Oracle Fusion HCM Configuration — Question 2

For XYZ Company, the Costing Allocation Flexfield structure has three segments: Company, Cost Center, and Account. One of the employees was initially costed to the 3500 cost center and his accounting entries for a non-recurring earning element were as follows:
Debit: 100. 3500.6000, Credit: 105. 1000.7000
The cost center was changed to 5000 and the RetroCosting Process was run. What will be the costing entries created by the retro costing process?

Answer options

• A. Debit: 100.5000.6000, Credit: 100.3500.6000
• B. Debit: 100.5000.6000, Credit: 105.1000.7000
• C. Debit: 100.3500.6000, Credit: 100.5000.6000
• D. Debit: 100.3500.6000, Credit: 105.1000.7000
• E. No entries will be created because the costing process has already been run for the assignment.

Correct answer: A

Explanation

The correct answer is A because when the RetroCosting Process is executed after changing the cost center, it needs to reverse the previous cost allocation and record the new allocation to the updated cost center. Options B, C, and D do not accurately reflect the necessary adjustments, and option E is incorrect as the RetroCosting Process is specifically designed to generate new entries after a cost center change.