SAP Financial Accounting (SAP FI) Practice Exam

What methods can be used for creating complete customer and vendor accounts?

1. Only centralized

2. Only decentralized

3. Both centralized and decentralized

4. Neither centralized nor decentralized

The correct answer is: Both centralized and decentralized

Creating complete customer and vendor accounts in SAP can be accomplished using both centralized and decentralized methods, which is why the correct answer is that both methods are applicable. Centralized account management refers to having a single system or environment that manages the creation and maintenance of customer and vendor accounts across multiple units or divisions within an organization. This approach allows for uniformity, consistency, and efficiency since all data entries are handled in one central location, facilitating easier data management and reporting. On the other hand, decentralized account management allows different business units or locations within an organization to independently create and maintain their customer and vendor accounts. This flexibility can be advantageous for organizations that require distinct processes or local adaptations, as it accommodates the varied needs of various departments or geographic regions. By supporting both methods, SAP enables organizations to choose the approach that best fits their operational needs while ensuring that they can manage customer and vendor information effectively across the enterprise.