C_TS4CO_2023 Sample Questions Answers

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed Explanation:In SAP S/4HANA, the valuation method for results analysis is defined at thecontrolling area level. This ensures that all relevant cost objects within the controlling area apply the same valuation logic.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.

Detailed 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.