A company operates in a country with strict legislative requirements that requires the legal entity to
maintain its accounting data separate from other legal entities within the company. How will you
assign legal entitles during the accounting configuration?
A.
One legal entity for ALL ledgers
B.
One legal entity per primary ledger
C.
One legal entity per ledger
D.
Multiple legal entities sharing the same ledger
Explanation:
Note:
* Legal entities are discrete business units characterized by the legal environment in which they
operate. The legal environment dictates how the legal entity should perform its financial, legal, and
management reporting. Legal entities generally have the right to own property and the obligation to
comply with labor laws for their country. They also have the responsibility to account for themselves
and present financial statements and reports to company regulators, taxation authorities, and other
stakeholders according to rules specified in the relevant legislation and applicable accounting
standards. During setup, legal entities are assigned to the accounting configuration, which includes
all ledgers, primary and secondary.
* Multiple Ledgers
Accounting operations using multiple ledgers can include single or multiple applications instances.
You need multiple ledgers if one of the following is true:
/ You have companies that require different account structures to record information about
transactions and balances. For example, one company may require a six-segment account, while
another needs only a three-segment account structure.
/ You have companies that use different accounting calendars. For example, although companies
may share fiscal year calendars, your retail operations require a weekly calendar, and a monthly
calendar is required for your corporate headquarters.
/ You have companies that require different functional currencies. Consider the business activities
and reporting requirements of each company. If you must present financial statements in another
country and currency, consider the accounting principles to which you must adhere.Oracle Fusion Applications Financials Implementation Guide, Ledgers and Subledgers:
Explained