Oracle E-Business Suite R12.1: Order Management Essentials — Question 14

What is the impact of setting the profile option INV: Override Neg for Backflush = Yes?

Answer options

• A. It would not allow inventory to be driven negative.
• B. Back flush transactions would drive inventory negative.
• C. Back flush transactions would not drive inventory negative.
• D. Back flush and inventory transactions would drive inventory negative.
• E. Back flush and inventory transactions would not drive inventory negative.
• F. It would permit the driving of on-hand inventory negative for miscellaneous issue transactions.

Correct answer: B

Explanation

The correct answer is B because setting the profile option to Yes allows back flush transactions to negatively impact inventory levels. Options A, C, E, and F suggest that negative inventory cannot occur, which is incorrect under this setting, while Option D incorrectly implies that both types of transactions will impact inventory negatively, which is not specified.