You want to prepare a consolidated financial report for your corporate group consisting of 15 legal entities. You have 10 company codes defined in your SAP S/4HANA system in a single client. The…

Question

Options

• A1
• B5
• C15
• D10

• A
  9% (4)
• B
  73% (32)
• C
  16% (7)
• D
  2% (1)

Explanation

In SAP S/4HANA, a Company is a consolidation unit distinct from a Company Code. The 10 company codes already defined in SAP cover 10 of your 15 legal entities - those don't need separate Company definitions. However, the 5 entities living in legacy systems have no SAP representation, so you must define exactly 5 Companies in SAP S/4HANA to bring those external entities into the consolidation scope.

Why the distractors are wrong:

• A (1) - One company cannot represent 15 distinct legal entities for consolidation; each entity requires its own unit.
• C (15) - The 10 company codes already handle 10 entities; creating 15 Companies would duplicate what's already covered.
• D (10) - The 10 company codes exist as company codes, not as standalone Company objects needing to be newly defined; this answer confuses the two concepts.

Memory tip: Use the simple formula 15 total − 10 already in SAP = 5 Companies to define. Think of it as "filling the gap" - you only define Companies in SAP for the entities SAP doesn't already know about.

No community discussion yet for this question.