When you set the Intercompany Account Attribute Value to Yes, which additional attribute must also be set?

Study for the Oracle FCCS Certification Test. Prepare with flashcards and multiple choice questions, each question accompanied by hints and explanations. Get ready for your exam!

Multiple Choice

When you set the Intercompany Account Attribute Value to Yes, which additional attribute must also be set?

Explanation:
When an account is marked as participating in intercompany transactions, a balancing mechanism is required for eliminations during consolidation. The Plug Account serves as that offsetting account used to absorb the reciprocal intercompany entry, enabling the system to balance intercompany transactions between entities. Therefore, after setting the Intercompany Account Attribute Value to Yes, you must also designate a Plug Account to be used for the balancing eliminations. The other options don’t provide the actual offset account needed for balancing: the Intercompany Account is the one being flagged, Is Plug Account is just a flag, and Intercompany Entity is a separate dimension, not the balancing mechanism.

When an account is marked as participating in intercompany transactions, a balancing mechanism is required for eliminations during consolidation. The Plug Account serves as that offsetting account used to absorb the reciprocal intercompany entry, enabling the system to balance intercompany transactions between entities. Therefore, after setting the Intercompany Account Attribute Value to Yes, you must also designate a Plug Account to be used for the balancing eliminations. The other options don’t provide the actual offset account needed for balancing: the Intercompany Account is the one being flagged, Is Plug Account is just a flag, and Intercompany Entity is a separate dimension, not the balancing mechanism.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy