SAP Financial Accounting (SAP FI) Practice Exam

To run finance reports by cost center, what must be assigned?

1. The cost center scenario to the leading ledger

2. The profit center to the management account

3. The cost objects for reporting purposes

4. The general ledger account settings

The correct answer is: The cost center scenario to the leading ledger

To run finance reports by cost center, it is essential to assign the cost center scenario to the leading ledger. This configuration allows the system to appropriately categorize and route financial data related to specific cost centers within the leading ledger, which serves as the primary financial record for the organization. When the cost center scenario is assigned to the leading ledger, the reporting tools within SAP FI can effectively aggregate and analyze expenses and revenues linked to each cost center. This is crucial for performance assessment, budgeting, and decision-making as it enables management to gain insights into the cost efficiency and financial performance associated with different departments or projects. The other choices, while relevant to various financial reporting aspects, do not directly facilitate the ability to generate reports specifically focused on cost centers. For instance, profit centers relate to different areas of responsibility within the organization but serve a distinct function from cost center reporting. Likewise, general ledger account settings and cost objects play vital roles in financial tracking and reporting but do not specifically align with the requirements necessary for cost center reporting in this context.