Oracle Planning 2017 Implementation Essentials — Question 23

Which two setups are required to ensure the same tax is applied on both intercompany payable and receivable invoice?

Answer options

• A. Payable options are receivable system options should have same tax application options.
• B. Tax for inter-company is to be loaded using Create Taxable Transactions in Spreadsheet.
• C. First enter Payable transaction to calculate tax and then for Receivable Transaction.
• D. You should check if any specific rules defined should cover both Sales_transaction and purchase_transaction business category.
• E. Ensure that both the receiver and provider business units and legal entities are subscribed to the applicable tax regime on the transaction date.

Correct answer: C, E

Explanation

The correct answer includes option C, which states that you should first record the Payable transaction to calculate the tax before entering the Receivable transaction, ensuring tax consistency. Option E is also correct as it emphasizes the necessity for both business units and legal entities to be part of the applicable tax regime, which is crucial for tax application. The other options either suggest incorrect processes or do not address the requirement for tax alignment across both transactions.