Oracle Exam 1Z0-1054-23 Topic 1 Question 7 Discussion

Actual exam question for Oracle's 1Z0-1054-23 exam

Question #: 7
Topic #: 1

Which two statements are true about the Intercompany Reconciliation report?

AIt includes ledger balancing lines generated when the primary balancing segment value (BSV) is in balance, but either the second or third BSVs are not.

BIt can be run using an additional currency and conversion rate that converts all amounts into a common currency for comparison.

CIt displays the intercompany receivables and intercompany payables balances in summary for a period.

DYou can only drill down to the General Ledger journal and then from there to the Subledger journal entry.

EIt displays all clearing company balancing lines for a period.

Show Suggested Answer

Suggested Answer: D

According to Oracle documentation, when there is a business requirement for a subsidiary company to report to the parent company on a monthly basis with different currencies and no requirement to have daily balances, you should recommend Balance level as the data conversion level. A Balance level data conversion level enables you to translate balances from one currency to another at month-end or quarter-end for reporting purposes. A Balance level data conversion level minimizes the data stored in the reporting currency because it does not store daily balances or journal details. Therefore, option D is correct. Option A is incorrect because a Subledger level data conversion level stores daily balances and journal details in the reporting currency. Option B is incorrect because a Journal Level data conversion level stores journal details in the reporting currency. Option C is incorrect because an Adjustment only level data conversion level does not translate balances from one currency to another. Option E is incorrect because a Spreadsheet level data conversion level does not exist.

by Mariann at Apr 12, 2024, 07:46 PM

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1 years ago

Yeah, Adjustment only level makes the most sense to me too. Although, I do wonder if Balances Level might work as well, since we don't need daily balances.

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Lili

1 years ago

I agree, Balances Level could work too since we don't require daily balances.

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Lili

1 years ago

Yes, Adjustment only level would be sufficient for our needs.

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Annamae

1 years ago

I'm leaning towards Adjustment only level. That way we can just store the adjustments needed to convert the local currency to the reporting currency, right? It seems like the most efficient option given the requirements.

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Glen

1 years ago

Okay, let's think this through step-by-step. The subsidiary is in another country, so we need to consider currency conversion. And we want to minimize the data stored, so that rules out some options like Subledger or Journal Level.

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Kathryn

1 years ago

This is a tricky question. I'm not sure if I fully understand the requirements. Can we go through them again to make sure I have it right?

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