What are prerequisites for utilizing PDF-based forms in the system?

The correct choice focuses on the need to activate the business function SD_01, which is essential for enabling key sales and distribution functionalities within SAP S/4HANA. This function specifically supports the use of PDF-based forms. Along with this activation, it highlights the importance of utilizing the Form Builder tool for defining new forms, which allows for the customization and proper formatting of PDF documents.

Form Builder is a critical component in SAP that provides the necessary interface for designing and maintaining forms tailored to specific business requirements. By using Form Builder, users can define various attributes of the forms, such as layout, fields, and logic, which ensures that the generated PDF forms meet the functional needs of the organization.

The combination of activating the business function and using Form Builder is crucial because without either of these prerequisites being met, the system may not properly generate or manage PDF-based forms, leading to potential issues in documentation and customer communication processes.

In contrast, utilizing Excel for forms design is not supported within the context of SAP S/4HANA as it does not integrate directly with the system for PDF form generation. Similarly, relying solely on legacy systems for document management does not align with the current S/4HANA architecture, which encourages modern solutions for such tasks.