SAP Financial Accounting (SAP FI) Certified Application Associate Practice Exam

In which situation must the cost center be specified?

1. When creating a new asset type.

2. When reviewing transaction history.

3. When posting an invoice to a cost account.

4. When processing payments to vendors.

The correct answer is: When posting an invoice to a cost account.

When posting an invoice to a cost account, it is necessary to specify the cost center. This is because cost centers are fundamental components in cost accounting that allow for the tracking and management of costs associated with specific functions or departments within an organization. By assigning a cost center when posting an invoice, you ensure that the costs are allocated correctly and can be monitored for budgeting and financial reporting purposes. In contrast, the other scenarios do not require the specification of a cost center. Creating a new asset type is focused on asset management and classification rather than costs. Reviewing transaction history involves looking at past entries, where cost centers are not typically necessary for the review itself. Processing payments to vendors primarily deals with cash flow management rather than the allocation of costs, making the cost center specification irrelevant in that context. Hence, specifying a cost center is critical when posting invoices to ensure accurate tracking of expenses against the right departments or projects.