Question

For which activities can you use an extension ledger?

Note: There are 2 correct answers to this question.

1) Configuration of custom fields for financial statements
2) Simulation of foreign currency valuation
3) Adjustments for consolidation purposes
4) Parallel valuation of depreciation areas

Answer 1

An extension ledger is used for the simulation of foreign currency valuation and adjustments for consolidation purposes, allowing financial simulations and adjustments without affecting the main ledger. The correct options are 2 and 3.

Step-by-step explanation:

An extension ledger in SAP is a tool that can be used for a variety of financial activities within a business. The correct uses of an extension ledger include:

• Simulation of foreign currency valuation
• Adjustments for consolidation purposes

Simulation of foreign currency valuation is when you need to anticipate the impact of currency fluctuations on your financial statements without affecting the main ledger. Consolidation adjustments are made when you want to adjust financial data from different subsidiaries or business areas to combine them into a single set of financial statements.

However, configuring custom fields for financial statements and parallel valuation of depreciation areas are not typically functions of an extension ledger. These tasks are usually handled through other functionalities within SAP.