Analysis (products, customers) and Enterprise Controlling (profit center)?

True

Universal Journal combines account assignment of Controlling (products, customers), Profitability Analysis (profit center) and Enterprise Controlling (cost center, WBS element)?

True

Actual costing calculates an actual price (periodic unit price) for each material, into which all actual costs for the particular period flow?

True

Many reconciliation works were necessary because the components for P & L representations were structured differently and stored in different tables?

False

The use of Material Ledger (ML) is now mandatory and manually active in all SAP S/4HANA systems?

False

Assessment is a primary and/or secondary cost elements are grouped together and transferred to receiver cost centers through use of a primary cost element?

True

Assessment is a method of allocating both primary and secondary cost elements?

True

Secondary cost elements arise through the consumption of production factors that are provided internally?

True

The use of Material Ledger (ML) is now obligatory and automatically active in all SAP S/4HANA systems?

Posting a G/L Entry

FI Processes

True

Once written to the SAP database, a financial document (one impacting the financial position of the company) cannot be deleted from the database?

Profit Center

An enterprises that are commonly divided into ____ ______.

False

Profit Center is evaluated on revenues or return on investment?

Revenue Element

Posting in FI that impact revenue accounts lead to a posting in CO to a revenue element.

Operating Concern

It represents a part of an organization for which the sales market is structured in a uniform manner

Profit Center

It is evaluated on profit or return on investment.

False

Profit Center is Responsible for expense generation and cost containment?

True

CO Organizational structure represents the legal and/or organizational views of an enterprise?

True

Assessment is a primary and/or secondary cost elements are grouped together and transferred to receiver cost centers through use of a secondary cost element?

False

Distribution is a secondary cost elements maintain their identities in both the sending and receiving objects?

False

Primary Cost Elements are used exclusively in CO to identify internal cost flows such as assessments or settlements?

False

Distribution is a method for periodically allocating secondary cost elements?

True

CO internal postings are now visible in General Ledger as well in S/4 HANA?

False

Assessment is a method of distributing both primary and secondary cost elements?

False

Secondary cost elements arise through the consumption of production factors that are sourced externally?

False

Assessment the Sender and receiver cost centers are partially documented in a standard Controlling (CO) document?

False

CO external postings are now available in General Ledger as well in S/4 HANA?

True

Distribution is a method for periodically allocating primary cost elements?

True

Flexible, multi-dimensional real-time analyses can be executed directly from the Universal Journal -without replication of the data into the BI?

True

Distribution is a primary cost elements maintain their identities in both the sending and receiving objects?

False

General Ledger in S/4HANA is based in the Standard Journal?

True

Business Area is an organizational unit that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated?

True

Assessment the Sender and receiver cost centers are fully documented in a unique Controlling (CO) document?

Customer and Vendor Master Data

This account balances are maintained in FI through fully integrated accounts receivable and accounts payable sub-ledger.