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Question 1:

Which are mandatory attributes, when you create an Operating Concern with costing- based and account-based CO-PA?

(There are 2 correct answers for this question)

• Company code currency in costing-based CO-PA

• Fiscal year variant

  (Correct)

• Operating Concern Currency (Correct)

• Second period type Explanation

  Mandatory attributes are Fiscal year variant and Operating Concern Currency. Company Code currency is maintained only in costing-based CO-PA.

Question 3:

How can you define the overhead rate in a costing sheet? (There are 2 correct answers for this question)

• As lot-based surcharge

• As equivalence number

• As quantity-based surcharge

  (Correct)

• As percentage rate (Correct)

  Explanation

  Overhead rates are applied to the calculation base either as a lump sum per quantity unit or as a percentage of the direct costs. You also specify the validity period and the conditions under which the overhead should be calculated. The system calculates the overhead amount either as a percentage or based on the quantity.

  Reference link:

  https://help.sap.com/doc/21ccd8530439414de10000000a174cb4/3.6/en- US/09d269533d4ee047e10000000a441470.html

Question 5:

Which of the following are typical activities of the sales planning phase in SAP S/4HANA?

(There are 2 correct answers for this question)

• Bottom-up distribution

• Transfer of GL account data

(Correct)

• Top-down distribution

• Manual entry of data

  (Correct)

  Explanation Typical activities:

  - Planning methods include automatic methods that allow you to produce data automatically for an entire plan or to carry out changes on that data, and functions that allow you to enter planning data manually

  - You have the option, on the one hand, of transferring to CO-PA data from Sales and Operations Planning (SOP), from the logistical information system, from internal order planning, and from project planning, and, on the other hand, to transfer planning data to Profit Center Accounting or Financial Accounting

  Reference link:

  https://help.sap.com/viewer/bc7bfa203895425090402d10d80cd9f2/6.17.19/en- US/296ec7531dc61d4be10000000a174cb4.html

Question 7:

You want to determine which operations of the routing should be considered in a product cost calculation. How do you do this?

(There are 2 correct answers for this question)

• By defining a usage key in the header of the routing

• By assigning a cost center to the work center in the operation

• By marking the Relevance to Costing indicator in the operation

  (Correct)

• By marking the cost indicator in the control key assigned to the operation (Correct)

  Explanation

  Marking the Relevance to Costing indicator in the operation:

Marking the cost indicator in the control key assigned to the operation:

Reference link:

https://help.sap.com/doc/6297d7531a4d414de10000000a174cb4/1610%20002/en- US/c894d7531a4d414de10000000a174cb4.html

Question 9:

Which tasks can you perform on a production order in a make-to-order scenario with valuated stock?

(There are 2 correct answers for this question)

• Settle the variances to CO-PA (Correct)

• Perform results analysis (Correct)

• Transfer reserves for realized costs

• Calculate production variances

  Explanation

  You can perform results analysis at the level of the sales order item, for example to calculate the value of the goods that have been delivered but not yet invoiced (goods in transit). You can then transfer the results analysis data to FI, CO-PA, and EC-PCA when you settle.

  The variances calculated on the production orders are settled during the period-end closing process for the Product Cost by Order component.

  No data has yet been transferred to Profitability Analysis (CO-PA) because both the actual revenues and the cost of sales are zero. The actual revenues and the (standard) cost of goods manufactured of sales are transferred to Profitability Analysis when you invoice. Settlement of the production order also transfers the variances to CO-PA.

  Reference link:

  https://help.sap.com/doc/21ccd8530439414de10000000a174cb4/3.6/en- US/1e20ba538c95b54ce10000000a174cb4.html

Question 11:

Which cost estimates must you reuse with the transfer control functionality?

• Cost estimates with quantity structure

• Cost estimates across company codes

• Cost estimates within the same plant

• Cost estimates with same cost component structure

  (Correct)

  Explanation

  In Customizing for transfer control, you can specify what cost estimates are used. You can define a strategy in the transfer control for the following:

  · Transfer of cost estimates in the same plant.
  · Cross-plant transfer of cost estimates.
  Requirement: You must use the same cost component structure. Reference link: https://wiki.scn.sap.com/wiki/display/ERPFI/Transfer+control+explanation

Question 13:

You want to prevent periodic cost fluctuations. Which activity should you choose to distribute irregular expenses to the relevant periods?

• Variance calculation

• Cost splitting

• Periodic reposting

• Accrual calculation (Correct)

  Explanation

  Operating expenses are often allocated differently in financial accounting than in cost accounting. If, for example, an expense incurred in external accounting covers a whole year, you must assign a proportion of the whole to each individual cost accounting period. You distribute irregularly-occurring expenses, according to cost-origin, on the months in which they are incurred. This allows you to avoid irregularities within cost accounting. Costs allocated in this manner are termed accrued costs.

Reference link:

https://help.sap.com/viewer/b59f7cddf77842d2a53ff3fcbd5ffeb2/6.05.16/en- US/b62dee518e4b3946e10000000a44538d.html

Question 15:

You define rules in a status profile and assign the profile to your internal order type. What do you use the status profile for?

(There are 3 correct answers for this question)

• To set the initial status as Created or Released

(Correct)

• To define the user status (Correct)

• To permit or forbid specific transactions (Correct)

• To activate the CO partner update

• To define users for the order Explanation

  A status profile is created in customizing per order type. Within a status profile you can: · Define user statuses and document their function in long texts

  · Specify the expected sequence of user statuses by assigning a "status number" to each user status

  · Define an initial status, which is automatically set when the object is created

  · Specify that a user status should automatically be activated, if a certain business transaction is carried out

  · Allow or forbid certain transactions, if a status is active

  Reference link:

  https://help.sap.com/doc/7205b753128eb44ce10000000a174cb4/3.6/en- US/9704b753128eb44ce10000000a174cb4.html

Question 17:

What can you manage via the account assignment category? (There are 2 correct answers for this question)

• Costing variant

• Separate sales order stock

• Valuated sales order stock (Correct)

• Product cost by the sales order (Correct)

  Explanation

  · If you are using a valuated sales order stock, you must choose whether the valuated sales order stock is valuated separately from the make-to-stock inventory (with reference to sales document/project) or together with the make-to-stock inventory (Valuation indicator).

  · You must specify whether the sales order item carries costs and revenues (that is, whether you want to use Product Cost by Sales Order).

  You control this in the account assignment category with the Consumption posting indicator.

  Reference link:

  https://help.sap.com/doc/21ccd8530439414de10000000a174cb4/3.6/en- US/bdcad8530439414de10000000a174cb4.html

  Question 18:

Question 19:

You want to run an assessment cycle in Profitability Analysis to allocate cost center costs during period-end closing for your organization. Which of the following objects is part of the assessment cycle?

• Tracing factor (Correct)

• Cycle iteration

• PA transfer structure

• Template Explanation

  The below picture show Tracing factor which is part of the assessment cycle:

https://help.sap.com/doc/3011d553088f4308e10000000a174cb4/2.6/en- US/a60ad553088f4308e10000000a174cb4.html

Question 21:

Which controls can you set when you determine a characteristic derivation? (There are 3 correct answers for this question)

• System response when unsuccessful (Correct)

• Conditions for execution (Correct)

• Valuation calculation

• Display authority

• Overwriting authority

  (Correct)

  Explanation

  The standard derivation procedure runs by default as follows:

  1. If you have specified any conditions for running a derivation step (see below), the system starts by checking these conditions. If those conditions are not fulfilled, the system ignores the step.

  2. The system checks to make sure that the source fields contain values. If one of the source fields is initial (blank for CHAR fields or "0" for NUMC fields), the system does not perform derivation.

  3. Provided that some of the target fields for the derivation step are not yet populated with values, the step is carried out. If values are found, they are entered in the corresponding target fields, provided that those fields do not already contain a value. Fields that already contain values are not changed.

  4. If no target values can be found in the derivation step to match the specified source field values, all the target fields remain unchanged. No error message is displayed for most derivation types. If the step is a derivation rule, however, the system issues an error message by default if no suitable target values are found.

  This means that the default settings no longer allow fields that already contain values to be overwritten in characteristic derivation.

  Reference link:

  https://help.sap.com/doc/185fd353c6244308e10000000a174cb4/3.6/en- US/675cd353c6244308e10000000a174cb4.html

Question 23:

In the material master record there are three planned prices. What do you use them for?

• To valuate goods movement

• To update the standard price during the release of a standard cost estimate

  (Correct)

• To valuate material stocks

• To valuate the materials in cost estimates

  Explanation

  You can update the results of the modified standard cost estimate and the current cost estimate (as well as standard cost estimates and inventory cost estimates) as planned prices 1, 2 and 3 in the material master .

  Reference link:

  https://help.sap.com/doc/6297d7531a4d414de10000000a174cb4/1610%20002/en- US/b896d7531a4d414de10000000a174cb4.html

  Question 24:

Question 25:

Which settings can you configure per order type for the budget and availability control?

(There are 2 correct answers for this question)

• Budget tolerance limits (Correct)

• Design budget manager (Correct)

• Budgeting on cost element level

• Budget data entry layout Explanation

  The customizing of availability control is made of the below steps: 1.Maintain the budget profile.
  2.Maintain number ranges for budgeting.
  3.Define tolerance limits for the availability control.

  4.Specify exempt cost elements from the availability control.

  5.Maintain the budget manager.

  Define tolerance limits and budget manager are refered to Order type. Specify exempt cost element is not assigned to Order type.

Question 27:

What can you specify when you create an activity type? (There are 3 correct answers for this question)

• The valid receiving cost center types

• The activity type category for allocation

  (Correct)

• The valid sending cost center types (Correct)

• The secondary costs G/L account for internal activity allocation (Correct)

• The primary costs G/L account for internal activity allocation Explanation

  Reference link:

  https://help.sap.com/viewer/9afb6f90c86748ef9f2b17c7d857f9b3/6.03.19/en- US/c10ad553088f4308e10000000a174cb4.html

Here is screenshot of Activity Type master data from SAP system:

Question 29:

In the Product Cost by Order component, what does the system calculate depending on the order status?

• Both WIP and variances or only variances

• WIP at actual costs or variances (Correct)

• WIP at planned costs or variances

• WIP at target costs or variances Explanation

  This method determines the work in process for each production order by calculating the difference between the actual costs incurred and the actual costs settled (that is, the difference between the debits for goods issues, internal activity allocations, external activities, and overhead on the one hand, and the credits for goods receipts on the other). Once the last part of the order lot has been delivered to stock, any remaining work in process must be canceled so that the order costs can properly be settled to stock.

  The status of the order determines whether WIP calculation creates or cancels the work in process:

  - If the order has the status REL (released), the system can calculate work in process.

  - Once the order receives the status DLV (Delivered) or TECO (Technically completed), the work in process calculated in a previous period is canceled.

  Reference link:

  https://blogs.sap.com/2014/04/09/basics-of-variance-calculation-understanding- period-end-activities-wip-and-variances/

Question 31:

Where do you activate commitment management for internal orders? (There are 2 correct answers for this question)

• In the order type (Correct)

• In the company code

• In the controlling area

  (Correct)

• In the budget profile Explanation

  You activate commitments management:
  - For each controlling area from a chosen fiscal year - For orders per order type
  - For cost centers per cost center type

Reference link:

https://help.sap.com/erp_hcm_ias2_2014_03/helpdata/en/06/7cd0531d8b4208e1000 0000a174cb4/content.htm?no_cache=true

Question 33:

What is the difference when you perform repost line items (TA: KB61) compared to manual reposting of costs (KB11n) for a cost center?

(There are 2 correct answers for this question)

• The line item needs a reference to an FI document (Correct)

• The report of the line item is updated in the original F1 document

• The line item values are validated against the original document (Correct)

• There is the option to assign the line item to several receiver objects Explanation

  When you perform repost lien item (KB61):

  Select the line items to be reposted from the CO document corresponding to the FI document. The system then reposts the selected line items.

  The given amount is reassigned from the account assignment object (for example, a cost center) of the selected line item to one or more new CO objects.

If specify multiple CO objects, you must ensure that the total amount to be reposted does not exceed the overall value of the line items for the sender object.

Reference link:

https://help.sap.com/doc/2e11d553088f4308e10000000a174cb4/3.6/en- US/0d0cd553088f4308e10000000a174cb4.html

Question 35:

You post a billing document in Sales and Distribution (SD). What data flows to Profit Center Accounting?

(There are 3 correct answers for this question)

• Payment discount

• Order quantity

• Sales deductions

  (Correct)

• Revenues (Correct)

• Accruals (Correct)

  Explanation

  The following data is transferred from bills and debit and credit memos to Profit Center Accounting:

  · Revenues

  · Sales deductions (shipping, discounts etc.)

  · Accruals (e.g. from rebate agreements)

  The profit center is assigned at the item level of the sales order. As a default, the system proposes the profit center of the material in the supplier plant

  Reference link:

  http://saphelp.ucc.ovgu.de/NW750/EN/0e/4bd953292a424de10000000a174cb4/fram eset.htm

Question 37:

Which functionalities can create primary cost component splits? (There are 2 correct answers for this question)

• Cost center/activity type price calculation

• Execution of the assessment cycles

  (Correct)

• Business processes price calculation

• Settlement of internal orders (Correct)

  Explanation

  The primary costs from Overhead Cost Controlling can either be transferred directly into the primary cost component split of the product or assigned to other cost components. In this way, you can explode the costs for specific internal activities partly by their primary costs, and combine them partly as secondary costs.

  You can transfer the primary cost component split of the internal activities directly into the cost estimate, or assign it to other cost components. This enables you to break down certain activities into their primary costs only partially, or report them as secondary costs.

  Reference link:

  https://help.sap.com/doc/6297d7531a4d414de10000000a174cb4/1610%20002/en- US/a8a2d553088f4308e10000000a174cb4.html

• Manual entry, manual allocation

(Correct)

• Manual entry, no allocation

Question 39:

When you create a planning layout, which objects can you use to define the data columns?

(There are 3 correct answers for this question)

• Value fields (Correct)

• Formulas (Correct)

• Summarization level

• Distribution key

• Characteristics (Correct)

  Explanation

  Value columns are defined using value fields, characteristics, attributes, and formulas.

  The decision whether you want the value fields to appear in the rows or in the columns is made as soon as you define the first element of the layout. This decision cannot be reversed. When you define a value field in a row or column, you can also specify characteristics to limit the value field.

  Reference link:

https://help.sap.com/doc/185fd353c6244308e10000000a174cb4/2.6/en- US/a75dd353c6244308e10000000a174cb4.html

Question 41:

Which order status is relevant for creating work in process (WIP) calculations when you use Product Cost by Order (PCO)?

• Delivered

• Created

• Partially released

  (Correct)

• Technically completed Explanation

  The status of the order determines whether WIP calculation creates or cancels the work in process.

  - If the order has the status REL (released), the system can calculate work in process.

  - Once the order receives the status DLV (Delivered) or TECO (Technically completed), the work in process calculated in a previous period is canceled.

  Reference link:

https://help.sap.com/doc/21ccd8530439414de10000000a174cb4/3.6/en- US/ebfe8c53d7d8ec23e10000000a174cb4.html

Question 43:

Which object can you configure offset overhead surcharges for a cost object? (There are 3 correct answers for this question)

• Internal order (Correct)

• Profitability segment

• Business process (Correct)

• Cost center

(Correct)

• Profit center Explanation

Overhead costs are costs which can be assigned only indirectly to the production order, such as electricity costs or general storage costs.

Overhead costs are assigned to the production order via overhead surcharges. They are updated in the order under the cost elements defined in the costing sheet.

A costing variant is defined in customizing per order type and plant. The costing variant refers to a costing sheet. The costing sheet determines what overhead surcharges are assigned to the order.

The costing sheet specifies:

- Which direct costs to apply surcharges to

- Under which conditions an overhead is calculated

- How high, depending on these conditions, the surcharge percentage is

- Which object (for example, a cost center) is credited under which cost element during actual postings

Reference link:

https://help.sap.com/viewer/bfece09273bd474d82fdd97bae070c25/6.06.26/en- US/2603b753128eb44ce10000000a174cb4.html

Question 45:

In a make-to-order scenario, you use a sales order with an assigned production order and non-valuated sales order stock. Which process do you use to post actual costs on a sales order in SAP S/4HANA?

(There are 2 correct answers for this question)

• Production order settlement (Correct)

• Delivery from production order to sales order stock

• Production order confirmation

• External goods receipt on sales order stock

  (Correct)

  Explanation

  Actual Costs with a Nonvaluated Sales Order Stock

1. Actual costs on the production orders

2. Goods movements for a nonvaluated sales order stock are not valuated in Financial Accounting . This means that the material consumptions of dependent requirements (mainly semifinished products) from the sales order stock are not shown on the production order. These costs are entered on the sales order item either when the invoice is entered or at the point of goods receipt (external procurement) or order settlement (in-house production). Because the production orders do not contain the full actual costs, accurate variance calculation is not possible and is therefore not supported by the system.

3. Actual costs on the sales order item

Reference link:

https://help.sap.com/viewer/6fe2dad9dab7486fb4469d13552824f2/6.17.14/en- US/12c8d8530439414de10000000a174cb4.html

Question 47:

You want to set up integrated planning for your internal orders. What do you need to do?

(There are 2 correct answers for this question)

• Set the relevant indicator in the internal order master record. (Correct)

• Set the relevant indicator in the planning profile of the order type.

• Set the relevant indicator in the controlling area.

• Set the relevant indicators in the CO version.

  (Correct)

  Explanation

  The following indicators are used for integrated planning for internal orders: · Integrated planning in the order master data or the order type.
  · Integrated Planning indicator in the version.
  Reference link:

  https://help.sap.com/doc/b013d553088f4308e10000000a174cb4/3.6/en- US/8b12d553088f4308e10000000a174cb4.html

Question 49:

Which of the following values can be calculated using results analysis? (There are 3 correct answers for this question)

• Cost of goods manufactured

• Work in progress (Correct)

• Cost of sales (Correct)

• Reserves for unrealized costs (Correct)

• Gross margin Explanation

  Depending on the results analysis method, the system can calculate the following results analysis data:

  · Inventory values
  · Reserves for unrealized costs · Reserves for imminent loss

· Reserves for complaints and commissions

· Cost of sales

· Calculated revenue

Reference link:

https://help.sap.com/doc/21ccd8530439414de10000000a174cb4/3.6/en- US/bae34252b9f86860e10000000a423f68.html

Question 51:

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?

(There are 2 correct answers for this question)

• The type of the corresponding general ledger account must be primary cost/revenue or secondary cost.
  (Correct)

• The type of the corresponding general ledger account must be balance sheet.

• Costing-based Profitability Analysis must be active.

  (Correct)

• Account-based Profitability Analysis must be active

Explanation

Reference link:

https://Correct.erpcorp.com/sap-controlling-blog/profitability-analysis-in-sap-s4hana- attributed-profitability-segment

Question 53:

What do you get if you mark a standard price cost estimate? (There are 2 correct answers for this question)

• An accounting document for material ledger

• A future standard price

  (Correct)

• A cost-based CO-PA document for material revaluation

• A new status in the cost estimate

  (Correct)

  Explanation

  Marking enables the results of the standard cost estimate to be updated as the future standard price in the material master.

  The cost estimate has the status KA (costed without errors). The cost estimate has therefore yet to be marked or released.

  The cost estimate has the status VO (marked without errors). Costing has been carried out, and the cost estimate has been marked but not released.

  Reference link:

  https://help.sap.com/doc/6297d7531a4d414de10000000a174cb4/1610%20002/en- US/9496d7531a4d414de10000000a174cb4.html

  https://help.sap.com/doc/6297d7531a4d414de10000000a174cb4/1610%20002/en- US/9195d7531a4d414de10000000a174cb4.html

Question 55:

For which objects can you revaluate activities and business processes at actual prices?

(There are 3 correct answers for this question)

• Profit centers

• Cost centers

  (Correct)

• Work centers

• Work breakdown structure elements

  (Correct)

• Profitability segments (Correct)

  Explanation

  Revaluation at actual prices supplements revaluation of activity allocations between cost centers and business processes. It is used to correct activity allocations that occurred previously from cost centers or business processes to other cost accounting objects.

  You can use revaluation at actual prices for the following objects: · Internal orders
  In Cost Object Controlling:

· Production orders
· Process orders
· Product cost collectors
· Cost object nodes in a cost object hierarchy
· sales document item (for example, sales orders) · General cost objects
In the Project System:
· Projects
· WBS elements
· Networks
· Network activities
Reference link:

https://help.sap.com/viewer/e558ba8d6e9f4562b70f270e6a5b112b/6.05.17/en- US/b3dcacd5-1765-4753-a423-278cf75d73c8.html

Question 57:

What can you do with statistical internal orders?

• Settle costs to a cost center.

• Apply overhead rates to the internal order.

• Simultaneously post to a cost center.

  (Correct)

• Transfer posting to another internal order. Explanation

  Statistical internal orders are typically used to evaluate costs that cannot be displayed in detail either in Cost Element or Cost Center Accounting. These orders allow evaluations from a viewpoint different to that used in Cost Center Accounting.

  To achieve this, the debits for a cost center can receive an additional account assignment on a statistical internal order. The amount then appears under the original cost element, both on the cost center (cost effective) and the internal order (statistical).

  Reference link:

  http://saphelp.ucc.ovgu.de/NW750/EN/59/12d553088f4308e10000000a174cb4/frame set.htm#:~:text=Statistical%20internal%20orders%20are%20typically,used%20in%20Co st%20Center%20Accounting.

Question 59:

When you define assessment cycles for the period-end closing in overhead cost accounting, which object can you assign to the cycle segment?

• Template

• Settlement rule

• Allocation structure

  (Correct)

• Costing sheet Explanation

  In the below picture, Allocation Structure is assigned to Cycle Segment when you create assessment cycle for allocation execution:

• Standard hierarchies

• Cost centers

Question 61:

To which object do you assign a costing sheet?

• Transfer control

• Costing variant

• Valuation variant (Correct)

• Cost component structure Explanation

  The below picture is configuration for Costing Sheet which is assigned to Valuation Variant:

Question 62:

Question 63:

How do you define the relationship between an operating concern and a controlling area?

• Many-to-many (N:N)

• One-to-one (1:1)

• Many-to-one (N:1)

• One-to-many (1:N)

  (Correct)

  Explanation

  The operating concern is the highest reporting level within CO-PA. It defines the limit of the sales and marketing information that can be reported together from this
  module. One or more controlling areas are assigned to an operating concern when organizational structures are defined.

  Reference link:

  https://wiki.scn.sap.com/wiki/display/ERPFI/Operating+concern+organization+unit

Question 65:

What can you use to difference two or more cost estimates for the same material? (There are 2 correct answers for this question)

• Valuation variant

• Transfer control

• Costing version

  (Correct)

• Costing variant (Correct)

  Explanation

  Together with the costing variant and the costing date, the costing version is saved to the database as the key which identifies the cost estimate as an individual entity. Here, you use the costing version to save several cost estimates for the same material, with the same costing variant and the same costing date.

  Cost estimates with the same key (costing variant, validity of cost estimate and costing version) cannot be saved to the database. Since the costing version is also part of the key, you can still save multiple cost estimates with the same costing variant to the database for analysis purposes.

  Reference link:

  https://help.sap.com/doc/6297d7531a4d414de10000000a174cb4/1610%20002/en- US/8695d7531a4d414de10000000a174cb4.html

(There are 2 correct answers for this question)

Question 67:

What can you configure in the settlement profile? (There are 2 correct answers for this question)

• Define a number range for settlement documents.

• Determine whether the settlement is required. (Correct)

• Define document management parameters. (Correct)

• Determine an overhead key. Explanation

  The below picture show what can you configure in the settlement profile:

Question 69:

What are the benefits of using valuated sales order stock compared to non-valuated sales order stock?

(There are 2 correct answers for this question)

• Simplified inventory value determination (Correct)

• Production order settlement to sales order

• Combined quantity and value flow analysis (Correct)

• Product cost calculation Explanation

  A valuated sales order stock provides a number of benefits such as efficient cost management in sales-order-related mass production environments, simplified inventory processing with individual requirements materials, and comparable processing in sales- order-based and make-to-stock production environments.

  The flow of quantities and values is the same as in make-to-stock production.

Reference link:

https://help.sap.com/doc/21ccd8530439414de10000000a174cb4/3.6/en- US/bba4b9537cceb44ce10000000a174cb4.html

Question 71:

How can you configure the transfer price solution in SAP S/4HANA? (There are 2 correct answers for this question)

• Use separate ledgers for each valuation. (Correct)

• Use separate segments for each valuation.

• Use separate currency types within the same ledger for each valuation.

• Use separate accounts for each valuation. (Correct)

  Explanation

  These are 2 configuration settings required for multiple valuation in S/4 HANA:
  - Define settings for ledger and Currency types
  - Define Valuation Clearing Account
  Reference link: https://blogs.sap.com/2020/09/07/multiple-valuation-approaches-sap-s-4hana/

Question 73:

What action do you perform to use the Cost-Based Percentage of Completion (POC) method?

• Setting to profitability analysis

• Costing of an order

• Billing of a sales order during production

• Running the results analysis

  (Correct)

  Explanation

  For the system to be able to place the costs and revenues in relation to each other, a calculated percentage of completion (POC) must be generated. The percentage of completion can be calculated on the basis of the following data:

  · R(p) planned revenues; C(p) planned costs; Q(p) planned quantity

· R(a) actual revenues; C(a) actual costs; Q(a) actual quantity

The system can calculate results analysis data using the percentage of completion. This data includes:

· C(z) capitalized costs (work in process) · C(r) reserves for unrealized costs
· R(z) revenue in excess of billings
· R(r) revenue surplus

· R(PA) revenue affecting net income

· C(PA) costs affecting net income (cost of sales)

This results in the following formulas:

R(PA) = POC * R(p)

C(PA) = COS * C(p)

This has the following consequences:

· The revenue affecting net income is calculated by multiplying the percentage of completion by the planned revenue.

· The cost of sales is calculated by multiplying the percentage of completion by the planned costs.

Reference link:

https://help.sap.com/doc/21ccd8530439414de10000000a174cb4/3.6/en- US/4a62c4535cdeb44ce10000000a174cb4.html

Question 75:

Which type of Profitability Analysis updates the cost of goods sold at the time of delivery?

• Costing-based only

• Account-based only (Correct)

• Periodic accounting-based

• Both account-based and costing-based Explanation

  Account-based CO-PA:
  · At the time of delivery, COGS is recorded in CO-PA.
  · At the time of billing, revenue and discount is recorded in CO-PA. Reference link: https://blogs.sap.com/2018/01/16/sap-co-pa-profitability-analysis/

Question 77:

Where can you adjust the automatic account assignment? (There are 2 correct answers for this question)

• G/L account (TA: FS00)

• Default account assignment (TA: OKB9)

  (Correct)

• Substitution (TA: GGB1) (Correct)

• Cost center (TA: KS01) Explanation

  Default account assignment (TA: OKB9)

Substitution (TA: GGB1)

Cannot maintain automatic account assignment in Cost Center and G/L Account

Question 79:

You want to set up budget availability control for your projects and internal orders. What can you check using budget availability control?

(There are 2 correct answers for this question)

• The availability of funds according to tolerance limits (Correct)

• The availability of funds in object currency (Correct)

• The availability of funds using the overall plan value

• The availability of funds on period level Explanation

  For internal orders, availability control checks against the current budget. For projects, availability control can check against the current budget or the released budget. The check can be run in the controlling area currency or the object currency.

  For projects, you can also use releases as an alternative to the current budget. It uses the tolerance limits specified in Customizing for the check.

  Reference link:

  https://help.sap.com/doc/b013d553088f4308e10000000a174cb4/3.6/en- US/5513d553088f4308e10000000a174cb4.html

  https://help.sap.com/doc/b013d553088f4308e10000000a174cb4/3.6/en- US/358fd153370e4608e10000000a174cb4.html