Oracle Recruiting Cloud 2022 Implementation Essentials — Question 18

All of your subsidiaries can share the same ledger with their parent company and all reside on the same application instance. They do perform intercompany accounting.
What is Oracle's recommended approach to performing consolidations?

Answer options

• A. Define multiple ledgers for consolidation and report on ledger set.
• B. Use General Ledger's Balance Transfer programs to transfer subsidiary ledger balances to the parent ledger, and then enter eliminating entries as a separate balancing segment in the parent ledger.
• C. Use Oracle Hyperion Financial Management for this type of complex consolidation.
• D. Use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary. Any eliminating entries can be entered in yet another separate balancing segment.

Correct answer: B

Explanation

The correct answer is B because it outlines the specific process of transferring balances from subsidiary ledgers to the parent ledger and managing eliminating entries effectively. Option A is incorrect as it suggests defining multiple ledgers, which is not recommended in this scenario. Option C focuses on using Hyperion, which is not necessary for the described situation. Option D suggests creating separate reports for each subsidiary rather than consolidating them within the parent ledger.