Oracle Learning Management Cloud 2021 Implementation Essentials — Question 3

Certain suppliers that your customer regularly deals with are exempt from tax.
How should you configure tax for this?

Answer options

• A. Enable the relevant suppliers for Offset Tax and create an Offset Tax to remove the calculated tax line from these suppliers.
• B. Define a Tax Status and Rate for Exempt, define a Party Fiscal Classification of Exempt, assign it to the relevant suppliers, and write a rule to incorporate the exempt Party Fiscal Classification.
• C. Create a new Tax Regime for the Exempt tax and subscribe the exempt suppliers to the tax regime on the Configuration Options tab.
• D. Define a Tax Status and Rate for Exempt, define a Supplier Fiscal Classification of Exempt, assign it to the relevant suppliers, and write a rule to incorporate the exempt Supplier Fiscal Classification.

Correct answer: D

Explanation

The correct answer is D because it specifically involves defining a Supplier Fiscal Classification of Exempt, which directly relates to the suppliers themselves. Options A and C focus on different methods that do not specifically address the supplier classification required for tax exemption, while option B incorrectly references Party Fiscal Classification instead of Supplier Fiscal Classification.