Oracle Financials Cloud: Accounts Receivable 2017 Implementation Essentials — Question 11

Your customer is a global company and has multiple legal entities across countries:
- Vision China (Legal Entity 1) has a China Distribution Business Unit (BU).
- Vision US (Legal Entity 2) has a US Distribution BU.
They have the following requirements:
1. To make purchases from or sell to the other legal entities using intercompany transaction
2. To automatically determine the sold-to legal entity on a Purchase Order (PO) by using Supply Chain Financial Orchestration (SFO)
Identify three application setups in Oracle Procurement Cloud to fulfill these requirements.

Answer options

• A. Set up the default procurement business unit for Default Legal Entity in Manage Purchasing Profile Options.
• B. Set up the "Multiple Legal Entities on Order" value to "Allow" on the Configure Requisitioning Business Process page.
• C. Set up the Default Legal Entity on the Configure Requisitioning Business Process page.
• D. Define a primary route on financial orchestration flow to enforce the sold-to-legal entity on a PO.
• E. Create Profit Center BU to Party Relationships.

Correct answer: A, D, E

Explanation

The correct answers A, D, and E are essential for enabling intercompany transactions and determining the sold-to legal entity on Purchase Orders. Option A sets the foundational procurement business unit; D establishes the necessary routing in financial orchestration; and E creates the relationships required for profit centers. Options B and C do not address the specific requirements for intercompany transactions and automatically identifying sold-to legal entities.