GL S/4 HANA Interview Questions and Answers

Q1. What is an Extension Ledger in S/4 HANA GL?

An Extension Ledger in S/4 HANA GL creates a management view on top of a leading ledger. It contains only adjustment postings, while in reporting, it inherits postings from the base ledger. The extension ledger is always assigned to a standard ledger, storing delta values and pointing to another ledger for reference.

Q2. What is Document Splitting in GL?

Document Splitting in GL is a procedure used to split line items for selected dimensions (e.g., receivable or payable lines by profit center) to ensure zero balance settings for these dimensions. This process generates additional clearing lines in the document, making it a crucial tool for accurate financial statement preparation.

For document splitting to function, individual document items must be classified based on predefined splitting rules.

Q3. Explain the Document Splitting Process in GL?

The document splitting process consists of three key steps:

1. Passive Document Splitting – When clearing transactions occur (e.g., payments), the account assignments of the cleared items are transferred to the clearing items (e.g., payable lines).
2. Active Document Splitting (Rule-Based) – The system processes document splitting based on standard or customer-defined splitting rules.
3. Zero Balance Creation (Clearing Lines) – The system automatically generates new clearing lines to achieve a zero balance split. This process is controlled by the zero balance indicator in the customization settings.

Q4. What is the Inheritance Indicator Configuration in Document Splitting?

The Inheritance Indicator ensures that unique account assignment objects are assigned to corresponding offsetting items, ensuring a zero balance position for document splitting.

Example:

After applying the inheritance indicator, missing values are filled automatically:

Q5. What is the Zero Balance Creation Concept in Document Splitting?

The zero balance configuration ensures that all profit centers and segments are balanced in the document. If required fields such as profit center or segment are not specified, the system generates clearing lines to ensure a zero balance.

Example:

After document splitting:

Q6. Why is a Default Profit Center Set for Certain GL Accounts?

A default profit center is assigned only to GL accounts that are not intended for document splitting to maintain accuracy in financial reporting.

Q7. Can a Different Fiscal Year Variant be Assigned to a Non-Leading Ledger in S/4 HANA GL?

Yes, S/4 HANA GL allows the assignment of different fiscal year variants to non-leading ledgers.

Q8. If Asset Accounting Uses a Different Fiscal Year Variant in a Non-Leading Ledger, is an Additional Technical Ledger Required?

Yes, an additional technical ledger is required. This ledger should have the same fiscal year variant as the leading ledger. A ledger group must be created to group the technical ledger with the non-leading ledger, which must be assigned to the asset depreciation area.

Q9. Which Ledger Updates the Controlling (CO) Module?

In the standard system, the leading ledger posts values to the Controlling (CO) module.

Q10. What is Real-Time Integration (CO-FI) in GL?

Real-time integration between Controlling (CO) and Financial Accounting (FI) ensures that transfer postings in CO (e.g., cost center allocations across company codes, business areas, or profit centers) result in an immediate and real-time posting in FI for each CO document.

Q11. What is the Benefit of Real-Time Integration (CO-FI) in GL?

The key benefit of real-time CO-FI integration is that it eliminates the need for a reconciliation ledger, reducing manual reconciliation efforts and improving financial transparency.

Q12. What is the Difference Between Entry View and General Ledger View?

• Entry View – Represents the document creator’s view, as it appears in subledgers (AP/AR/AA). For example, when a user enters a Vendor Invoice, profit center or business area details may not be visible in the vendor/customer line items.

• General Ledger View – Provides an enriched version of the document with system-generated profit center, cost center, segment, and functional area assignments.

Example:

Entry View:

General Ledger View:

Understanding GL in SAP S/4 HANA is crucial for financial accuracy, compliance, and operational efficiency. Whether it’s document splitting, extension ledgers, real-time integration, or zero balance concepts, these functionalities play a vital role in streamlining financial processes.