Oracle Financials Cloud: General Ledger 2017 Implementation Essentials — Question 8

Which two setups are required to ensure that the same tax is applied on both intercompany payable and intercompany receivable invoices? (Choose two.)

Answer options

• A. Intercompany system options enable use of the same tax rate code for the payable and receivable invoices.
• B. The payable options and the receivable system options should have the same tax application options.
• C. Tax for intercompany is loaded by using Create Taxable Transactions in Spreadsheet.
• D. First enter a payable transaction to calculate tax and then enter the receivable transaction.
• E. Ensure if any tax-specific rules that are defined should cover both the sales_transaction and purchase_transaction business category.
• F. 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: B, F

Explanation

Option B is correct because having the same tax application options for both payable and receivable systems ensures consistent tax calculations. Option F is also correct as it confirms that both business units must be part of the same tax regime to apply the same tax rules. The other options either do not guarantee the same tax application or are not directly related to the requirement of tax consistency between intercompany transactions.