SAP Financial Accounting (SAP FI) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the SAP Financial Accounting (SAP FI) Exam. Use flashcards and multiple choice questions with hints and explanations to enhance learning and comprehension. Prepare thoroughly for your certification test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If a cash account is in USD but local currency is EUR, what does SAP do?

Print a report for manual adjustment
Automatically evaluates and makes necessary changes
Forces a currency conversion transaction
Creates a separate cash account in EUR

The correct answer is: Automatically evaluates and makes necessary changes

When a cash account is denominated in USD while the local currency is EUR, SAP Financial Accounting automatically evaluates the situation and makes the necessary changes to address the currency discrepancy. This functionality ensures data consistency and accuracy across financial transactions. The system utilizes predefined exchange rates to convert currencies as needed when processing transactions, ensuring that all reporting and accounting entries remain coherent with the local currency standards. This automatic evaluation reduces the manual workload, streamlines financial processes, and minimizes errors that could arise from manual conversions. In contrast to other options, such as creating a separate cash account in EUR or forcing currency conversion transactions, the correct answer reflects the system's integrated capabilities to manage multiple currencies effectively within its framework. The ability to handle these conversions automatically is a key feature of SAP, facilitating smoother operations in environments with diverse currency usage.