XYZ Company has disabled the Receivables Profile Option "AR: Disable Receivable Activity Balancing Segment*. What must be defined In order for the General Ledger Transfer process to execute without error?

When profile option ‘AR: Disable Receivable Activity Balancing Segment’ is set to No (disabled), Receivables can pass unbalanced journal entries to General Ledger. Oracle therefore requires a ledger-level suspense account so that the Transfer to GL program can post any out-of-balance amounts; without this account the transfer ends in error.

A. Gain account is used for foreign-currency gains, not for balancing segment differences.
B. Revenue account records earned revenue and is unrelated to suspense balancing.
C. Expense account tracks costs, not inter-company balancing needs.
D. Rounding account absorbs currency-rounding pennies, not whole balancing-segment imbalances.

1. Oracle E-Business Suite Receivables Implementation Guide R12.1 (Part No. E12895-02), “Profile Options – AR: Disable Receivable Activity Balancing Segment”, p. 3-37: “If this option is set to No, you must define a suspense account; otherwise Transfer to GL will fail with unbalanced journal entries.”

2. Oracle General Ledger User Guide R12.1 (Part No. B31406-05), “Suspense Journals”, p. 8-5.