SAP C_S4FTR_2023 Practice Test - Questions Answers, Page 4
List of questions
Question 31

You configure SAP Bank Communication Management in SAP S/4HAN
You want to derive the payment approvers from Bank Account Management.Which configuration option must be set to facilitate this process?
Activate BRFplus Functions
Enable Payment Approval
Define Release Strategy
Specify Digital Signature Method
Explanation:
To derive the payment approvers from Bank Account Management when configuring SAP Bank Communication Management in SAP S/4HANA, you need to set the Define Release Strategy configuration option. This option allows you to define the conditions and rules for assigning payment approvers based on the bank account data, such as bank account ID, bank account owner, or bank account currency.
Question 32

Where are the monitoring rules for the intraday bank statements assigned?Note: There are 2 correct answers to this question.
Manage Banks app
Manage Bank Accounts app
Define Monitoring Rules - Intraday Statements app
Configuration of Bank Statements
Explanation:
The monitoring rules for the intraday bank statements are assigned in two SAP Fiori apps: Manage Bank Accounts app and Define Monitoring Rules - Intraday Statements app. The Manage Bank Accounts app is used to assign the monitoring rule to a bank account. The Define Monitoring Rules - Intraday Statements app is used to define the conditions and actions for the monitoring rule.
Question 33

You have customized the system for hedge accounting under IFRS.During period-end activities, which of the following amounts of the hedging instrument (HI) does the system post to equity (OCI)?
For cash flow hedges, the effective portion of the gain or loss of the HI
For cash flow hedges, the non-effective portion of the gain or loss of the HI
For fair value hedges, the effective portion of the change in fair value of the HI
For fair value hedges, the non-effective portion of the change in fair value of the HI
Explanation:
Under IFRS, the effective portion of the gain or loss on a cash flow hedge is recognized in other comprehensive income (OCI). This is done to match the timing of the recognition of the gain or loss on the hedged item, which is also recognized in OCI. The non-effective portion of the gain or loss on the hedging instrument is recognized in profit or loss.
For fair value hedges, the entire change in fair value of the hedging instrument is recognized in profit or loss. This is because the hedged item is also recognized at fair value in profit or loss.
Question 34

In which SAP Fiori app can you maintain the minimum transfer amount for the cash pools?
Manage Bank Accounts
Cash Pool Transfer Report
Manage Cash Pools
Manage Cash Concentration
Explanation:
You can maintain the minimum transfer amount for the cash pools in the Manage Cash Concentration SAP Fiori app. The minimum transfer amount is a parameter that defines the minimum amount that can be transferred between bank accounts within a cash pool. The Manage Cash Concentration app allows you to create and maintain cash pools and their parameters, such as target balance, transfer frequency, and minimum transfer amount.
Question 35

You are implementing Credit Risk Analyzer.Which of the following describes counterparty risk?Note: There are 2 correct answers to this question.
It relates to a counterparty not fulfilling their contractual agreements.
It is subdivided into credit risk and settlement risk.
It is reportable in Market Risk Analyzer.
It exists only during the settlement period of the trades.
Explanation:
Counterparty risk is one of the types of risk that can be analyzed using Credit Risk Analyzer. Counterparty risk describes the risk that a counterparty does not fulfill their contractual agreements, either partially or fully. Counterparty risk can be subdivided into credit risk and settlement risk. Credit risk is the risk that a counterparty defaults on their obligations before maturity. Settlement risk is the risk that a counterparty defaults on their obligations at maturity.
Question 36

What are the key components included in the Hedge Management Cockpit?Note: There are 3 correct answers to this question.
Exposures
Hedge requests
Hedging scenarios
Accounting principles
Hedging instruments
Explanation:
The Hedge Management Cockpit is a SAP Fiori app that provides an overview of hedge management activities and allows you to perform various tasks related to hedge accounting. The key components included in the Hedge Management Cockpit are exposures, hedge requests, and hedging instruments. Exposures are the financial transactions or positions that are exposed to market risks and can be hedged using hedging instruments. Hedge requests are the requests to hedge exposures using hedging instruments and create hedging relationships. Hedging instruments are the financial instruments that are used to hedge exposures and reduce market risks.
Question 37

Which settings can be configured to generate outgoing correspondence?Note: There are 3 correct answers to this question.
Transaction type
Product type
Activity category
House bank account
Processing category
Explanation:
The settings that can be configured to generate outgoing correspondence are transaction type, product type, and processing category. Transaction type defines the business operation of a financial transaction, such as spot, forward, or swap. Product type defines the characteristics and attributes of a financial instrument, such as money market, foreign exchange, or securities. Processing category defines the business process steps for a financial transaction, such as valuation, settlement, or interest calculation. These settings determine the correspondence rules and templates that are used to create and send correspondence to counterparties or banks.
Question 38

Which of the following procedures are supported when configuring the accrual/deferral functionality? Note: There are 2 correct answers to this question.
Difference
Partial
Reset
Amortization
Explanation:
The accrual/deferral functionality is a function that allows you to accrue or defer interest or other cash flows for financial transactions. The procedures that are supported when configuring the accrual/deferral functionality are difference and amortization. Difference is a procedure that calculates the difference between the planned and posted cash flows and posts it as an accrual or deferral. Amortization is a procedure that calculates the amortized cost of a financial transaction and posts the difference between the nominal value and the amortized cost as an accrual or deferral.
Question 39

You are preparing a handbook for testers on the SAP Hedge Management application for foreign exchange (FX).When must you take a snapshot?
After the decision on a hedging instrument is final Before you process the hedging instrument
After you determine the hedging requirements Before the decision on a hedging instrument is final
After you create the hedging area Before you release the raw exposure
After you capture raw exposure data Before you conclude the hedging contract
Explanation:
You must take a snapshot after you determine the hedging requirements and before the decision on a hedging instrument is final when using SAP Hedge Management application for foreign exchange (FX). A snapshot is a copy of the relevant data for hedge accounting, such as the hedged item, the hedging instrument, and the market data. It is used to perform the effectiveness test and to document the hedge relationship.
Question 40

Which elements control account determination for Transaction Manager deals?Note: There are 3 correct answers to this question.
Valuation area
Update type
Condition type
Portfolio
Account assignment reference
Explanation:
The elements that control account determination for Transaction Manager deals are update type, condition type, and account assignment reference. Update type defines the business meaning of a cash flow, such as principal payment, interest payment, or valuation result. Condition type defines the calculation rule for a cash flow, such as fixed rate, variable rate, or exchange rate. Account assignment reference defines the account assignment objects for a cash flow, such as company code, business area, or profit center.
Question