SAP Financial Accounting (SAP FI) Practice Exam

What are the two prerequisites for setting up cross-company transactions?

1. Assignment to a company ID and a clearing account for each pair of company codes

2. Prior agreement on transaction limits and synchronization of fiscal years

3. Approval from the finance committee and common ledger usage

4. Sharing financial statements and inter-company agreements

The correct answer is: Assignment to a company ID and a clearing account for each pair of company codes

The correct prerequisites for setting up cross-company transactions involve the assignment to a company ID and the establishment of a clearing account for each pair of company codes. This setup is crucial because cross-company transactions involve financial activities that span multiple legal entities. Assigning a unique company ID ensures that each transaction is accurately recorded and tracked within the respective company codes involved. The clearing account serves as an intermediary account that facilitates the settlement of inter-company transactions, thereby minimizing discrepancies in financial reporting between the companies. By having a clearing account for each pair, the system can accurately reflect the mutually agreed financial arrangements and streamline the reconciliation process, ensuring that transactions between companies are accurately represented in their respective financial statements. The other options are relevant aspects of financial management but do not directly pertain to the necessary infrastructure for executing cross-company transactions in SAP Financial Accounting. For example, transaction limits and fiscal year synchronization (from another option) are important for operational efficiency and compliance but do not serve as foundational prerequisites for setting up the transaction framework.