Oracle E-Business Suite R12.1: Order Management Essentials — Question 25

ABC Corp. has the following Organization Structure:
1) Legal Entity: A
2) Operating Units: B and C
3) Balancing Entities: 10, 20, and 30
Identify three correct statements regarding the Balancing Entity. (Choose three.)

Answer options

• A. Each Balancing Entity must balance within itself.
• B. There can be multiple Balancing Entities within an Operating Unit.
• C. Balancing Entity is the lowest postable unit in the Chart of Accounts.
• D. Balancing Entities can be automatically secured at the Legal Entity level.
• E. Balancing Entities can be secured at the Operating Unit level through Security Rules.

Correct answer: A, B, E

Explanation

The correct answers A, B, and E highlight the characteristics of Balancing Entities, such as their need to balance independently and the possibility of having multiple entities within an Operating Unit. Option C is incorrect because the Balancing Entity is not the lowest postable unit in the Chart of Accounts, and option D is not entirely accurate as securing at the Legal Entity level is not a standard practice.