Q: 14
Your company based in France has a permanent establishment in Switzerland where financial
statements are required by law.
Which organizational unit do you need to create for the permanent establishment in Switzerland?
Options
Discussion
A imo. Profit center and segment (B, D) confuse a lot of people but they're for internal reporting, not legal financial statements. Seen this in other SAP practice sets. Company code (A) is needed wherever you have statutory local accounting. Happy if anyone found different rules for Switzerland but pretty sure that's it.
A is right here because a company code is required whenever you need external legal reporting like separate financial statements for Switzerland. The other options are more for internal or segment reporting, not statutory. Pretty sure about this, but open to another view if I missed something.
Option A makes sense given legal reporting, especially since it's a separate establishment. A is usually the right pick for these FI scenarios.
Maybe A, since only company code supports legal financials, but not 100 percent if there's some Swiss SAP edge case.
Its A for sure. Only company code in SAP lets you handle legal/statutory financials by country.
C or A, but because the question says "required by law" for external statements, it flips to A. If this was just for internal tracking, C might make sense. Pretty sure that's the catch-legal reporting demands a company code in SAP, not a business area.
I don’t think it’s D. A is the only one that lets you meet legal/statutory reporting requirements since segments and profit centers are just for internal use. Saw a similar question on another mock.
A had something like this in a mock and it was about legal/statutory reporting needing a company code. Confident it's A here.
If Swiss law just requires external/statutory reporting, wouldn’t company code (A) be the only way? Segments and profit centers seem more for internal or management needs in SAP. Is there any scenario where a segment (D) handles legal reports or is it always company code?
B is wrong, A. fits because Swiss law needs full external financials. Profit centers and segments are just for internal tracking, so they're a trap here. Seen similar question on practice tests.
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