Oracle 1z0-1054-23 Exam With Confidence Using Practice Dumps

Intercompany System options are used to set up intercompany processing rules at the enterprise level, based on your specific business needs. They help you standardize and simplify transaction processing, minimize disputes, and reduce administrative costs. The three factors that you should consider while specifying Intercompany System options are:

• Automatic or manual batch numbering and the minimum transaction amount: These options help you control the numbering and the size of intercompany transactions. You can choose to use system generated or manual batch numbering, and you can specify a minimum threshold amount for intercompany transactions to prevent immaterial transactions. To use the minimum transaction amount option, you must also select an Intercompany currency option.
• Whether to enforce an enterprise-wide currency or allow intercompany transactions in local currencies: This option helps you manage the currency risk and the conversion rate fluctuations for intercompany transactions. You can choose to standardize transaction processing by selecting an Intercompany currency, which means that all intercompany transactions created in the Intercompany module are entered in this currency. Alternatively, you can choose to allow intercompany transactions in local currencies, which means that intercompany transactions can be entered in the ledger currency of the sender or the receiver.
• Whether to allow receivers to reject intercompany transactions: This option helps you handle the approval and dispute resolution process for intercompany transactions. You can choose to allow receivers to reject intercompanytransactions if they disagree with the sender’s information, such as the amount, the account, or the date. If you enable this option, you must also specify the rejection reason and the notification details for the sender.

References:

• Intercompany System Options
• Implementing Enterprise Structures and General Ledger
• Implement General Ledger

Here are the steps you need to follow:

• Navigate to the Setup and Maintenance work area and search for the task Manage Chart of Accounts Structures.
• Click on the Create icon to create a new Chart of Accounts Structure. Enter the following information:
• Click on the Next button to define the segments. Enter the following information for each segment:
• Click on the Next button to review the summary and click on the Save and Close button to save the Chart of Accounts Structure.
• Navigate to the Setup and Maintenance work area and search for the task Manage Chart of Accounts Structure Instances.
• Click on the Create icon to create a new Chart of Accounts Structure Instance. Enter the following information:
• Click on the Next button to review the summary and click on the Save and Close button to save the Chart of Accounts Structure Instance.

You have successfully created a Chart of Accounts Structure and Instance for the given scenario. For more information, you can refer to the following resources:

• Chart of Accounts Structures and Instances
• Chart of Accounts Components
• Minimum Steps For Financial Enterprise Structures Configuration
• Overview of Creating and Configuring Chart of Accounts Structure and Instances

You should define the default intercompany balancing rule at the legal entity level, because each ledger has one legal entity assigned to it and each legal entity is associated with one balancing segment value. This way, you can specify the intercompany receivables and payables accounts for each legal entity and ensure that the journals are balanced by legal entity or primary balancing segment values. A ledger-level rule would apply to all legal entities in the ledger, which may not be appropriate if they have different intercompany accounts. A primary balancing segment rule would apply to all ledgers that share the same chart of accounts, which may not be desirable if they have different intercompany rules. A chart of accounts rule would apply to all ledgers and legal entities that use the same chart of accounts, which may not be feasible if they have different intercompany segments or accounts. References:

• Intercompany Balancing Rules, Section: Define Intercompany Balancing Rules
• Overview of Intercompany Balancing Rules, Section: Define Intercompany Balancing Rules
• Troubleshooting Guide For Intercompany Balancing, Section: 1. Journals and subledger accounting entries are not being balanced for intercompany activity
• Implement General Ledger, Section: Intercompany Balancing