1Z0-1074-21 practice question 4 of 10

If the accounting method on the Subledger Accounting method page has an assigned chart of accounts (COA), which two types of Journal entry rule sets can be used?

Full set: 79 questions
Answer options
A: Rule sets assigned to a secondary ledger with a different COA
B: Rule sets that have a mapping set to convert the accounts
C: Rule sets not associated with any chart of accounts Correct answer
D: Rule sets where the accounting rules override the method rule set
E: Rule sets that use the same chart of accounts Correct answer
Correct Answer:
C. Rule sets not associated with any chart of accounts; E. Rule sets that use the same chart of accounts
Explanation

When an accounting method is assigned a specific Chart of Accounts (COA), it becomes COA-dependent. Consequently, it can only be used with journal entry rule sets that are compatible. There are two types of compatible rule sets: those that are also assigned to the exact same COA, ensuring all segment rules and constants are valid, and those that are not assigned to any COA at all. These COA-independent rule sets are generic and can be applied within the context of any COA, including the one specified on the accounting method.

Why Incorrect

A. Rule sets assigned to a different COA are incompatible because their segment definitions and value sets would not match the accounting method's COA.
B. Mapping sets are used for transformations (e.g., for secondary ledgers) but do not change the fundamental COA assignment of the rule set itself, making it incompatible if different.
D. Overriding rules is a feature of the accounting hierarchy, not a type of rule set defined by its relationship to a COA.

References

1. Oracle Fusion Cloud Financials, Implementing Subledger Accounting, Release 21D, F38259-02, Chapter 5: Manage Accounting Methods. The section "Journal Entry Rule Sets: Explained" states, "If the accounting method is assigned a chart of accounts, you can only select journal entry rule sets that are not associated with a chart of accounts, or are associated with the same chart of accounts."

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